# Car insurance groups and how to cut premiums > Cars & motoring · Last updated 6 April 2025 Canonical HTML: https://moneyguide.org.uk/cars-motoring/car-insurance-groups/ Markdown mirror: https://moneyguide.org.uk/cars-motoring/car-insurance-groups.md ## Quick answer Every car sold in the UK is placed in one of 50 ABI insurance groups based on repair costs, performance, safety features and security. Every car sold in the UK is placed in one of 50 ABI insurance groups based on repair costs, performance, safety features and security. The group number is one of the biggest single factors in your premium — alongside your age, address, mileage and claims history. ## Key facts - Insurance groups run from 1 (cheapest to insure) to 50 (most expensive). - Groups are set by Thatcham Research on behalf of the ABI. - Since 1 January 2022, FCA rules ban 'price walking' — renewal premiums can't be higher than the equivalent new-customer price for the same risk. - Telling your insurer the wrong job, address or annual mileage can void the policy — even if unintentional. ## How groups are set Thatcham Research assesses every new car model on damage and repair costs, the cost and availability of parts, performance (0–60 time and top speed), security (locks, alarms, immobilisers), and safety features that reduce damage in a crash. Cars in group 1 tend to be small, low-powered models with cheap, widely-available parts. Cars in group 50 are typically high-performance, high-value cars with expensive panels and bespoke parts. ## What else drives your premium Beyond the group: your age and driving experience, the postcode where the car is kept overnight, your annual mileage, occupation, number of years of no-claims discount, the type of cover (third party only vs comprehensive — comprehensive is often cheaper because the people who take it on tend to claim less), voluntary excess, and use of telematics (a 'black box'). Modifications (engine remap, suspension, wheels, exhaust) must be declared. Failing to declare can give the insurer grounds to refuse a claim. ## The fair-pricing rule and renewal Since 1 January 2022 the FCA has banned 'price walking' — the practice of charging existing customers more at renewal than equivalent new customers for the same risk. Insurers must offer existing customers the same price they would offer a new customer with the same circumstances. Always still shop around at renewal. Comparison sites cover most major insurers but some (notably Direct Line and NFU Mutual) are not listed and need to be quoted separately. ## Cutting premiums without breaking the rules Choose a car in a lower group; pay annually instead of monthly to avoid interest; increase your voluntary excess (but make sure you can afford it after a claim); add a named driver who is a more experienced motorist (but never put them as the main driver if they are not — that is 'fronting' and is insurance fraud); reduce your stated annual mileage to your real figure (don't over-estimate to be safe — pay for the mileage you actually do); fit an approved security device. ## Frequently asked questions ### Does no-claims discount transfer between insurers? Yes — any UK insurer will accept proof of no-claims years from your previous insurer (a renewal notice or a separate proof-of-NCD letter is normally enough). ### Do I need separate cover for driving abroad? EU cover is included on most UK policies, but only at third-party level. Check before travelling — comprehensive cover abroad usually requires an explicit extension and a Green Card may be needed in some countries. ### What is 'fronting' and why does it matter? Fronting is putting a more experienced driver (often a parent) as the main policyholder when the car is actually mainly driven by a less experienced one (often a child). It is insurance fraud, the policy can be voided, and any claim refused. ## Primary source https://www.gov.uk/consumer-protection-rights ## Related - [Cars & motoring guide](https://moneyguide.org.uk/cars-motoring/) - [PCP vs HP vs leasing](https://moneyguide.org.uk/cars-motoring/pcp-vs-hp-vs-leasing/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.