"What are Car insurance Groups?"
Car Insurance groups are used to calculate the probable cost of insuring a particular vehicle. Up until recently there were twenty different insurance groups and every car was categorised into one of these. Cars in Group 1 were the cheapest and invariably least powerful cars that are available and cars in Group 20 included vehicles such as Porsche 911’s.
However, there are now a possible 50 Insurance groups that your vehicle could fall into, as deemed by the Association of British Insurers. This increase in grouping bands has been brought about my the fact there are some 6,000 different models/variations of car on the UK’s roads, far more than the last change to insurance group ratings which was back in 1992.
One of the main reasons for this change was to accommodate many more factors to determine a vehicles group. Things such as level of equipment and the weight of the vehicle are now contributing factors to determine which group a particular car falls into. The aim is be able to better determine how much an insurance company will have to pay out for repairs to your car should the vehicle be involved in an accident or broken into and this consequently affects the price of your insurance premium.
Many people, particularly when buying their first car, consider the cost of the insurance as a part of choosing a car. This is very sensible and it is important to know how much a particular car will cost to insure before you commit to buying it. This involves getting a quote from an insurance company rather than simply knowing which group the car falls in as there are many more factors which will contribute to each individuals premium.
The Association of British Insurers decides the insurance group that a vehicle falls into but you should be aware that these are recommendations only. An individual car insurer is perfectly at liberty to lower or raise the group as is considered appropriate by that company. This is not something that happens randomly, but is a calculated decision based on prior experience of insuring identical vehicles in the past.