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Insurance Groups, worth knowing about!

At Westhill Insurance Services we are always pleased to answer insurance questions and, when asked, will offer advice to help people buy the correct insurance at the right price. A question which often crops up when people are buying a car is “How do the Insurance Groups work – and what do they actually mean?” Here we offer a simple guide to help.

The insurance groups are actually easier to understand than you may think. They run from 1- 50 and with vehicles in the lower groups having lower premiums, so you can therefore find a car with affordable running costs more easily. Vehicles in the group 1 are the cheapest to insure – and those in group 50 are the dearest. The first grouping system was created over 40 years ago when car models varied a lot less and there were just nine groups. In 1992, this was increased to 20 and in 2006 it became 50.

50 groups make it easier to accurately place cars in a group with similar cars. The groups are decided by the Group Rating Panel who meet once a month to suggest a rating for new cars on the market. Insurers then take these group ratings into account when deciding the price of their policies. Before the Group Rating Panel makes its decision, it assesses how much the car would cost to insure before using a range of different factors, which include:

Cost of repairs and how long they take – a car that is expensive and time consuming to repair will end up in a higher insurance group

New vehicle value – more expensive cars will naturally end up in a higher insurance bracket

Cost of parts – the panel compares the price of 23 common parts and cars with cheaper spare parts are more likely to be included in a lower insurance group

Performance – cars with faster acceleration and higher top speeds are put in higher insurance groups because insurers consider them riskier than other cars. More frequent insurance claims often occur as a result of fast acceleration and high speeds, taking these cars into a higher insurance groups.

Car security – cars with poor security are more likely to have to make a claim. Security features like high security door locks, alarm systems and wheel locking devices will push a car into a lower insurance group.

Small city cars are generally the cheapest to insure – Chevrolet Spark, Citroen C1, Fiat Panda or Volkswagen Up, for example. They are perfect for new drivers and cheap to run, easy to park and so generally fall into insurance groups 2-3. It is no surprise therefore than sports cars are in the higher insurance bracket as cars which can accelerate quickly and go at faster speeds carry greater risks and have more expensive parts, which makes them dearer to insure.

No matter what vehicle you are looking to buy (or indeed own!) at Westhill Insurance Services we will make sure we find you the best policy at the best price, so that your dream car may be affordable after all! Just one quick call to our professional and friendly team could see you on the road before you can say 'insurance group'!

Contact Westhill Insurance Services, today.

Posted on 12th August, 2013