Car insurance groups explained

The cost of insuring a new car depends on a few different things, including which insurance group the make and model of a car falls into. Find out everything you need to know about car insurance groups and how they could impact the cost of your car insurance.

Every make and model of car on UK roads today is in a group based on everything from the engine size to the cost of replacement parts. These groups are set by the Association of British Insurers (ABI) and are numbered from 1 to 50. Determining a vehicle’s group is based on factors such as repair time and cost, performance and standard security. Cars with a lower group number are usually cheaper to insure, and those in the top end are more expensive.

While each different insurer has their own process for setting premiums, they may use the groups as a guide. The sort of things that make a difference could include a vehicle’s power, performance and cost of replacement parts.

Car insurance groups are decided by the Group Rating Panel. This panel is made up of representatives from the insurance industry, including the ABI and Lloyds Market Association.

The Group Rating Panel’s decisions are mainly based on information provided by Thatcham Research; a non-profit research centre that specialises in vehicle safety, security and repairs.

Car insurance groups can be a useful indication as to how risky a car could be to insure and whether it may cost more or less to insure.

A car in insurance group 1 may be deemed less risk than a car in insurance group 20. But it’s important to remember that the car insurance group is not the only factor considered when pricing insurance. Things like driving experience, claims history, where you live and how you use the car will also impact your premium.

To work out which insurance group a car belongs to, the panel looks at important things like:

This can be anything from how easy it is to find replacement parts, who can fit them and how long it will take. Specialist repairs, for example, can make a car more expensive to insure.

The cost of replacement parts for your vehicle can make a difference too. Researchers will price up common car parts to decide which group to place the car into. Typically, cars with cheaper parts will fall into a lower grouping.

The price of the car when it was new is taken into account as this is often a good guide of how much it would cost to replace or repair.

Cars with more powerful engines, capable of bigger speeds and acceleration, are deemed a greater risk, and that puts them in a higher group.

Does your car have standard fittings or features that lower the chances of it being stolen? Typically, cars with an alarm, immobiliser, glass etching and coded audio equipment may be assigned to a lower group.

It’s important to remember that an insurer may still apply its own ratings if it prefers. Most, however, will class cars in similar ways and will look at all this information, along with a driver's claims history and risks, to calculate a premium.

You can use Thatcham’s vehicle search to find out which group your vehicle falls into. This could be handy for working out how much insurance you may need to pay but don’t forget that things like modifications could change which category your car belongs to.

Not necessarily. The list of groups is intended to be used as a guide only, and an insurer may still apply its own ratings if it prefers.

The content on this page aims to offer an informative introduction to the subject matter but does not constitute expert financial advice specific to your own situation. All facts and figures were correct at time of publication and were compiled using a range of sources.