Car insurance groups

What are car insurance groups?

Car insurance groups are one of the ways car insurance companies work out insurance premiums. In total there are 50 insurance groups rated from 1 to 50, with 1 being the cheapest and 50 the most expensive.

Every car in the UK is part of a group, which is used to help work out your insurance costs.

How many car insurance groups are there?

There are 50 car insurance groups, and insurers place cars into groups depending on their size, value, and the cost of repairs.

Cars in lower down groups, such as 1-10, are more likely to be affordable, safe cars that are cheap to repair.

Cars in the higher-up groups will be expensive cars with bigger engines, that cost more when insurance claims are involved.

How are car insurance groups decided?

The insurance group rating panel decide which group a car goes in. The panel is made up of members of the Association of British Insurers (ABI), Lloyds Market Association (LMA) and supported by the motor insurance repair research centre, Thatcham.

The insurance group rating panel consider the following when giving a car model an insurance group:

• New car value acts as a guide to how much your car might cost to replace or repair. The more it costs, the higher the group the car will fall into
• Repair costs including labour costs are calculated to see how much it’d cost to get your car fixed and back to normal
• Safety features like autonomous emergency braking (AEB) lower the risk of colliding into another car. The less risk of an accident the lower the group
• Car bumper compatibly is assessed against the rating panel’s criteria. If the structure meets what they look for, the car will be in a lower group
• Performance with 0-60 mph acceleration time and top speed looked at. Typically, the more powerful a car the higher the group
• Average repair time as the longer the time it takes the more it’ll cost. Shorter repair times are rewarded with lower groups
• Security features such as alarms and immobilisers show your car is less likely to be broken into, so should fall into a lower group

How is car insurance calculated?

As well as the car you drive, the amount you pay for car insurance is calculated by taking the following into account:

• Age is a major consideration for car insurance prices. Younger drivers are seen as less experienced so may be more likely to be involved in a road accident. Premiums are usually high until you are 25-years old.
• Driving history and any record of previous claims or driving convictions, are likely to increase your premium price
• Occupation plays a part too as if your job is in an industry deemed risky, you’ll see higher premiums
• Location because if you live in a postcode with a higher crime rate, there may be more chance you’ll make a claim. This is reflected with higher premiums
• Type of cover you choose, despite comprehensive cover offering the most cover, it’s often the cheapest

Find out more about how car insurance is calculated.