Reducing Premiums - Choice of VehicleThe
vehicle you decide to drive is the basic factor in determining you insurance
premium. The value of the car and performance are the two main considerations of
an insurance company in calculating the risk of insuring a specific vehicle.
Quite simply, A powerful vehicle is considered more likely to be involved in an
accident and an expensive vehicle will cost the insurance company more to
repair or replace.
Vehicles are categorised into insurance groups ranging from 1 (the cheapest to
insure) to 20 (the most expensive). Before you buy a vehicle, check carefully to
find out which group it is in. If you are thinking of buying a new vehicle,
check our list of insurance groups. You can compare it to your existing
vehicle to get a rough idea of whether your insurance costs will go up or down
but the only way to be sure is to get a few quotes before you purchase the
vehicle. Note: All insurance companies use different systems for determining
insurance groups and will vary from one company to another.
Be very careful when purchasing a vehicle that you are not buying an
imported vehicle by mistake. If the vehicle is not UK specification, you may
find it difficult and expensive the get insured.
Parts for vehicles can vary in cost significantly depending on where the car was
manufactured. Equivalent models from different manufacturers will cost different
amounts to repair and therefore insurance costs will vary.
A high performance vehicle is likely to be driven by somebody who likes to drive
fast. Although this vehicle is safer at speed than a low performance vehicle,
they are involved in more serious accidents. High performance cars are also more
valuable and are therefore more expensive to insure. If you are young and
inexperienced, insuring a performance vehicle will be a difficult and costly
If your choice of vehicle is popular amongst thieves and joy riders, it is more
likely to be stolen. This will increase the cost of cover. Some insurance
companies will not insure certain vehicles unless specific security devices have
been installed. Read our guide to car security devices.