Car driving down road whilst sun is setting


Car insurance groups

How your car's insurance group affects the premium you pay

A proportion of your car insurance premium is calculated on the type of car that you drive. Each make and model of car is assigned a car insurance group, this is done by The Group Rating Panel. These car insurance groups range from 1-50. In the majority of cases the lower the insurance group of your car the cheaper the car insurance premium.

Car insurance groups are determined based on the following:

  • The total cost of the car new and what the settlement figure would be in the event of a 'total loss' claim
  • The level of standard car security
  • The top speed of the car and the performance
  • The cost of parts from a standard list of 23 common parts
  • The cost of labour and parts to repair the car after an accident at 15kmph

It is often thought that a car with a smaller engine will be in a lower car insurance group to that of a car with a larger engine. This is not necessarily the case; car manufactures are developing smaller engineers that are more powerful to reduce emissions. All these developments mean that cars with smaller engines can be just as powerful as those with larger engines. Therefore when purchasing a new car it's worth finding out which car insurance group it falls into, as this will provide you with an indicator of how much your car insurance premium will be rather than guessing based on engine size.

Details of car insurance groups can be found on Thatcham's website.