Unlike other insurance, such as pet or travel household and life, car insurance is a legal requirement. Astonishingly, one in 20 drivers out on our streets are without any insurance at all which is bad news for the rest of us if we become one of their victims. The damage and loss to other innocent parties is a factor that needs to be seriously considered. Almost 70% of all money paid out in claims goes on repairing cars. If your home is burgled it affects only the householder but if you crash into another driver who may not even have fully paid up for their vehicle, then the knock on effect is far greater. The main reasons for road traffic accidents are;
- Eating whilst driving
- Talking on a mobile phone
- Tiredness
- Driving under the influence of alcohol.
The Association of British Insurers' recommendations are not written in stone and each individual insurance provider can add their own provisos according to their unique experience. That is why it is always a good idea to shop around for an insurance policy that suits your age, sex, driving history and vehicle.
The cost of spare parts and the time taken by repairers plays a major role when insurers decide how much a premium should cost. There are some deciding factors used to calculate the criteria in which group car should belong to:
1. Damage and Parts Costs: The likely extent of damage to each car model and the cost of the parts involved in its repair.
2. Repair Times: Your car made require a particular paint finish and l onger repair times mean higher costs and the greater likelihood of a higher group rating.
3. New Car Values: The prices of new cars identify the higher specification models within a model range.
4. Body Shells: With more mass produced models the availability of its body shell or basic frame, is less likely to make it harder to obtain and fit so is taken into account in group ratings because they are essential for certain accidental damage repairs.
5. Performance: High performance cars are often insured through companies specialiing in policies that reflect the racier usage of the car as well as the age of the driver. Acceleration and top speed are important factors.
6. Car Security: Security features such as alarm and immobilizers, fitted as standard equipment by motor manufacturers can help to reduce insurance claims costs.
Research by insurers has shown that a speeding conviction can on average add up to £196 to the premium. A second fine will increase the premium by 30% (£254) and a third can cause premiums to rise by a further 60% (£406).
Region |
Average Premium |
London |
£522 |
Midlands |
£358 |
South East |
£350 |
North West |
£332 |
Scotland |
£323 |
Wales |
£321 |
South West |
£304 |
