UK motor insurance news
07/03/2007
Insurance group changes will mean cheap car insurance for some and costly quotes for others
Owners of 4x4s and certain other types of car are likely to see the end of cheap car insurance when the current insurance group rating system changes.
Since 1992, cars have been sorted into one of 20 insurance groups, with 1 being the cheapest to insure and 20 being the most expensive.
However, the Association of British Insurers (ABI) has announced that there will be major changes to this system due to the fact that it cannot adequately cope with the much greater variety of cars on the market.
The ABI said: "Vehicle manufacturers are becoming ever more sophisticated in the way they segment the market, creating more and more niches.
"These include super-mini, multipurpose vehicle (MPV), compact executive and lifestyle 4x4."
In order to take account of these new categories, cars will now have an insurance group rating of between one and 50.
Heavy vehicles that are likely to cause greater damage to other cars in an accident, such as 4x4s for example, will be given a high rating. Turbo diesels will join them thanks to their extra torque, whilst light but well-protected cars will enjoy a lower insurance group rating.
The ABI explained that this change will mean that some drivers will see an increase in their motor insurance quotes, whilst others will find cheap car insurance much easier to come by.
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