Car Insurance Groups
What the group rating system means to you.
Vehicle insurance companies in the UK offer a method of rating cars of every make, model and specification for the purpose of applying the appropriate level of cover. This group rating system takes into account a range of information about the specification of every manufactured vehicle and assesses it against a scale of 1 to 20. This scale represents the relative risk to the insurer, 1 being the lowest risk and 20 being the highest and is a useful asset to any car insurance provider because a significant percentage of claim payouts in any year are concerned with car repairs and replacements.
The car insurance group rating for a given specification of vehicle is one of the factors taken into account when calculating the premium for any policy. Therefore, if you want to keep your car insurance costs down it makes sense to consider buying a vehicle with a low group rating - i.e. one that is likely to be cheaper, smaller and less powerful - as well as comparing quotes from a variety of different insurers.
The factors considered for reaching a given car’s rating are outlined below...
Amount of damage and cost of parts
An assessment is made of the probable extent of damage in regular forms of accident and the likely cost of the parts required to carry out a repair. If the unit cost of these parts is high or the design of the car model means there is complex damage with many parts involved that require replacements, then the group rating is likely to be higher.
Ease of repair
The design complexity of the bodywork and mechanical components will impact the amount of time required for mechanics to repair the car, as will the style of paint finish. The longer a repair is likely to take, the higher the costs involved and the higher the insurance group rating number will be.
New car costs
As one of the claim options many insurance companies offer is to replace a car if written-off in the first year, the cost of a replacement vehicle is an important element in establishing group ratings. It has also proved an accurate indicator of repair costs.
Body shell costs
The actual availability of various body parts (i.e. chassis and peripheral parts such as wing pressings and bumpers, etc) is important. Undue delays in obtaining parts for repairs will impact on the overall claim cost.
Performance characteristics
The acceleration and maximum speed profile of a car has a strong connection with the likelihood of it being involved in an accident, according to statistics produced within the insurance industry. Because of this, performance cars are likely to have a higher group rating.
Manufacturer-fitted car security
The security systems fitted to a vehicle as new can dramatically affect the likelihood of theft of that car. Devices fitted at the time of manufacture can vary from security coded audio systems, window etching and alloy wheel locks to high-grade alarms and door locks, vehicle immobilisers and visible vehicle identification numbers. Cars with more effective fitted security are likely to attract a lower insurance group rating.
The above factors contribute to achieving a standard car insurance group number for each make and specification of vehicle to be driven on Britain's roads. It is clear that any model of car can have a range of groups dependent upon its body type, e.g. saloon, estate, hatchback or cabriolet. Also, the fact that engine specification may vary from a standard commuting LX type to a sporty GTi could affect the car's group rating as will the question of whether a particular model is still in manufacture for parts.
The group rating for any given car is an advisory guide to the insurance industry of the risk associated with that individual vehicle. The weighting given to that rating is something that insurers are responsible for and will be considered when calculating premiums for providing quotes at any level of cover. A complete list of vehicles that have been allocated a group rating can be found here - Group Ratings
