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Car Insurance Groups

Understand car insurance groups and how they affect the price of your premiums in Thailand.

What is Car Insurance Grouping?

Car insurance for groups isn’t a new concept; it’s been around for decades and was created to assist insurers in determining premiums. Car insurance groups are formed independently by car manufacturers based on how easy and inexpensive it is to repair a car after an accident and how likely it is to be involved in one.

Originally, group ratings ranged from 1 to 20, but since 2009, insurance group ratings have been pushed up from 1 to 50. As a result, different ratings may be given to different specifications and trims within model ranges.

Key Points:

  • Car insurance groupings is a basic method used by the insurance industry to calculate your premiums.
  • Car insurance groups are decided based on the performance, security, safety, part prices, and the cost of the vehicle, among others.
  • Location, age, occupation and driving history helps to determine the premium rates in the car insurance group.

How Do Car Insurance Groups Work?

Every car belongs to one of 50 car insurance groups. These 50 car insurance groups band cars from the cheapest to the most expensive to insure. The lower the number, the cheaper the car is deemed to be to insure. In other words, group one is the most affordable, and group 50 is the most expensive. The more expensive, powerful, and rarer your car, the higher the group it will be in.

For example, small city cars like Ford Fiesta generally come in at the lower end of the scale (between group 1 and 10). In comparison, luxury cars like Ferarri 488 GTB will stay at the higher end of the group (between group 41 and 50).

How Are Car Insurance Groups Decided?

Generally, the cheaper your car, the lower down it will be in the group, however, the car insurance group is not just about the price of a vehicle. There are lots of different factors that the car insurance industry has to consider. These may include:

  • The cost of a new vehicle – The price of a new car and its specifications are usually the first guide to potential repair and replacement costs.
  • Performance of the vehicle – The acceleration time ranging from 0 to 60 mph and top speed is included because high-performance cars are at higher risk of frequent insurance claims.
  • Security – If the car is more easily broken into than other vehicles, it will end up in a higher category.
  • Part prices – A list o 23 common parts is used to compare part costs from one manufacturer to another.
  • Safety – Potential damage to the vehicle, as well as the damage it might cause to others, will be factored in.

Because the car insurance group indicates the insurer’s risk level when covering your vehicle, it’s a good way to estimate how much it’ll cost to insure one car versus another. However, looking at which group a car model belongs to can give you an idea of how risky the model is to an insurer. And, more importantly, whether they’ll charge you more or less to insure it.

Identifying the insurance group in which your vehicle falls can help you save money on car insurance.

What Are Car Insurance Group Security Ratings?

Each car insurance group also has a set of security features that can apply to the models it covers. The higher the group, the more safety features should be included in the vehicle. You’ll see a letter after the group number, which show the results of the security assessment.

Each letter denotes a different security rating:

E – Exceeds the safety standard for the type of vehicle, resulting in a lower car insurance group rating.

A – Acceptable security level for the type of vehicle.

D – Doesn’t meet the form of car’s protection criteria, so the insurance group rating has been increased.

U – Unacceptably standard of security. Before agreeing to cover, an insurer can require improved aftermarket protection.

P – Provisional. At the time of launch, there was insufficient data to identify the vehicle. This will almost certainly be updated until a new car is available for Thatcham to test.

G – Grey import. Imports are only assessed at the insurer’s fixed price. Imported or speciality vehicles are not subject to car insurance group ratings or security ratings.

Although insurance companies are not allowed to base their premiums on these scores, finding out the Insurance Group and security rating before purchasing a new car will give you a clear idea of how much it would cost to insure.

Because the car insurance group indicates the insurer’s risk level when covering your vehicle, it’s a good way to estimate how much it’ll cost to insure one car versus another.

How To Reduce Premium On Car Insurance?

One thing you should remember is that you cannot change your car’s insurance group. Therefore, one of the most effective ways to reduce the expense of your premium is to purchase a car in the lower insurance groups. However, if you already bought a vehicle that is in a higher category and you want to save money on your insurance, there are a few options you can try:

  • Car security and storage – Improving your car’s security features, as well as parking it in a secured garage, will help you save money on your insurance premiums.
  • Excess – This is the portion of a claim that you pay until the insurance pays the remaining amount. You may be able to lower your premiums by volunteering for a higher surplus.
  • Named drivers – Adding a named driver with a lot of driving experience and few claims on their record will also help you save money on your insurance premiums.
  • Pay annually – If you pay your premiums yearly rather than monthly, most insurers will give you a discount.
  • No-claims bonus – If you haven’t made a previous insurance claim in a long time because the longer the better and insurers can reduce the cost of your policy.
  • Drive less – You might be asked for an estimate of your annual mileage, and driving less decreases your risk of being involved in an accident and having to file a claim.
  • Telematics – Telematics, also known as black box insurance, is when your insurer tracks your driving habits and adjusts your rates accordingly. The better you drive, the lower your premiums will be.
  • Pay-as-you-go – On the market, there are a growing array of pay-as-you-go policies. They normally have a fixed monthly fee to cover your vehicle when it is parked, after which you only pay for the miles you drive.

Other Factors That Affect Car Insurance Premiums

Car insurance grouping is not the only element your insurer used to set your premium, in addition to the car you drive and many other factors are taken into consideration here are some factors that will determine your car insurance premiums:

  • Location – If you live in a high-crime area with higher levels of theft or vandalism, your insurance premiums will most likely be higher.
  • Age – Your age is a significant factor in premium costs. Since young drivers are more likely to be involved in a car accident due to their lack of experience on the road, they’ll need to pay higher premiums. The good news is that your insurance premiums will typically decrease once you hit the age of 25.
  • Occupation – Certain industries and occupations have higher risk factors, so the premiums can be influenced by what you do for a living.
  • Driving history – It’s one thing to be inexperienced on the lane, but having a history of prior claims or driving convictions would almost certainly count against you.