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So, what are car insurance groups and how could they affect your insurance?
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It probably won't come as a surprise to learn that you'll pay more to insure a Ferrari than a Fiesta, but there are lots of different factors affecting your car insurance...
- What is a car insurance group and how are they used to work out your premium?
- Which group does your car fall in to and why?
- How can you make sure your car insurance is as cheap as possible?
Every car is placed into an insurance group based on a few different factors...
What is a car insurance group?
Every private car in the UK is assessed and put into a 'Group' for car insurance purposes.
There are 50 different car insurance groups, with Group 1 usually being the cheapest to insure and Group 50 being the most expensive. Usually, cars in the higher groups are high performance models that are more expensive to repair. Research by Finder takes a look at which cars are in which group...
Which cars are in insurance group 1?
Here are a few examples...
Which cars are in insurance group 25?
Here are a few examples...
Which cars are in insurance group 50?
Here are a few examples...
The car insurance groups are set by the Group Rating Panel, which includes members of the Association of British Insurers and Lloyd's Market Association. Thatcham Research, the UK's automotive research centre, provides the panel with most of the information they use to establish the insurance group for every type of private car registered in the UK.
Insurance companies use the group ratings system, together with other information about your car, your personal details and driving history to work out the overall price of your car insurance.
How does the group ratings system work?
There are several factors influencing the insurance group assigned to your car:
Damage and parts cost
According to Thatcham Research, over half of all money paid out on motor insurance claims goes on repairing cars. That's why the cost of spare parts is such a major factor in pricing insurance for each car. The less likely a car is to be damaged and the lower the cost of repair, the more likely it is to be ranked lower down the group rating scale.
Repair times
The length of time it takes to repair a car and how complicated the repair is will also influence the cost of the repair and therefore the grouping.
Cost of a new car
The price of new cars is a factor as it can be a guide to the cost of replacement and repair.
Price of parts
A standard list is used to compare one manufacturer's parts with another. Lower costs can mean a lower group rating.
Performance
Fast acceleration and high speeds often result in more insurance claims, which is one reason why high performance cars are usually in the higher groups.
Safety
Cars with extra safety features, such as Autonomous Emergency Braking are less likely to be involved in low speed accidents, so this is taken into account.
Bumpers
Bumpers that meet the insurer's criteria receive a lower insurance ranking as their alignment and structure is important in reducing damage.
Security
Security features fitted as standard, such as alarm systems and wheel locks can help to reduce insurance claims and lower premiums.
Which car insurance group is my car in?
You can check which car insurance group your car belongs to with Thatcham Research. You need to log in to the My Vehicle page to access the information. This could be particularly useful when you're looking to buy a new or replacement car as it will give you some indication about the insurance costs.What else affects the price of my insurance?
At LV= it's not just what type of car you drive or the insurance grouping that determines the overall price of your car insurance. We also look at:
- Your age and driving experience
- Where you live
- When and how far you drive
- Your no claim discount
- Previous claims and convictions
- Insurance Premium Tax
- Cost of labour
- Increasing cost of personal injury claims
- Other information about your car not used in the group rating process, such as fitment of different features.
Find out more about how we calculate the costs of your insurance premium.
How can I make my car insurance cheaper?
You could choose a car in a lower insurance group to reduce your insurance cost, but there are also plenty of other ways to reduce the cost of your car insurance. Want to know more? Take a look through our smart tips for buying cheaper car insurance and the cheapest cars to insure.
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