A Short Guide to What Impacts Insurance Group Ratings

Posted on 18. Feb, 2013 by in Your Wealthy Life

Car insurance factors

While the average cost of insuring a car in the UK is £1,000, the actual price of insuring a vehicle can vary wildly according to a number of different factors.  For example, 123.ie an Irish insurer found that 87% of men could save on their insurance by switching to them.

Every single model of car made to UK regulations is assessed on the aforementioned factors which help determine into which Car Insurance Group each model is placed by the Group Rating Panel.

Car Insurance Groups are numbered 1-50 and represent guidelines to illustrate how much a car will cost to insure. The higher the band in which a certain model is placed, the more expensive it will be to insure that particular vehicle.

There are a few factors which are used to determine in which Insurance Group a car is placed:

  • Damage and parts costs. This takes into account the likely extent of damage in different circumstances and the cost of replacing parts under these circumstances. A total of 23 different standards from each manufacturer parts are compared and the cheaper the parts, the cheaper the premium.
  • The time it will take to do repairs. The longer the repair time, the higher the cost of the insurance. Things like paintwork will affect this – a luxury metallic paint job found on your £80,000 bespoke Mercedes Benz M-Class in Group 50 will take longer to repair than your run-of-the-mill mass-produced Fiat Panda in Group 1, for example.
  • New car value. This is a considered a way to determine the cost of replacing the parts.
  • The model of the car/performance. Different models have different top speeds, acceleration times, and the faster of these models are therefore considered more dangerous and are therefore much more expensive to insure. An abundance of security features like airbags and immobilisers will also bring down the cost of insurance.

Do you which factors might affect you?

Image by josephdepalma

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