Car insurance groups explained
Understanding car insurance groups and how they affect your premium can help you save money on your car insurance.
Key Takeaways
All cars in the UK are categorised into groups from 1 to 50
The lower the insurance group your car is in the cheaper it is to insure
Numbers assigned to your car insurance group reflect any additional security features of your car
You can find out which car insurance group your car is with our group checker
What are car insurance groups?
Car insurance groups are categories defined by the Association of British Insurers (ABI) and the Lloyds Market Association (LMA) that sort all cars into groups from 1 to 50. They were created to give insurers an indication as to what repair costs would be for different cars so they could assess associated risk and therefore the cost of insuring these cars.
How do car insurance groups work?
Cars are sorted into groups from 1 to 50 - the ratings are assigned by Thatcham Research, an automotive research centre. Cars in lower insurance groups are generally cheaper to insure, based on factors like its value, features and repair costs.
Car insurance groups are also divided into certain classifications using different letters, providing further information about a car’s rating and background.
What are car insurance group letters?
Each car insurance group contains a number of classifications within it, each making a certain indication about the car’s rating and background:
A: Acceptable, so the car meets the group’s standards
D: Doesn’t meet requirements for the group, which means the car has been placed in a higher group than normal
E: Exceeds requirements for the group, so it’s been placed in a lower group than normal
P: Provisional, as at the time of launch the rating system was incomplete, so only provisional data is available
U: Unacceptable, as the car falls well below security requirements and insurers may require an upgrade to security features before insuring it
G: Grey import, which means the car has been imported and will require extra checks to ensure it’s road legal
How do I check my car insurance group?
Curious about which insurance group your car falls into? You can find out what insurance group a car is in by using our handy car insurance group checker. Knowing your car's group can help you anticipate the cost of insurance and make more informed decisions when purchasing a vehicle.
Are vans sorted into insurance groups too?
Yes, vans are sorted into their own insurance groups, which work similarly to car insurance groups in that vans in lower groups as seen as less risky and therefore cheaper to insure.
What factors affect car insurance groups?
Cars are sorted into groups from 1-50 based on a number of factors, including:
Car value: The value of the car if it were in brand new condition, which often correlates with its repair costs
Repair costs: The cost of repairing the car and ordering any parts, with 23 common repair items compared
Repair time: The total amount of time it usually takes to make certain repairs
Performance: Aspects of the car’s performance on the road, including acceleration and top speed
Safety features: The presence of safety features such as Autonomous Emergency Braking (AEB) systems
Car security features: The car’s security features, such as alarms or immobilisers
What are the cheapest car insurance groups?
The cheapest cars to insure will generally be found in lower insurance groups from 1 to 10. MoneySuperMarket data shows that the average cost of insuring a car in groups 1-10 was £447.41[1] for the year, lower than any other range of insurance groups.
Vehicle insurance group | Average annual premium |
|---|---|
1-10 | £447.41[1] |
11-20 | £510.42[1] |
21-30 | £575.38[1] |
31-40 | £705.32[1] |
41-50 | £885.35[1] |
What other factors affect your car insurance premiums?
While insurers do place a lot of weight on your car and its insurance group, they also factor in a number of other details about you, such as:
Your age: Younger drivers unfortunately face higher insurance premiums than other age groups owing to their inexperience on the road and higher likelihood of being involved in an accident. Drivers aged 17-19 paid on average £1,694 a year for cover in November 2024, compared to £1,106 for those aged 20-29, and £697 for those aged 30-39.
Your location: Your postcode will also be taken into account, to assess things like crime rates and traffic that can affect your risk profile
Your occupation: Certain occupations carry higher risks than others, and insurers will also consider this when setting premiums
Your driving and claim history: If you have a history of accidents or car insurance claims, insurers will see you as a high risk of claiming again in the future, so they’ll charge more for cover. On the flip side, going without making a claim for at least a year means you start building a no-claims discount
Your policy: Fully comprehensive policies cost an average of £570 for customers in November 2024, compared to £763 for third-party only policies.* Additionally, taking out extra cover for things like modifications or personal belongings can also increase the total cost
*Based on the median annual price of car insurance policies sold through MoneySuperMarket in November 2024, with one driver who has held their licence for at least one year.
How to save on your car insurance, regardless of group
No matter which insurance group your car is in, there are a number of things you can do or consider to try and bring down the overall cost of cover:
Pay annually
While it might mean a big up front cost, the overall amount you pay will usually be less when committing to a full year of cover. Out of all fully comprehensive policies taken out in November 2024, annual policies cost an average of £570 compared to £597 for monthly cover, spread out over 12 months.*
Pay a higher excess
Volunteering a higher excess fee indicates to insurers you’ll only claim when you really need to, lowering your risk profile and therefore your premiums.
Build up a no-claims bonus
If you can go at least a year without claiming on your policy, either by driving extra carefully or paying for minor damage yourself, insurers will offer a discount on your premiums. Fully comprehensive policy holders without a no-claims discount paid on average £1,316 a year for cover - this went down to £1,075 with one year of no claims, £675 with five years, and £450 with 10 years.*
Upgrade your security
Installing alarms and immobilisers or keeping your car stored in a private garage or on a driveway helps reduce the risk of theft, so you’ll often pay less for cover.
Consider telematics
A telematics policy lets you demonstrate good driving habits to your insurer, and they’ll likely reward you with lower premiums after a while.
*Based on the median annual price of comprehensive policies sold through MoneySuperMarket in November 2024.
