The value of your car is one of the many things that underwriters will factor into your car insurance premium. However, it’s important to know how much affect it will have so you can take it into account for your next car purchase.

Insurance groups

Let’s start by saying that every car is put into an insurance group. These groups are ordered from one (cheapest to insure) to fifty (priciest to insure) – determined by a number of factors. When underwriters set these insurance groups, they take several factors into account, these include:

  • Car value
  • Car performance
  • Safety features
  • Security features
  • Cost of repairs and parts

How much affect does my car value have?

Although car value is considered, it’s not necessarily the determining factor of your insurance group. For example, you could buy a 1990s Skoda and assume that because it is a cheaper and older model, you will get a cheaper insurance premium. However, due to the lower safety and security features as well as the difficulty to get parts would make give it a higher insurance rating.

Why is my car value important?

When you apply for car insurance you will be asked to enter the estimated value of your vehicle. It’s important that you provide an accurate estimation that is close to the price you first bought the vehicle at. Although an insurance company won’t pay this initial price back to you (in the event of your car being written off, for example) this allows them to calculate an accurate current value for them to pay back to you. If you give an inaccurate estimation you may be liable to fraud allegations and/or cancellation of your policy.

What else affects my premium?

However, it’s not just your car that affects your insurance premium. Additional factors are also taken into account such as your personal circumstances. Your driving record, car usage, gender, age, and where you live are all considered as factors that increase or decrease your risk of an accident.

The next time you’re making a car purchase, we hope that our information on car value will be helpful. Alternatively, if you’ve found the car you want to purchase and are looking for a finance plan, get in touch and we’ll be more than happy to help!

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!