Why the Value of your Car Affects your Insurance

Why the Value of your Car Affects your Insurance

When your car insurance is calculated, underwriters will need to work hard to try and calculate the value of your vehicle. There are a few reasons for this, but you can find out more about that below.

What should I Consider?

If you have a very expensive car then there is a high chance that your insurance provider will insist on you having security features that are well over the manufacturer’s minimum. You may also find that you have to pay a much higher excess as well, so it really is worth shopping around if you can because this can help you a lot.

Vehicle Value

Vehicle value really is one of the deciding factors when it comes to your car insurance because there are a total of 50 groups. The group you are in will ultimately decide how much you pay. 50 is the most expensive, and 1 is the cheapest. When the group is set for your car, they will take into account the safety features you have, the security features and even the car performance. The more you can increase these, the lower your band will be.

Cheaper Cars

You should never assume that just because your car is cheaper, that it isn’t worth much. A lot of people make this mistake, and there are most certainly risks when it comes to buying cheaper cars. This can include the fact that older parts are far more difficult to come by, that they are more likely to break down because of their age and even the risk of vehicle failure. When you have taken all of this into account, you can then begin to work out how to get the best deal and how to benefit the most as well.