Wednesday , July 8 2020

Car insurance UK: Premium savings possible after lockdown by switching to smaller models

Car insurance agreements are generally cheaper for smaller models as these vehicles are considered less risky. Most car insurance firms place vehicles in an insurance group between one and 50 to determine how much to offer premiums. 

“However, there are a few things you could look into, including the car you get. Generally, smaller cars can be cheaper to insure if you’re looking to reduce costs.

“Excluding personal circumstances, an insurance rate is mainly defined by the insurance group a car is put in.

“Broadly speaking, higher performance cars top that scale, while cheaper run-arounds are lower as they’re considered less risky. 

“With smaller cars, for example, the lower the insurance group the smaller the parts such as the engine, which would be more affordable for an insurer to replace if there was an accident.”

According to GoCompare, cars which sit in the very cheapest insurance groups include the Fiat Panda Active, Toyota Aygo, Ford KA and Vauxhall Corsa. 

Popular models uc as the Fiat 500 and Ford Fiesta are also in some of the chepat insurance groups on the market. 

Highest insurance costs include models such as the Porsche Boxster, Audi TT Roadster and the Ford Mustang.

However, Mr Greening confirmed insurers will also consider vehicle performance and security when deciding premium prices. 

Motorists who opt for performance upgrades will likely see their car insurance costs increase due to the added risk of having extra power. 

This is the same for motorists buying a car, higher power models will come with higher costs due to the added risk of motorists losing control and having a crash. 

Smaller cars are also usually built with less horsepower which means they are slower while on the road. 

Mr Greening said: “But it’s not just about the price of a vehicle and the repairs an insurer will consider. 

“[They] also take into account vehicle performance, security and how safe it is, which you should always consider and do your research on to find the most suitable car for you. 

“If you usually just compare insurance, make it a habit to also check the insurance group as well as it’s worth doing.”

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