A car’s insurance group can have a significant impact on the cost of insurance premiums, even if a driver is in their 50s and has never had an accident. This is why car dealers will tell you which insurance group a car belongs to before buying. Smaller makes and models of car usually mean that you can enjoy cheap car insurance, while the cost of premiums for larger, faster and less economic cars tend to increase. But which insurance group does your car belong in?

How Many Insurance Groups are there?

Insurance grouping isn’t as simple as most think. There are 50 different car insurance groups—also known as insurance bands. The bands are set so cars in group 1 will have the cheapest premiums, while cars in group 50 will be the most expensive. The cost of insurance will fluctuate based on factors such as where the car will be kept, the part of the country you live in and personal driving history, using its insurance group as a starting point.

How are Car-Insurance Groups Determined?

Insurance companies themselves set the insurance groups, usually meeting monthly where the parameters for each banding will be determined.

A wide range of statistical information is used, including data anyone can access; the power of the vehicle, engine size and standard purchase cost, as well as the insurance companies’ own statistics around accidents per vehicle and other details around claims.

Which Factors are the Biggest Influence?

Potential repair costs are generally considered to have the greatest influence on movement between insurance groups, and therefore the overall cost of insurance. Not only are the parts for premium cars are more expensive, paying for labour at the approved repair centres for these makes is also more costly.

It is also no secret that cars with smaller engines and less power are statistically less likely to have an accident, therefore these will generally be in a lower insurance group with cheaper premiums for motorists.

However, sometimes other factors can influence insurance groups. For example, insurance companies might find that certain manufacturers are more efficient at offering repairs, or offer a more competitive price on specific parts. In some cases, past experience with a certain manufacturer or even a specific dealer can influence insurance groups.

Things to Look Out for When Buying a Car

Today’s cars are manufactured in a range of models. Depending on the specification of a car, the basic model could be in group 10 and the souped-up version in group 40. When buying a car, be sure to check that the insurance group is in fact for the model you’re looking at. Who wants to buy a car thinking their insurance is relatively cheap, only to find that isn’t the case later?

If you’re starting to think about buying a car, there are numerous websites that allow you to discover the current insurance group by entering the make and model. Remember that the insurance group might change if you’re not acquiring the car for another month or two.

To discuss your motor insurance and to obtain a competitive quotation, call Reader’s Digest Insurance Services today on: 0208 069 3102.

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