Car Insurance Groups

Car Insurance Groups Are Not Equal

Different car insurance groups can face different challenges to securing the best, low-cost cover.

The ‘grouping’ you belong to will go a long way towards establishing your car insurance rating. Groups can be defined by age or by gender with the bad drivers in each group impacting on the good drivers in setting bottom-line policy conditions and premiums.

• Statistically speaking, the 18 to 25 year age group rate higher in the accident statistics than any other group, meaning it is more difficult to take out economical car insurance. Young drivers often turn to third party, fire, theft car insurance to keep costs down, but should weigh this up against the cost of replacing or repairing their car, especially if they own a later model car.
  Considerations that will drive premiums up for this age group include gender – sorry guys, you rate much higher than the girls on accident stats – and the make of car plus if it has been modified in any way.
  To enjoy lower premiums choose a ‘family’ car that is cheaper to repair, fit a security device and secure it at night in a locked garage.
• With a few years driving experience under their belts, plus a higher income, the 30 to 45 year olds are not only classified as a lower risk, enjoying the benefits of cheaper premiums, but can also better afford the extensive benefits of full comprehensive car insurance.
  Considerations that will drive your premiums up are a poor driving/claims history, purchasing an expensive-to-repair imported make, and allowing under-25 drivers to borrow the car.
  To enjoy lower premiums choose the nominated driver and agreed market value options plus fit a security device and house in a locked garage.
• Over 65 drivers, while once again entering the slightly higher risk car insurance group, can offset potentially higher premiums on their motor vehicle insurance with extended no-claim bonuses that reward you for years of safe driving.
  This may or may not be a time when you cut back on how much driving you do. The nominated driver option offered by many insurance companies can reduce your premium. However, as your age increases so does your perceived risk, which may impact on your premiums.

No matter which car insurance groups list you may belong to, benefits to look out for when comparing auto insurance companies include:

• Pay by the month or yearly at no extra policy fee to you*
• A minimum 14-day money-back cooling off period
• Online quotation and payment with strong Customer Service back-up if needed