Car Insurance Groups

Car insurance groups: how they affect your premiums

The type of car you drive can have a big impact on your car insurance premiums. It will cost more to insure a Porsche, for example, than a Vauxhall.
 Why? The answer is simple: because the Porsche driver is statistically more likely to claim on his policy than the owner of the Vauxhall.

So if you want to save money on your insurance premiums, it pays to check out the car insurance group to which your vehicle has been assigned. There are 50 in total and the cars in the highest car insurance groups typically pay the highest premiums as they are considered the most risky.

Car insurance groups explained

The Group Rating Panel assigns every passenger car built to UK specifications into insurance groups according to a number of factors, using research conducted by the Motor Insurance Repair Research Centre (Thatcham). The panel meets each month and is made up of various representatives of the insurance industry, including members of the Association of British Insurers (ABI).

The cost of repairs accounts for more than half the money paid out in motor insurance claims, according to the ABI. So it's no surprise that it's a big influence on a car's rating. A car's insurance group reflects both repair times and the cost of parts. Longer repair times and pricey parts will bump a car into a higher group.

The panel also considers a car's performance. So, a car that can accelerate quickly and reach high speeds is more likely to be placed in a high group as statistics show that it is more likely to generate costly claims.

The price of a new car is another factor in its group rating. The panel also takes into account the standard security features, such as an alarm or immobiliser, glass etching and a visible Vehicle Identification Number (VIN), as they can minimise the risk of theft. 

Cars with a low group rating tend to be cheaper, low-specification models with smaller engines. The Vauxhall Corsa Energy Ecoflex, for example, is in Group 2. If you drive a Nissan Micra, it could be as low as group 5, depending on the age and model. The Renault Clio Bizu (75) is in Group 8. The rankings for Ford Fiestas vary according to the model and year, but you can typically expect the car to be in Group 6 or 8. The VW Golf Bluemotion TDI (105) is in the slightly higher Group 15. If you own an Audi A3 Quattro S Line TFSI, expect to pay more for your car cover as it is in Group 30. The Porsche 911 driver is in the top group, 50.

Check out the car insurance groups list

Before you buy a new car, it's worth checking its insurance group so that you can get some idea of the likely cost of insurance, or at least whether the premiums will be higher or lower than the premiums for your current car.

You can find details of your car's rating at Thatcham's website.

 How to cut the cost of cover for cars in high car insurance groups

Insurers do not rely solely on the car insurance groups to which vehicles have been assigned to set premiums. So there are still steps you can take to reduce the cost of cover, even if you buy a car in a high group.

Secure your car: keep your car in a locked garage overnight so it is not a target for thieves or vandals. If that's not possible, park off the street if you can, perhaps in a driveway. Also make sure your car is fitted with approved security devices.

Limit your mileage: the more miles you drive, the more likely you are to make a claim. If you can cut your mileage, you might be able to cut your premium.

Build up a no-claims discount: insurers reward careful drivers with a discount on their premiums - and the discounts can be valuable. If you don't make a claim for five consecutive years, you could knock more than 50% off your car insurance premium.

Shop around for cover: too many people stick with the same insurer at renewal. But it's easy to shop around for competitive quotes with the MoneySupermarket.com online comparison service and there are substantial savings to be had. Drivers save an average of £333 on the cost of their annual car insurance premiums by using our website.

You can read about other ways to lower the price of your policy in our car insurance tips.