Car Insurance Groups Explained

If you are a car owner in the UK an infallible methods of lowering your annual insurance premium is by falling within a lower insurance group. Car insurance

 

groups can be boiled down to several key factors for consideration such as make, model and trim. Each new passenger car released to the UK market is assigned a number by the Group Rating Panel which is made up of members of the Association of British Insurers.

Every vehicle is placed in a car insurance group ranked from one to fifty (as opposed to the old model which only had twenty groups) with 1 being the cheapest and 50 being the most expensive high performance models. One can find the car insurance groups explained by the fact that high performance vehicles such as sports cars or luxury cars are statistically more likely to be involved in road accidents and the cost of repair to the insurer is much dearer.

How the Groups are Determined

A number of important factors are integral to determining which group a vehicle will fall under. As a rule of thumb you can assume that the larger the engine is the higher group the car will be placed in. Some of the other elements which play a significant role are the cost of spare parts if they need to be replaced, the total purchase price of the vehicle including all add-ons such as trims and finishes, your cars acceleration and top speed.

Another factor which is increasingly important are the built in security features which your vehicle has. The more secure your car is the more likely it is to fall into a lower group.

 

Although you might simply assume that smaller cars fall into the lower groups this is not always the case as “super-minis” are now capable of matching the speed and acceleration of much larger vehicles and with cutting edge parts and computers they can often be more expensive to repair then some sports cars.

Optimizing your Premiums

In order to lower your premiums car insurance companies should explain the different groups to you before you purchase a vehicle. Even if you have decided on a make a model have a careful look at the group guidelines as even seemingly trivial factors like colour and trim can make a difference to the group that the same car falls into.

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