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Car insurance groups explained

  • 22, Dec 2022
  • Read time: 8 mins

When looking to insure your car, you will come across the phrase “car insurance groups”. It can be useful to understand how these groups affect the way your premium is calculated.

Cars parked in a row.

What are car insurance groups?

Thatcham Research is an organisation that serves as the motor insurers’ research centre, helping the motor industry to remain committed to exacting safety standards, improving the safety of drivers and their passengers while also helping to keep insurance costs low.

How are car insurance groups calculated?

Insurance groups work by identifying key factors to establish which rating each car receives. These include:

  • Parts, availability and price
  • Performance
  • Repair costs
  • Price when new
  • Car safety
  • Vehicle technology

What do car insurance groups mean?

Quite simply, insurers take the information provided by Thatcham Research Centre and use it to calculate insurance premiums.

How many insurance groups are there?

There are 50 car insurance groups. Group one cars are the cheapest to insure, whereas cars in Group 50 are the most expensive.

How to find your car insurance group

It’s easy to find out what insurance group your car is in. You will need to know a few details about your car:

  • Manufacturer
  • Model
  • Age
  • Body type (e.g. 4-door)
  • Fuel type

Understanding risk will help to manage your costs

As well as how risky (based on its rating) your car is, there are other elements that affect how much insurance costs. These include your age, occupation and driving history including how many claims you have made, plus how many points you may have on your licence.

Each insurance company calculates risk differently, hence the variations in price. But understanding how these risks are calculated will place you in a much better position to begin to lower your car insurance costs in the future.

How to reduce your future car insurance premiums

There are other factors which can help reduce how much your car insurance costs. To help reduce the cost of your premium it’s worth considering:

  • Try not to modify your car unnecessarily
  • Choose as high an excess as you’re able to afford as you will have to pay this should you make a claim
  • If you’re aged 17-24 consider black box insurance
  • Reduce your annual mileage
  • Consider your daily usage

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