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The Group Rating System
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Insurance companies classify cars in order to provide the correct level of
insurance. To do this each car is assigned a group between 1 and 20. This
means that each model of car can be accurately banded with cars of similar
characteristics. There can be a significant spread of groups within a
particular model range.
How the System Works
Nearly three quarters 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. The factors used to
calculate group ratings are:
- Damage and Parts Costs: The likely extent of damage to each car model
and the cost of the parts involved in its repair. The lower these costs,
the more likelihood there is of a lower group rating.
- Repair Times: Longer repair times mean higher costs and the greater
likelihood of a higher group rating. Different paint finishes on modern cars are
an important factor. These, too, are taken into account.
- New Car Values: The prices of new cars identify the higher specification
models within a model range.
- Body Shells: The availability of body shells (the basic frame of
the car) is taken into account in group ratings because they are essential
for certain accidental damage repairs.
- Performance: Acceleration and top speed are important factors.
Insurers know very well, from their claims statistics, that high performance
cars often result in more frequent insurance claims.
- Car Security: Security features fitted as standard equipment by
motor manufacturers can help to reduce insurance claims costs. Such features
include high security door locks, alarm/immobilisation systems, glass etching,
coded audio equipment, locking devices for alloy wheels and visible VIN
numbers.
Note that group ratings determined by the Association of British Insurers are recommendations
only. Individual insurers, depending on their own experience, may vary from these
recommendations.
Recommended Group Ratings
The different groups available range from group 1 (the lowest) to group 20 (the highest).
Most family cars fall into groups 6 to 12, unless they have high-powered engines. If you have
a sports car, or high-risk car then the group rating will be higher. So the lower the group
rating, the less your insurance premium costs!
Some examples of group ratings:
Lower Group Cars
- The Seat Arosa ranges from groups 2 to 3.
- The Renault Clio ranges from groups 3 to 7.
- The Ford Focus ranges from groups 4 to 8.
- The VW Polo ranges from groups 3 to 10.
- The Vauxhall Astra ranges from groups 4 to 11.
- The Renault Espace ranges from groups 11 to 14.
Middle Group Cars
- The Ford Fiesta 1.6, 16v, Si is group 8.
- Citroen Saxo 1.6i VTR is group 7.
- Rover 214i 16-valve is group 6.
- Peugeot 306 1.8 XS is group 7.
Higher Group Cars
- The Audi A3 ranges from groups 9 to 18.
- Jaguar S type ranges from groups 14 to 19.
- E series ranges from groups 14 to 20.
- BMW 3 series ranges 11 to 20.
- BMW 5 series ranges from 14 to 19.
Highest Group Cars
- BMW M series are group 20.
- Aston Martin's are group 20.
- Audi TT ranges from 17 to 18.
- Ferraris are group 20.
- Porsche 911's are group 20.
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