If you've ever wondered why two similar-looking cars have vastly different insurance premiums, the answer often lies in their insurance group. Every car sold in the UK is assigned to one of 50 insurance groups — and the difference between a Group 1 and a Group 30 car can exceed £1,000 a year. This guide explains how the system works and how you can use it to find cheaper car insurance.
In This Guide
What Are Car Insurance Groups?
Car insurance groups are a classification system used by UK insurers to assess the risk and cost of insuring a particular vehicle. Every car sold in the UK is assigned to a group ranging from 1 to 50, where Group 1 represents the cheapest cars to insure and Group 50 the most expensive.
The system is administered by Thatcham Research, a not-for-profit automotive risk intelligence organisation, on behalf of the Association of British Insurers (ABI). Members of the ABI and Lloyd's Market Association (LMA) form the Group Rating Panel, which meets monthly to assign insurance groups to new vehicle models.
The number of insurance groups has expanded over time. Until 2009, there were only 20 groups (1–20). The expansion to 50 groups allows each vehicle model to be more precisely categorised, creating a more accurate rating system that better reflects real-world repair and risk data.
How Are Car Insurance Groups Determined?
The Group Rating Panel considers multiple factors when establishing which insurance group a car belongs to. Understanding these factors helps explain why certain vehicles cost more to insure than others.
Key Factors That Determine Your Car's Insurance Group
Repair costs — This is the single most significant factor. The majority of insurance claims are for vehicle repairs rather than total write-offs. Thatcham Research evaluates repair costs by studying damage from standardised crash tests at 15km/h, analysing both parts costs and labour time required. Cars with expensive or hard-to-source parts typically fall into higher groups.
Vehicle value — The new car price directly influences the insurance group. More expensive vehicles cost more to repair or replace, placing them in higher groups. However, value alone doesn't determine grouping — a £30,000 car with cheap parts might sit in a lower group than a £20,000 car with expensive specialist components.
Performance — Acceleration, top speed, and engine power all affect grouping. High-performance vehicles are statistically more likely to be involved in accidents and typically cause more severe damage when incidents occur. This is why a Ford Fiesta ST sits in a much higher group than a standard Ford Fiesta.
Safety features — Vehicles with advanced safety technology, particularly Autonomous Emergency Braking (AEB), can be moved into lower insurance groups. Standard-fit safety aids that reduce accident likelihood or severity are rewarded in the rating system.
Security features — Vehicle theft remains a significant reason for insurance claims. Thatcham Research assesses security features including alarms, immobilisers, and anti-theft technology. Cars with superior security can drop insurance groups, while those with poor security may be pushed higher.
💡 Why Repair Costs Matter Most
Because most insurance claims involve repairs rather than write-offs, two cars at the same price can sit in very different groups. A car designed for easy, affordable panel replacement will always be cheaper to insure than one that requires specialist parts or lengthy labour.
Understanding Security Ratings
You may notice a letter following your car's insurance group number — for example, '10E' or '8D'. This security suffix provides additional information about how the vehicle's security features compare to what's expected for its group.
| Letter | Meaning | Impact on Insurance |
|---|---|---|
| E | Exceeds requirements | Group rating reduced — better security than expected for this type of car |
| A | Acceptable | Meets expected security standards for its group — no adjustment |
| D | Doesn't meet requirements | Group rating increased — poorer security than expected |
| P | Provisional | Incomplete data at launch — rating may change once fully assessed |
| G | Grey import | Not officially sold in UK — insurer sets price individually |
| U | Unacceptable | Significant security concerns — may be difficult to insure |
✅ Quick Tip
When comparing similar cars, the security suffix matters. A car rated '10E' will typically cost less to insure than one rated '10D', because the 'E' indicates the car has been moved down a group due to exceeding security standards.
The New Vehicle Risk Rating System (From August 2024)
While the 1–50 group system remains the standard for most cars on UK roads, Thatcham Research launched a new rating system in September 2024 that applies to newly registered vehicles.
⚠️ Who Does This Affect?
Only cars registered from 1 August 2024 onwards receive VRR scores. If you're buying a used car, looking at insurance for your current vehicle, or purchasing a nearly-new car registered before this date, the traditional 1–50 group system still applies to you.
Instead of a single 1–50 rating, the Vehicle Risk Rating (VRR) scores each car from 1 (low risk) to 99 (high risk) across five separate categories:
Thatcham Research is running both systems in parallel until early 2027, after which VRR will become the sole reference for newly registered vehicles. However, cars registered before August 2024 will continue to use their existing 1–50 group ratings indefinitely — meaning the traditional system will remain relevant for the used car market for many years to come.
