Jeffrey Wade
When it comes to car insurance, there are a number of factors that determine the cost of cover. These include the make and model of the car, its performance, safety and security features, repair costs, and the driver's history. To help calculate these costs, insurers place cars into insurance groups ranging from 1 to 50, with lower groups being cheaper to insure. This guide will explain how to check a car's insurance category, as well as other factors that can impact insurance costs.
| Characteristics | Values |
|---|---|
| Number of insurance groups | 50 |
| Range of insurance groups | 1 (cheapest) to 50 (highest) |
| Basis of insurance groups | Price, power, safety, security features, repair costs, damage resistance, etc. |
| Group rating system administered by | Thatcham Research |
| Group Rating Panel | Board of representatives from the insurance industry |
| Group Rating Panel's function | Meet regularly to decide which car insurance groups different vehicles should be in |
| Car insurance groups for | Cars, vans, motorbikes |
| Write-off categories | Cat A, Cat B, Cat S, Cat N |
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What You'll Learn
Car insurance groups
In the UK, every car belongs to one of 50 car insurance groups, ranging from 1 (cheapest to insure) to 50 (most expensive). The groups are based on a scoring system that considers a range of categories, including the car's price, power, safety and security features, and the cost of repairs. The higher the group, the higher the insurance premium is likely to be.
The insurance groups are designed to help insurers work out the cost of cover. Cars in the higher groups tend to be top-of-the-range models, which are expensive to replace or repair, or those that are more often targeted by thieves. On the other hand, cars in the lower groups are typically cheaper to insure because they are lower in value and thus cheaper to repair if damaged.
The Group Rating data is compiled by Thatcham Research, an industry-wide insurance advisory service, and is shared with the Association of British Insurers (ABI) every week. Thatcham Research scores all makes and models of cars based on various factors, including the price of the car when new, the cost of repairs, and the design of the car, including its security and safety systems.
When choosing a car to buy, it is essential to consider its insurance group as it can significantly impact the cost of insurance. Various tools are available online to check a car's insurance group, and it is also usually listed in the vehicle's V5C logbook. Additionally, car dealers can provide this information if requested.
It is worth noting that a car's safety and security features can impact insurance premiums. Therefore, investing in security-enhancing features, such as immobilisers or approved alarm systems, may help reduce insurance costs. However, it is advisable to check with insurance providers first before incurring any additional expenses.
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Write-off categories
When a vehicle is damaged, insurance companies will assess the damage and assign it a write-off category. This is based on whether the cost of repairs is more than the car's value, and if the vehicle is safe to be on the road. There are four write-off categories: Cat A, Cat B, Cat S, and Cat N.
Category A is the most severe classification, indicating that the vehicle has suffered extensive and catastrophic damage and must be completely destroyed. This includes vehicles that have been severely fire-damaged, flood-damaged, or heavily stripped. These vehicles are deemed unroadworthy and unsafe, and cannot be salvaged for parts.
Category B vehicles are also considered written off, with damage beyond economical repair and/or severe structural damage. However, some of their parts may be salvaged and sold if they are in suitable condition.
Category S vehicles have sustained structural damage but can still be repaired and resold. The repairs must be carried out by a professional, and the vehicle must pass an inspection by an accredited engineer. The repair costs for Category S vehicles exceed their market value.
Category N vehicles have non-structural damage while maintaining their structural integrity. These vehicles are repairable, and the repair costs will not exceed their market value. Some safety-critical parts, such as brakes, steering, or suspension, may need to be replaced.
It is important to check the write-off category of a vehicle before purchasing it. A vehicle history check can be performed using the registration number to determine if a vehicle has been written off and its assigned category.
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Safety and security features
When it comes to safety features, modern vehicles are often equipped with advanced technology that enhances safety. These features may include sensors on mirrors, fenders, and bumpers, which can help prevent accidents and improve safety. Additionally, some vehicles have systems that can warn you of potential collisions or even take action to avoid them. While these safety features are valuable, they can also increase repair costs in the event of an accident, affecting insurance premiums.
To assess safety, organisations like the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) conduct crash tests and provide safety ratings. NHTSA uses a five-star rating system, while IIHS designates vehicles as Top Safety Picks. Insurers consider these safety ratings when calculating premiums, with vehicles having higher safety ratings often being cheaper to insure due to lower claim frequencies and costs.
Security features are also essential in determining insurance categories. Vehicles with advanced security features, such as immobilisers, steering locks, and approved alarm systems, may be assigned to lower insurance groups, resulting in lower premiums. Additionally, telematics or "black box" policies, which monitor and incentivise safe driving, can positively impact insurance costs.
