Car Insurance groups explained

If you’re in the market for a new car, you’ve probably got in mind a specific make and model that suits you, your lifestyle and your budget. And while ever increasing petrol prices mean most savvy motorists will at least check a car’s MPG before they buy, not everyone stops to consider how much it costs to insure, which can lead to a nasty surprise when it comes to get cover.

So if you’re looking to cut down your motoring costs, choosing the right car could make your premiums more affordable, particularly if you’re a young driver.

Of course, insurers also take a number of other factors into account, such as your age, where you live, driving experience and claims history but the make and model of car you drive is also key.

This is because insurers but the make and model of every car into one of fifty insurance groups and the general rule of thumb is, the higher the group, the more expensive the premium will be.

There’s a separate list for light commercial vehicles so if you’ve got a works van, that will be in one of twenty insurance groups.

So what factors affect which groups your car will fall into? Insurers work out policy prices based on statistical risks. That’s why younger drivers pay more for cover than more experienced motorists.

So if your car is a highly desirable make or high performance, then insurers will consider it a greater crash of theft risk and put it in a higher group. In short, that’s why a one litre Ford Fiesta costs less to insure than a three series BMW M-Sport model.

Repair costs will also have a bearing. So, if you’ve got a motor that was manufactured overseas and finding spare parts is tricky, then it’s likely your car will fall into one of the higher groups.

If however your car has an impressive range of security measures fitted as standard, this will put in in a lower groups than a similar car with fewer security features.

So if you’re looking for a car and you have a tight motoring budget, it’s worth finding out what insurance group it falls into before you buy. It could save you a packet on your premium.

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