If you’re looking for cheap car insurance in the UK, choosing a car in a low insurance group can help keep costs down. Here, comparison site mustard.co.uk, explains how insurance groups work and what else you can do to drive premiums even lower.
What is a car insurance group?
There are 50 insurance groups in the UK and all cars made for the British market fall into one of these groups based on:
- Car value — the pricier the car, the higher the insurance group number.
- Cost of parts and labor — the easier and cheaper it is to find parts and fix the car, the lower the insurance group.
- Performance — powerful cars which are expensive to fix are more likely to be found at the higher end of the scale.
- Safety — cars fitted with the newest safety features like autonomous emergency braking (AEB) can be found in lower insurance groups.
- Security — cars that are harder to steal also tend to be in lower insurance groups.
Car insurance groups are overseen by Thatcham Research, a not-for-profit organization that specializes in vehicle safety and security.
How do insurance groups affect car cover premiums?
The higher the insurance group, the higher you can expect car insurance premiums to be. This is because car insurance groups (also known as the group rating system) are an indication of how much a claim might be.
For instance, expensive and powerful cars are generally going to be more expensive to repair or replace, which means insurers will need to pay out more. This increased expense is reflected in higher premiums.
On the flip side, cars in low insurance groups (which cost less to buy and repair) attract lower premiums.
What are the cheapest cars to insure?
The very cheapest cars to insure are those in insurance group one. The majority of these cars are small and nippy which makes them fuel efficient and particularly suited to town and city driving.
Popular group one cars include:
- Citroën C1
- Kia Picanto
- Kia Rio
- Nissan Micra
- Skoda Fabia
- Volkswagen Polo
- Volkswagen Up
How much can you save with a low insurance group car?
Insurance group is just one of many factors that insurers consider when it comes to calculating your premium. So, while your car plays an important role in how much you end up paying, insurers will also consider:
- Your age — figures show that drivers under 25 are more likely to be involved in car accidents, as a result, young drivers pay significantly more for their car cover compared to other age groups.
- Your address — living somewhere with a higher than average crime rate increases premiums as your car is more likely to be damaged or vandalized.
- Where you park your car — the more secure your car, the less you can expect to pay so it’s ideal if you keep your car in a locked garage overnight or on a private driveway.
- Your driving history — you’ll pay more for car insurance if you have penalty points on your license.
- Number of miles you drive — a high mileage increases the risk of being involved in an accident which raises premiums
How to cut the cost of car insurance
Despite the number of reasons that affect your car insurance premiums, there are some easy ways to cut the cost, including:
- Paying for your premium annually — monthly instalments help you spread the cost but you’ll pay more overall because of added interest.
- Choosing telematics insurance — these policies calculate premiums based on the way you drive, if you drive consistently well, you could be rewarded with lower premiums.
- Increasing your voluntary excess — the figure you agree should still be affordable because you’ll need to pay your excess before a claim can go ahead.
- Building up your no claims bonus — after five years of no claims, you could save as much as 60% off your premium, so think carefully about what you claim for.
- Reducing your mileage — lowering your mileage reduces the chance of you being in an accident. If you can, try and reduce the miles you cover. If that’s not possible, try to be as accurate as you can, overestimating can mean you end up paying more than you need.
- Investing in car security — if you don’t have a garage or private driveway, you can keep your car safe by investing in a car alarm or immobilizer.
Compare car insurance quotes for the cheapest cover
Comparing quotes really is one of the most effective ways to cut the cost of car insurance and at mustard.co.uk you can save both time and money. Not only can you compare dozens of leading UK insurers, their Cheapest Price Guarantee is a promise to beat any other online quote.