The Group Rate System
Vehicle insurance companies rank each model of vehicle in one of twenty groups depending on its characteristics. This group rate is then used to calculate premiums (the higher the rating, the higher the premium). The characteristics are as follows:

• Damage and parts costs: including the likelyhood of damage to the model of vehicle and the cost of the parts.
• Repair times: Longer repair times mean higher costs.
• New vehicle values: the price of a new vehicle is used to identify the higher specification models within a range.
• Performance: owners of vehicles with better acceleration and higher top speeds are statistically much more likely to make a claim.
• Vehicle security: better security features (e.g. alarms and immobilisers etc) fitted as standard by the manufacturer help to reduce insurance costs.
• Association of British Insurers determine standard group ratings, however individual insurance companies are free to vary from these recommendations depending on their own experience.