Every car owner would like to make maximum savings on his or her car insurance premiums. There are several factors that can actually affect the amount of money that one is likely to pay in terms of premium. The rating of the car insurance group is one such factor.
The traditional kinds of ratings have moved to much broader kind of systems. The groups are now classified from one to forty which was different in the past with the classification then ranging from one to twenty. The main reason behind this change is the ever growing list of cars available in the market today.
Computation of Car Insurance Groups
Having an understanding of how the car insurance groups are computed can assist one in making an informed decision while selecting the next car to buy. Once a new car is introduced in to the market, it is issued with a car insurance group rating that depends on several factors.
For several years, a large percentage of the new cars fell under a group that was rated from 1 to 20. The group 1 car is considered as one that has got the lowest risk factor while the group twenty has the highest risk factors. This means that the group one kind of cars are the cheapest ones to insure.
Who is responsible for calculating the Groups?
When analyzing what insurance group is my car? It is important to note that there is an insurance rating panel that is responsible for calculating the groups. This panel comprises of different kinds of highly qualified and trained members.
Factors that affect the car insurance group of a car
The expenses of car repairs usually accounts for well over half of the money that is paid out in the form of motor insurance claims. This is mainly why the repair costs have a strong influence on how the groups are classified. Other factors include:
- The price of the car
- The cost of repair
- The vehicles performance
- Expenses attached to replacements of the body shell
- The security of the car