The Car Insurance Rating System

Have you ever wondered how car insurance companies actually work out the group numbers for a particular model of car? Well I bet you have! So, let's discuss how this grading system is rated.

Factors that can influence a high group number to a certain car:

• The faster the car the higher the group
• The more expensive the car the higher the group
• If the spares for the car are expensive then again a higher group
• The better anti-theft devices fitted the lower the group
• Statistical history on claims per model of car can affect the group number
• Statistical data on who generally buys a particular model i.e.

• Sales representatives cover very high mileage - higher group number asthe model of car is considered a higher risk due to sales trend
• A car that attracts over 50's will ultimately have a lower statistical claim rate hence have a lower group number

• Larger urban people carriers or 4x4's - How can these fit into a standard sized garage? Common sense will tell you that it will be a higher group number

In fact, there are many more small factors in addition to the ones listed above that will affect the rating or group number of a specific model of a car and it does not always make sense e.g.

35 year old male, with full No Claims Bonus insures:

• Ford Mondeo 1.8TD 1997 5 Door Hatch (£1600) - £340
• VW Golf 1.9SDI 1999 5 Door Hatch (£3100) - £290

Interesting factors:

• Parts for the Ford are cheaper than that of the VW
• The Ford is older than the VW
• The security is better on the Ford (central locking and immobiliser as standard)
• The value of the VW is higher than the Ford

So why is the Newer VW less expensive than the Older Ford? The main difference we at Car Insurance Rules have spotted are the options that are fitted as standard to the Ford (which the VW does not have) which are:

• Electric Sunroof (more pleasing to the eye for a thief?)
• Electric Windows (Should this be a factor?)
• Central Locking (Shouldn't this make the group lower?)
• Turbo - Yes, this makes the Ford a lot faster than the VW and hence the group number higher

So it would seem that performance is a maor factor in rating a cars insurance group so if you are looking at several cars that have the same power output (or thereabouts), look at all the other features you get and make a comparison between them all before you make your decision on your next purchase.

Article created by Adrian Pitt ©2008 Car Insurance Rules