All about Car Insurance Groups
The cost of motor vehicle repairs accounts for over half of all the money paid out in motor insurance claims, so repair costs feature strongly in how groups are defined.
The Group Rating Panel is administered by the Motor Insurance Repair Research Centre. It meets to assign new car models to an insurance group from 1 (cheapest to insure) to 50.
Cars in lower insurance groups attract a lower insurance premium. Cars in the highest groups, typically high performance models, are likely to cost insurers the most in insurance claims.
The groups give an indication of risk to insurance companies.
Factors used to assess new cars:
Damage and parts costs – if your car has lower costs, there is increased likelihood of a lower group rating. If the insurer works out the costs of repairing your car to be quite low, your car will be in a lower group.
Repair Costs and Times – the longer the repair times the higher group rating will be. Cars in a higher insurance group will cost more to repair.
New Car Values – this is a good guide to the cost of replacement and repairs.
Parts prices – the lower the costs, the lower the group rating
Car performance– high performance cars usually translate into more frequent claims. Drivers of high performance cars are usually considered to be reckless and more likely to get into an accident.
Safety- Cars that are fitted with AEB systems will have a lower insurance rating. Airbags and a good braking system will result in lower insurance premiums.
Bumper compatibility – cars that are compatible with insurer’s criteria usually have a lower insurance rate.
Car security – by making sure that your car is fitted with standard equipment, this is considered to reduce the likelihood of you making a claim.