So, if you're looking to save money on your car insurance premium, it's worth checking car insurance groups to see what group your vehicle is in, understand how these insurance groups are decided, and how the next car you buy will impact on your insurance price.
The Group Rating System is administered by Thatcham Research, on behalf of the Association of British Insurers (ABI).
Members of the ABI and Lloyds Market Association (LMA) make up the Group Rating Panel, which meets every month to set new car models to an insurance group.
There are 50 different car insurance groups - those in insurance group No.1 are the cheapest cars to insure while those in insurance group 50 are the most expensive.
The number of insurance groups has changed in recent years. Until 2009, the number of car insurance groups were 1-20 but this has been expanded - this means, according to Thatcham, that 'each model of car can be more accurately banded with cars of similar characteristics and therefore create a more precise Group Rating System.'
The Group Rating Panel considers a range of factors when establishing UK car insurance groups. As stated by Thatcham, the affecting factors include the following:
The costs of the parts if any repairs are needed to a car, and the likely extent of damage; lower costs will contribute to a lower group rating.
Types of cars that need longer repair times typically incur higher costs and will therefore be placed in a higher group rating.
The more expensive the car as new, the higher the cost of replacement or repair, and the higher the position it will hold in the car insurance groups list.
The Group Rating Panel studies a list of 23 common parts to 'compare one manufacturer's parts costs to another'. Lower costs likely mean a lower group rating.
Expect high performance cars - those with higher speeds and quick acceleration - to be towards the top of the car insurance groups table.
Cars with improved safety systems, such as an Autonomous Emergency Braking (AEB) system - are judged to be less likely to be involved in certain types of accident and so the insurance rating will be lower.
The structure and alignment of bumpers at the front and rear of a vehicle play an important part in protecting against damage in the event of collisions and accidents. Cars with bumpers that 'meet the insurer's criteria' can receive lower insurance ratings.
Cars with fitted security devices - including alarm systems, immobilisers and clearly visible VIN numbers - can all help to reduce insurance claims costs and contribute to lower car insurance groups. Find out ore about how to stop car thieves.
