So, if you're looking to save money on your car insurance premium, it's worth checking car insurance groups to see what group your vehicle is in, understand how these insurance groups are decided, and how the next car you buy will impact on your insurance price.
The Group Rating System
The Group Rating System is administered by Thatcham Research, on behalf of the Association of British Insurers (ABI).
Members of the ABI and Lloyds Market Association (LMA) make up the Group Rating Panel, which meets every month to set new car models to an insurance group.
There are 50 different car insurance groups - those in insurance group No.1 are the cheapest cars to insure while those in insurance group 50 are the most expensive.
The number of insurance groups has changed in recent years. Until 2009, the number of car insurance groups were 1-20 but this has been expanded - this means, according to Thatcham, that 'each model of car can be more accurately banded with cars of similar characteristics and therefore create a more precise Group Rating System.'
Car insurance group rating factors
The Group Rating Panel considers a range of factors when establishing UK car insurance groups.
Car insurance groups list
As stated by Thatcham, the affecting factors include the following:
Damage and parts costs
The costs of the parts if any repairs are needed to a car, and the likely extent of damage; lower costs will contribute to a lower group rating.
Repair times
Types of cars that need longer repair times typically incur higher costs and will therefore be placed in a higher group rating.
New car values
The more expensive the car as new, the higher the cost of replacement or repair, and the higher the position it will hold in the car insurance groups list.
Parts prices
The Group Rating Panel studies a list of 23 common parts to 'compare one manufacturer's parts costs to another'. Lower costs likely mean a lower group rating.
Performance of the car
Expect high performance cars - those with higher speeds and quick acceleration - to be towards the top of the car insurance groups table.
Car safety
Cars with improved safety systems, such as an Autonomous Emergency Braking (AEB) system - are judged to be less likely to be involved in certain types of accident and so the insurance rating will be lower.
Bumper compatibility
The structure and alignment of bumpers at the front and rear of a vehicle play an important part in protecting against damage in the event of collisions and accidents. Cars with bumpers that 'meet the insurer's criteria' can receive lower insurance ratings.
Car security
Cars with fitted security devices - including alarm systems, immobilisers and clearly visible VIN numbers - can all help to reduce insurance claims costs and contribute to lower car insurance groups. Find out ore about how to stop car thieves.
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What types of cars are the cheapest to insure?
The cheapest types of cars to insure - and those that are included in the lower positions in the car insurance groups list - are usually models with smaller engines, low specifications and relatively inexpensive to buy from new.
Models that are usually included in the lower car insurance groups are Ford Ka, Volkswagen Fox, Peugeot 107, Citroen C1 and Fiat Panda.
Find out more about the cheapest cars to insure in our guide.
Car insurance group checker
If you are looking at new cars to buy it's always useful to know which of the insurance groups a particular model belongs to.
Use the My Vehicle Search Thatcham Research tool to check car insurance groups for any model.
Car insurance groups FAQs
- What is the cheapest car to insure?
The cheapest types of cars to insure are in lower car insurance groups. They are usually models with smaller engines, low specifications and relatively inexpensive to buy from new.
Models that are usually included in the lower car insurance groups are Ford Ka, Volkswagen Fox, Peugeot 107, Citroen C1 and Fiat Panda.
Find out more about the cheapest cars to insure in our guide.
- How many car insurance groups are there?
There are 50 UK car insurance groups, with those in group 1 the cheapest cars to ensure and those in group 50 the most expensive.
- How do car insurance groups work?
Car insurance groups work by looking at a number of factors about a particular make and model of car and then placing it in a group. The number of the group should be reflected, in some way, by the price of car insurance.
- Are older cars cheaper to insure?
Older cars are not always cheaper to insure. Newer vehicles have better security and technology, making them safer to drive and harder to steal, so they can work out cheaper.
- What are Thatcham insurance groups?
Car insurance groups are sometimes known as Thatcham insurance groups, because Thatcham Research administer the insurance Group Rating System.
- Who are Thatcham research?
Thatcham Research is the company that provides most of the data and information to define a car’s insurance group. It’s Thatcham Research that administers the Group Rating system on behalf of the ABI - the Association of British Insurers.
- What is the cheapest insurance group for cars?
Group No.1 is the cheapest of the car insurance groups, however this is just one factor an insurer may use to underwrite a car insurance policy, so it doesn’t automatically mean a Group 1 car will get you the cheapest premium.
- What insurance group is my car in?
Thatcham Research has a useful car insurance group checker. Simply register for the ‘My Vehicle’ service, provide a few details - type of vehicle, manufacturer, model, range, body style and fuel type - and the group rating of your car will be revealed.
- Is insurance Group 1 high or low?
Car insurance group 1 is the cheapest of the car insurance groups - therefore you can expect to pay a lower amount than all other groups.
- What does the E mean in insurance groups?
When it comes to car insurance, category E refers to a car that has been placed in a lower insurance group because it exceeds the requirements of its previous group.
ABCs of car insurance explained
Different car insurance groups can be put into different categories. This is how insurers can estimate the risk and cost of insuring different makes and models of cars. Here is what they mean:
- A for Acceptable
- D for Doesn't meet requirements
- E for Exceeds requirements
- P for Provisional and needs an update before approval
- U for Unacceptable
- G for Grey import (approval is down to the insurer)
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