Your Vehicle and Your Car Insurance Premium

2 min read     June 9th, 2017


We look at the role your vehicle has in determining your insurance premium.

The vehicle you drive is the subject of your insurance. It plays a really important part in the make up of your premium. At Allianz, our Underwriters use the Group Rating System as an important part of premium calculation as well as our Claims experience along with a number of other aspects.

What is The Group Rating System?

When calculating motor insurance a number of factors come into play. A guide that insurance companies use in order to help calculate motor insurance premiums is called the Group Rating System.

The Group Rating System helps insurance companies provide them with the relative risk of private cars and light commercial vehicles by examining the factors outlined below.

Group Rating Factors

Damage and Parts Costs

This includes the likely extent of damage to each car model and the cost of the parts involved in its repair. Therefore, if damage and repair costs are low then in return, the greater the possibility of a lower group rating.

Repair Times

Another factor of higher costs is that of longer repair times. These higher costs result in the greater likelihood of a higher group rating. Different paint finishes on modern cars are also an important factor.

New Car Values

The prices of new cars are also taken into account as they are seen as a good guide to the cost of replacement and repair.

Parts Prices

A standard list of common parts is used to compare one manufacturers parts costs to another. The lower these costs, the more likelihood there is of a lower group rating.


Insurers know from years of claim statistics that high performance cars often result in more frequent insurance claims. Acceleration and top speed are other important factors considered in determining a group rating system.


Modern cars have more safety features than ever before. Safety features have a significant impact on insurance ratings.

For example, cars that are fitted with an Autonomous Emergency Braking (AEB) system are less likely to be involved in low speed front to rear accidents, therefore where AEB is fitted as standard this will be taken into account and will reduce the insurance rating.

Cars with bumpers that meet the insurer’s standards and are therefore compatible receive lower insurance ratings.

Car Security

Security features fitted as standard equipment by motor manufacturers can help too. Such features include high security door locks, alarm/immobilisation systems, glass etching, coded audio equipment, locking devices for alloy wheels and visible VIN numbers. All of these features can influence the possibility of a lower group rating.

If you are considering buying a new car, think about the Group Rating of the vehicle as this will have a bearing on your car insurance premium. You can check the group rating of an exact model at:

Remember, the lower the number is often better but bear in mind we look at lots of factors in calculating your car insurance premium including our claims experience, so it may not necessarily result in a lower premium.

Information correct as of 25/05/2017.