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A guide to how the car insurance group rating System Works
Insurance companies classify cars in order to provide the correct level
of car insurance. To do this each vehicle is assigned to a group number between 1
and 20. This means that each model can be accurately banded with cars
of similar characteristics. There can be a significant spread of groups
within a particular model range.
Nearly three quarters of all money paid out in car insurance claims
goes on repairing vehicles. The cost of spare parts and the times taken
by repairers are therefore major factors in pricing a car insurance policy.
The factors used to calculate group ratings are:
1. Damage and Parts Costs: The likely extent of damage to each car model
and the cost of the parts involved in its repair. The lower these costs,
the more likelihood there is of a lower group rating.
2. Repair Times: Longer repair times mean higher costs and the greater
likelihood of a higher group rating. Different paint finishes on modern
vehicles are an important factor. These too are taken into account.
3. Value: The prices of new cars identify the higher specification models
within a model range.
4. Body Shells: The availability of body shells (the basic frame of the
vehicle) is taken into account in insurance group ratings because they are essential
for certain accidental damage repairs.
5. Performance: Acceleration and top speed are important factors. Insurance companies
know very well, from their claims statistics, that high performance cars
often result in more frequent insurance claims.
6. Security: Security features fitted as standard equipment by motor
manufacturers can help to reduce car insurance claims costs. Such features
include high security door locks, alarm/immobilisation systems, glass
etching, coded audio equipment, locking devices for alloy wheels and
visible VIN numbers.
Note that car group ratings determined by the Association of British Insurers
are recommendations only. Individual insurerance companies, depending on their own
experience, may vary from these recommendations.
Recommended Group Ratings
The different insurance groups available range from group 1 (the lowest) to group
20 (the highest). Most family cars fall into groups 6 to 12, unless
they have high-powered engines. If you have a sports car, or high-risk
vehicle, then the group rating will be higher. So the lower the group rating,
the less your car insurance premium costs!
Some examples of group ratings:
Lower Group Cars
• The Seat Arosa ranges from groups 2 to 3.
• The Renault Clio ranges from groups 3 to 7.
• The Ford Focus ranges from groups 4 to 8.
• The VW Polo ranges from groups 3 to 10.
• The Vauxhall Astra ranges from groups 4 to 11.
• The Renault Espace ranges from groups 11 to 14.
Middle Group Cars
• The Ford Fiesta 1.6, 16v, Si is group 8.
• Citroen Saxo 1.6i VTR is group 7.
• Rover 214i 16-valve is group 6.
• Peugeot 306 1.8 XS is group 7.
Higher Group Cars
• The Audi A3 ranges from groups 9 to 18.
• Jaguar S type ranges from groups 14 to 19.
• E series ranges from groups 14 to 20.
• BMW 3 series ranges 11 to 20.
• BMW 5 series ranges from 14 to 19.
Highest Group Cars
• BMW M series are group 20.
•
Aston Martin’s are group 20.
• Audi TT ranges from 17 to 18.
• Ferraris are group 20.
•
Porsche 911’s are group 20.
Click the link for details of actual insurance
groups from A to Z who adminster or sell insurance in the
United Kingdom.
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