How Many Insurance Groups Are There?

Car insurance groups are a rating system used in some countries, like the UK, to categorize vehicles based on their insurance risk. This system helps insurers estimate the cost of insuring a particular car. But how many insurance groups are there?

The Answer: 50

There are currently fifty car insurance groups, ranging from 1 to 50. A lower number indicates a lower risk and typically translates to cheaper insurance premiums. Conversely, a higher group number signifies a higher risk and often results in more expensive coverage.

Understanding Insurance Groups

While the numerical system (1-50) provides a general idea of risk, it’s not the whole story. Some groups may also include letter designations (A, D, E, P, U, G) that factor in a car’s security features. For example, a car with an “E” rating (exceeds security requirements) might be cheaper to insure than one with a “D” rating (doesn’t meet requirements), even if they’re in the same numerical group.

Why Did the Number of Groups Change?

Previously, there were only 20 insurance groups. However, as car technology and features became more diverse, the system needed to be more granular. The 50-group system allows for a more accurate reflection of the varying risks associated with different car models.

Key Takeaway

Knowing your car’s insurance group can be helpful when comparing insurance quotes and making informed decisions about car purchases. By understanding how this system works, you can potentially save money on your car insurance.