The car insurance group rating system
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The group rating system system means that each model of car can be
accurately banded with vehicles of similar characteristics (Engine
size, value, performance etc). There can be a significant spread of
groups within a particular model range ( A basic Ford Focus will be
in a considerably lower group than a Focus RS for example).
How does the group rating system effect you
?
A recent survey amongst Insurers and Brokers suggested that three
quarters of all money paid out in motor claims went on repairing vehicles.
The cost of a vehicles spare parts and the time that it takes to repair
a vehicle is therefore a major factor in determing the cost of your
policy .
The factors used to calculate group ratings
are normally :
Damage and Parts Costs. The likely extent of damage to each car model
and the cost of the parts involved in its repair have a significant
effect on car insurance premiums. 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 can effect the price of your
premium (Cars with matalic paint can be more expensive to repair for
example).
New Vehicle Values. The prices of a replacement vehicle illustrates
the higher specification models within a model range. The availability
of repalcement body Shells (the basic frame of the car) is also taken
into account in group ratings because they are essential for certain
accidental damage repairs.
Performance Acceleration and top speed are vital factors. Insurers
know very well, from their claims statistics that high performance
cars often result in more frequent claims. The faster a car goes
the higher the premium will be normally.
