Car Insurance Groups Explained

What are car insurance groups? How do insurance groups work?

Car insurance groups will have an effect on your insurance premiums so understanding what they mean can help you save money insuring your car. Every car is categorised into a group, which is mainly decided on by the ABI Group Rating System, administrated by the Association of British Insurers (but some insurers will use their own system).

The Group Rating System categorises each car by an insurance group from 1- 50, with vehicles in insurance group 1 being the cheapest to insure on those in group 50 the most expensive. The Group Rating System is also supported by the Thatcham Research group who standardise safety and security checks for vehicles. Insurance groups are a good indicator for both insurance costs and the standard of safety features on a vehicle.

The system is intended to advise insurance companies on the relative risk of private vehicles and to maintain their safety standards. They are decided on by a number of factors that go towards calculating the insurance premium of the car named on the policy. Buying cars in low insurance groups is one way to make your car insurance cheaper.