What influences a car’s insurance group?
There are a lot of factors that go into a car’s insurance rating. But typically, you can expect to see hatchbacks, superminis and city runners equipped with frugal engines sitting at the lower end of the spectrum. Whilst large cars, such as SUVs and MPVs, as well as rare models and high-performance vehicles, tend to sit at the higher end.
However, the official insurance group rating panel, backed by Thatcham Research, is responsible for determining a car’s insurance bracket. The panel is made up of members of the Association of British Insurers and Lloyds Market Association. When it comes to assigning a car to a group, there’s a pretty meticulous system in place that takes into account a number of the car’s features, including:
- The price of the car as new – this gives an insight as to how costly damages or repairs will be
- The price of replacing or repairing damaged parts – cars with a high value usually sit in a higher insurance group
- Repair times – cars with a relatively straightforward and fast repair time generally sit in a lower insurance group
- Car safety features – cars fitted with advanced safety systems such as emergency braking (EAB) or a collision warning system may be placed in a lower insurance group as they are deemed less likely to be involved in an accident
- Car security equipment – having security equipment fitted can again, lower your insurance bracket as your car is deemed less likely to be stolen
- The car’s performance – vehicles with higher speeds and quick acceleration tend to be placed in a high insurance group on the basis they’re more likely to be involved in an insurance claim
- The car’s make and model – particularly rare or classic cars again, are often placed in a higher insurance band
- Bumper compatibility – even the bumpers are taken into consideration as their structure, shape, and alignment are integral to reducing damage
Every time a new car is released it gets sent to the insurance group rating panel, who will assess the car in line with the above considerations. They will also test drive each car and run controlled crashes. Thatcham Group will then allocate the car to an insurance group which for the most part, insurance companies will go off, too.
Insurance groups and used cars
Does buying a used car affect its insurance group, you ask? Good question, and you’d be forgiven for thinking that it does, considering all the other factors assessed.
However, the age of the car doesn’t actually directly influence the insurance group it’s assigned. We say directly because there is still a link between age and insurance groups. For example, older cars may not be fitted with as many safety or security features – which as we know can decrease the car’s insurance score.
Generally speaking, once the make and model of a car have been assigned an insurance group, it will remain in that group – regardless of how many owners it’s had. If you want to learn more about how car insurance groups work – our handy guide contains all the facts.
