If you’re looking to save money on insurance premiums, understanding car insurance groups in Canada is a must.
There are 50 insurance groups and the more expensive your vehicle is, the higher its insurance group will be. Car insurance companies categorize vehicles by their cost of parts and repairs, vehicle safety, value, and performance. For example, a Honda Civic will be in a lower insurance group than an Audi A4.
In this article, we will explore how insurance groups are classified and how they can impact your car insurance.
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What are car insurance groups?
Every car belongs to one of 50 different car insurance groups, which rank cars from the cheapest to the most expensive from group one (the cheapest) and ends with group fifty (the most expensive). The more powerful, costly, and rarer your vehicle is, the higher the insurance group it will be in.
Before purchasing a vehicle, you can view the groups of cars at the Insurance Bureau of Canada to get an understanding of their insurance ratings. The data is collected by insurance companies and is categorized by theft, collision, and other types of claims data.
How are insurance groups classified?
The insurance industry in Canada collects and analyzes data on the number and cost of collision, comprehensive, direct compensation property damage, and accident benefit claims for the most popular Canadian vehicles.
So, how are car insurance groups decided? There are a variety of factors that go into categorizing vehicles.
New vehicle value
New vehicle value is just that, the cost of a new car. The insurance company will look at how much this costs to determine what group your car should be in. This can have an effect on insurance rates as well so it’s important you find out what category your car falls under before shopping for insurance coverage. They use the cost of a new vehicle as a guide for repair and replacement costs.
Cost of parts
The insurance company will look at what it costs to repair and replace parts for your vehicle. They’ll be looking at the cost of a specific part, such as engine or transmission, versus how many vehicles in that category have had accidents or require serious work done on them. The more expensive the car you’re driving is, the higher group rating it will have.
The insurance company will also look at how long it takes to fix the vehicle. Cars with more complicated features will face higher insurance rates. A car with more complex features may require replacement parts that are difficult to acquire, causing the repair process to take longer. Those cars could get classified in a higher group class because of these factors.
The insurance company will also look at how well the vehicle performs. This includes gas mileage, engine power, transmission type, as well as any other features that may affect its performance on the road. Performance can be a factor in insurance rates so it’s important to find out what category your car falls under before you shop for coverage. High-performance cars tend to fall into higher groups as they face more insurance claims due to the speed (on average) they are driven.
The insurance company will also look at the vehicle’s safety features. Cars with better seat belts, airbags, and anti-lock brakes are classified in the lowest insurance groups because they have fewer insurance claims.
How is car insurance calculated?
Not only will your auto insurance provider consider the above factors, but the are also other criteria they look at to determine your insurance costs. These include:
- Age: Age has a lot to do with your car insurance rates. Generally, the younger you are as a driver, the higher your premiums will be. The good news is that once you turn 25 years old, most policies will experience a price drop
- Driving history: Having a claims history of accidents or tickets is likely to increase your insurance rates
- Location: Some postal codes in Canada experience higher insurance premiums due to the number of accidents that are reported. You’ll pay more for insurance in Brampton than you will in Muskoka.
What cars have the lowest insurance group?
Typically, the cheapest cars to insure are those that are inexpensive to purchase. For example, low specification models with smaller engines will typically land in cheaper groups like group 1. Cars such as the Citroen C1, Ford Ka and, Mazda 2.
Here are some examples of vehicles you would find in car insurance groups.
|Fiat Panda Active, Citroen C1, Skoda Fabia Classic, Toyota Aygo, Ford KA, Vauxhall Corsa
|Chevrolet Matiz, Citroen C3, Ford Fiesta, Fiat 500, Mazda 2
|Audi A2, Ford Focus, Honda Civic, Kia Cee’d, Mitsubishi Colt
|Alfa Romeo Giulietta, Audi A1, Citroen C4, Ford C-Max, BMW 116
|Audi A3, BMW, 118, Citroen C5, Ford Mondeo, Honda Accord, Renault Megane
|Audi A5, BMW X1, Ford Escort, Landrover Defender, Mercedes-Benz C Class, Volkswagen Golf
|Audi A6, Mazda MX-5, Mercedes-Benz CLK, Skoda Octavia, Vauxhall Vectra, Volvo C70
|Mitsubishi Shogun, Peugeot 308 Hatchback, Volkswagen Golf Hatchback, MG ZT Saloon, Volvo S60
|BMW Z4 Roadster, Land Rover Discovery, Porsche Cayman, Subaru Impreza Saloon, Honda Legend Saloon
|Alfa Romeo Giulia, Audi TT Roadster, Ford Mustang, Jeep Grand Cherokee SRT8, Porsche Boxster
Which insurance group is the cheapest?
Insurance group 1 is the cheapest. In most cases, the lower a car’s insurance group number, the cheaper the insurance will be. Cars in group 1 are the cheapest cars to insure while cars in group 50 are the most expensive.