Getting the Best Insurance Deal

on an Expensive Car

A new insurance group system was launched in 2010 which it was claimed would make premiums more accurate.

Previously groups ranged from 1-20 (with 1 being the least expensive) and from 2010 this was expanded to 1-50.

The group insurance rating to which a car is assigned is decided upon by the Group Rating Panel, which includes representatives of the insurance industry, the Association of British Insurers (ABI) and Lloyds Market Association.

Cars are placed into groups using research conducted by the Motor Insurance Repair Research Centre (Thatcham).

There are a number of factors that determine group assignment including repairs, the cost of spare parts, the performance of the vehicle, safety features, and the price of a new model.

Insurers place particular importance on repair costs because they account for more than half of the amount paid out in motor insurance claims, according to the ABI.

However, they also consider high performance factors also as a higher risk. So your BMW or Land Rover, which can accelerate rapidly and reach high speeds, is likely to be in one of the higher group categories because it is thought by insurers to be likely to generate more expensive claims.

So when looking for the best value in Low Cost Car Insurance for such models as the Land Rover or BMW series it is worth also considering taking steps that will reduce the premium as much as you can.

Security features will be a factor, and some come as standard with the car, such as an alarm, immobiliser, glass etching and a visible Vehicle Identification number (VIN). If you have all these they reduce the chances theft and this will place the vehicle in a lower insurance group.

If your car doesn’t have these features it may be cost effective to consider adding them.

There are other cost-reducing options.

Perhaps you could choose to pay a higher excess. Perhaps you might also choose not to have the option of a courtesy car?

Paying an annual premium in total also reduces costs compared to paying monthly. Usually insurers charge interest on monthly payments.

Other possibilities are to limit the policy to named drivers, such as the owner and their partner, not including anyone under the age of 25 and, if you can, declaring a low annual mileage, but this has to be realistic or it can incur penalties if you have to make a claim.

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