Vehicle value and insurance groups
If saving money on your car insurance is important to you, you may want to pay attention to what insurance group your car is in. Car insurance groups are set by the insurance industry and attach a number between 1 and 50 to each car.
An insurance group 1 is generally cheaper to insure, while 50 is the most expensive.
In setting insurance groups, the following are taken into account:
- New car values
- Damage and parts cost
- Repair costs and times
- Parts prices
- Car performance
- Safety features
- Security features
As you can see car value is an important component of what makes up a car insurance group, but it might not be the most important. According to the Association of British Insurers, the cost of car repairs accounts for over half of all the money paid out in motor insurance claims. Therefore, we can probably assume that repair costs feature strongly in how the groups are defined!