Car Insurance Group and Bands

Looking to buy a new car this christmas for your partner or maybe to treat yourself? If you are lucky enough to be in this position we feel it an opportune time to remind our readers of the details concerning the car group insurance ratings.

For insurance purposes, private cars are divided into groups. The car insurance group your vehicle belongs to will be a factor in calculating the motor insurance premium you pay.

In 2007, the number of insurance groups was expanded from 1-20 to 1-50. As we are fast approaching this time it is worth noting that Insurance companies have until December 2009 to migrate to the new 1-50 system.

Thatcham provide the Association of British Insurers with 70% of the information used to establish the insurance group of every private motor car registered in the UK. This information is derived from Thatcham’s assessment of a vehicle, including the ease of vehicle repair and the level of security. Thatcham now host the list of group ratings on their website on behalf of the ABI.

Specifically a vehicle’s group rating is also determined by:

1. The new car price, reflecting variations in trim level and the cost of settlement in the event of a ‘total loss’
2. Vehicle performance, both the 0-60 m.p.h. acceleration and top speed
3. Parts Pricing from a standard list of 23 parts
4. A vehicle’s security levels

Please note that insurance group ratings are purely advisory. They are used by many motor insurers as just one of the many input factors in calculating premiums. As such, they can provide a useful indicator of the likely relative cost of insuring a particular vehicle.

Insurers are not required to follow the advisory group ratings and the full cost of insurance will depend entirely on the age and status of the policy holder.