Before purchasing a car, whether new or second hand, it is a good idea to find out the car insurance categories or groups for models you like. Most big corporate companies like geico car insurance, provide categories or groups in detail.
If you want to buy affordable auto insurance, initially, you might want to try to buy a car with a smaller engine. A bigger engine size or a car which has a modified engine will increase the insurance premium.
A model with the smallest engine size will have both a lower premium and will be in a lower road tax band. Having a less expensive make and model will make a vast difference to the price of your insurance.
Car Insurance Groups
Every car is put into a group from twenty car insurance categories based on cost to replace, performance, repair costs, reliability and security. This is dependent upon each, engine size each model and each specification level.
Cars with bigger engines, higher specification levels and sporty additions will be in higher car insurance categories. Lower car insurance categories will include cars with less performance, lower specifications and lower repair costs.
- Group 20 is the highest insurance group and most expensive to insure. Group 20 is where you will find most sports cars.
- The cheapest cars to insure will be in the lowest insurance groups. These are likely to be the cheapest, smallest cars with small engines.
- Within the middle groups, you would generally find average size family size cars.
Safety Features Matter
The exception to the rule is that some performance cars can be classed into relatively low insurance groups. This is if they have effective security and safety devices fitted as standard by the factory. Looking at what safety and security is available will give a good idea of how high or low the insurance premium will be.
Even if you buy a vehicle that is in one of the higher car insurance categories, you can lower the insurance premium offered by considering other factors regarding where and how you keep your car.
More Ways to Save on Car Insurance Premiums
Be honest when estimating the car’s value. If you make a claim, the insurers will only pay the current market price for the car. If you overestimate the value, all you will do is increase the premium.
Selecting a restricted mileage policy can reduce the premium significantly. You will have to keep to the agreed annual mileage on your policy otherwise you may incur a penalty but this is a positive way to reduce insurance costs.
Many people think taking out fully comprehensive insurance will be a lot more expensive than third party, fire and theft. Yet, if you compare some policies, the difference between the two is not always that significant.
When applying online, there are boxes you can check or uncheck to say if you would like extra features included in your policy. Things such as legal expenses, breakdown cover and courtesy cars might not be necessary so if you uncheck these, your premium could be lower.
As a lot of car thefts happen at night, by using your garage in which to lock up your car securely could lower the premium.
Making sure your license stays points-free will make a significant difference to your premium and allows you to build up no claims bonuses. Once you have points on your license, they stay there for five years so it is worth remembering this when thinking about cheaper car insurance.
One way that some insurers will offer lower premiums, is if the policy holder contributes a higher voluntary excess in the event of a claim. Obviously, this does mean you will have to be able to afford to pay it if you do make a claim but it can save money on car insurance in the long run as long as you don’t need to claim.
By means of an online car insurance comparison website, you can quickly receive compared quotes from most of the major insurance companies. When buying insurance over the phone there are higher processing costs and so premiums tend to be higher to reflect this. By applying online, costs are kept to a minimum, saving the policy holder money.