When shopping for a new or used car, you might notice that insurance costs vary dramatically between models. A sleek sports car could cost five times more to insure than a modest family sedan—even if they’re the same price. The reason? Insurance group numbers. These classifications, assigned by organizations like the Insurance Institute for Highway Safety (IIHS) or Thatcham Research, determine how risky a vehicle is to insure. But why do some cars land in higher groups? Let’s break it down.
Insurance companies don’t just guess which cars are riskier—they rely on data. A car’s group number reflects its likelihood of being involved in accidents, the cost of repairs, and even how attractive it is to thieves. Here’s what goes into the calculation:
Luxury cars and high-performance vehicles often use expensive materials like carbon fiber or aluminum, which are costly to repair. Even minor dents can lead to astronomical bills. For example, replacing a Tesla’s windshield (with embedded sensors) costs far more than a standard Toyota Corolla’s.
Modern safety tech like automatic emergency braking (AEB) and lane-keeping assist can lower insurance premiums. But if a car lacks these features—or has a poor crash-test rating—insurers see it as a bigger risk. A 2023 IIHS study found that cars with top safety ratings were 20% less likely to file claims.
A 500-horsepower Mustang GT is statistically more likely to be driven aggressively than a Honda Civic. Insurers know this and adjust rates accordingly. High-speed capabilities = higher accident risk = higher group number.
Some cars are stolen more often than others. The 2023 Hot Wheels Report listed the Ford F-150, Honda Civic, and Chevrolet Silverado as the most stolen vehicles in the U.S.—partly because their parts are in high demand on the black market. If your car is a theft magnet, insurers will charge you more to offset the risk.
Electric cars are a hot topic in insurance. While they’re often safer in crashes (thanks to heavy battery frames), their repair costs are sky-high. A minor fender bender could mean replacing an entire battery pack—a $20,000+ expense. This pushes many EVs into higher insurance groups despite their safety perks.
Insurance groups aren’t universal. A car might be cheap to insure in Germany but expensive in the U.S. due to:
- Local accident rates (e.g., sports cars in Miami vs. rural Nebraska).
- Climate risks (flood-prone areas hike rates for low-riding cars).
- Regulations (some countries require more safety tech, lowering groups).
With rising flood and wildfire risks, insurers are reclassifying vehicles in disaster-prone zones. A car with high water-damage risk (like a low-slung Ferrari) may see group spikes in coastal states.
If you’re stuck with a high-group car, try these tricks:
- Install anti-theft devices (trackers, steering locks).
- Choose higher deductibles (if you can afford the out-of-pocket cost).
- Bundle policies (home + auto discounts).
- Drive fewer miles (usage-based insurance can save money).
As tech evolves, so will classifications. Autonomous driving systems might lower groups for cars with full self-driving capabilities. Meanwhile, rising cyber risks (hackable EVs?) could create new premium factors.
One thing’s certain: insurers will always find ways to quantify risk—and charge accordingly.
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Author: Health Insurance Kit
Link: https://healthinsurancekit.github.io/blog/why-some-cars-have-higher-insurance-group-numbers-4642.htm
Source: Health Insurance Kit
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