Does vehicle value influence which insurance group my car is in?
Yes, vehicle value is one of the deciding factors that influence which insurance group your car will be put in. Insurance groups range from group 1 to 50. A vehicle in insurance group 1 is generally cheaper to insure, while 50 is the most expensive.
In setting insurance groups, the following factors are taken into account:
So, although car value is a factor, it might not be the most important one. According to the Association of British Insurers (ABI), incorporated technology in newer vehicles has pushed repair bills up by 33% in the past four years. The cost of car repairs accounts for over half of all the money paid out in motor insurance claims, so it’s safe to assume that repair costs feature strongly in how the groups are defined.