Car group insurance
To know what group is your car, statistics show that the cars are classified into groups between 1 to 20 so that insurance company can offer you a more tailored policy for your particular vehicle. There are many more factors involved but the insurers tend to follow a template based on the factors like the size of the engine, age of the car, how likely it is the car to be stolen and your claim history. Another confusing reality is that insurers tend to use different scales to rate which group your car belongs and thus this is only intended as a rough guide.
Generally, groups 1 to 5 are at the lower end of the scale, because they are statistically less risky, as well as less appealing to thieves. Drivers in these groups prefer economical cars rather than performance cars where the risk is involved. Vehicles in groups 6 to 10 are still seem as economical, and generally low risk, but because of the sportier and flashier models, engines and accessories, the premiums will be allotted higher especially for younger and first time drivers.
Insurance policies on vehicles above group 10 will be more expensive to improve for young drivers, first time and student drivers. It may be necessary to look at the security of cars in this group, when you get quotes. Insuring a car in group 16-20 will be expensive no matter what, however, it is always recommended to take steps to decrease your premium.
Performance Car Insurance
Once you choose a performance car, it is essential that you choose your insurance company wisely. Unfortunately many insurance companies are unwilling to offer cover for performance vehicles. Normally the cars in 15 and above group are not road worthy and hence it will be difficult to cheap insurance quotes.
Why are performance cars expensive to Insure
Several key factors are involved, here are just a few Statistics show that higher group cars are claimed on more frequently. Cost of parts and repairs are higher Time of repair is generally longer and thus more expensive Criminals target these vehicles over their lowered group counter parts Speeding convictions will rise upon premium
Unfortunately, because of the increased risks taken by these drivers, and the insurers statistics to prove it, insuring a performance or modified car will be costly.
Young drivers in particular will find cars that have modifications are expensive or impossible to improve. Many car insurance providers are on the insurance panel that is able to quote for modified cars. Remember, in a claim, an insurer could refuse to pay a claim and even leave you uninsured in the eyes of the police if you have not disclosed modifications of our car, which includes tinted glass, alloy wheels, engine improvements such as carburetors or changes to the size and capacity of engines, performance exhaust systems and even modified interiors such as bucket seats and gear knob changes.
Clearly some of these modifications will be more expensive to insure. Some modifications like up-rated and improved brake systems you might expect to improved brake systems. You might expect to improve the risk of a car, however the reality is that all modifications generally increase the costs of car insurance for the following reasons -
The modifications might increase the value of the vehicle and then the insurer has to pay out more in the event of a claim. Modified cars often are more attractive to thieves increasing the risk of theft. Cars with performance modifications generally mean that the performance of the car is improved which can lead to more accidents.
Make sure you only get cover for what you want. Plenty of policies include free breakdown cover, legal advice. It is not really true of course, so ask for a quote without that you cannot step forward. Most companies offer an installment plan, but the interest rates can be even higher than paying by credit card, whatever the cost, dont even think about driving without insurance. At best you will get nicked before you do some damages a hefty time and six or more points on your license. Damaged caused by uninsured drives is one of the reasons we all pay so much for cover in the first place.
Third Party Only
The most basic cover commonly offered where you get nothing but the person you hit gets his car fixed and any compensation paid for. Even if the accident is due to your fault the insurance cover provides free repair and replacement.
What makes up your Premium
Your premium depends on number of things, firstly think about the cover you need. There is no point getting expensive comprehensive cover on a $500. If you crash it, chances are that the extra premium and excess mean you will have paid more than its worth. Third party insurance cover with fire and theft makes sense for the majority of family cars up to $4000. Better to have a comprehensive cover whether it is classic or expensive cars. This is the first part of any claim that you pay yourself and the insurance company pays the rest, opt for bigger excess and your premium comes down, because as mentioned above, most accidents are relatively minor. Thirdly there is the risk you pose to an insurer. Young drivers living in city with a first car, no garage, a dangerous job and spoiled license are a massive risk.
If you had an accident you must get the name and address of the people involved (Including witness). Tell your insurer as soon as possible. You will be sent a claim for which asks for details and diagrams of the accident. You should submit the claim form with correct and actual information. Your insurer contacts the other party and assesses the claims and counter claims and decides who was at fault. If it was you, they pay the other party quickly. If it was the other party they pursue their insurer until the claim is settled.