Insurance Groups explained
Every car in the UK is allocated an insurance group which helps insurers work out the cost of cover. The groups run from 1 (cheapest premiums) to 50 (the most expensive premiums). A small city car such as a basic supermini will typically sit in a low group, while high-performance and luxury models occupy the top groups.
How insurance groups are decided
Groups are recommended by the Group Rating Panel, which includes representatives of the insurance industry and draws on research by Thatcham Research. The panel considers factors such as:
- Repair costs and times – how expensive and slow the car is to fix after a typical accident, which makes up a large share of claim costs
- Price of parts – based on a standard list of common replacement components
- New car value – a guide to replacement cost if the car is written off
- Performance – acceleration and top speed, since faster cars are statistically linked with more frequent and costlier claims
- Safety and security – standard-fit autonomous emergency braking can lower a group, while alarms, immobilisers and resistance to theft are also assessed
Insurers are not obliged to follow the panel’s rating, but most use it as a starting point.
Why it matters when buying a used car
The group is set by the car, but your final premium also reflects your age, address, driving history and how the car is used. Two trim levels of the same model can sit in noticeably different groups, so checking before you buy can save money every year you own the car – especially for new or young drivers, where a low-group car is often the difference between affordable and unaffordable cover.
For more advice on choosing the right car, see our buying guides.