The Group Rating System
Car models are put into one of twenty groups. This means that
each model of car can be banded with cars of similar characteristics.
There can be a significant spread of groups within a particular
model range.
How the Group System Works
Over half 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, so these too are taken into account.
New Car Values - The prices
of new cars are taken into account as they are often a good
guide to the cost of replacement and repair.
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.
Recommended Group Ratings
The group ratings are recommendations only.
Individual insurers will generally use these ratings as a
key input to their underwriting process but will also take
account of their own claims experience to guide their pricing
decisions.
Buying a Car
Motorists planning to buy a new car should
checkthe insurance group rating of the exact model they have
in mind. The higher the group number the higher the premium
is likely to be.
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