The Group Rating Panel in UK consists of the members from Lloyds Market Association (LMA) and the Association of British Insurers (ABI). They are responsible for setting up the various insurance groups each month for every new passenger car built according to the British specifications. The grouping of cars is done from one to twenty on the basis of their performance. The cars having lower performance would require paying only a small premium whereas the elite group of vehicles would cost the highest rate of claims to the insurer. The panel recommendations are often sought by the individuals while calculating the rates of car premiums.

There are several factors that have to be kept in mind while dealing with the grouping of new cars. The damage and parts costs would cover the extent of damage caused to different car models and the costs for the repair. The lower rating would be possible if these costs are quite low. The higher group rating occurs when the repair time is quite long. The paint finishes on the modern cars are also an important factor to be considered while assessing the groups.

The group rating also depends upon the cost of the parts by the different manufacturers. The acceleration and top speed are also other factors to be considered while grouping them. It is evident from the claim statistics by the insurers that the cars of high performance result in frequent insurance claims. The security features such as alarms, high security locks, glass etching, vehicle identification numbers etc. would help the individuals to reduce the costs of insurance claims.

The motor insurance costs could be drastically changed by comprehending the various facts regarding these groups. The better understanding of the car insurance groups helps the individuals to make better decisions when choosing the new vehicle. The traditional ratings have been broadly varied into even fifty groups nowadays due to the wide list of cars available in the market.

Similar Posts:

Share