Different Insurance Groups Explained

At comparison site mustard.co.uk, car insurance quotes are  quick and easy to find, but what are the biggest factors that affect the price you see? Here, mustard.co.uk, take a look at car insurance groups and explain what they are and how they influence what you pay.

Insurance Groups

What is a Car Insurance Group?

Car insurance groups help insurers estimate the cost of repairing a car and the length of time that it might take. Based on this, cars are then placed into one of 50 insurance groups.

To ensure cars are put into the right group, a number of factors are considered, including:

  • Cost of car parts and labour — the more expensive they are, the higher the insurance group.
  • The length of time it takes to repair the car — longer repair times can mean parts are harder to come by, which in turn pushes the car into a high insurance group.
  • Value of the car — this is often linked to the cost of parts and can indicate which group a car should belong to.
  • Performance — powerful cars often lead to more expensive claims and as a result, a higher insurance group.
  • The car’s safety features — cars with effective safety features like autonomous emergency braking (AEB) are less likely to be involved in an accident in the first place which can help keep the insurance group down.

How do Car Insurance Groups Affect Premiums?

As a general rule, the lower the insurance group number, the cheaper the premium. So, for example, a car in group five is going to cost far less to insure than a car in group 25.

But while insurance groups play a big part in calculating your premium, it’s not the only factor that insurers consider. In fact, insurers weigh up a whole host of factors in order to work out what you should pay, for example:

  • Your age — figures show that drivers under 25 are more likely to be involved in an accident which means young drivers pay significantly more for car cover compared to other age groups.
  • Your address — areas with higher than average crime rates can lead to higher premiums.
  • Where you park your car overnight — if your car is at greater risk of vandalism or theft because it’s parked on the street, you’ll face higher premiums compared to someone who can keep it in a locked garage.
  • Your driving history — penalty points or a recent claim can increase your car insurance.
  • The number of miles you drive — the more miles you drive, the greater the chances of being involved in an accident which pushes up your premium.
  • What you use your car for — if you use your car for business or commuting, you can expect to pay more than drivers who only use their vehicles for social, domestic and pleasure activities.

What Are the Cheapest Cars to Insure?

Group one cars are the cheapest to insure. Typically, group one cars are small, nippy and easy to park — making them ideal for driving around towns and cities. Cars in group one include:

  • Volkswagen Up
  • Volkswagen Polo
  • Kia Picanto
  • Nissan Micra

However, on the flip side, their smaller engines mean group one cars aren’t always the most suitable option if you cover a lot of miles on the motorway.

If you’re looking for a car with a little more space and a bit more oomph, cars in groups two and three could be worth a look too, for example:

  • Fiat 500
  • Ford Fiesta
  • Kia Rio
  • SEAT Ibiza
  • Skoda Fabia
  • Hyundai i10
  • Renault Clio

What Can I do to Lower Car Insurance Premiums?

If you’ve already got a car and aren’t in a hurry to change it for one in a lower insurance group, the good news is that there are still plenty of ways to keep insurance costs down.

Top tips from mustard.co.uk, include:

  • Pay for your premium annually to avoid interest fees
  • Increase your voluntary excess
  • Add a more experienced named driver to your policy
  • Consider telematics car insurance
  • Avoid modifications to your car
  • Keep your car as secure as possible
  • Drive fewer miles if you can

Of course, the simplest way to get the best value for money on your car insurance is to compare a range of policies from different insurers. At mustard.co.uk, you can compare leading UK insurers in just a few clicks.