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What are the Different Car Insurance Groups

According to insurance company Esure, there are twenty car insurance groups in the UK. The groups are created by something known as the Group Rating Panel. This panel is a combination of members from Lloyds Market Association and the Association of British Insurers. They hold a meeting every month to discuss the different car insurance groups. While their ratings are considered advisory, most insurance companies use the panel's recommendations.

The different groups are numbered one to twenty, and cars in group one -- such as a Vauxhall Corsa -- attract lower premiums because they are considered less of a risk to insure. Cars that are placed in the higher groups have higher premiums as they are potentially going to cost the insurance company the most in claims.

High-performance sports cars--such as the Porsche 911--are usually all in group 20 and have to pay the highest premiums.The average family car is usually somewhere between group 5 and 11. When the car insurance groups are being considered, the cost of repairs and spares is also considered. This is because insurance companies spend the most money on this area. If your vehicle is cheap when it comes to repair, it will fall in to one of the lower groups. Vehicles that have their spares imported, such as Volkswagen, are usually in the higher groups.

How much the vehicle cost when brand new is another important factor that affects which group it falls in to. A car that cost £8,000 brand new will be in a much lower group than a car that cost £20,000. It is important to check which of the car insurance groups a vehicle falls in to before you buy it. The amount of insurance you pay each month will vary wildly between groups. Group 20 cars are often insured by specialist companies, who like most insurers take in to account your no claims history, age and what sort of car you own.

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