When buying a new or used car, it is essential that you consider the cost of running it when budgeting. Potentially, one of the biggest annual outlays you will make when you own a car will be on the car insurance, with costs ranging from a few hundred to a few thousand pounds a year. Car insurance groups give you an indicator of what are the cheapest - and of course most expensive - cars to insure. Since 2007 car insurance groups have ranged from 1-50 (previously 1-20) and the lower the group the lower the insurance cost, the higher the group the higher the insurance cost.
What factors determine the insurance group for each model?
Over half of all money paid out in motor insurance claims goes on repairing cars. The cost of spare parts and the time taken by repairers are therefore major factors in pricing motor insurance. The factors used to calculate group ratings are:
Insurance group letter suffix (A D E P U G) security indicator
(It will be seen from the above that the level of security on a vehicle could result in a two group differential between otherwise identical models.)