When purchasing a vehicle, it is advisable to consider the safety and security features and their impact on insurance. While some safety features may increase costs, they can also provide peace of mind and potentially reduce insurance premiums. It is recommended to compare insurance quotes for vehicles with and without specific safety features to make an informed decision.
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Individual claims experience
An individual's claims experience is a record of their insurance claims history. This can be important when applying for new insurance coverage, as companies will review this information when deciding whether to offer a policy and when setting rates.
For auto insurance, an individual's claims history is included in their driving record, which insurance companies check when assessing insurance rates. An individual's auto insurance history, also called an AutoPlus report, includes information about their most current policy, as well as insurance claims for the past 20+ years. It details the type of claim (e.g. collision, theft, bodily injury), how much was paid out, and, in the case of a collision, the percentage of fault assigned to the individual. It also includes third-party claims and, if there has been a policy cancellation, the reason for it. This report can be obtained for free, but it must be mailed to the individual within 10 business days of Conseillers en Gestion et Informatique (CGI) receiving the request.
Alternatively, an individual's auto insurance claims history can be found in their CLUE (Comprehensive Loss Underwriting Exchange) report, which is maintained by LexisNexis Risk Solutions. This report includes information such as the date, type of loss, and the amount paid on a claim. Individuals can request their own CLUE report by mail, phone, or online. When requesting a report online, individuals must provide their Social Security number or driver's license to confirm their identity. If requested from LexisNexis, individuals will have 30-day access to their report online, but they can also download and save it to their computer.
For home insurance, the CLUE report is also used to review an individual's claims history. This report contains a record of the insurance claims filed on a particular property and reported by the insurance company. It includes information on the date of the claim, the type of claim, and the total payout for each coverage. Claims stay on a CLUE report for five to seven years from the date filed. Homeowners, insurers, and lenders are the only ones who can request a CLUE report. However, individuals can try to obtain one from the home seller to learn more about the property's claim history.
In addition to the CLUE report, an individual's home insurance claims history may also be found in an A-PLUS loss history report, which is run by the Verisk database.
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Driver history
Your driving record is a critical factor in determining your insurance category. It provides a detailed account of your history as a driver, including traffic violations, accidents, and license status. This information is used by insurance companies to assess your risk level and set appropriate premium rates.
In most cases, insurance companies obtain Motor Vehicle Reports (MVRs) directly from the Department of Motor Vehicles (DMV) or relevant authorities. These reports contain comprehensive information about your driving history, such as the types and frequency of traffic violations, the number and severity of accidents, driving experience, license status, annual mileage, and vehicle type.
The impact of your driving record on insurance rates is significant. A history of frequent traffic violations, at-fault accidents, or other factors that increase the likelihood of filing insurance claims can lead to higher insurance premiums. On the other hand, a clean driving record with no accidents or violations can result in lower premiums, reflecting a lower perceived risk.
It's important to note that the information included in your driving record and how long it remains on your record can depend on the laws in your state. For example, in North Carolina, your driving record includes license status, while pending charges for traffic violations would not be shown. Additionally, DUI charges tend to stay on your driving record the longest, with some states keeping them on record for up to ten years.
To obtain a copy of your driving record, you can typically request it from the DMV or relevant authorities. In some cases, you may need to order an online copy, which may come at a small cost. Additionally, you can contact your previous insurance company or companies to request a letter of experience, which outlines your insurance coverage and claims history. You can also obtain your claims history from your CLUE report, which is maintained by LexisNexis.
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Frequently asked questions
You can check a car's insurance category by using a car insurance group checker. These tools are available online and often only require you to enter the car's registration number.
A car's insurance category is determined by its performance, price, power, safety and security features, repair costs, and the results of an internationally recognised crash impact test.
Cars with higher insurance categories tend to be more expensive to insure. This is because they are deemed to be at a higher risk of accidents, more expensive to repair, or more often targeted by thieves.
Cat N is one of four write-off categories introduced in 2017 by the Association of British Insurers (ABI). These cars have sustained damage, often due to the high cost of repairs relative to the car's value, but can still be repaired and resold. Insuring a Cat N car may be more expensive, and it is important to disclose this information to your insurer.
You can reduce your insurance premium by choosing a car with a lower insurance category. Additionally, consider setting a higher voluntary excess, investing in security-enhancing features, or opting for a telematics or "black box" policy.
