How Do Insurance Groups Work?

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When you are looking to purchase a new car it can be helpful to know what insurance group it falls into as this helps determine how much an insurer will charge you to insure your vehicle with them.

If you are wanting to try to keep your insurance premiums down then knowing the insurance group that the car falls into before making your purchase can help.

What are car insurance groups? 

Every make and model of car belongs to one of fifty car insurance groups. These groups are set by The Group Rating Panel which is made up of members from the Association of British Insurers and the Lloyd’s Market Association.

Depending on which group your car is placed into will determine the cost of insurance. Group one being the cheapest group and group fifty being the most expensive.

Generally, the more expensive and powerful the car is, the higher the group it will be placed into. This is due to the fact that higher performance cars are more likely to have an insurance claim made against them. 

Do all insurers use these groups?

Many insurers will use these groups when calculating their premiums although they can also choose to use their own grouping system.

What factors are taken into account?

Several factors are taken into account when the panel is deciding on how to group different vehicles – 

  • New car value – The initial value of a car can be a good indicator into how much parts and repairs will cost. 
  • Car performance – The performance and top speed of a car can be a big factor when it comes to grouping. Typically high performance cars have more claims against them and will be placed into a higher group. 
  • Repair costs and times – Longer repairs time increases the cost of repairs overall. Types of paint finish are also taken into account. 
  • Parts price – A list of 23 common car parts is used to compare one manufacturer’s parts cost to another. The cars with the cheapest and more readily available parts will be placed into a lower group. 
  • Security – Features such as alarms and immobilisers have been shown to reduce insurance claims and therefore can mean a lower group rating.
  • Bumper compatibility – Yes even the structure of your bumper is taken into account. 

How does knowing this help me with my insurance premiums? 

If you are wanting to try to keep your insurance premiums down then knowing the insurance group that the car falls into before making your purchase can help. A quick and easy way to find out the grouping is by going online to My Vehicle Search with Thatcham Research. 

You will need to know the 

  • Make
  • Model
  • Year
  • Body Style
  • Fuel type
  • Engine size 

It will then show you what group the vehicle falls into. If it ranks on the lower end of the spectrum you can purchase the car knowing that your insurance premiums should overall be lower. 

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