Car Insurance Groups Explained

Along with the massive rises in fuel costs over the past few years, drivers have also been hit with the double whammy of insurance costs rising far above the rate of inflation.

Having the correct insurance to drive your car on the road isn’t something that you can choose not to do, but you can make as much effort as possible to ensure that you are getting the best deal.

When it comes to finding the cheapest car insurance policy, you can do a lot of research online. The best way is to go and compare what each insurer has to offer. But in order to make the right choice you need to know what the variables are and a lot of this comes down to which particular ‘insurance group’ your car falls under.

Basically, the groups are numbered one to fifty and cars that are in lower insurance groups will benefit from lower premium costs. The Group Rating Panel is a business body which meets on a monthly basis to place any new UK-built passenger car in a group with other similar vehicles for the purposes of rating for insurance classification.

These groups are separated by many factors which ultimately relate to the cost of typical insurance claims to the kind of cars in each one. The performance level, engine power and style of car are all taken into account, resulting in the balance of risk assessment, which includes everything from the likelihood of your car being damaged for reasons other than accidents and the subsequent cost of repairs that would need to be made.

Security is also a major consideration, as it is with most types of insurance policy that also include cover against theft or loss. Most recent models of cars (which are generally accepted to mean those built this century) have various security features which come as standard fittings, such as sophisticated alarm and immobilisation systems. There are other aspects which can influence things too, some as small as whether or not simple additions such as locking wheel nuts for alloy wheels are used.

Of course, the cost of the car is taken into account based on the obvious fact that the price is a fair indication of what the levels of costs for replacement and repair would be, so that a brand new model driven straight off the forecourt for the first time will plainly fall into a much higher insurance group than a ten year old, second-hand vehicle.

If you want to check which category of group your own car falls into, or look up the details for a potential purchase you might be thinking of making, there are plenty of online search tools and comparison sites that will help you find the answers quickly and easily and at no cost.

The bottom line is that insurance groups for cars are fairly straightforward and if you take age, performance and desirability into account you will have a rough idea of which end of the scale any car falls into.