Though insurance premiums can be a costly expense, there are affordable options for new drivers, particularly when choosing a vehicle that is classified on the lower end of the insurance groupings. Every vehicle on the market is assigned to one of the fifty (50) car insurance groupings. These groupings are set by the Group Rating Panel, which included members of the Lloyds Market Association and the Association of British Insurers. Insurers are permitted to utilise their own grouping system if they choose to do so. The vehicles cheapest to insure are assigned to insurance group 1, while cars assigned to insurance group 50 carry the most expensive insurance premiums. The factors used to consider how the panel decides to assign cars to the various insurance groups include repair costs, cost of the parts, the value of the car, the performance of the car, and car security. Insurers will use this grouping in conjunction with the driver’s experience and driving record and possibly other factors to decide the appropriate insurance premium. For new or young drivers inexpensive insurance can be hard to find without the benefit of a no-claims bonus so it helps to choose a vehicle that has a single-figure insurance grouping.
The following car models have good value and useful equipment that includes things like air-conditioning and sat-nav, but are categorised with the lowest insurance grouping.
- Hyundai i10 Hatchback – This vehicle won the 2014 Carbuyer Car of the Year award due to its excellent value it offers for the money. This car has smart looks inside and outside and provides great practical transport even for family with its five doors and class leading 252-litre boot. The 1.0 litre petrol model falls in insurance group one; the cheapest available.
- Skoda Citigo Hatchback – In a 2014 Driver Power owner satisfaction survey this car took second place, which is a great result for a vehicle costing less than £9,000. The car has a solid build quality and though the equipment levels are basic on the entry-level models it has quite low running costs, including a group one insurance classification for the 1.0 litre 59bhp model.
- SEAT Mii Hatchback – This vehicle has the same solid build quality of the Skoda, but the car has a smaller body and an engine that makes it fun and easy to drive around town. The Mii does well on the motorway with and interior that does not get overly noisy. It has great fuel economy and low CO2 emissions as well as an insurance group one classification, making the vehicle cheap to run.
So, if you decide it’s time to switch to a more affordable car remember you can sell your existing car via The Car Buying Group with ease.