What is the value of my car for insurance?
Getting your vehicle valued is an important task and one that could really help you when it comes to purchasing your car insurance. The reason for this is because the value of your vehicle can impact the price you pay for your car insurance. Here’s why it’s a good idea to consider working out your vehicle’s value before purchasing your insurance.
Why does your vehicle value matter
When the time comes to purchase your car insurance, insurance comparison sites will more than likely ask you to estimate the value of your car as part of the process for applying for cover. This estimated value that you enter is used to determine the level of risk. Essentially, the more expensive your car is, then more expensive repairs might be, which could then affect the price of your insurance. Although your vehicle’s value plays a huge part in determining the cost of your insurance premium, it’s important to remember that there are other factors that also play a significant role, which we’ll explore later. It’s just important to note that your vehicle’s value isn’t the be all end all if it’s not of high value.
Does my vehicle value influence my insurance group?
Your vehicle value does impact on your car’s insurance group. However, there are also many other factors that have a part to play in helping insurers to calculate the cost of your car insurance. For example, your address, occupation and driving history will also be taken into account. Age is also a factor that is taken into consideration. Let’s take a young driver as an example. Someone who is young is more likely to be affected by high insurance premiums due to their age rather than the value of their car. Statistics show that young drivers are more likely to have an accident on the road due to being young and inexperienced at driving. So no matter how much their car costs, the cost of their insurance won’t be affected the cost of their car as they themselves pose a greater risk to the road. The value of a vehicle is more likely to affect somebody who is much older and has been driving a while as statistically, they poss a lesser risk on the road. Other factors that are taken into account are as follows:
- new car values
- damage and parts cost
- car performance
- security features
- safety features
The way in which insurers calculate your insurance premium is based on groups, which range from 1 to 50, with 1 being the cheapest and 50 the most expensive. Generally, the more your car is worth, the more expensive it is to insure. If your car is a high-value car than many insurers will require additional vehicle security. Every insurer will be different and have their own rules but just as an example, some may like you to fit a tracking device. Those who have a low-value car, it doesn’t necessarily mean that your insurance will be cheaper as there are other risks associated with cheap cars. For example, the cost of old car parts and the risk of having a mechanical failure which could potentially cause an accident.
How to work out vehicle value
Before you go off comparing car insurance why not find out how much your car is worth here first. We can provide you with an instant valuation for free right here with our online car valuation tool. We’ll reach out to our network of trusted car buyers that we work with throughout the UK, to find you the best value for your vehicle. You don’t even have to enter any of your personal details to get your valuation. We’ll give it to you absolutely free of charge and you don’t have to type in your name, email or phone number! So whether you have a rough idea of how much your car is worth already or if your don’t and you’re unsure on its current value, use our online car buying comparison site today and get your free valuation. It’s as simple as that.
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