Car insurance groups explained

Do you know which insurance group your car is in?

It might not be the most thrilling topic for a spot of light reading, but understanding car insurance groups could save you money on your annual premium.

Every car in the UK falls into an insurance group between 1 and 50 – and knowing where your motor sits on this scale is one of the easiest ways to keep your insurance costs from spiralling out of control.

What are car insurance groups?

Car insurance groups are essentially a risk assessment system that’s been helping insurers (and savvy drivers) work out insurance costs since the 1970s.

Think of it as a league table for cars, but instead of goals scored, it’s all about how likely your car is to be nicked, crashed, or whether it’ll cost a fortune to fix.

The system is run by Thatcham Research, who’ve been crunching the numbers for over 25 years now.

They look at around 125 factors to decide where each new car model should sit on the scale, from group 1 (the cheapest to insure) right up to group 50 (the cars that’ll hit you much harder on the wallet).

What factors affect your car’s insurance group?

Your car’s insurance group isn’t picked out of a hat – it’s based on cold, hard data.

Here’s some of what Thatcham Research considers when they’re doing their sums:

Car value is the big one.

If your shiny new vehicle costs £50,000 to replace, insurers know they’ll be reaching deeper into their pockets if something goes wrong. That’s why a BYD SEAL sits in groups 48-50, while more modest motors hang out in the lower groups.

Repair costs and time matter massively too.

Modern cars might be safer and more reliable, but they’re also more complex to fix. Those fancy sensors and high-tech parts don’t come cheap, and neither do the specialist mechanics who know how to fit them.

Performance plays its part as well.

A car that can go from 0-60mph faster than you can say ‘speed camera’ is statistically more likely to be involved in a collision. Unfortunately, insurers aren’t the biggest fans of that kind of excitement.

Safety features can actually work in your favour.

Cars packed with clever tech like Autonomous Emergency Braking (AEB) systems are less likely to have a bump in the first place, which insurers love.

Security features like alarms and immobilisers can help keep your car where you left it, rather than in someone else’s hands.

Car insurance group letters explained

Your car’s insurance group comes with a number and a letter – like 12A or 25D. The number’s the easy bit (higher number = more expensive insurance), but what about that letter?

Here’s your decoder key:

• A: Your car meets all the security requirements. Good news.
• D: Your car doesn’t meet the security requirements and has been bumped up a group. Less good news.
• E: Your car has exceeded security requirements and been moved down a group. Excellent news.
• P: The data was incomplete when the car launched. Temporary news.
• U: Your car has unacceptable security levels, and the insurer might ask that security features are added or upgraded. More expensive news.
• G: Your car has been imported and could be seen as ‘higher-risk’. Potentially more expensive news.

If you’re shopping for a new lease car and want to keep insurance costs down, look for that magical ‘E’ rating. It means the car’s gone above and beyond on security.

The cheapest car insurance groups

Want to know where the bargains hide?

According to MoneySuperMarket data, here’s what different insurance group ranges actually cost drivers on average:

• Groups 1-10: £445
• Groups 11-20: £504
• Groups 21-30: £572
• Groups 31-40: £691
• Groups 41-50: £832

Cars that typically fall into those money-saving groups 1-20 include favourites like the Hyundai i10, Kia Picanto, SKODA Fabia, Vauxhall Corsa, Volkswagen Polo, and Renault Clio.

Are electric cars cheaper to insure?

Despite being cheaper to run day-to-day, electric cars are usually pricier to insure than their petrol or diesel siblings.

Why?

It comes down to a few factors.

Electric cars tend to be newer and more expensive to buy, they need specialist mechanics for repairs, and their unique parts can be costlier to replace.

The good news is they’re often packed with the latest safety tech, which helps offset some of these costs.

What else affects your car insurance cost?

Your car’s insurance group is just one piece of the puzzle. Insurers also consider:

Your age: Unfortunately, younger drivers typically face higher premiums due to inexperience.

Where you live: Your postcode tells insurers about local crime rates and traffic patterns.

Your job: Some occupations are considered riskier than others.

Your driving history: A clean record with no claims earns you discounts, while a history of collisions or claims will push prices up, even if the incidents weren’t your fault.

Your policy type: On average, fully comprehensive cover costs less (£570) than third-party only (£763). Which works well if you’re leasing, when most funders will insist on your taking out fully comprehensive coverage anyway.

How to reduce your car insurance costs

Beyond choosing a car in a lower insurance group, here are some tried-and-tested ways to keep your premiums down:

Pay annually instead of monthly. Yes, it’s a bigger upfront cost, but you’ll save money overall.

Increase your excess to show insurers you’ll only claim when absolutely necessary.

Build that no-claims bonus by driving carefully and avoiding claims where possible.

Upgrade your security with approved alarms, immobilisers or secure parking.

Consider telematics (black box) insurance if you’re a careful driver – it lets you prove your skills to your insurer with hard data.

Where to find insurance group information at Carparison

When you’re browsing our car lease deals, you’ll find each car’s insurance group listed in the vehicle details section, which you can find if you scroll down the page past ‘vehicle highlights’. 

It’s tucked away with loads of other useful details, so have a click around when you’re comparing your options.

The future of car insurance groups

The insurance world is changing as fast as the cars we drive.

Thatcham Research has launched a new vehicle risk rating system that’ll run alongside the current insurance groups until March 2026, when it’ll take over completely.

The new system takes into account all the clever tech that’s transforming modern cars – from advanced driver assistance systems to the unique challenges of insuring electric vehicles. But, for now, the trusty 1-50 group system is still your best guide to insurance costs.

The bottom line

Understanding car insurance groups won’t win you any pub quizzes, but it could save you some serious cash on your next lease.

Whether you’re after a zippy city car or a spacious family motor, knowing where different models sit on the insurance scale should help you make a smarter choice.

Remember, the cheapest car to lease isn’t always the cheapest to run – but with a bit of homework on insurance groups, you can find the sweet spot that works for your budget and your lifestyle.