Most of us have to keep a close eye on running costs when we buy a new car. Some new car deals may look attractive, but we must also look at servicing costs, road tax and fuel economy.
Depreciation also plays a big part, but for younger drivers one factor can stand out against all the others when it comes to motoring expenses. That factor is car insurance. Research from Confused.com tells us that drivers aged 20 years and under pay an average of £2,000 for their policy, which can make a huge dent in anyone’s budget. Clearly then, when a young person decides to buy a new car, they must understand how the cost of their insurance premium will be calculated.
Understanding Insurance Groups
The insurance industry assesses each car on the market in the UK and assigns it to an insurance group. These are numbered 1 to 50. As a rule, the lower the insurance group is, then the cheaper that car will be to insure, so a car belonging to group 1 should offer the best chance of getting the lowest possible car insurance. Cars in group 1 also tend to be small, cheap, clean and frugal with fuel, so concentrating your efforts here can be a good all-round strategy when it comes to keeping motoring costs to a minimum. When allocating an insurance group, the industry looks at a number of factors, including the cost of the car, cost of parts and repairs and how powerful it is, with less powerful cars traditionally less likely to be involved in accidents.
Insurance Group 1 Cars
Cars belonging to the cheapest insurance group include the Chevrolet Spark. This is a compact city car with seating for five adults and decent economy.
The Kia Rio Air is another example, with five doors, lots of luggage space and low CO2 emissions.
The Renault Twingo is another group 1 car and features innovative design and seats that fold flat to create a surprisingly large load space.
The Vauxhall Corsa is one of the UK’s best-selling cars and a sophisticated supermini with excellent road manners.
The Hyundai i10 was voted Best City Car for 2014 at the Car of the Year Awards and has a great infotainment system, while the VW Up offers that renowned VW build quality and prestige in a compact city car.
Other Ways to Keep Insurance Costs Down
Choosing a car in a low insurance group is an important way to keep insurance costs down, but there are other things young drivers can do to save money. These include agreeing to have a monitoring device fitted to assess driving habits and also accepting night-time curfews. Parking the car off-road or securely locked in a garage overnight will also save money, as will informing the insurance company that the driver will cover less than the average mileage. By following these simple tips, the young driver can make sure that cheap new car deals stay cheap when it comes to ongoing costs.
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