Car Insurance Bands – If you still wondering what band your car falls in you should read this article. In this article you will learn what are car insurance bands. You`ll also discover how car insurance group ratings are determined and how to reducing the cost of high insurance bands cover. Let`s begin by discussing what are car insurance bands.
Do you know what a Car Insurance Bands Are?
Many of us get confused after told what band our car falls under with regard to car insurance. The Insurance Group Rating Panel places all vehicles into 50 insurance groups/bands, Until January 2010, vehicles had been grouped from 1 to 20. The old grouping system was replaced by a more comprehensive system that banded cars from 1 to 50, with one being the lowest and 50 being the highest and most expensive car insurance group. Group 1 vehicles will have a tendency to be cheaper, low-specification models with smaller engines. Conversely, Group 50 vehicles are high-end high-performance models like Aston Martins. The website of the insurance industry’s research organisation Thatcham has an online tool that will show your car insurance bands and security rating.
The size of your car engine is often a good indication of the band your car will be categorised in, the bigger the engine, the higher the band and consequently the more it will cost you. Other features like car security, weight, top speed, power and the price of spare parts will impact the band your car fits in. Also Different models of the same car will fall into different bands, if the one you plan to purchase falls into a higher band, there may be an alternative model of the same car that will be classed as a lower risk (the engine may be smaller in size or the top speed could be slightly lower).
How car insurance bands ratings are determined
UK cars usually have an insurance band rating, which range from one (cheapest) to 50 (most expensive). The ratings are determined by the Group Rating Panel, which is made up of members of the Associated British Insurers and Lloyds Market Association. Motor research group Thatcham provides assessments of vehicles, which guides rating decisions.
The banding system is based on the cost of replacement parts, how easy and costly a car is to repair, the new value of the car, its performance, and how secure the vehicle is against thieves. Insurers consider how much the vehicle would cost to repair in the event of a claim. They also consider how long it would take to repair, as the longer the repair takes, the higher the cost of labour will be.
So it follows that a cheaper car, with a smaller engine and good safety features, should have a lower insurance band and may be cheaper to insure. Remember too that modifications to a car made after it has left the factory, such as the fitting of alloy wheels or engine performance tweaks, can also increase insurance premiums.
Conclusion on Car Insurance Bands
Remember to check what car insurance band your car falls in before you buy. The lower the insurance band the lower the insurance premium will generally be and Do not rely on any info provided by car dealers etc – each insurer has their own banding and sometimes they will underwrite independently on vehicles within the same band. Yes they can be similar as they are usually based on very similar info but they are also influenced by the individual insurers own claims experience and appetit for the type of vehicle. If you want to be certain – get a quote. Car Insurance Bands
