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What are car insurance groups and how do they affect your premium?

This article is for: UK drivers who want to understand how car insurance groups impact the cost of their policy.

Updated yesterday

What is a car insurance group?

Car insurance groups are a system used by UK insurers to estimate how much it will cost to insure a particular car. Each vehicle model is assigned a group number between 1 and 50:

  • Group 1 includes the cheapest cars to insure.

  • Group 50 includes the most expensive.

These groups are set by the Group Rating Panel, which includes members from the Association of British Insurers (ABI) and Lloyds Market Association (LMA).


What factors determine a car’s insurance group?

Each car is assessed based on several criteria:

  • Original value – Expensive vehicles typically cost more to insure.

  • Repair costs and time – Cars that are quicker and cheaper to repair are in lower groups.

  • Performance – High-performance vehicles often fall into higher groups due to the increased risk of accidents.

  • Safety features – Cars with advanced safety systems may reduce the chance of injury and receive a lower group rating.

  • Security features – Alarms, immobilisers, and trackers can reduce the risk of theft.

  • Cost of standard parts – The panel looks at the cost of 23 commonly replaced parts.

  • Crash test results – Bumper and structural integrity testing affects the group.


How do insurance groups affect your premium?

The insurance group is one of many factors used to calculate your premium. Generally:

  • Lower group = cheaper to insure

  • Higher group = more expensive

But this isn’t the only thing insurers consider. Your age, location, driving history, car usage, and the level of cover you choose all contribute to the final premium.


What types of cars are in lower insurance groups?

Cars in lower insurance groups (typically Groups 1 to 10) often share the following features:

  • Smaller engine sizes (usually under 1.4L)

  • Standard safety features such as airbags and stability control

  • Basic security features like immobilisers and alarms

Example: A Ford Fiesta 1.0L might be placed in Group 5, while a Mercedes C-Class could be in Group 30 or higher.

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