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Frequently Asked Questions |
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Car Groups
What do the different car groups mean?
Insurers tend to place every car model into one of approximately twenty groups, although this is currently being extended to 50 or 80 groups with some insurers. This is done so that comparative models of car can be accurately banded with similar cars.
There can be a significant spread of groups, even within a particular model range. In the Car insurance world nearly 75% of all money paid out on claims goes on repairing cars. The cost of the spare parts and the times taken by the repairers are therefore included as major factors when pricing car insurance.
The factors that are generally used to calculate group ratings are as follows:
Damage and Parts Costs - The likely extent of damage to each car model and the cost of the parts involved in its repair. The lower these costs, the more likelihood there is of a lower group rating.
Repair Times - Longer repair times mean higher costs and the greater likelihood of a higher group rating. Different paint finishes on modern cars are an important factor. These, too, are taken into account.
New Car Values - The prices of new cars identify the higher specification models within a model range and the liability to the Insurer if they have to write off a new car and you have a replacement car clause.
Body Shells - The availability of body shells (the basic frame of the car) is taken into account in group ratings because they are essential for certain accidental damage repairs.
Performance - Acceleration and top speed are important factors. Insurers know very well, from their claims statistics, that high performance cars can often result in more frequent insurance claims.
Car Security - Security features fitted as standard equipment by car manufacturers can help to reduce insurance claims costs. Such features include high security door locks, alarm/immobilisation systems, glass etching, coded audio equipment, locking devices for alloy wheels and visible VIN numbers.
The group ratings determined by the Association of British Insurers are recommendations only. Individual insurers, depending on their own experience, may vary from these recommendations.
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