Car Insurance Group, Car Insurance Group Ratings

Car insurance group refers to the rating system that helps insurance companies determine the premium. Under this system, insurance companies classify cars in the order of groups that range between 1 and 20. This system ensures that each car is ideally placed with other cars of similar characteristics. Therefore, a particular group can contain cars of different models and make.

How Does The Car Insurance Group System Work?

Most insurance claims are related to repair of automobile parts. Hence, the car insurance group rating system takes into consideration the repairing cost to classify car groups. The factors that contribute towards group ratings are:

Damage and cost of parts: The probability of damage for each model of a car and the cost of its parts affect the ratings. The lower the cost, the lower will be the rating and an insurance company will happily offer an insurance policy at lower rates.

Repair time: Longer time to repair amounts to higher cost and subsequently high group ratings.

Body make: The outer body shell of a car suffers in most accidents. Therefore, the durability and strength of the outer shell also determine the car insurance group.

Performance: High performance cars are highly prone to accidental damage. The acceleration and top speed of the car is considered to this effect.

New model: An upgraded version with higher specifications will attract higher group from the base model.

Security features: If a car is fitted with security instruments from the manufacturer, it can reduce the risk of claims due to theft. Such features include alarm systems, high-security locking devices, wheel locking equipment and glass etching.

Car Insurance Group Ratings:

Some countries have formed standard car group rating associations to classify the car soon as it hits the market. However, insurance companies have their own ratings based on their experience and classify groups accordingly. Most family cars fall into the groups 6 to 12. Family cars with high-powered engines and sports car usually fall under the higher categories.

So, in order to keep insurance premiums low, an individual should buy a car from the lower group ratings.