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Insurance delays to cost motorists
New insurance groups set to cause chaos
By Mike Askew
08th April 2008
A new insurance group system – which promised to save motorists millions in premiums – has been delayed.
The old 1-20 grouping was supposed to be replaced in June this year with a new 1-50 scheme, similar to that used across mainland Europe.
However, while some insurance companies have been using the new ratings alongside the old ones since 2007, disagreement within the industry means the deadline for a wholesale switch has now been put back to December 2009.
The move to a 1-50 range has been driven by the explosion in new car categories. As manufacturers have created new niche markets, the old system has been found wanting. For example, under the current insurance groups, a MINI Cooper S Clubman is in 15 – the same as a Land Rover Discovery V8 S. However, using the 1-50 system, the MINI is in group 30, while the Land Rover jumps to 41 – an 11 group difference that reflects the bigger financial risk a large off-roader carries for an insurer.
The delay of another 18 months before the new ratings are introduced is certain to infuriate motorists who believe they are being penalised under the current scheme.
Justin Beddows, spokesman for insurance giant Admiral, said: “We actually think the new 1-50 system will be a lot fairer for motorists.
“The old groupings weren’t flexible enough, and the new wider range will mean that a lot of people will find themselves better off.”
Drivers wanting to check which group their car will be in should go to www.thatcham.org/abigrouprating for full details of the 1-50 system.
The old 1-20 grouping was supposed to be replaced in June this year with a new 1-50 scheme, similar to that used across mainland Europe.
However, while some insurance companies have been using the new ratings alongside the old ones since 2007, disagreement within the industry means the deadline for a wholesale switch has now been put back to December 2009.
The move to a 1-50 range has been driven by the explosion in new car categories. As manufacturers have created new niche markets, the old system has been found wanting. For example, under the current insurance groups, a MINI Cooper S Clubman is in 15 – the same as a Land Rover Discovery V8 S. However, using the 1-50 system, the MINI is in group 30, while the Land Rover jumps to 41 – an 11 group difference that reflects the bigger financial risk a large off-roader carries for an insurer.
The delay of another 18 months before the new ratings are introduced is certain to infuriate motorists who believe they are being penalised under the current scheme.
Justin Beddows, spokesman for insurance giant Admiral, said: “We actually think the new 1-50 system will be a lot fairer for motorists.
“The old groupings weren’t flexible enough, and the new wider range will mean that a lot of people will find themselves better off.”
Drivers wanting to check which group their car will be in should go to www.thatcham.org/abigrouprating for full details of the 1-50 system.
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