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What You Need to Know About Car Insurance Groups

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Published 27 February 2023

Car insurance groups are a system used by insurance companies in the UK to determine how much to charge for an insurance policy. In this blog post, we will explain what insurance groups are, how they are determined, and why they are important to consider when purchasing or leasing a car.


The Basics of Car Insurance Groups

When it comes to motor insurance, the cost of a policy is determined by a variety of factors. One such factor is an insurance group, which is assigned to each new car model by the Group Rating Panel.
The group rating system ranges from 1 (the cheapest to insure) to 50 (the most expensive). The group rating system was created to help insurers decide the cost of insuring each vehicle model.

Cars in the highest groups, typically high-performance models, are likely to cost insurers the most in insurance claims. Insurers may use the Group Rating Panel’s recommendations in their calculation of car insurance premiums, or they may choose to use their own groupings.


How Insurance Groups Are Determined

The Group Rating Panel is made up of members of the Association of British Insurers and the Lloyds Market Association and is administered by Thatcham Research. The Panel sets ratings for new cars, and these ratings are then used by car insurance companies to determine the cost of insuring a vehicle.

When assessing cars for insurance purposes, Thatcham uses the following four factors:

  1. security,
  2. repairability,
  3. parts availability,
  4. occupant protection.


This refers to the ability of the car’s security system to prevent theft or vandalism. Thatcham looks at the car’s alarm and immobiliser systems, as well as any other factory-fitted security systems.


This looks at how easy it is to repair the car after an accident, with Thatcham looking at how long it would take and how much it would cost.

Parts Availability:

This examines how easy it is to get replacement parts for the car, both in terms of price and availability.

Occupant Protection:

This considers how well the car’s safety systems protect passengers in the event of an accident. Thatcham looks at things such as airbags, active head restraints, and seatbelt pre-tensioners.

Quote: Over half of all money paid out in motor insurance claims goes on repairing cars. The cost of spare parts and the times taken by repairers are therefore major factors in pricing motor insurance. Thatcham.

What insurance group do electric cars fall into?

The insurance group of an electric car depends on the size and type of the vehicle. Generally, electric cars are placed into lower insurance groups than their petrol and diesel equivalents, as they tend to have fewer moving parts and a much lower risk of damage or theft.

Insurance groups are based on factors such as engine size, power output, security measures, cost of replacement parts and repair costs. As electric cars typically don’t have engines, the insurance company will take into account the battery size, the power output of the vehicle’s electric motor and other features such as advanced driver assistance systems.

The exact group that an electric car falls into will depend on the make and model of the vehicle. Generally, electric cars will fall into insurance groups 6 or lower, which is considerably lower than many petrol and diesel equivalents. This makes electric cars a more affordable option for drivers who want to keep their insurance costs down.


What Insurance Group Is My Car?

To find the insurance group of a car, use the car insurance group checker by Thatcham Research.


Tips for Getting Cheaper Car Insurance

1. Choose a car with a smaller engine size – The engine size of your car will determine how much you pay in insurance. Smaller cars are more economical and tend to be cheaper to insure than larger cars.
2. Opt for a car with good safety ratings – Cars with better safety ratings generally cost less to insure because they reduce the risk of injury and damage in an accident.
3. Avoid expensive modifications – Modifying your car can increase the cost of your insurance policy, so keep any modifications to a minimum if you want to get the best deal on your car insurance.
4. Shop around for different quotes – Make sure to compare quotes from different insurers so that you can find the cheapest option for your needs.
5. Increase your voluntary excess – Increasing the voluntary excess on your policy can reduce your overall premiums, so make sure you consider this option when comparing car insurance policies.

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