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Insurance Groups Explained

Groups are the way insurance companies classify different makes and models of cars. Because some types of car are more of an insurance risk, there is a scale of groups which runs from 1 to 50.

Cars in the lowest groups are the cheapest to insure as they are lower risks. So, the lower the group, the lower your insurance premium is likely to be.

Because it is a scale from 1 to 50, it is easy to see where your car – or the one you are thinking of buying – fits, because you can find out easily which group it is in.

How long have there been groups?

This system first came in over 40 years ago. There were a lot fewer cars then and there were only nine different groups at the beginning. In 1992 this became 20 groups.

We have had the current system of 50 groups since 2006.

This number of groups is helpful because it makes it much easier to compare different cars and make sure they are placed in the right group.

There is a Group Rating Panel of insurance experts who meet every month to look at new models and make suggestions about what group any new model should be in.

Insurance companies base the prices of their policies on the ratings suggested.

The Panel look at a range of factors for each new model before they offer their suggestion. These factors are things like ‘would this car be difficult and expensive to fix?’, ‘how much does this car cost?’, ‘are parts going to be expensive?’, ‘is this a high performance car?’, ‘is this car easy to break into and steal?’ etc.

The answers to these questions will decide which group the car goes into. A cheaper, lower performance car that is easy to fix will be placed in a low group; an expensive, high performance car will be placed in a high group.

Low to high

Cars in the lower groups are likely to be smaller cars such as the Vauxhall Corsa and the Ford Fiesta.

These smaller cars are less expensive to run and maintain, easy to fix and parts are readily available.

They make ideal cars for new drivers and if they’re not souped-up or modified, usually fall into one of the very lowest insurance groups.

These types of cars also make excellent second cars for families. Sports cars are usually the most expensive to insure. They are designed to be driven briskly and accelerate quickly, which puts them at a higher risk of being involved in an accident.

They are also more expensive to repair and parts for them can be costly. These factors make high performance cars a big risk for insurers and that is why they are classified in the higher groups.

There are lots of websites you can use to find out which insurance group any car falls into.

If you are about to buy a car, make sure you check it out first and then you won’t get a nasty shock when you come to check out how much your insurance will cost.

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March 31, 2014

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