Car insurance groups

How car insurance group ratings can make a huge difference to your premiums

BuyaCar team
Mar 8, 2017

Car insurance groups are used by insurers to calculate how much they should charge for a policy.

The higher the group, the greater the risk involved in insuring a vehicle, and the higher your premium is likely to be. The rating takes into account factors including a car’s performance, repair fees and theft protection, as well as the likely cost of paying out of it is written-off.

Every version of car gets its own insurance group rating: the trim level, engine size and number of doors can all change how a car is ranked.

Choosing a car in a lower insurance group should mean that you pay less for your policy, but your premiums will also be affected by your address, age and driving history, as well as your insurer’s own calculations about the likelihood of having to pay out on a claim for the particular vehicle that you’re driving.

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Insurance groups and security ratings

Your car could be placed into any one of 50 insurance groups. Those in group 1 are seen as the lowest risk, while group 50 cars will cause your insurer sleepless nights at the thought of paying out on a claim - which will be reflected in the premium.

Your car’s insurance group can vary by ten places or more, depending on the engine that you choose and the amount of standard equipment that’s included, so it’s worth checking before you buy. There are some typical examples of how the classification system works below.

Most cars are also given a security suffix: this is a letter that identifies whether the level of theft protection, such as an alarm, or highly secure lock, is up to the expected standard. Those standards go up with the insurance groups: so a cheap group 1 city car would not be expected to have the same protection as a desirable SUV in group 30. A supercar in group 50 would need even better security. See below for a full explanation

Typical cars in insurance group 1

Volkswagen Move up! 1.0 60PS
Hyundai i10 SE

Typical cars in insurance group 10

Renault Clio Dynamique Nav dCi 90
Peugeot 208 Active PureTech 1.2 VTi 82

Typical cars in insurance group 20

Mini Countryman Cooper D
Seat Leon ST FR 1.8 TSI

Typical cars in insurance group 30

Volvo XC60 D4 R-Design Lux Nav
Range Rover Evoque eD4 SE TEch

Typical cars in insurance group 40

BMW X5 xDrive 25d M Sport
Audi A6 Avant S line 3.0TDI

Typical cars in insurance group 50

Aston Martin V12 Vantage
Mercedes AMG-GT

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Insurance group security ratings explained

  • A This indicates that a car meets the security requirement for its group
  • D It doesn’t stand for dismal but might as well do: these vehicles have been moved up an insurance group because their security doesn’t meet the minimum standard.
  • E In vehicle security, ratings don’t get much better than E: it indicates that security exceeds the requirements for this type of car, so it has been moved into a lower insurance group.
  • P This provisional rating is temporary and only issued when a car is launched before its sevurity has been fully assessed.
  • U Failing a GCSE earns a ‘U’ grade, and this letter is also for cars that flunk their security test. It's only given to cars that have an unacceptable security level. Insurers may require extra features - such as an alarm or steering lock - to be fitted.
  • G Cars imported from other outside Britain and not sold here are not assessed. Their insurance group is listed as G.


How are insurance groups calculated?

Each car’s classification is decided by the Association of British Insurer’s Group Rating system. The decision is mainly based on evidence from a company called Thatcham Research.
This is a research centre, set up by the insurance industry, which assesses the safety, security and repair costs of cars by testing them.

Thatcham says that repair costs are a major factor because they account for more than half of the value of all insurance claims, and they account for much of the data that goes into assessing an insurance group

  • Likely damage and parts required The amount of damage that is expected to be caused to each vehicle in common collisions, and the replacement parts required
  • Length of repairs The amount of labour needed to carry out repairs, including repainting in a particular finish.
  • New car values These help to estimate the costs of replacing or repairing a vehicle.
  • Prices of parts Thatcham assesses a basket of 23 common parts, so that they can be compared with those from other manufacturers
  • Acceleration and top speed Higher performance vehicles are statistically more likely to be involved in an insurance claim, so they are likely to be placed into a higher group
  • Safety features More attention is being paid to electronic systems that can help prevent accidents. Autonomous emergency braking (AEB) in particular has been shown to reduce insurance claims. Cars that have this as standard may be placed in a lower insurance group - but it won’t be reflected if it’s only available as an optional extra.
  • Bumper design and positioning The way that bumpers are fitted and their structure can make a big difference in their crash performance. Those that help to minimise damage and injuries can reduce a car’s insurance group rating
  • Security Alarms, high-security locks, immobilisers and locking systems for alloy wheels will all boost a car’s security rating.

How do insurers use insurance groups?

It’s not mandatory for insurers to calculate quotations based on a car’s insurance group, but most do take it into account. It’s combined with their own historical claims data, as well as a driver’s record - such as convictions, no claims bonus and experience - and the location of a vehicle.


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