Car insurance groups play a major role in how insurers calculate premiums in the UK. Every car on the market is assigned to an insurance group, which helps insurers assess the level of risk associated with insuring that vehicle. In 2026, understanding how these groups work is increasingly important, as insurance prices continue to be influenced by repair costs, vehicle technology, and claims data.
This guide explains what car insurance groups are, how they are determined, and why they matter when comparing car insurance policies.
What Are Car Insurance Groups?
In the UK, cars are placed into insurance groups ranging from 1 to 50.
- Group 1 vehicles are generally considered the lowest risk to insure.
- Group 50 vehicles are typically the highest risk and most expensive to insure.
The higher the group, the greater the potential cost of insurance, although premiums are always influenced by additional factors such as driver profile and location.
Insurance groups are set using industry-wide data to ensure consistency across insurers.
Who Decides Insurance Groups?
Insurance groups are determined by the Group Rating Panel, which is supported by the Association of British Insurers (ABI) and Thatcham Research. Thatcham is responsible for assessing vehicle safety and security standards, which directly influence insurance group placement.
This system ensures that vehicles are assessed using standardised criteria rather than insurer opinion alone.
Factors That Determine a Car’s Insurance Group
Several technical and financial factors are used when assigning a car to an insurance group:
1️⃣ Vehicle Value
More expensive cars generally cost more to repair or replace, which can place them in higher insurance groups.
2️⃣ Engine Size and Performance
Cars with higher acceleration, top speeds, or power output are often considered higher risk, particularly for inexperienced drivers.
3️⃣ Repair Costs
Insurers assess how long a vehicle takes to repair, the cost of parts, and labour requirements. Cars with specialist or hard-to-source parts may score higher.
4️⃣ Safety Features
Vehicles fitted with advanced safety technology such as automatic emergency braking, lane assist, and collision detection may be viewed more favourably.
5️⃣ Security Features
Factory-fitted alarms, immobilisers, and tracking systems can reduce theft risk and influence group placement.
6️⃣ Claims History and Data
Historical claims data for specific models helps insurers predict future risk.
Why the Same Model Can Have Different Insurance Groups
It’s common for the same car model to appear in multiple insurance groups. This is because engine size, trim level, and specification all matter.
For example:
- A 1.0L petrol version may be placed in a lower group
- A turbocharged or sport trim may fall into a higher group
- Added features like alloy wheels or performance upgrades can affect repair costs
Always check the exact variant rather than assuming all versions of a model sit in the same group.
Insurance Groups vs Actual Premiums
While insurance groups are important, they do not determine the final price on their own. Insurers also consider:
- Driver age and experience
- Postcode and parking location
- Annual mileage
- Driving and claims history
- Level of cover selected
A driver with a clean record may receive competitive pricing on a higher-group car, while a higher-risk driver may still face higher premiums on a low-group vehicle.hile a higher-risk driver may still face higher premiums on a low-group vehicle.However, the named driver must genuinely drive the car occasionally — never front a policy, as this is illegal.
Insurance Groups and Newer Technology
Modern vehicles increasingly include advanced driver-assistance systems (ADAS). These can have mixed effects:
Potential positives
- Improved accident prevention
- Better safety ratings
Potential considerations
- Expensive sensors and cameras
- Higher repair costs after minor collisions
As a result, some newer cars may sit in higher insurance groups despite strong safety features.
Checking Insurance Groups Before Buying a Car
Knowing a vehicle’s insurance group before purchase can help drivers understand potential insurance implications. Insurance groups are often listed by manufacturers, insurers, or comparison services.
Comparison platforms such as Quotezone allow users to view insurance pricing across different vehicles and policy types, helping illustrate how insurance groups interact with real-world premiums.
Common Myths About Insurance Groups
Myth 1: Group 1 always means cheap insurance
Not necessarily — driver profile and location still matter.
Myth 2: Older cars are always in lower groups
Some older vehicles lack security features, which can increase risk.
Myth 3: Bigger cars are always higher group
Engine size, safety, and repair costs matter more than physical size.
Final Thoughts
Car insurance groups provide a structured way for insurers to assess vehicle risk, but they are only one part of the overall pricing equation. In 2025, understanding how groups are assigned — and how specification, safety, and repair costs influence them — helps drivers make informed decisions when choosing a vehicle or comparing insurance policies.
While lower insurance groups are often associated with lower premiums, the most suitable policy depends on a combination of vehicle choice, personal circumstances, and accurate information. Reviewing insurance options carefully and understanding how insurance groups work can help drivers navigate the UK insurance market with greater confidence.