Insurance Groups Explained

When comparing car insurance, one of the most important factors affecting premiums is a vehicle's insurance group. Every car sold in the UK is assigned an insurance group, helping insurers assess the potential cost and risk associated with insuring that vehicle.

Understanding insurance groups can help drivers make more informed decisions when choosing a vehicle and comparing insurance quotes.

Quick Answer

UK vehicles are assigned insurance groups ranging from Group 1 to Group 50. Generally speaking, cars in lower groups are often cheaper to insure, while vehicles in higher groups typically attract higher insurance premiums.

What Are Insurance Groups?

Insurance groups are categories used by insurers to assess the risk and likely cost of insuring a vehicle.

Each vehicle is assigned a group based on various factors including:

• Vehicle value
• Repair costs
• Performance
• Security features
• Parts availability
• Safety technology

The higher the insurance group, the greater the potential insurance cost may be.

How Many Insurance Groups Are There?

The UK insurance group system currently uses:

Group 1

Typically among the cheapest vehicles to insure.

Group 50

Typically among the most expensive vehicles to insure.

There are 50 groups in total.

Insurance Group Scale

Insurance group is only one factor used when calculating premiums.

Who Decides Insurance Groups?

Vehicle insurance groups are determined using industry rating systems that assess vehicle characteristics and repair data.

Factors are reviewed regularly as new vehicles enter the market.

What Factors Affect Insurance Groups?

Vehicle Value

More expensive vehicles generally cost more to repair or replace.

This may increase their insurance group rating.

Repair Costs

Insurers assess:

• Labour costs
• Replacement parts
• Repair complexity

Vehicles that are cheaper to repair may be placed in lower groups.

Performance

Higher performance vehicles often carry greater risk.

Factors may include:

• Engine size
• Acceleration
• Top speed

Security Features

Modern security systems may help reduce risk.

Examples include:

• Immobilisers
• Tracking systems
• Alarms

Safety Features

Advanced safety technology may influence group ratings.

Examples include:

• Autonomous emergency braking
• Lane assist systems
• Collision avoidance technology

Why Insurance Groups Matter

Insurance groups can have a significant impact on premiums.

For example:

Two drivers with identical details may receive different insurance quotes depending on the vehicle being insured.

This is why insurance group information is useful when choosing a car.

Cheapest Insurance Groups

Many first-time drivers look for vehicles in lower insurance groups.

Generally, Group 1 to Group 5 vehicles are among the cheapest to insure.

Common examples may include:

• Hyundai i10
• Toyota Aygo
• Kia Picanto
• Volkswagen Up
• Fiat Panda

Insurance costs still depend on individual circumstances.

Best Insurance Groups For Young Drivers

Many young drivers choose vehicles in:

• Group 1
• Group 2
• Group 3
• Group 4
• Group 5

Lower-group vehicles often attract lower insurance premiums.

Popular Cars And Typical Insurance Groups

Examples can vary depending on the exact model and specification.

Always check the exact model before purchasing.

Insurance Groups And Electric Cars

Electric vehicles also receive insurance group ratings.

Factors considered may include:

• Battery costs
• Repair costs
• Vehicle value
• Advanced technology systems

Some electric vehicles may fall into higher insurance groups despite lower running costs.

Insurance Groups And Modified Cars

Vehicle modifications may affect:

• Insurance group ratings
• Insurance eligibility
• Premium costs

Common modifications include:

• Performance upgrades
• Suspension changes
• Body modifications
• Wheel upgrades

Always inform your insurer about modifications.

Can Insurance Groups Change?

Yes.

Insurance group ratings may occasionally be reviewed if:

• Vehicle specifications change
• New repair data becomes available
• Industry assessment criteria evolve

Is Insurance Group The Most Important Factor?

No.

Insurers also consider:

• Age
• Driving experience
• Claims history
• Postcode
• Occupation
• Annual mileage

Insurance group is just one part of the overall pricing process.

How To Find A Vehicle's Insurance Group

Before buying a vehicle:

Check Vehicle Specifications

Insurance groups can vary significantly between different versions of the same model.

Compare Insurance Quotes

Obtaining quotes can provide a clearer picture of actual insurance costs.

Review Running Costs

Insurance should be considered alongside:

• Fuel costs
• Maintenance
• Road tax
• Depreciation

Tips For Choosing A Lower Insurance Group Vehicle

Choose Smaller Engines

Smaller engines often attract lower insurance ratings.

Avoid High-Performance Models

Sports models frequently fall into higher insurance groups.

Research Before Buying

Always check insurance costs before purchasing a vehicle.

Compare Multiple Quotes

Premiums vary between insurers.