UK drivers may be hit with “more expensive” car insurance policies for one major reason, according to an expert. Tim Rodie, automotive expert at Motorpoint, stressed that drivers may forget that swapping vehicles can have a drastic impact on overall prices.
Why changing cars affects premiums
The car road users choose to insure is one of the most important factors determining costs, with some models paying much more for cover than others. Each car is placed into an insurance group, with small city cars and hatchbacks with low repair costs usually the cheapest to insure.
Speaking exclusively to the Express, Tim said: “Drivers can spend a lot of time comparing purchase prices or monthly payments but forget that changing cars can affect other costs too, such as insurance. Your next car could be more expensive to insure due to a different value, engine or specification, so don’t assume the premium will be similar to what you pay now.
“You can get an indicative insurance quote online while you’re browsing, and factor that into your overall budget before committing to part-exchanging or buying a new car.”
Which cars cost more to insure
Larger family cars, premium models and high-performance sports cars will pay more for cover due to the likelihood of higher repair costs. However, it is not an exact science, with some fast cars actually having surprisingly cheap insurance because of driver demographics and low accident volumes.
How easy a car is to repair and the price of replacement parts are taken into account, as is the overall value of models and whether any safety features are in place.
Insurance group cost breakdown
Previous research from MoneySuperMarket found that smaller cars placed in insurance groups 1-10 were likely to pay around £427.61 per year for cover. Cars in groups 11-20, considered to be standard family hatchbacks and compact SUVs, will pay slightly more, with bills sitting at £485.32 per annum.
This continues to rise, with owners likely to be paying around £544.39 if their car fits into insurance groups 21-30, £660.76 for groups 30-40 and £790.60 for groups 41 to 50.
The RAC previously said: “The cheapest types of cars to insure - and those that are included in the lower positions in the car insurance groups list - are usually models with smaller engines, low specifications and relatively inexpensive to buy from new.
“Models that are usually included in the lower car insurance groups are Hyundai i10, Volkswagen Polo, Skoda Fabia, Kia Picanto, and Toyota Aygo X.”
