Insurance Group

Car Insurance Group - What is a Car Insurance Group?
Executive Summary about insurance group by David Ackland

What is a car insurance group and how does it work?

In the United Kingdom car insurance rates are set, in part, by what car insurance group your vehicle is in. Basically a car is out into a group based on engine size and performance. There are twenty groups and a car placed in a higher group is a model that is usually a high performance vehicle.

Groups are set by Group Rating Panel, which is made up of the Association of British Insurers and Lloyds Market Association. The car insurance group ratings are largely made up of how much the average repair costs for that specific model.
If you are looking for the lowest cost car insurance buy a model classified in groups one through five.

How Do Car Insurance Groups Work?
Executive Summary about insurance group by Allison Mac

If you've ever wondered how to get lower car insurance premiums, it is important to understand how car insurance groups work and how they affect the price you pay. Your premium rates depend on which car insurance group your vehicle falls into.

High performance cars are typically in the highest group and therefore have higher premiums because they are more likely to cost insurers more in insurance claims.
The car insurance groups are strongly defined by repair cost.
• Damage and parts costs
The likelihood of damage and cost of parts for repair.
• Repair costs and times
The longer the repair time, the higher the cost. Higher cost equals higher group rating.
• New car values
Price is important especially for cost of replacement and repair.
• Car performance
Statistics show that high acceleration and top speed cars result in more frequent insurance claims.
• Car security

Good security features help reduce the risk of the car being stolen or vandalized. This can help reduce insurance claims cost and therefore put the car in a lower group.