Car Insurance Groups

Car insurance groups play a large role in determining your auto insurance rates. These groups reflect a classification system developed by the Insurance Group Rating Panel that rates cars on a scale of 1 to 20 based on their level of risk. The higher a model is rated on this scale, the greater its risk to insurance providers. A higher level of risk translates into higher premiums for automobile owners.

When you apply for automobile cover, insurance companies use statistics to decide how much you'll pay for your policy. Whilst you can't do much to change statistics for the entire population of drivers in the UK, you can use car insurance groups to your advantage by favouring low risk vehicles when you purchase a new car. Learning about the factors that go into classifying cars may also help you drive more safely, increase the security of your car and help you save money on fuel.

Determining Your Rates

Car insurance groups are among the most important factors that dictate rates for vehicle cover. Factors that determine risk groups include a car's power, or the size of its engine and top acceleration speed. Fast, high powered cars are classified closer to a 20, whilst low powered, fuel efficient cars rate closer to a 1.

The availability and cost of parts, average repair times, the car's weight and its chances of being stolen are also taken into consideration when determining car insurance groups. Cars that include costly parts have longer repair times, which means that an insurer must pay out more benefits when you have your car repaired. Heavy cars may cause more damage to other vehicles, which may lead to higher third party claims.

Automobiles that are considered more desirable to thieves, based on vehicle theft statistics, are classified in high risk car insurance groups. Cars that are less likely to be stolen fall into lower risk groups. In other words, if you're in the market for a fast, glamorous, expensive car, you can expect to pay higher prices for your auto insurance.

Security Ratings

In addition to the car insurance groups determined by the Insurance Board Rating Panel, new models are assigned to risk groups based on their security level. According to this new ratings scheme, each group is assigned a letter based on its security performance. Policies for new cars reflect these security classes in addition to the original car insurance groups.

The letter E is a superior rating, indicating that the vehicle exceeds minimum security standards and has a low level of risk. The letter A indicates that an automobile meets all security requirements and poses an acceptable level of risk. The letter P stands for a provisional rating, meaning that there was insufficient statistical data to determine a rating at the time the model was evaluated.

Vehicles that earn a D or a U pose the highest level of risk. The letter D indicates that the car does not meet minimum security standards. The letter U reflects a level of security that is unacceptably low. A car that is classified as a U may even be denied coverage until it meets acceptable security standards.

Buying a Vehicle

Most vehicle owners don't base their choice of a new automobile entirely on car insurance groups. However, an understanding of risk groups and how they apply to your cover may increase your chances of finding cheap protection for your vehicle. In general, cars that fall into low risk classes are safer, less likely to be stolen and cost less to repair.

To achieve lower premiums, consider buying a model at the lower end of the scale. These models not only have a lower rate of incidents, according to statistics, but they are also more fuel efficient. Fuel efficient vehicles save you petrol and money, and driving an ecologically friendly automobile helps reduce carbon dioxide emissions.

When you purchase a new automobile, you can minimise the costs of insuring the auto by choosing a model that's been fitted with security devices at the factory. These devices make your auto safer to drive and reduce your risk of theft. Alarm systems, high performance door locks, immobilisers and other products increase your car's security, reducing your likelihood of making a claim.

Car insurance groups reflect not only the statistical chances of an auto being involved in an accident or stolen, but the insurer's chances of having to pay out benefits. Consumers who drive cars in lower risk groups may make fewer claims. When you drive for a period of time without making any claims, you may qualify for a no claims bonus, which can result in a considerable discount on your premiums. The more you do as a driver to increase your safety and reduce claims, the more money you'll save on your cover.