If you want to cut down on your car insurance costs, it’s worth checking which group your car falls into.

Car insurance groups are determined by the Group Rating Panel, which includes representatives from the Association of British Insurers (ABI) and Lloyds Market Association (LMA).

Understanding the Group Rating system

The Group Rating Panel, managed by Thatcham Research, places new car models into insurance groups ranging from 1 (least expensive to insure) to 50 (most costly).

Cars in the higher groups, often high-performance models, generally result in larger insurance claims.

Insurers may rely on the panel’s guidance when calculating premiums, or they might apply their own classifications. The Association of British Insurers highlights that repair costs make up over half of all payouts for motor insurance claims, making them a key factor in determining group ratings.

Thatcham Research assesses new cars based on the following criteria:

Damage and parts costs
This reflects the potential level of damage and the expense of replacement parts. The lower the cost, the more likely the car will belong to a lower insurance group.

Repair costs and duration
Longer repairs drive up costs, resulting in higher group classifications. Even the type of paint finish can influence the rating.

New car prices
The market price of new cars is considered, as it provides a good estimate of replacement or repair expenses.

Parts pricing
A set of 23 commonly used parts is analyzed to compare costs across manufacturers. Lower parts prices typically lead to lower group ratings.

Car performance
Top speed and acceleration matter. Data shows high-performance cars are linked to more frequent claims.

Safety features
Vehicles equipped with Automatic Emergency Braking (AEB) as standard receive lower ratings since AEB helps prevent low-speed collisions.

Bumper compatibility
Cars with bumpers designed to meet insurer standards qualify for lower insurance groups.

Vehicle security
Security enhancements, such as advanced door locks, alarms, immobilisers, and glass etching, contribute to reducing claims and can lower the insurance rating.