Car insurance is one of those things that we all have to have – even if our car just sits on the driveway. Since June 2011 it has become a legal requirement to have insurance for every vehicle registered under your name, unless you have filled in a SORN application to declare it as legally off the road.
And with the ever increasing incidences of car insurance scams, the price for cover creeps up every year. Most people stay with the same insurers for years, never thinking to question the renewal when it comes up each year. This is the business model that insurers rely on. So it’s always worth your while checking that you’re not missing out on a better deal elsewhere.
The cost of your vehicle insurance depends on a number of factors, including what insurance group your car falls into – there are fifty of them in the UK. The lowest group has the cheapest insurance – economic runarounds with small engines. The highest group includes expensive sports cars with huge ticket values. They represent a greater risk of being stolen or involved in a high speed crash, and replacement and repair costs are high.
Some cars don’t always fall into the category you’d expect, though. For example, the Honda CR-V is an incredibly safe vehicle that will offer lots of protection to its driver and passengers in case of an accident, but its premium is quite high because of the damage its solid body might do to another car.
Different types of car also fall into different insurance brackets. If you drive one of the eco cars UK consumers are buying in increasing numbers, you may find it’s better to find an insurer that targets the greener customer. Often they will give discounts for cars with low carbon dioxide emissions and high fuel-efficiency. Drivers of environmentally friendly cars also benefit from lower road tax and cheaper fuel bills, so they’re in a win-win position.
But whatever vehicle you have, it’s worth shopping around for the best deal every time your renewal letter lands on your doormat.