New insurance ratings for light goods vehicles

Tue 8th Sep 2015 - 6:28pm Press New insurance ratings for light goods vehicles
Benjamin

Benjamin Clarke

The Association of British Insurers have announced a change to insurance groups, starting from January 2016. The change will see the current 20 group system increased to 30 groups for Light Goods Vehicles (LGVs).

In 2009, the groups were changed in a similar fashion from 20 to 50 groups for cars and were better able to band vehicles together that had similar specifications as well as being more accurately able to recognise and reflect customisations and additional factors.

With LGV groupings receiving a similar overhaul, such things as repair costs calculations, vehicle performance and dimensions, geometric bumper assessments and parts pricing will be taken into account, as well as a simplification of the security assessment process.

This is the first change to LGV insurance ratings in over 10 years and it’s hoped that small and self-employed businesses in the heating industry will get more accurate insurance rates and will be rewarded for choosing practical, safe and low-risk vehicles.

In the current market of vehicles, only two models of LGVs are fitted with crash avoidance systems. It is hoped that the new insurance bandings will encourage car manufacturers to start to include this innovative new technology as standard, without fear of putting off buyers concerned with escalating insurance costs.

Recent research by leading independent car safety bodies has shown that Autonomous Emergency Braking (AEB) systems have led to a 38% reduction in real-world, rear end crashes. Mercedes and Volkswagen have been leading the way in installing AEB into their vehicles and it’s hoped that other leading manufacturers like Vauxhall and Ford will follow suit, particularly as AEB is a key factor in the new insurance groupings and assessments.

This should all be of great benefit to all of the installers, plumbers and employees within the heating industry, who rely so heavily on the use of LGVs to maintain the smooth running of the whole industry. Anything that rewards drivers for investing in safer vehicles is definitely approved by us and the heating industry as a whole.

Article by Benjamin Clarke

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