Ocak 16, 2022

INSURANCE BOAT

Convenience and Security at Your Fingertips

The Car Insurance Groups

Every person who has his own car wants to save money as much as possible with regards to getting their car insured. There are a lot of factors that could affect how much you could pay for a particular insurance and your car insurance rating group is one of the most important considerations.

These days sees the migration of the usual ratings to a much broader scheme. Instead of the groups being based from 1 to 20, they would now be based on a scheme from 1 to 50. The reason why they implemented this change is because of the increasingly growing choice list of vehicles now offered on the market.

Car Insurance Groups, how are they Calculated?

Understanding how car insurance groups are calculated could help you make the best decision about choosing your next car. When a new vehicle comes in the market world, they are already given a car insurance rating group depending on the factors.

For numerous years, most new vehicles fell to an insurance group that was rated from 1 to 20. A group1 car is perceived as the lowest risk as it would be the cheapest car insurance group to insure. Group 20 claims the highest risk and would be a prestige car costing potentially thousands to cover.

Who Calculates the Groups?

Insurance Group Rating Panel is the one who decides groups. The panel consists of members of the Lloyds Market Association (LMA) and Association of British Insurers (ABI). Around 70%of the info used by the panel to allocate a rating is based on researches by the Motor Insurance Repair Research Centre.

The panel commonly meets monthly to suggest an insurance group for each new specification passenger car.

What affects the insurance group of a vehicle?

The cost of motor car repairs accounts for more than half of all the cash paid out in motor insurance claims, this is according to the Association of British Insurers. This is the major reason why repair expenses feature strongly in how the groups are defined.