Have you noticed the term ‘insurance group’ while shopping for a car or comparing quotes? 

UK car insurance groups are a system for assessing a vehicle’s insurance risk based on various factors.

Learn what insurance groups mean, how they work, what impacts your premium, and tips to lower your costs below.

What is a car insurance group?

Car insurance groups are groups used by the insurance industry to set premiums. They first appeared in the 1970s to simplify car insurance quotes and to judge potential risks.

Today, vehicles are assigned an insurance group from 1 to 50, with 1 being the cheapest to insure and 50 the most expensive. 

Cars in lower groups generally cost less to insure, while those in higher groups are pricier. Rare, fast, or expensive cars often fall into higher groups, leading to higher premiums. 

Overall, the group system helps insurers calculate premiums, providing a baseline, though other factors also affect the final cost.

What do car insurance group letters mean?

Each car insurance group is assigned a letter representing the car’s safety ability.

Without understanding the letter system, you can’t figure out your insurance group meaning. Here’s a quick overview:

• A — Car meets set safety standards for groups.
• D — Car is in a higher insurance group as it doesn’t meet standards.
• E —  Car is in a lower insurance group because it meets the group's requirements.
• P — Car's data is provisional due to an incomplete rating system at launch.
• U — Car's security is below requirements. The provider may ask you to install upgraded features.
• G — Car is imported, classified as either a parallel or grey import.

How do insurance group numbers work?

Car insurance group ratings don’t only feature letters. They also have numbers, for example 1A or 21 D.

There are 50 different car insurance groups. Let’s break them down:

Insurance group 1 to 10

The first group includes the cheapest cars to insure, thanks to added safety features. Most cars in this category have the letter E, indicating enhanced safety and theft deterrents. 

Pro Tip: Group 1-10 cars are ideal for first-time drivers seeking to save on premiums.

Examples include Fiat 500, Toyota Aygo, and Vauxhall Corsa.

Insurance group 10 to 20

The 10 to 20 group is above the 1-10 range, with cars being affordable but pricier than lower groups.

Common cars in insurance group 10-20 include the Mazda 2, Peugeot 208, Renault Clio, Toyota Yaris, and Ford Fiesta.

Insurance group 20 to 30

20 to 30 is the mid-range insurance bracket. 

Cars in this group are pricier but offer a good balance if you’re looking for speed or a larger vehicle without breaking the bank, such as Citroen C3, Ford Kuga, and the Vauxhall Astra.

Insurance group 30 to 40

In the 30-40 insurance group, there's a shift from practicality to performance and power. 

This range includes sports models and higher-end vehicles, which tend to be more expensive to insure.

Examples include Mercedes-Benz C-Class, Audi A5, Ford Focus, and Abarth 595.

Insurance group 40 to 50

Lastly, the 40 to 50 group carries the highest insurance costs, typically covering powerful and prestigious vehicles like high-end SUVs and luxury cars.

For instance, Jaguar XF, Volvo V90, Audi TT, and Jeep Grand Cherokee are all in this bracket.

How do car insurance groups work?

Now we’ve broken down what the letters and numbers mean, let’s take a closer look at how car insurance groups work.

The ABI Group Rating Panel determines a vehicle's insurance group. 

Made up of members from the Lloyd’s Market Association and the Association of British Insurers, the panel uses data from Thatcham Research to assess the car's risk and also its insurance cost.

Key factors they look at include:

• Car security 
• Safety equipment and features
• Repair times
• General performance
• Cost of parts
• The overall value

How can I find my car insurance group?

You can check your car’s insurance group by using online databases and checkers. 

For example, major insurance provider websites and price comparison brands offer online checker tools. MoneySuperMarket has a reliable one if you want to check it now. 

Note: If your car was registered after 1st August 2024, it will be under the new Vehicle Risk Rating system and not the old insurance groups.

What are the cheapest car insurance groups?

The lower the insurance group, the cheaper your annual premium will typically be. So, cars in groups 1 to 5 are generally the least expensive to insure. But there’s no set rule.

Below, we’ve highlighted some popular models in these groups, which are known for their lower insurance costs:

• Toyota Aygo — Group 5
• Volkswagen Up! — Group 1
• Hyundai i10 — Group 4
• Vauxhall Corsa — Group 2

Other factors that affect car insurance costs

Alongside insurance groups, other factors can boost your annual premiums. 

For example, younger drivers tend to get higher quotes as they lack experience and are more likely to have car accidents.

Location can also affect your premium, as some areas have more theft and vandalism, leading to higher insurance costs.

Likewise, some jobs and industries are at higher risk than others, so your occupation could raise your premium.

Lastly, insurance companies always consider your driving history. You might face higher costs if you’ve had previous claims, a driving conviction, or recent penalties.

How to get lower car insurance

You can’t influence all factors that make up your car insurance costs.

However, there are ways to lower your premium. We’ve left a few popular strategies below:

• Adding an experienced driver with a clear record can lower your premium. This is a popular technique for new drivers.
• Opt for a no-claims bonus. Being claim-free lowers your premium, but remember that it may be cheaper to repair minor damage privately.
• Lower your mileage. If you can, drive less to reduce your costs.
• Find a secure garage. Safe car storage lowers premiums and the risk of theft.
• Pay annually rather than upfront.
• Look for vehicles with lower insurance premiums – see our list of cheapest cars to insure.

Last thoughts

So, that’s the UK car insurance groups in a nutshell. Knowing these helps you make smarter car purchases and allows you to understand how your insurance premiums are generated.

Keep learning today via the Bumper blog.

How Bumper can help

High insurance premiums can put a strain on your wallet, just like surprise car repair bills.

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