How Do Car Insurance Bands Work Or What Are They?

By Patrick Cooper Posted in Car Insurance News

Shopping for car insurance can be a stressful and time consuming task, especially when people are asked what band their car falls under. Most people have not heard this term and do not know where to start looking to find the information. Read on to find out what a car insurance band is and the factors that help determine your cars insurance band.

What Are Insurance Bands

The Insurance Group Rating Panel created a rating system that places all vehicles into different insurance groups or bands. Previously there were only twenty bands, but due to all the new and different vehicles available there are now fifty different bands.

Determining Vehicle Bands

Cars are placed in different bands due to a number of different factors. A vehicle rated at band one is seen as a low risk vehicle and therefore qualifies for lower insurance costs and premiums and a band fifty rating is thought to be a higher risk and will cost more for insurance. Because the cost associated with vehicle repairs accounts for more than half the money paid out by insurance companies this is one of the most important factors in determining a vehicles insurance band. Other important factors also include the cost of a new car, cost to repair the vehicle including parts and labor, the performance of the vehicle, the cost of the body shell replacement and the cars security. If your vehicle comes with any type of standard alarm this will help reduce standard insurance claims and therefore place a lower band on your vehicle.

With these things in mind it will help you to not only determine what band your vehicle will most likely fall in but also help you make important decisions on which vehicle will be the most cost effective for you all around when you purchase a new vehicle.

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