The Group Rating System
Insurance companies put car models into twenty groups.
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. Insurance companies 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.
Recommended Group Ratings - The group ratings
determined by the Association of British Insurers are recommendations
only. Individual insurance companies, depending on their own experience,
may vary from these recommendations.
Buying a Car - Motorists planning to buy a new
car should check, in motoring magazines, the insurance group rating
of the exact model they have in mind. The higher the group number
the more will be the premium.
