Wise Owl Series (Eps 7) – Car Insurance Groups Explained


Can you tell me who decides the different
car insurance groups? Car insurance groups are ratings provided
for every motor vehicle by the ABI group rating panel, these allow insurers to determine insurance
premiums based on information that is provided by the Thatcham motor research centre to the
ABI rating panel, the panel consists of members of the Associate of British Insurers, and
the Lloyds market association who on advice of Thatcham set these rates on a monthly basis. The factors that determine a car insurance
group are many and varied, and this is information that is obtained by Thatcham following their
crash tests, they take into account the actual cost of the repair, the time that it will
take, the labour charges, the performance of the car, the new car price, the security
levels that apply to the particular vehicle, and all this allows Thatcham to make a recommendation
to the rating committee as to which group should apply to that particular vehicle. Car insurance groups have a dramatic affect
on car insurance premiums, the groups range from 1 to 50, and a group 1 car will be the
cheapest to insure, where as a group 50 will be the most expensive. Generally the vehicles that appear in group
1 are the small hatchbacks such as the Citroen C1, the Vauxhall Corsa, the Fiat Panda and
similar vehicles.

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