Car Insurance Groups Explained
The Hyundai i20 Classic 1.2 and the i20 Style 1.2 have the same engine, transmission, performance and fuel economy but the former is cheaper to insure. Why? The key is to recognise that every trim, e.g. Classic 1.2 - rather than every model, e.g. Hyundai i20 - has an Insurance Group Rating from one to fifty. The lower the rating the lower the insurance premiums. Ratings are assigned by a Panel of Insurers based on information provided by research centre Thatcham. Various factors are considered. The first is the cost of parts to repair simulated low speed front/rear impacts. These could include bumpers, lights, radiators, trim, etc. Repair times are also considered as mechanics tend to charge by the hour. As such, city cars that emerge from these light collisions are cheaper to fix than luxury saloons. Why? Because the latter are more likely to have extras such as parking sensors, cameras, etc. Thatcham also evaluates the replacement cost of twenty-three common parts. City car lights, for example, might be cheap but the equivalents for luxury saloons can be expensive if they incorporate (say) infraed beams as part of night vision systems. Factors such as acceleration, maximum speed, value, and security features also influence ratings. So, as the Hyundai i10 Classic 1.2 has less equipment than its sibling – it is has been classified as Group four rather than Group five.