You have possibly noticed your vehicle belongs inside a car insurance groups list. However, what are those groups, what are they for and how do they affect the insurance premiums?

Car insurance groups are very simple, the higher the group is proportional to the rate. Currently you can find 20 groups, but this will be expanded to 50. Customers can have an idea on how much the insurance premium will be just by looking at the car insurance groups list.

The groups are established by the Group Rating Panel, which consists of an association of insurers. The board meets each month to suggest an insurance group for those new cars launched in to the market. They use some factors to determine the ranking for each group. Repair costs are the biggest thing to consider by the panel since repairs expenses make up more than 50 % of the claims. However, there are some other factors to consider too.