Car Insurance Groups Explained — How They Affect Your Premium
When buying a used car, insurance is a major cost — sometimes exceeding the car's value for young drivers. Understanding insurance groups helps you choose a cheaper-to-insure car.
What Is an Insurance Group?
Cars are assigned to insurance groups 1–50 (1 is cheapest, 50 is most expensive). The group affects your premium: a Group 1 car might cost £400/year to insure; a Group 50 car could cost £2,000+/year.
Insurance groups are set by the insurance industry (specifically the Group Rating Panel) and are standardized across all insurers. They are reassessed regularly as new models are released and repair data is analyzed.
How Are Insurance Groups Determined?
Insurance groups are based on several factors:
- Repair costs: How expensive is the car to repair? Luxury cars cost more
- Performance: Faster cars have higher premiums (higher risk of accidents)
- Theft risk: Popular cars with high parts value are more theft-prone
- Safety features: Cars with more safety tech get lower groups
- Engine size: Larger engines = higher premiums
- Security features: Alarm, immobilizer, tracking devices = lower groups
Examples of Low-Group Cars (Cheap to Insure)
Group 1–5:
- Toyota Yaris
- Honda Jazz
- Hyundai i20
- Ford Fiesta (older models)
- Vauxhall Corsa (older models)
These are small, fuel-efficient, slow, and inexpensive to repair.
Examples of High-Group Cars (Expensive to Insure)
Group 40–50:
- BMW M340i
- Mercedes AMG C63
- Audi S4
- Porsche 911
- Range Rover
These are fast, expensive, high-theft-risk, and costly to repair.
How to Check a Car's Insurance Group
Use the Group Rating Panel website (thegroupratingpanel.org.uk) or check insurance comparison websites (comparethemarket.com, confused.com). Enter the registration number or car model and the group is displayed instantly. You can also use the insurance group check guide to understand the vehicle details that affect premiums before you compare quotes.
How to Lower Your Insurance Premium
1. Choose a Low-Group Car
The single most effective way to reduce insurance. A Group 1 car costs 30–50% less to insure than a Group 10 car (for the same driver profile).
2. Install Security Features
An aftermarket alarm or tracking device can lower your premium by 5–10%. Some insurers offer discounts for Thatcham-approved security.
3. Pay Upfront
Monthly payments add interest. Paying annually saves 10–15%.
4. Increase Your Excess
Agreeing to pay a higher excess (£500 instead of £100) reduces the premium by 5–10%.
5. Limit Mileage
Capping annual mileage at 10,000 instead of unlimited costs less.
Insurance Groups and Young Drivers
Young drivers (17–25) pay substantially more. A Group 1 car might cost £800–£1,200/year; a Group 10 car could cost £1,500–£2,500.
Pro tip: For young drivers, insurance cost should be the primary factor in car choice. A £2,000 car with £1,200/year insurance is actually more expensive (over 3 years) than a £6,000 car with £600/year insurance.
The Bottom Line
Insurance groups are a major cost factor when buying a used car. Always check insurance quotes before committing to a purchase. A cheap car with expensive insurance is false economy. Low-group cars (Toyota, Honda, Hyundai) offer the best value for insurance costs.
Once you have found a car in the right insurance group, run a full vehicle history check before buying. A VEHIXA report reveals finance, stolen markers, and write-off status.