What are car insurance groups?
Since 2007, all cars have been categorised into one of 50 insurance groups, with 1 being the lowest and cheapest in terms of insurance premiums.
As new cars come to market, a group of boffins get together to decide how they should be rated using, mostly, data collected by the Motor Insurance Research Repair Centre at Thatcham.
So what do they take into consideration?
You’d be forgiven for thinking it’s simply car value combined with engine capacity that determines insurance grouping, but there’s more to it than that.
Top tip: Larger engines often mean higher insurance groups and more costly insurance.
Performance and value
Insurers look at the value and performance of the car because statistics show that more powerful cars are more likely to be involved in a crash.
Security features matter too - don’t forget insurance covers you for theft as well as accidental damage.
Cost of repairs
Across all drivers, carrying out repairs accounts for a hefty 50 percent of all insurance payouts. But with young drivers, it tends to be less of a factor - especially if you choose a popular, more affordable car like those popular with our customers.
And it’s not just the cost of the parts themselves that matters; insurers also look at how badly damaged different models of car tend to get in a crash, as well as the speed of repairs. In fact they even take into account the paint finish on your car!
Now for the good news
Once you build up a few years of No Claims Discount (NCD) and a good driving record, you’ll be able to look at cars in higher insurance groups without breaking the bank.
And in the meantime, there are loads of fantastic cars in the lower insurance groups to get you started.