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Still confused? |
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General Car Insurance |
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Your Vehicle and It’s Insurance Rating It doesn’t take Einstein to figure that a new Porsche is going to cost more to insure than a 5 year old Ford Mondeo. But it may surprise you to know that vehicle price isn’t the main rating factor in determining your insurance premium. The key area that insurance companies consider is the power to weight ratio of a car, which gives a good indication to the performance of the vehicle. It’s not just the engine size, but the power of the vehicle in relation to its weight.
When purchasing a car you should, but may not consider the cost of replacement parts. Unless your vehicle comes with a manufactures warranty or after market warranty, you will be responsible for the cost of any new items that need replacing. Insurance companies also consider this when repairing accident damage. As the parts from many vehicles are manufactured abroad, the replacement of these can prove to be expensive, so increase your premium.
To help understand how these 2 factors affect your premium, the Association of British Insurers devised a standard rating system. This groups cars into twenty numbered categories, the higher indicates a greater level of premium. Remember to check which car insurance group yours falls into.
We’ve all heard the story that the second a new car crosses the garage forecourt it looses a third in value – which may or may not be true depending on the vehicle. But its undeniable that as a modern vehicle ages, it will depreciate. Unless you have a classic car, it may come to the stage where any loss you incur should the vehicle be damaged beyond repair would not justify the additional premium charged for comprehensive cover.
But here’s a little tip – always check your premium carefully as some insurers may charge the same, or in some cases more for TPFT rather than comprehensive! Crazy - but true!
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The Insurance Boffin E-mail: info@insuranceboffin.com Disclaimer: Any information, advert or link contained on this site does not amount to advice, suggestion or a recommendation in any manner or form. |
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The Insurance Boffin |
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