Car Insurance Information
The Group Rating System
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The Group Rating System
Insurance companies put car models into twenty groups.
This means that each model of car can be accurately banded
with cars of similar characteristics. There can be a significant
spread of groups within a particular model range.
How the System Works
Nearly three quarters of all money paid out in motor
insurance claims goes on repairing cars. The cost of spare
parts and the times taken by repairers are therefore major
factors in pricing motor insurance.
The factors used to calculate group ratings are:
Damage and Parts Costs
The likely extent of damage to each car model and the
cost of the parts involved in its repair. The lower these
costs, the more likelihood there is of a lower group rating.
Repair Times
Longer repair times mean higher costs and the greater
likelihood of a higher group rating. Different paint finishes
on modern cars are an important factor. These, too, are
taken into account.
New Car Values
The prices of new cars identify the higher specification
models within a model range.
Body Shells
The availability of body shells (the basic frame of
the car) is taken into account in group ratings because
they are essential for certain accidental damage repairs.
Performance
Acceleration and top speed are important factors. Insurance
companies know very well, from their claims statistics,
that high performance cars often result in more frequent
insurance claims.
Car Security
Security features fitted as standard equipment by motor
manufacturers can help to reduce insurance claims costs.
Such features include high security door locks, alarm/immobilisation
systems, glass etching, coded audio equipment, locking
devices for alloy wheels and visible VIN numbers.
Recommended Group Ratings
The group ratings determined by the Association of British
Insurers are recommendations only. Individual insurance
companies, depending on their own experience, may vary
from these recommendations.
Buying a Car
Motorists planning to buy a new car should check, in
motoring magazines, the insurance group rating of the
exact model they have in mind. The higher the group number
the more will be the premium.
