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Thu, 29/07/2021
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Be Wiser’s Guide To Car Insurance Groups

There are 50 car insurance groups and every car belongs to one of them. In this guide we run though everything you need to know about insurance groups to understand the cost of your insurance - and help you make a decision if you’re choosing a new car.

What Are Car Insurance Groups?

Car insurance groups are 50 categories spanning from one to 50, with insurance group one being the cheapest insurance group, and 50 being the most expensive.

Generally speaking, the more powerful, expensive and/or rare your car is, the higher the group it will be in. This is because cars in the highest groups, typically high-performance models, are deemed higher risk and are likely to cost insurers the most in claims.

How Do Car Insurance Groups Work?

Car insurance groups are decided upon by the Group Rating Panel, which includes members of the Association of British Insurers (ABI), Lloyds Market Association (LMA) and other industry experts.

This panel uses research from Thatcham, the independent testing company, to assess cars based on these criteria:

  • Price of parts: A standard list of 23 common parts is used to compare the cost of parts from manufacturers. The lower these costs, the more likely a lower group rating.
  • Repair times: Longer repair times increases the cost, resulting in a higher group rating. Types of paint finishes play a part.
  • New car values: reflecting variations in trim level and the cost of settlement in the event of a ‘total loss’.
  • The car’s value: The prices of new cars are taken into account, as they're a good guide to the cost of replacement and repair.
  • The car's performance: Insurance claims statistics show that high performance cars often result in more frequent insurance claims – therefore, acceleration and top speed are a part of this.
  • Safety: Vehicles fitted with AEB (autonomous emergency braking) systems are more likely to avoid low-speed front-to-rear accidents - which could make for a lower insurance group rating.
  • Bumper compatibility: The alignment and structure of bumpers is a factor.
  • Car security: Cars with security features, such as alarm or immobilisation systems, glass etching and high-security door locks fitted by motor manufacturers, could land in a lower insurance group.

How Do You Know Which Car Insurance Group Your Car Is?

You can use Parkers car insurance group checker or register with Thatcham Research to check which insurance group your car is in. So if you are looking at insurance groups before you purchase, this information may be helpful for your decision.
 
It’s important to remember that certain car types such as Vauxhall Corsa will come in different models, and some of these models may qualify for a lower group than others. So, take note that the exact insurance group your car will fall into will depend on trim, engine size, modifications, extras and the specific model you choose. Further, it is interesting to note that typically, electric cars may have higher insurance rates than their conventional equivalents, because they cost more than conventional cars, sustain damage more easily and cost more to repair.

How Is Car Insurance Calculated?

When you insure your car, insurers take numerous factors into consideration before setting your premiums based on the overall claim risk you represent to them. As well as the insurance group your car falls into, other areas considered include your driving experience, your claims history, where you leave your car at night, your job and your age.
 
Find out more: How Is Your Car Insurance Calculated?

How Can You Get Cheaper Car Insurance Premiums?

If your car is in a higher group and you want to reduce your car insurance premium, you could consider:

●    Volunteering to a higher voluntary excess
●    Avoiding making modifications to your car
●    Increasing your car’s security
●    Adding an experienced named driver, with few to no previous claims
●    Driving fewer miles annually, as this reduces the chances of being involved in an accident and needing to claim
●    Building up your no claims bonus 
●    Telematics or ‘black box’ insurance 

Read more: How To Make Your Car Insurance Premiums Cheaper

It is essential that you have the right insurance so that you can have peace of mind when driving. Be Wiser is a great place to start to help you find the right car insurance cover for your needs, no matter what car insurance group your vehicle falls into. Get a quote today.