Car Insurance Groups 1–50: What Each Range Means
| Groups | Typical Vehicles | Characteristics |
|---|---|---|
| 1–10 | Hyundai i10, Kia Picanto, VW Up!, Toyota Aygo, Skoda Fabia | Small engines (1.0–1.2L), low performance, affordable parts, good safety. Ideal for young drivers and those seeking cheap car insurance. |
| 11–20 | VW Golf (base), Ford Focus, Vauxhall Astra, Nissan Qashqai | Mid-range family cars, moderate performance, reasonable repair costs. Good balance of features and insurance cost. |
| 21–30 | BMW 3 Series, Audi A4, Mercedes C-Class, Golf GTI | Premium brands, higher performance variants, more expensive parts. Noticeably higher premiums than Groups 1–20. |
| 31–40 | BMW M Sport, Audi S-Line, Range Rover Sport, performance SUVs | High-value vehicles, powerful engines, specialist parts, increased theft risk. Substantial insurance costs. |
| 41–50 | BMW M3/M5, Porsche 911, Nissan GT-R, Mercedes-AMG, supercars | High-performance sports cars, very expensive repairs, specialist insurers often required. Highest premiums. See our performance car insurance guide. |
Cheapest Cars to Insure: Group 1–5 Vehicles
If you're looking for cheap car insurance, choosing a vehicle in the lowest insurance groups can save you hundreds of pounds annually. Here are popular models that typically fall into Groups 1–5:
| Vehicle | Lowest Group | Notes |
|---|---|---|
| Hyundai i10 1.0 | Group 1 | Excellent reliability, 5-year warranty |
| Kia Picanto 1.0 | Group 1–2 | 7-year warranty on new models |
| Volkswagen Up! 1.0 | Group 1 | Premium feel, reliable VW engineering |
| Toyota Aygo X 1.0 | Group 1–3 | Exceptional reliability record |
| Skoda Fabia 1.0 | Group 2–3 | More space than city cars, practical boot |
| Volkswagen Polo 1.0 | Group 2–3 | Quality interior, refined drive |
| Fiat Panda 1.0 | Group 1–3 | Affordable to buy and run |
| Renault Clio 1.0 | Group 3–5 | Good fuel economy, stylish design |
⚠️ Check the Specific Variant
The same model can span multiple insurance groups depending on engine size, trim level, and equipment. A Volkswagen Polo 1.0 in basic Life trim sits in Group 3, while a Polo 2.0 TSI GTI is in Group 25. Always check the specific variant you're considering. For a deeper look, see our cheapest cars to insure guide.
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Compare Quotes NowHow Insurance Groups Affect Your Premium
While your car's insurance group is a significant factor in determining your premium, it's not the only consideration. Insurers combine the vehicle's group rating with driver-specific factors to calculate your individual quote.
The Real-World Premium Difference
The difference between insuring cars in different groups can be substantial. For a young driver aged 17–25, choosing a Group 1 car instead of a Group 20 vehicle could save £500–£2,000 annually. For experienced drivers with a clean record, the difference typically ranges from £200–£800 per year.
Other Factors That Affect Your Premium
Your age and driving experience — Young and newly qualified drivers pay significantly more. Premiums typically decrease substantially after age 25.
Claims history and no claims bonus — Five years of claim-free driving can reduce premiums by up to 75%. Learn more in our no claims bonus protection guide.
Where you live and park — Urban areas with higher crime rates mean higher premiums. Parking in a garage can save money.
Annual mileage — Lower mileage equals lower risk and potentially lower premiums. See our guide on average miles driven per year in the UK for more.
Your occupation — Certain professions are considered lower risk by insurers.
Level of cover — Fully comprehensive cover isn't always more expensive than third party — always compare both options.
How to Use Insurance Groups to Save Money
Before You Buy a Car
Always check the insurance group of any car you're considering before making a purchase. Get actual car insurance quotes for your shortlisted vehicles — you might be surprised how much premiums differ between seemingly similar cars. A small hatchback in Group 1 could cost half as much to insure as one in Group 10.
Choose the Right Variant
If you like a particular model, consider opting for a lower-powered version. The base Ford Fiesta 1.1 sits in Group 6, while the sporty Fiesta ST jumps to Group 29. The same logic applies to optional equipment — some extras like larger alloy wheels or upgraded engines can push a car into a higher group. Our guide on how modifications affect insurance explains this in detail.
Consider Security Upgrades
If you're buying an older car without modern security features, adding a Thatcham-approved alarm or tracking device could reduce your premium. Some insurers require approved security for high-value vehicles. A dash cam can also help protect your no claims bonus by providing evidence in the event of a claim.
💰 Money-Saving Checklist
1. Check the insurance group before buying any car
2. Get actual quotes for your shortlisted vehicles
3. Consider the base or mid-range engine variant
4. Look for cars with an 'E' security suffix
5. Consider adding approved security to older cars
6. Compare quotes from multiple insurers to find the best price
Frequently Asked Questions
What is the cheapest insurance group?
How do I check my car's insurance group?
Do modifications affect my insurance group?
Are newer cars always cheaper to insure?
Does the insurance group system apply to all insurers?
What happens to insurance groups when the VRR system takes over?
Can I reduce my insurance group by fitting security features?
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Sources
- Thatcham Research – Vehicle Risk Rating System (2024)
- Association of British Insurers (ABI) – Motor Insurance Claims Data Q1 2025
- Thatcham Research – Group Rating Panel Guidelines
- RAC – Car Insurance Groups Explained
- Auto Express – Cheapest Cars to Insure UK 2026
