What Are Car Insurance Groups And How Are They Used?

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To know what car insurance groups are, and how they may affect the cost of your car insurance, read the blog below!

You may have heard about “Car Insurance Groups” from a friend or an insurance advisor. However, you don’t know the key facts such as what they are, why they’re used and how they affect your car insurance costs. Don’t worry, and clarify this!

What Are Car Insurance Groups and how are they used?

Put simply, car insurance grouping is a method of vehicle classification for the purposes of insurance rating. There are a set number of groups that every car in the market is classified into, and these groups can vary according to the country in which you are taking out the insurance. However, typically most follow the world’s leading Motor Insurance market, the UK, which classifies vehicles between 1 to 50 groups.

As a general rule, the higher the number of the group the car is in, the higher the insurance premium, or the cost you will have to pay for insurance. Naturally, it wouldn’t make sense to insure a supercar for the same amount of an economic sedan, so you’ll see it’s a logical system!

What factors influence the car insurance groups/ratings?

A number of factors influence how cars are sorted into their different car insurance groups, such as the value of the car when new, the costs of damages and repairs, the performance of the car, typical time to repair, and the prices of parts. Other factors such as vehicle specification, security features, and in-built safety measures are also considered.

Essentially, any factors that help car insurers estimate how “risky” a vehicle make and model are taken into account and the group system then helps them to assess what the typical premium they need to cover the risk is for that type of vehicle.

Car insurance groups in the UAE

While the idea of segmenting cars into groups based on their value, repair costs, and reliability is definitely implemented in the UAE, it is less spoken about. For example, in the UK anyone who owns a car knows their car insurance group and can find out that info through an online portal or information-type site. In the UAE that’s not the case; most car drivers don’t have that kind of information or the ability to easily find it. Don’t be concerned though. Now you understand how groups work and what they mean, you’re much more informed and able to understand your insurance premium a whole lot better!

Still worrying about how much your car insurance might cost? You shouldn’t. As long as you reach out to our insurance advisors at InsuranceMarket.ae you’ll get the best deal out there! Don’t take our word for it, give them a try today!

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