Motor Groups - What are they and what do they mean?

Insurance companies tend to place each car make and model into a "group". There are usually classed as around twenty different groups (although some insurance companies extend this model to roughly the 50 or 80 group marks) They do this so as to be able to compare cars accurately with similar banded vehicles.

Even within a particular model range there can be a significant spread of groups that the vehicles exist within. In the motor insurance market nearly 75% of all of the money that is paid out for claims goes towards repairing cars. Therefore, the cost of the spare parts and the time that is taken by the people repairing the vehicles are also included as major factors when pricing motor insurance.

Factors that can be used to help to calculate motor group ratings are:

• Cost of Parts and potential Damage Repairs - The lower these costs are the greater chance there is of the car having a lower motor group rating.
  
• Time of Repairs - The longer it will take to get repairs made to a car the higher the associated costs and hence the greater likelihood of a higher motor group rating. The type of paint finish on cars can also be an important factor.
  
• Value of New Cars - The value of new cars tend to give an indication of the higher specification models that exist within a particular model range Therefore from the insurers point of view there is a greater liability to cover should the car be written off.
  
• Body Shells - Relating to the availability and cost of replacement body shells as in certain accidents it would essential for repairs.
  
• Car Performance - The top speed and extent of the cars acceleration capabilities are also important factors. High performance cars, when looking at the insurers claims statistics will often have more frequent insurance claims made.
  
• Level of Car Security - The security features that are fitted as standard equipment by certain car manufacturers can also help to reduce the motor insurance claims costs. These features could include high security door locks, alarm/immobilisation systems, coded audio equipment, etched glass, locking wheel nuts for alloy wheels or high visiblility VIN numbers.

The group ratings determined by The Association of British Insurers make recommendations on the group ratings, but that is all they are. Different insurers Individual insurers, depending on their own experience, may vary from these recommendations.