How to Calculate Car Insurance Groups
The Money-Saving Guide for UK Drivers
Car insurance groups are being used to determine how much you pay for your annual premium, yet most UK drivers aren't aware of their vehicle's group.
The groups are numbered from 1 to 50, with lower groups typically being cheaper to insure. Your premium is being calculated based on factors like repair costs, parts prices, performance and security features.
What Are Car Insurance Groups and Why They Matter
The ABI Group Rating system is being used by insurers to evaluate vehicles. Higher groups can mean significantly higher premiums:
Insurance Group
Average Premium.
Groups 1-10. £440.22
Groups 11-20 £522.97
Groups 31-40. £776.48
Groups 41-50. £1,004.77
Whilst insurers are guided by these groups, they aren't bound by them. Each insurer's judgement is being influenced by their own data and experience. Some vehicles may be charged higher premiums despite their group rating, particularly those favoured by "boy racers".
The 1 to 50 group scale explained
The grouping system was expanded from 1-20 to 1-50 in 2009 for more precise classification. Every UK vehicle is being assigned to one of these groups based on over 100 data points. Groups 1-10 include smaller, economical cars, whilst group 50 comprises luxury vehicles.
The expansion to 50 groups is being used to better distinguish between specifications within model ranges. Higher-performance or costlier versions are being placed in higher groups, resulting in increased insurance costs.
From September 2024, newly registered vehicles will be assessed under a Vehicle Risk Rating (VRR) system, whilst existing cars remain under the 1-50 system. The VRR will be rated from 1-100 across five categories.
How Insurance Groups Are Calculated in the UK
Insurance groups are being determined by Thatcham Research and the Association of British Insurers (ABI). Key factors being considered include repair costs, new car values, and parts prices. Repair costs, which rose by 31% in 2023, are being particularly scrutinised.
Performance
Vehicle acceleration and top speed are being considered for grouping, as high-performance cars are being involved in more insurance claims.
Safety features
Cars with Autonomous Emergency Braking (AEB) are being placed in lower groups due to reduced collision risks.
Bumper compatibility
Well-designed bumpers are being favoured for lower insurance groups.
Security features
Factory-fitted security systems are being considered for lower ratings.
Understanding group suffixes (A, D, E, etc.)
Thatcham Research assigns suffix letters to indicate security ratings:
A: Acceptable security
D: Below requirements
E: Exceeds requirements
P: Provisional rating
U: Unacceptable security
G: Grey imports
These suffixes can affect your final insurance costs.
Insurance groups are being determined by:
Engine capacity (larger engines typically mean higher groups)
Power output (in bhp or PS)
Trim specification (basic to premium)
Fuel type (diesel, petrol, hybrid or electric)
For example, a standard Volkswagen Golf is being placed in group 15, whilst its high-performance R variant can reach group 39.
Safety and security features
The following protective elements are being evaluated:
Autonomous Emergency Braking
Electronic Stability Control
Security systems
Anti-theft devices
Safety features and Euro NCAP ratings
Online group checkers
Insurance groups can be verified through:
Thatcham Research website
Comparison websites
ABI's search function
Manufacturer websites
Insurer websites
Trim levels can be seen to significantly impact insurance costs. Lower-specification cars with smaller engines are typically being placed in lower insurance groups.
Factors that are being considered for higher groups include:
Larger engines
Turbochargers
Premium trims
Advanced entertainment systems
Cosmetic enhancements
Look for models with AEB and good security
Vehicles equipped with safety features like AEB can be moved down by up to five groups. Cars with factory-fitted security systems are being given better ratings.
An 'E' suffix indicates superior security standards, whilst 'D' or 'U' ratings suggest substandard measures.
Two identical cars in the same insurance group can be seen to have different premium costs for different drivers. Credit scores are being evaluated by insurers when setting rates.
Why insurers may rate the same car differently
Insurance groups are being used as recommendations only—insurers can categorise vehicles differently based on their assessments. Each company's unique data analysis is being used to determine claim likelihood and costs.
Conclusion
Conclusion: Making Insurance Groups Work for Your Wallet
Insurance groups are being considered crucial for managing motoring costs. Cars with similar features can be placed in different groups, potentially saving hundreds annually through careful selection.
Insurance groups are being misunderstood widely. Whilst lower groups can be seen to reduce costs, personal factors are being considered. Modifications are being known to increase premiums significantly.