Do you know which car insurance group your vehicle belongs to? Or how it affects your car insurance premium?
Take a look at our guide to what your car's insurance group means.
What is a car insurance group?
Each month, the Association of British Insurers (ABI) holds a Group Rating Panel – where a committee of leading insurers collectively assign a rating to each new model of car built for the UK market.
Looking at factors including the price of the car and the safety features included, each car's rating determines the potential level of risk to the insurer if you were to have an accident.
Calculating your car's rating
The Group Rating Panel consider these factors when assigning a car to a particular group:
- The price of the car when new
- The cost of spare parts
- Repair costs and times
- Safety features
- The vehicle’s power and performance, including its top speed and 0-60mph acceleration time
- Security features such as alarms, immobilisers and whether it has a visible Vehicle Identification Number (VIN)
How it affects your insurance premium
As the Group rating denotes the level of risk to the insurer when covering your car, this means that the greater the risk your car poses, the more expensive your policy is likely to be.
For example, a Group 1 car has a low level of risk to insurers, where a Group 50 rating denotes high risk. In basic terms, the lower the Group rating, the less impact on your insurance premium.
However, while car insurance groups do give an indication of risk, insurance companies will also look at other factors, including your driving experience and where you live, to calculate your premium.
Keeping costs down
As a rule of thumb, choosing a car with a low insurance group rating could help reduce the value of your insurance premium. Here are a few other things you could take a look at to keep costs down.
- Beware of vehicle modifications which could increase your insurance premium
- Check your car’s road tax rating, as factors such as carbon emissions affect the amount you pay
- Check the fuel consumption – find out how many miles the car does to the gallon as it could have a big impact on your running costs
- Choose a vehicle with good security features or consider fitting additional security, such as a tracking device, to help protect your car