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Each month meetings are held by a body known as the Group Rating Panel who decide which car insurance group different models are assigned. The Group Rating Panel includes members of the Association Of British Insurers and Lloyds Market Association.
Cars are generally assigned to one of twenty groups based on the research which has been carried out by the Motor Insurance Research Centre at Thatcham. Many car insurers use the groups set by the Group Rating Panel, but there are those who prefer to set up their own groups. There are several factors involved in calculating the group ratings, i.e., parts costs, damage incurred and repair times, availability of parts and body shells, plus security. Cars in the higher groups, namely the higher performance models, are considered a high risk factor, and so are likely to cost insurers more in insurance claims..
A new set of fifty car insurance groups has recently been introduced by Thatcham so that each car model is banded with similar cars. Based on research, the factors used to determine ratings are:
Cost of New Cars
The cost of a new car will be a guide as to the cost of a replacement car in the event of an accident.
Parts
Parts costs are compared with different manufacturers and the lower the cost of the parts involved, the lower the group rating will be.
Accelerator and Speed Capability
The top acceleration and speed of a car influences the group rating, as top performance cars are often the subject of frequent insurance claims.
Repair Times
The longer the repair time the higher the costs involved. Also different paint finishes are important in the satisfactory repair of a vehicle, so this can add up to a higher group rating.
Security
New cars have a security rating based on such things as alarms and immobilizers.
Car insurance groups make quoting for car insurance easier. The exact model of your car is the important factor, as there may be several different models within a specific maker’s range. Some may be classed in group 1 which is the lower group, whilst another model may be classed in group 20. The size of your car does not necessarily mean you will be in the lower group as many small cars are now capable of high acceleration and speed, and also have computerized equipment making them just as costly to repair.
You can search ABI database to find your car insurance groups rating, and this information will be helpful particularly if you’re thinking of buying a new car. In today’s world it’s important to ensure that you’re not paying more than is necessary for your car insurance.