Cars in insurance group 1, 2, 3 and 4

Cars in insurance groups 1, 2, 3, and 4 are among the cheapest cars to insure. Generally, these cars have smaller, less powerful engines, which makes them less of a risk for insurance providers. As a result, they often come with lower premiums. While many factors determine the cost of your car insurance, such as age, location, and driving history, choosing a car in insurance groups 1 through 4 is a good starting point for keeping your premiums down

What cars are in insurance group 1, 2, 3 and 4?

Using the table below, you can look out for the make and model of your car, and work out how much you’re likely to pay for your car insurance based on your age.

• How we got these rates

  These rates are based on the average cost of cover for cars in the insurance groups shown, for drivers of different ages with a Newcastle (NE1) postcode, which our research suggests represents an average for insurance rates in the UK. Updated: June 2024 (source: Confused).

Insurance group 1, 2, 3, 4 categories

• 1-4E: Surpasses the security requirements for this type of car, leading to a lower insurance group rating.
• 1-4A: Meets the standard security requirements for this type of car.
• 1-4D: Falls short of security requirements for this type of car, resulting in a higher insurance group rating.
• 1-4U: Security standard is unacceptable. The insurer might require upgraded aftermarket security before providing coverage.
• 1-4P: Provisional status. Insufficient data is available at launch for classification. This will likely be updated once Thatcham can evaluate the new car.
• 1-4G: Grey import. Thatcham tests only officially sold UK cars, so imports are evaluated based on the insurer’s pricing.

Average insurance group 1-4 cost

To provide you with an idea of how much it may cost you to insure your insurance group 4 car, we ran several quotes to find an average figure.

Insurance group	Average cost (Annual)
1	£520
2	£548
3	£559
4	£689

• How we calculated this price

  We generated these quotes using the following assumptions about the vehicle and the driver.

  The vehicle is/has:

  • Insurance group 1-4 models
  • Factory fitted alarm system
  • Not modified
  • Used for social, domestic and commuting purposes
  • 10,000 mileage per year
  • Parked in a work car park during the day
  • Parked on a driveway at night

  The driver is/has:

  • A 30-year-old, single teacher from London
  • A homeowner
  • Five years no-claims discount
  • No driving or other convictions in the last 5 years

Why are cars in group 1, 2, 3, 4 some of the cheapest?

Cars in insurance group 1-4 are usually the cheaper cars to insure, because they score well in a number of factors that determine which group the car will fall under. These factors include:

• Good security and safety features
• Inexpensive to source parts and make repairs
• Low market value
• Smaller engine size
• Low repair times

Which other factors affect your car insurance premium?

Along with your car’s insurance group, these three factors have the biggest impact on the cost of your insurance:

• Engine size and performance. You’re more likely to pay more for your insurance if your vehicle has a bigger engine. With a smaller engine, you’re likely to be seen as less risk to an insurer and this is usually reflected with a lower premium.
• Driver location. Insurers factor in the likelihood that your car will be stolen or involved in an accident when calculating your insurance, and your location has a big impact on this. As an example, a 30-year-old in central London will pay £848 for insurance for a Dacia Sandero Ambiance SCe 75 5d, while the same 30-year-old in Newcastle may only pay £564.
• Driver age. The age of the driver also plays a huge role in determining the cost of your insurance premium. The average 20-year-old driver in London could pay £2,790 for the Toyota Yaris 1.0 VVT-i TR 5d, while the average 40-year-old Londoner will only pay £779.

However, there are a lot of other factors that can also impact the price of your premiums. These include:

• Your marital status
• Your credit history and job
• Your car’s safety rating, security and anti-theft precautions
• Likelihood of theft
• The model and age of your car
• Your driving activity
• Your driving history
• No claim discount

How can I save on my car insurance group 1, 2 ,3 and 4 premiums?

Choosing a car in insurance group 1-4 is a great way to reduce the price of your premium. Thankfully, there are a few other things you can do to reduce your car insurance premium, and we’ve listed them below:

• Drive safely and avoid convictions. Although it may sound obvious, but having convictions on your record will make the cost of your car insurance skyrocket.
• Opt for public transport (where possible). You could save money on your insurance by being more sparing with your car usage. Opting for public transport or taking fewer trips will help keep your mileage, and premium, lower.
• Pay annually. Paying for your car insurance in one lump sum is a big financial outlay, but you will be thanking yourself in the long run. By paying annually, you could miss out on paying monthly interest on your instalments!
• Install extra safety features. The safer you make your car, the better your premium will be. By investing in extra safety features, your vehicle will be more secure and less of a risk to insure.
• Shop around when it’s time for renewal. When it’s time for renewal, make sure you compare your options – you’ll be surprised at how much you could save.

Bottom line

Cars in insurance groups 1-4 are some of the most affordable to insure, making them ideal for budget-conscious drivers. These vehicles typically have smaller engines, good safety features, and lower repair costs, which help keep premiums low. Choosing a car in these groups can significantly reduce your overall insurance expenses.

Frequently asked questions

• Are cars in insurance groups 1-4 good for younger drivers?

  With car insurance policies for younger drivers usually coming with a hefty price tag, choosing a car in insurance group 4 will definitely help keep the costs down. However, there are numerous other factors that make up the cost of your car insurance premium so it’s always important to compare your options before choosing a policy.

• What do the letters mean in insurance groups?

  On a particular vehicle, the insurance group will be listed as a number and a letter. The letters refer to the security features on the vehicle that are fitted as standard.

• What does Thatcham Research analyse?

  hatcham Research analyses a number of criteria to calculate a car’s group rating. One of its key tests is a 15km/h crash impact assessment, based on an internationally recognised insurance standard. Following the crash, Thatcham’s engineers work out the cost of the time and parts to return the car to its pre-accident condition. The group rating also takes into account new car values, car performance (including top speed and acceleration time), parts pricing, safety and security features, and the alignment and structure of a car’s bumpers.

• How many car insurance groups are there in the UK?

  In the UK, there are 50 car insurance groups with 1 being the lowest (cheapest) and 50 being the highest (most expensive). Insurance group 4 definitely falls on the cheaper side of the scale when it comes to car insurance premiums.

The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (July ’24). 51% of car insurance customers could save £523.17