UK Car Insurance Groups Explained

Car insurance groups might just make or break your decision to buy a car. Without knowing about them, you may find yourself over budget and confused about how you got there. We see it printed all over the internet but with no explanation and frequently we ask ourselves – how do car insurance groups work? Let’s answer this question and others so you are clear and confident in your next car model buying decision!

What are Car Insurance Groups?

A car insurance premium group is one of the many ways insurers decide how much insurance premium you must pay for your vehicle. Every vehicle registered within the UK belongs to an insurance group depending on a range of factors about the car, including:

• The cost of the car and its parts
• The power of the engine
• The safety and security features of the car
• The cost of repairs

Typically, the higher the insurance group, the more you will need to pay. You can lower your insurance group by choosing a vehicle that is cheaper to repair or has a less powerful engine.

How Many Car Insurance Groups are There?

There are fifty insurance groups and all cars fit into one of these depending on how it is rated by independent research groups.

There used to be twenty car insurance groups, but as cars and their engines became more advanced, the number of insurance groups increased to fifty. This allows insurers to classify vehicles more accurately.

At car insurance group 50, you will find very powerful and luxurious cars with far higher insurance premiums. In group 1, you will find the opposite type of cars (typically with low specifications).

As for electric cars, they still fall within the same 1-50 ranking system, but it is best for you to speak to an insurer about the details of where each lies.

First-time drivers may feel overwhelmed when it comes to car insurance. As a general rule, there are still 50 insurance groups for first-time drivers, just like for any other driver.

However, younger and less experienced drivers often pay more for insurance because insurers consider them more at risk of making a claim.

For this reason, many first-time drivers look for cars in insurance groups 1 to 10 to help keep costs lower.

Which Insurance Group is the Cheapest?

While a lower car insurance group usually means a cheaper insurance premium, it is only one factor insurers use when calculating your final quote.

Insurers also consider things like:

• Your age – younger drivers are statistically more likely to make a claim.
• Your driving history – previous claims may increase your premium.
• The value of your vehicle – expensive vehicles usually cost more to repair.
• Your occupation – taxi and delivery drivers may face higher premiums because they spend more time on the road.
• Your address – living in an area with higher rates of theft or vandalism may increase insurance costs.

“My Car is Group 12…What Does Insurance Group 12 Mean?”

If your car is in insurance group 12, it means it sits toward the lower end of the insurance group spectrum. Vehicles in this range often have lower repair costs and reasonable safety ratings.

This does not automatically mean your insurance will be cheap, but it usually means the vehicle itself is considered lower risk than higher performance cars.

Cars in insurance group 12 can include practical hatchbacks and compact SUVs such as the Vauxhall Corsa and the Suzuki Ignis.

How Can I Make My Insurance Cheaper?

If you cannot change cars, you may still be able to lower your insurance premium by:

• Using a black box policy
• Adding a named driver
• Paying annually instead of monthly
• Improving the security of your vehicle
• Reducing your annual mileage

If you are buying your next vehicle, checking the insurance group before purchasing can help you avoid unexpected costs later on.