Car Insurance Groups Explained: How They Affect Your Premium

Summary

• Every car has an insurance group from 1 to 50: Group 1 is the cheapest to insure. Group 50 is the most expensive.
• Groups are based on risk: Repair costs, performance, safety, and theft rates all affect the grouping.
• Choosing a lower group car saves money: Especially important for young or new drivers.

Car insurance groups are one of the biggest factors in your premium. Understanding how they work helps you choose a car that is affordable to insure.

This guide explains the grouping system, what affects it, and how to find the cheapest cars to insure.

---

How Insurance Groups Work

Every car sold in the UK is assigned an insurance group by the Group Rating Panel. This panel includes members from the Association of British Insurers (ABI) and Thatcham Research.

The groups run from 1 (cheapest) to 50 (most expensive). The rating is based on:

• Vehicle value: More expensive cars cost more to repair or replace.
• Repair costs: Cars with expensive parts or specialist labour are rated higher.
• Performance: Faster cars are involved in more accidents.
• Safety features: Cars with better safety ratings get lower groups.
• Security: Built-in alarms and immobilisers reduce the group rating.
• Bumper compatibility: Cars designed to minimise low-speed damage score better.

---

Insurance Group Examples

Car	Insurance Group	Typical Annual Premium (25-year-old)
Volkswagen Up	1–6	£600–£900
Ford Fiesta 1.0	6–10	£700–£1,000
Toyota Yaris	6–10	£650–£950
Vauxhall Corsa	4–12	£650–£1,100
BMW 3 Series	20–35	£1,200–£2,500
Mercedes C-Class	25–38	£1,400–£3,000
Audi RS3	40–45	£2,500–£5,000+

These premiums are estimates. Your actual premium depends on your age, location, driving history, and more.

---

What Affects the Group Rating

Thatcham Research assesses each car using detailed criteria:

1. Damage cost: How much does it cost to repair common accident damage?
2. Parts prices: Are body panels, bumpers, and lights expensive?
3. Repair times: How long does it take to fix? More labour means higher costs.
4. New car value: The purchase price of the car when new.
5. Performance: Top speed and 0–60 mph time.
6. Safety: Euro NCAP rating, airbags, and driver assistance systems.
7. Security: Alarms, immobilisers, and tracking systems.

Two cars that look similar can be in very different groups. A sporty trim level with a bigger engine will always be rated higher than the basic version.

---

How to Find a Car's Insurance Group

You can check any car's insurance group for free:

• Thatcham Research website: Search by make, model, and year.
• Comparison websites: Enter the registration to see the group during a quote.
• Car review websites: Most list the insurance group in the specifications.

Always check the group before buying a car. The difference between group 10 and group 20 can be hundreds of pounds per year.

---

Tips for Cheaper Insurance

1. Choose a low-group car: Groups 1–10 are the cheapest. Ideal for young and new drivers.
2. Avoid modifications: Alloy wheels, body kits, and engine tuning all raise your group.
3. Add security: Fitting an approved alarm or tracker can reduce your premium.
4. Build no-claims bonus: Each claim-free year reduces your premium significantly.
5. Consider telematics: A black box policy rewards safe driving with lower premiums.

Read our insurance types guide for more ways to reduce your car insurance costs.

---

Insurance Groups and Modifications

Modifications can dramatically change your insurance group:

Modification	Effect on Group
Engine remap or tuning	Significant increase
Alloy wheel upgrade	Moderate increase
Lowered suspension	Moderate increase
Tinted windows	Small increase
Dash cam fitted	May reduce premium (not group)
Approved alarm/tracker	May reduce premium (not group)

You must declare all modifications to your insurer. Undeclared modifications can void your policy entirely.

---

Insurance Groups for New Drivers

Young and new drivers face the highest premiums. Choosing the right car makes a huge difference:

• Aim for groups 1–10: The cheapest cars to insure.
• Popular choices: Volkswagen Up (group 1), Toyota Aygo (group 3), Fiat Panda (group 2), Citroen C1 (group 3).
• Avoid hot hatches: A Fiesta ST might look similar to a standard Fiesta, but it sits in a much higher group.
• Consider telematics: A black box policy can reduce premiums by 20–40% for safe young drivers.

Check the group before you fall in love with a car. The purchase price and the insurance cost are equally important.

---

Final Thoughts

Insurance groups have a huge impact on your premium. Choosing a car in a lower group is one of the simplest ways to cut your insurance costs.

Always check the insurance group before buying. A car that seems cheap to buy can be expensive to insure if it sits in a high group.

For budget-friendly options, see our best cars under £5,000 guide. Many of the cars listed are also in low insurance groups.

Read our other articles: