Cheapest cars to insure
With car insurance premiums set to rocket yet again, driving the wrong car could push costs up even further.
Obviously, one of the most effective ways to significantly reduce the cost of your premiums is ensure that your car is relatively inexpensive to insure.
Insurers place all cars in categories numbered 1 through 50. Less powerful cars will have a lower classification, while sports cars and expensive luxury cars will be classified much higher.
So it’s simple really. If you want cheaper insurance - don't buy expensive cars.
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The Motor Repair and Research Centre, which works closely with insurers and manufacturers, said the cost of car insurance also involves factors such as power and performance, the cost of repair and security.
Cheap cars to insure
Many dealers now offer great deals on practical smart cars in the price range of £9,000 to £15,000. All of these cars fall into the lower insurance categories, which insurers like.
Although these may not be the types of cars you were dreaming of, they will help drive down the cost of your premiums this year.
Toyota Yaris
Ford Ka
Citroen C1
Toyota Aygo
Suzuki Alto
Fiat Panda
Renault Clio
Peugot 107
VW Polo
Seat Ibiza
Nissan Pixo
As the market is currently flooded with small cars aimed at attracting the attention of buyers that are financially astute and environmentally aware, many of these cars offer lower emissions and increased power to suit your needs.
These cars are also more likely to reduce your insurance premiums as long as you do not have a terrible driving record.
The most likely reason that you will be paying less insurance for these cars is that they don't cost the insurance companies that much money when you make a claim. They are much quicker to repair as the parts are readily available and are cheaper to buy. These cars are also cheaper to write off in case of a serious accident.
Car insurance costs are at a record high, creating more misery for cash-strapped motorists. To make matters worse, you risk overpaying on your premiums or even invalidating your insurance if you don’t know your policy’s fine print inside out.
So how good is your car insurance knowledge…?
Record increases
To make matters worse for motorists, the latest data from the AA reveals car insurance car insurance premiums have risen by a shocking 40% over one year - the highest annual increase since AA records began.
Business advisory firm Deloitte believe that insurance industry losses exceeded £2 billion last year and that consumers will face increases this year to compensate.
However, Ian Crowder of the AA believes that although there will be additional hikes in car insurance premiums in 2011, they won't be as substantial as last year.
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