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Understanding insurance groups in the UK and their massive effect on car insurance price

Introduction: The Role of Insurance Groups

In the UK, car insurance is a crucial aspect of vehicle ownership. Insurance groups play a pivotal role in determining the cost of your car insurance. These groups range from 1 to 50, with Group 1 being the cheapest and Group 50 the most expensive. The classification is based on factors like the vehicle’s value, performance, safety features, and repair costs. 

Criteria for Insurance Group Ratings

The Group Rating Panel, administered by Thatcham Research, assigns each new car model to an insurance group. Key factors include:

  • Repair Costs and Times: The longer and more costly the repairs, the higher the group.
  • Car Value: More expensive cars generally fall into higher groups.
  • Performance: Faster cars with larger engines are typically in higher groups.
  • Safety Features: Cars with advanced safety features can be cheaper to insure.
  • Security Features: Better security reduces risk of theft, potentially lowering group ratings.

Examples of Low Insurance Group Cars

  • Ford Fiesta: Often found in Groups 2 to 6, the Fiesta is a popular choice for its low running costs and solid safety features.
  • Volkswagen Polo: Typically in Groups 1 to 9, the Polo is known for its reliability and efficiency.
  • Skoda Citigo: Falling into Group 1, the Citigo is a compact, economical car ideal for city driving.
You can check out an article for more group 1 vehicles HERE via Moneysupermarket.


Examples of High Insurance Group Cars

  • BMW M5: A high-performance luxury car, often in Group 50.
  • Porsche 911: Known for its speed and high value, it’s typically in Groups 40 to 50.
  • Mercedes-Benz S-Class: A high-end luxury car, usually found in Groups 45 to 50.

Impact of Insurance Groups on Premiums

Your car’s insurance group significantly influences your insurance premium. However, it’s not the only factor. Insurers also consider your age, driving history, location, and how you use the car.

Choosing the Right Car for Lower Insurance

For new drivers or those seeking to reduce insurance costs, opting for cars in lower insurance groups can be beneficial. These vehicles are usually less powerful, smaller, and equipped with features that reduce the risk of accidents and theft.

Insurance Group Exceptions

It’s important to note that not all cars in a higher group are prohibitively expensive to insure, and vice versa. For example, electric cars may be in higher groups due to their value and repair costs but may offer other insurance discounts.

Conclusion: A Balancing Act

Understanding insurance groups can help you make an informed decision when purchasing a car once you have passed your test with us. While lower group cars are generally cheaper to insure, they may lack features found in higher group vehicles. Conversely, while high-group cars offer more in terms of performance and luxury, they come with higher insurance costs. Balancing your needs with the cost of insurance is key to finding the right car for you.

This comprehensive guide aims to provide clarity on how insurance groups work in the UK car market, helping you navigate the complexities of car insurance and make a choice that suits your budget and lifestyle. Remember, choosing the right car involves considering both its insurance group and your specific needs.

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