Car Insurance Groups

Car Insurance groups

Knowing the insurance group of your car can very well save you a lot of money on your car insurance. This article will help you find out where your car is classified.

In order to make it easier for insurance companies to quote prices for their insurance policies, a certain body was formed dedicated to classifying the make and model of the cars. This body is known as the Insurance Group Rating Panel. Cars are rated according to 20 car insurance groups with Group 1 being the lowest risk and Group 20 being the highest. It is important to take notice of the model of your car since a single range might comprise models in five or six different car insurance groups.

What defines a group?

In the car insurance world, how big your car engine is matters. The bigger the car’s engine, the higher is its group classification.  Here are other factors that may affect the group classification of your car:

  1. How your car will be repaired- If your car needs a special body shop to repair damages, the labor costs will surely be higher.
  2. The price of the car- this will also include details like add-ons (trims and finishes)
  3. Acceleration, power and top speed
  4. The cost of spare parts- There are certain models whose parts can be very rare and expensive.
  5. The weight of the vehicle- basically, heavier vehicles can cause more damage when involved in an accident.
  6. The car’s security features- cars with security alarm are less likely to be stolen

Never assume that smaller cars will fall under the lower category. There are small cars that can have a top speed equal to that of some sports car and this will make them fall under a higher category. The category will also depend on the performance level of the car and how sophisticated the computer system is.

What are the different security ratings?

A car can be rated according to its security level. This will be based on features such as immobilizers and alarms which may also affect the car’s insurance group. Cars are rated as the following:

  • E– This security rating means that the car exceeds the security requirement for its type of model and will be placed in a lower group. If a group 8 car has this type of security level, it will be rated as 7E instead.
  • A– The car has an acceptablesecurity for the car’s group.
  • P– This is a provisional rating since there is a missing data when the model of the car was introduced.
  • D– This stand for does not meet thesecurity requirement for this car type and the group will become higher. A group 7 car with this rating will be rated as 8D.
  • U– It means that the security is unacceptablewhich simply means that security level is way below the standard. Some security features need to be added before you can get coverage for your car.

The different group classifications:

Since different models of car vary significantly, they can easily fall into different categories.

  • The lowest group(1 to 7) – The vehicles that fall under this category are considered to have low repair costs and good safety features. They considerably have low risk to other drivers on the road. Due to the cars having minor risk to the insurance company, these vehicles can get you the lowest rate premium rate available. Vehicles that fall under this category as of August of 2010 include Volkswagen Polo, For Focus, Fiat Punto and Toyota Yaris hatchback.
  • The Mid-Range groups (8 to 12) – This classification includes most of family-size sedans including some of the more highly powered smaller vehicles. The repair times and the overall value of the vehicles under this group are considered average in the market. Some models that are included in this group are Toyota Corolla, Ford Fiesta 1.6, Volkswagen Passat and some Audi A3 model types.
  • The High-Range group(13 to 16) Typically, high-end vehicles can be found under this group. The repair costs are expensive and there are even vehicles that need specialized repair techniques. These cars tend to lean on power thus they have higher liability exposures to insurance companies. Examples of this group include the Jaguar S type, BMW 3 series, and higher end Audi 3 model types.
  • The Highest Group(17 to 20) – The luxury vehicles fall under this group. The price range for these vehicles is beyond the reach of many people. They require the greatest amount of premiums since they are very costly to repair and are magnets for thieves. Models that fall under this category are Porsche 911, BMW M series, Aston Martin and Ferrari.

If you are still in the process of buying a car, it pays to look at the model type and see if you can afford the insurance that comes along with it. Choose a car with a good security since this can lower the group type of your car therefore lowering the cost of premiums.