Car Insurance Groupings Get All Shook Up

By: Andy Adams

For many years car insurance has been split into categories, 20 of them specifically which defines how much you pay for your insurance policy.? These groupings serve to define the risk that each car is which can be decided by a number of different factors such as safety rating, top speed and even where you live.? It isn't uncommon for you to see insurance categories stated in classified adverts especially if you want to market your car as cheap to run.

The current 20 category system is now being phased out to make way for a 50 category system instead; the current 20 category system will initially run alongside the new system and be phased out in the following year or so.?

The new system is likely to affect the way you pay for insurance on new and used cars, the new categories relate to how much damage a vehicle is likely to incur in a crash and how much damage it will deal out to others too.

Another factor is something that has been introduced due to the rising amount of extras and accessories that will require repairing too.? car insurance companies have realised that some cars have extra, expensive details such as air conditioning units, in-dash GPS devices and other gizmos.? In the event of a crash this is going to prove costly to replace or repair, hence now introducing a new assessment model for car insurance.

This may mean that some older or used cars are going to come down in price for insurance as they are less likely to contain expensive equipment that needs extra care, conversely more modern and higher-end cars are likely to see an increase in their policies.? The rise of urban use of 4x4s and Land Rover-like vehicles will no doubt have helped contribute to the necessity to consider the damage factors in vehicles and some analysts believe that the culture of modifying cars to go faster has led to considering the speed of vehicles when estimating policy costs.

In general the insurance quotes we've been receiving may now drop or rise and it all depends on what car we drive.

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