Understanding Car Insurance Groups and the New Vehicle Risk Rating

Understanding Car Insurance Groups and the New Vehicle Risk Rating

Understanding Car Insurance Groups and the New Vehicle Risk Rating

For decades, every car sold in the UK has been assigned to one of 50 insurance groups, with group 1 being the cheapest to insure and group 50 the most expensive. But that system is now being replaced. Here's what you need to know about both the old groups and the new Vehicle Risk Rating.

The Old System: Insurance Groups 1–50

The Group Rating Panel, made up of representatives from the Association of British Insurers (ABI) and Thatcham Research, assigned each vehicle model to a group based on several factors:

Vehicle Value

More expensive cars cost more to replace or repair, so they sit in higher groups.

Repair Costs, Parts and Time

Cars with expensive or hard-to-source parts, or complex designs that take longer to repair, are rated higher. This is why some seemingly modest cars end up in surprisingly high groups.

Performance

Engine power and top speed are considered because faster cars are statistically more likely to be involved in accidents and the resulting claims tend to be larger.

Safety and Security

Cars with autonomous emergency braking (AEB), lane departure warnings and electronic stability control are placed in lower groups. Factory-fitted alarms and immobilisers also help reduce the rating.

The New System: Vehicle Risk Rating (VRR)

From August 2024, Thatcham Research began replacing the old 1–50 insurance groups with a new Vehicle Risk Rating system. The transition for new models is due to be completed in the second half of 2026.

How VRR Works

Instead of a single group number, each car is scored across five categories, each rated from 1 to 99:

  • Performance — Power, speed and acceleration
  • Damageability — How easily the car is damaged in a collision
  • Repairability — Cost and complexity of repairs
  • Safety — Active and passive safety systems
  • Security — Theft resistance and security features

Key Differences

  • Dynamic ratings — Unlike the old system where the group was set at launch and never changed, a VRR score can go up or down over time as real-world claims data comes in.
  • More granularity — Five separate scores from 1–99 give insurers a much more detailed picture than a single number from 1–50.
  • Existing cars keep old groups — Cars registered before August 2024 retain their 1–50 group rating. VRR only applies to new model ranges from that date onwards.

What This Means for You

If you're buying a new car, its insurance cost will increasingly be determined by VRR scores rather than the old group number. When comparing cars, look at all five VRR categories — a car might score well on safety but poorly on repairability, which could still push premiums up.

If you're buying a used car registered before August 2024, the old insurance group still applies. You can check your car's specifications, safety ratings and other details that influence insurance costs by running a free car check on MOTChecker.

Tips for Lower Insurance

  • Consider insurance cost when buying — the difference between engine variants of the same model can be significant.
  • Cars with strong safety ratings (Euro NCAP 5-star) tend to score better.
  • Smaller engines with less power generally cost less to insure.
  • Factory-fitted security features are valued more than aftermarket additions.
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