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Car Insurance Rating Group

When it comes to assigning ratings to the vehicles, the association of insurers (ABI) is one of the most reliable and authentic group which allocates the Vehicles Group Rating by the information given by Thatcham to ABI. The ABI rate the vehicles ranging from grade 1-20 and has set up different criteria’s for it.

Take for instance the example of Nissan Micra which has been rated as group 3 whereas Nissan 300 ZX with its 2960cc engine has been rated group 18 by the ABI.

This is one of the criteria on which the vehicle is allocated with different group ratings. Some of the other factors which help in assigning the group ratings to vehicles consist of:

1. Repair costs – The probable damage to each car model and the expenditure involved in repairing those damaged parts determines the group ratings of the vehicles. The lower the repair costs are it is quite expected that the Group Rating will also be lower.
2. Repair Times – The association will assign higher group ratings if the time required to repair the vehicles is long.
3. New Car Price – Apart from the above factors, the price of the vehicle also determines the group ratings that will be assigned to the vehicle. It is believed that the new cars are considered good as it’s in good shape at the time of cost of repair and replacement.
4. Car Security – This facility offered by car makers to the customers helps in reducing the cost of Insurance Claim by offering features like door locks, glass etching, alarm/immobiliser, coded audio equipment, visible vehicle identification numbers and alloy wheel locking devices.
5. Body Shells – The basic frame of the car or the body shells also forms an important part to grade the group ratings to the vehicle as it is important at the time of accidental damage repairs.
6. Performance – Lastly, the speed and the acceleration which a vehicle provide also forms an important component to allocate the group ratings.

It is quite possible that what the ABI initially rates a vehicle may vary from what the insurer may assign. The insurer may reallocate a different rating to the vehicle keeping in mind the criteria’s set and also the customer history. Further the insurer may also look at the number of fault claims on a specific vehicle which might lead to a higher rating. This in return will generate higher premium on Car Insurance in order to neutralize any probable loss.