Understanding Car Insurance Group Rating

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It is a well known fact that insurance companies set their car insurance quotes according to a rating system. They use this system in order to determine a candidate’s risk as well as the value of the assumed risk. One of the main elements of the insurance rating system is car group rating. The auto insurance group rating is a system that is dedicated to determining the risk level of a car regardless of the driver, the location or the purpose of the vehicle. Researching a car insurance group rating can be very useful if you plan on acquiring a new car. Based on this system you can see what are the cheapest and the most expensive cars to insure.

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  • Vehicle specifications

The main characteristic of a car insurance group rating is the vehicle specification. When trying to determine the level of risk posed by a certain vehicle, insurance companies take into account various factors such as the vehicle’s price when it is new or the car’s performance (image, top speed and 0-60 miles performance). The repair costs are also very important and these include both the labor costs as well as the price of the parts. The latest car models use state of the art technologies which require professional mechanics so they are more expensive to insure. The cost of the body parts is established for two possible scenarios: low speed car crash and severe collisions. Optional features installed on your car can also influence your premiums. For example certain safety measures can lower your car insurance premiums while luxury features can raise them.

  • Theft Prevention

Car theft is a serious concern for insurance companies and therefore this is a factor that they take into account in their rating system. Believe it or not, auto theft statistics have shown that certain cars are more likely to be stolen. In order to encourage car manufacturers to invest more effort in anti theft measures, insurance companies are using a lettering system for grading cars. E stands for exceeded security expectations and this letter can reduce the car insurance group rating. For example 10 group rating car with exceeded security expectations will be listed as 9E. A stands for acceptable security expectations. The letter P means that the car had an incomplete description at the time when it was released. D means that the car does not meet the security requirements for its group. U stands for Unacceptable and it usually means that you will need some security upgrades before being eligible for insurance.

As you can see the car insurance group rating can have a significant impact on your auto insurance premiums. Before buying a car, make sure that the benefits that it will bring you will be proportionate with the car insurance premiums that you will have to pay.