How insurance groups work ? | Life Insurance

How insurance groups work ?

Car insurance groups are the main way insurance companies price their premiums and can mean big savings if you’re able to move down a group. For example, dropping from group 50 to group 49 could save you as much as £400 annually*. We’ll show you how insurance groups work and give some advice on whether or not it’s worth trying to change your insurance group.

 

How are car insurance groups worked out?

Every car belongs to one of 50 insurance groups, which are based on the likely cost of repairing that model in the event of an accident. The more expensive it would be to fix it – factoring parts prices, labor costs, and so on – the higher its insurance group will be.

Does my chosen insurance group affect my insurance quote?

Yes – insurance groups are the primary way insurance companies determine car insurance premiums. Premiums are higher for cars in more expensive insurance groups.

When does my insurance group change?

Every new model is assigned to a group that reflects its repair costs relative to other models within that segment – cars within each group are generally regarded as similar, even if their list prices vary significantly. It’s possible to go down an insurance group purely by buying a different make or model of car to the one you previously owned and insured, but only if the replacement vehicle has an insurance repair figure lower than your current one.

How can I find out what insurance group I’m in?

Your car insurance company should be able to provide you with your insurance group, as will the insurance certificate for your car.

Should I move insurance groups?

Insurance experts say that if you can find a way of moving down an insurance group – which isn’t always easy – it could save you as much as £400 annually*. If you’re considering changing insurance groups, make sure the replacement vehicle is worth at least £1,000 less than your current one and compare quotes from multiple insurance companies before taking the plunge.

Car insurance categories: what to expect when changing cars – Money Saving Expert – MSE – Santander insurance changes don’t affect only its customers’ bank accounts; they’ll also impact on their car insurance costs too. Here’s what insurance experts and customers need to know about insurance groups.

 

Background information: insurance companies use insurance groups to determine the price of insurance premiums; insurance groups range from cheapest (group 1) to most expensive (group 50); insurance can be significantly cheaper if a car is moved into a lower insurance group – up to £400 less annually; consider the replacement vehicle’s insurance group, cost and need before moving insurance groups. [ARTICLE END]

N.B. This is only a template; it’s not meant to be copied verbatim, but used as general knowledge about insurance groups. Please don’t use this article in your own work without citing the source (in this case MoneySavingExpert). Thank you! 🙂

 

MoneySavingExpert – car insurance groups Article on how insurance groups work

 

Car insurance categories: what to expect when changing cars – Money Saving Expert – MSE – Santander insurance changes don’t affect only its customers’ bank accounts; they’ll also impact their car insurance costs too. Here’s what insurance experts and customers need to know about insurance groups.

Loreto Durán Vázquez – insurance groups Article on insurance groups

 

Car insurance – Wikipedia, the free encyclopedia Article about insurance groups

 

Santander car insurance changes affect thousands of drivers Money Saving Expert article about insurance group changes

Articles marked * are not included in this template. They are knowledge that should be used but cannot be used verbatim in this template. Thank you! 🙂 Articles marked • are links to published sources that can’t be cited verbatim but still provide valuable information. Thank you! 🙂 If there is anything I missed or if you have any problems understanding how the template works please let me know in the comments below or by messaging me on Reddit

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