Car insurance groups explained

As well as how you drive, the make and model of your motor can have a big impact on how much your car insurance could cost.

Insurers use ‘car insurance groups’ as one of the factors to work out how much it could cost them (and you) to cover your car.

Here’s our guide to how car insurance groups are decided and how they affect the cost of your insurance premiums.

Most new cars sold in the UK is assigned to a car insurance group under the Association of British Insurer’s (ABI’s) rating system.

A group rating between 1 and 50 is given, with each group rating based on the level of risk an insurer feels the vehicle carries. The allocation is done following an assessment of the vehicle via more than 100 individual data points. 

Cars with a lower insurance group indicates the vehicle has performed well in tests, that take into account things like repairability, security, safety and performance.

Whereas cars with a high insurance group pose a higher level of risk – expensive super cars, for example, that are costly to repair could fall into this group.

These groupings are a recommendation only to insurers. While we take these recommendations into account, we also have our own method to calculate your car insurance premium, similar to other insurers.

It’s worth noting that the Vehicle Risk Rating (VRR) system is currently in use for new vehicles registered from August 1, 2024.

Vehicles go through assessments managed by Thatcham Research. These assessments produce a score for each vehicle, which is converted to an ‘insurance group’ number for use by insurers.

The assessments take a number of things into account, such as (but not limited to):

• the value of the car when new
• the cost of parts
• the performance of the vehicle
• safety and security features
• repair complexity

Looking at the insurance group given to particular models can give you an idea of the level of risk an insurer deems a particular model to be, and whether they might charge more or less to insure it.

There are tools available online to view Thatcham’s recommended group for your car. However, the rating may be adjusted by the insurer based on their underwriting strategy, acceptance criteria and data held for the vehicle.

If you’re looking to buy a new car, but want to keep your insurance costs down, choosing a car with a low insurance group rating can be a good place to start. But it’s important to note that lower grouped cars don’t necessarily mean cheaper premiums.

Remember that your car’s group insurance rating is just one factor that insurance companies take into account when calculating your premium.

As well as choosing a car with a low group insurance rating, there are other ways you can reduce the cost of your car insurance.

Pay your premium upfront

If you can, paying for your annual premium in one go (rather than in monthly instalments) can reduce the overall amount you pay over the course of the year.

Vehicle modifications

Cars with modifications (aside from security features) allowed by your insurer could increase the cost of your premium – so stick to standard models if you can.

There are other factors to consider too if you’re looking to reduce the cost of running your car.

Fuel consumption

Understanding roughly how much many miles your vehicle will run to the gallon gives you a good idea of how much it could cost to run each month.

You can also check the average fuel consumption ^{Footnote [1]} of a particular model with the Vehicle Certification Agency.^{Footnote [1]}

Servicing

Regular maintenance could prevent costly failures, breaking down, and expensive repair bills.

How you drive

Smooth, careful driving and reading the road ahead can maximise fuel efficiency and reduce excessive brake and/or tyre wearing too, since you won’t be harshly accelerating or braking.