Insurance Groupings Explained

Up until the beginning of this year cars were grouped from 1 through to 20 but now the system has been changed.

Insurance now runs from 1 through 50, with Thatcham, the insurance industry's repair research centre, saying that the old groupings were not far-reaching enough. Apparently the old system didn't take into account the multiple issues insurers face in the case of an accident or theft.

What does this mean for you or I? Little more than a practical change and in some instances a subtle change in your yearly premium, sometimes up, sometimes down.

At the low end for example, a 2007 Mazda2 has gone from group 3 to group 9 while a performance car such as the Subaru Impreza WRX STi is now 40 instead of 19.

Meanwhile there are cars though that are now cheaper to insure thanks to the change. A 2006 Ford S-Max has only climbed from 10 to 15 so expect to make a saving on your insurance.

Thatcham bases these new bandings on a variety of issues including how much the repair will cost and how long it will take to get the car back into a pre-crash state. They will also consider the cost of the car when new, the car's security levels, the pricing of its parts, the performance (i.e. how easy it is for you to crash it). Also relevant is the kind of 'image' the vehicle has in the eyes of the public and by implication potential thieves.

It may now be good idea to pay even closer attention to the insurance banding of even a smaller, lower powered car, especially if you are a younger driver on the hunt for the best deals.

Follow our five tips for driving down the cost of your car insurance:

If you don't rack up huge miles each year, tell your insurer. This can make a big difference to the quote you receive.

Younger drivers should add a family member with a clean driving record as a named driver. This will spread the risk in the insurer's mind.

Use the comparison sites to come up with a list of the best quotes. Don't be afraid to haggle on the phone - everybody else does - even with those offering the cheapest deals.

Bear in mind that the best time to phone an insurer is at the end of the month (or end of the day) when operators are keen to make a quick sale to boost their figures.

It's worth going direct to a big name insurer's website or phoning them up. Sometimes they don't allow comparison sites near their products and you may be able to hammer out a better deal one-to-one.

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