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Insurance Groups Explained

Getting a grasp of the car insurance group system is a good idea, even before you think about buying your dream wheels.

Cars are currently ordered into 20 different groups, mainly depending on their cost to repair in the event of a bash which, research has shown, accounts for more than half of the money claimed in accidents.

So that’s it basically; the greater the cost to repair your beloved machine, the greater they’ll ask you to pay on insurance premiums.

Okay, so that might seem harsh if you’re about to pick up your racing thoroughbred Lamborghini Murcielago, which, surprise surprise is insurance group 20. But not so unfair if you want to collect your sedate Skoda Fabia 1 (60), which comes in at group one.

Now, you might ask who decides these groups? Because you could argue that your Lamborghini is just too expensive to take out of its centrally heated, locked garage, so it should be cheaper to insure than the Skoda, which spins around the City all day. But that doesn’t wash unfortunately!

The thing about insurance companies, is that they do know a few things about cars, as they tend to foot the bill when things go wrong.

The insurance groupings are set by a happy sounding bunch called the Group Rating Panel. Members include representatives from the Lloyds Market Association and the Association of British Insurers. Meeting monthly, they recommend for each new car built to drive in the U.K. an appropriate insurance group. And they mostly use information from the Motor Insurance Repair Research Centre.

Cars are sorted into insurance groups by the Rating Panel and as said earlier, it all comes down to how expensive the particular model is to repair. It makes sense then that your performance 0 to 60 mph in three seconds roadster is going to cost more to repair than your pedestrian 0 to 60mph in ten minutes hatchback.

Things are further complicated because many insurance companies use their own insurance grouping systems to decide what risk your car involves. The Rating Panel only offer recommendations, so it’s not uncommon for insurance companies to differ on their damage cost assessments.

And, it is set to get even more complicated, as the Motor Insurance Repair Research Centre has just introduced a detailed 50-group rating system for new cars, which will run alongside the existing system. This allows them to give an extremely accurate estimate of each new model being introduced.

For example, the Skoda Fabia 1 (60) example given above, fits into category four on the 50 group insurance system.

And the information now needed to compile this larger insurance group system is greater, having to take into account not only the likely damager of the car in any given accident, but also the parts and body costs, repair and labour costs, new car values, the performance of the car and its security.

So, before you buy your car, especially if you want great value insurance deals, make sure you do a bit of research and find out the insurance groupings for the particular model you fancy. Most reputable car magazines list them alongside the car, so it couldn’t easier and might save you a mint.

Look today to find the best deals on car insurance online.

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