So you’ve just passed your driving test. You might think that the biggest cost you’ll have to outlay is for a new vehicle but you’ll soon learn that insurance is going to make a big dent in your bank balance too.

The insurance industry bases its premiums on fifty ‘groups’ – one being the cheapest and fifty being the most expensive. Determining which group you fall into is based on many factors and will ultimately determine just how much you’ll be paying for your motor trade insurance or personal car insurance. But what else do you need to know about these groups?

How is your group determined?

The key factor taken into account when determining which insurance group you’ll fit into is your vehicle and most specifically how much an insurance company would be required to pay out in the event of your car becoming damaged. So things like the car’s value, its performance ability and the cost of repair and parts will be taken into account and used to decipher which group it should fit into. Certain elements can also change your car’s insurance group – many people find that adding extra features such as additional braking systems can help them drop insurance groups.

Does security also count?

According to Insuramatch, theft is one of the main reasons to claim on your car insurance. For this reason, the security of your vehicle will also be called into question when determining what group it should fit into. Vehicles with a good security rating will generally be in a lower group than those without. Expensive models – that are more likely to be a target for theft – may rank higher up the list.

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What else is taken into account in insurance premiums?

When choosing your next motor trade insurance (www.quotemetoday.co.uk/motor-trade-insurance/) or car insurance there will also be other factors aside from the band of your vehicle to think about.

Age is one of the main factors with young drivers often getting a notoriously harsh deal due to lack of experience. Any driving convictions or points will also be taken into consideration along with the nature of how you will use the car – i.e. for business – and the number of miles it will cover.

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