Calculation of Premiums
The cost of claims varies widely, depending on the risk involved. From their claims statistics car insurers can relate premiums to the degree of risk. This gives fair treatment to all policyholders.
There are four main factors in calculating private car insurance premiums. These are:
Type of Car
Cars are divided by insurers into 20 groups. The higher the group number, the higher the premium. The groups take account of factors such as the cost of body parts, the ease with which the car can be repaired, its value when new, its top speed, Its acceleration, and the degree to which h resist theft. Sports and high performance cars are more expensive to insure because statistics show that they are involved in more accidents and also that repairs are more costly than with other types of cars. They are therefore given a higher group rating than, for example, a small low-powered saloon.