Car insurance groups explained

When buying a new car you will find that they will fall into a car insurance group numbered between 1 and 50. This new system replaced an earlier 1-20 grouping system, it was brought in to provide a greater differentiation between models.

The exceptions to this are kit cars, imports and conversions which may not have an assigned insurance group. In simple terms, the higher the insurance group number, the higher the risk that the insurer perceives there to be and the higher the premium you will pay.

As a rough guide you can add £30 to the cost of your comprehensive cover each time you go up an insurance group from 1 up to 15. However, higher up the scale the insurance premiums may increase at a faster rate. It is important to remember that these insurance groups are only there as a guide and that the insurance companies do not have to use them but you will find that most do.

The insurance car groups are also there to make sure the car manufacturers make their cars as secure as possible and fit effective security systems. In addition to the insurance group rating of between 1 and 50, a letter will follow this number which indicated the assessment of the security of the car. These letters denote

  • E – Exceeding the security requirement for the insurance group
  • A – Acceptable. The car meets the standard requirements.
  • P – Provisional. The assessment is incomplete at model launch date.
  • D – This rating indicates that the vehicle does not reach the standard security measures expected of a car in this insurance group.
  • U – The security of this vehicle is significantly below the requirements. This could result in a security upgrade.

Who allocates the car insurance groups?

The Insurance Group Rating Panel meets monthly to decide insurance groups for all new models, with the panel comprising of members of the Lloyds Market Association (LMA) and the Association of British Insurers (ABI). The panel allocates groups to new cars based on research by the Motor Insurance Repair Research Centre and Thatcham, the car security company.

What is important to the allocation of a car insurance group?

New car price, performance, repair costs, security levels, body shell and parts prices are all taken into account when allocating the car insurance group.

Are there any examples of cars and their insurance groups?

The Volkswagen up! falls into the lowest insurance group 1E, as do certain variants of the Chevrolet Spark. The majority of new models are given an insurance group of between 12 – 24.

For example, insurance group 12 includes models such as the Fiat 500, Hyundai i10, and Skoda Fabia. While insurance group 24 includes examples of such as the Volkswagen Golf, Audi A3, and Mazda6.

What cars fall into the highest insurance group 50?

Well, the entire Bentley and Aston Martin range for a start. An example of an individual car that falls into insurance group 50 is the BMW M5. In fact, most high performance, high value models will have an insurance group rating of 50. Including the popular BMW X5 M, Jaguar XKR, and Land Rover Range Rover 4.4 TDV8 Vogue.