Understanding Low Insurance Group Cars

Low insurance group cars are those which have been identified as relatively reliable, sturdy and inexpensive to repair. This rating system takes many factors into

 

account. Among them are repair costs and times, damage and parts costs, new car values, prices of parts, car performance and car security.

Cars which are ranked in lower groups carry lower premiums. These groups are designated by members of the Group Rating Panel. Its members include professionals from LMA (Lloyds Market Association) and the ABI (Association of British Insurers). Each month, this panel meets to prepare recommendations for the groupings of new vehicles. About 70 percent of the data they use during their analyses is produced by the Motor Insurance Repair Research Centre in Thatcham.

Historically, vehicles have been assigned to one of 20 groups. However, the experts at the research centre in Thatcham have recently introduced 50 groups. These additional groups are intended to assist with the more accurate classification of vehicles. While most insurers continue to use the 20-category system, some have made the shift to the 50-category system.

According to reports released by the ABI, more than half the funding which is released to cover car insurance companies claims is designated specifically to cover the costs associated with repairs to vehicles. Due to this fact, many insurers rely heavily on anticipated repair expenses and the categorization system when setting their premium levels.

 

Car security features can help lower a vehicle's category, and keep its monthly premium low. The security elements which help reduce the costs of claims, as well as their frequencies, are varied. They include visible VINs (Vehicle Identification Numbers), coded audio equipment, locking devices for wheels, glass etching, alarm systems and high-security door locks.

The rating panel also compares the prices of 23 common automotive parts across manufacturers. The lower the cost of the part, the lower the vehicle's category rating. Simple, quick repairs which can be accomplished with easily-accessed materials reduce a vehicle's rating. This includes having access to widely available paint finishes.

The cost of a new vehicle is also taken into consideration during the rating process. Experts say the cost of a new car often reflects the costs of its replacement parts. Sleek, high-performance automobiles tend to be more expensive than economical models. As a result, they are more difficult and expensive to repair. Reports from the auto industry indicate high-performance vehicles are involved in more claims than other models.

The most affordable automobiles to insure are those in group one. There are several makes and models in this category.

They include:

  • Fiat Seicento, Cinquecento and Panda
  • Citroen C2 and C1
  • Ford Ka
  • Nissan Pixo
  • Peugeot 107
  • Renault Clio
  • Skoda Fabia
  • Suzuki Alto
  • Toyota Yaris and Aygo
  • Vauxhall Corsa and Agila
  • Volkswagen Fox

Low insurance group cars tend to be relatively durable, reliable and easy to repair. These factors are the main determining elements in the group rating system. As a result, these autos generally cost less to insure.