We all know that we must have motor insurance to drive on the road in the UK, but do you know how your insurance is calculated or what you can do to reduce your insurance premiums? Let’s take a closer look.
How is car insurance calculated?
In the UK car insurance is calculated based on personal factors such as age, driving history and location, as well as vehicle factors such as the cost of the car, the repair costs and theft rates. To calculate the vehicle factors, every car is assessed and categorised by an external body to help insurers work out a cost should you make a claim. The age of the vehicle will determine how this is done.
Cars sold before 1st August 2024
For cars launched before 1st August 2024, car insurance groups are used. These groups, or brackets, are numbered 1 - 50 and each model is assessed and placed into a numbered group by Thatcham Research – an independent risk research centre which is responsible for assigning vehicles on behalf of the Association of British Insurers (ABI), the trade body which represents insurers in the UK.
They look at vehicle and assess its risk based on 125 vehicle attributes such as the price of the vehicle when new, the cost to repair it should it get damaged, its performance, as well as its security and safety systems. Cars in bracket 1 pay the least for insurance, and those in 50 the most.
Cars sold after 1st August 2024
Brand new model ranges sold after the 1st August 2024 are also given a vehicle risk rating ,or VRR, from 1 – 100, based on real-world claims.
This score is assessed on a comprehensive framework of five criteria set by Thatcham Research: Performance • Damageability • Repairability • Safety • Security
“New technology is challenging the existing motor insurance model, prompting an unprecedented shift in the balance of risk from the driver to the vehicle. In response, we’ve worked closely with insurers, drawing upon cutting-edge data analysis to create a rating system that offers a more precise and detailed assessment of vehicle risks.”
Jonathan Hewett, Chief Executive, Thatcham Research.
“Vehicle Risk Rating, with its enhanced scoring, informed by the five risk assessments, delivers a vastly more accurate assessment than the outgoing Group Rating system, on which insurers can rate and underwrite while providing transparency to manufacturers allowing them to design and build more insurable vehicles.”
Thatcham Research
What affects insurance premiums?
Whilst Thatcham Research set the groups, each individual insurer decides the premium, or price you pay, with individual premiums calculated based on personal factors such as age, location and driving experience. These personal circumstances, combined with the insurance group, dictate how much you pay each year, which is why two people with the same car can pay differing amounts.
Age
Occupation
Marital status
Credit history
Postcode
How you pay for your insurance
Your driving history and experience
How many years no-claims discount you have
Which bracket do Hondas fall into?
Each model and grade will have its own insurance bracket, depending on the price of the vehicle when new. Luckily for Honda drivers, this figure is often lower if a car has lots of built-in safety features, such as Honda SENSING, Honda’s exclusive intelligent suite of advanced safety technology which comes as standard with all new Honda models. Features like lane keeping assist and collision mitigation braking help reduce the risk of an accident and therefore can reduce premiums.
The insurance bracket varies by model, grade, engine etc but as a guide we’ve included insurance groups for a couple of our most popular new models.
- HR-V Hybrid
- Jazz Hybrid
- CR-V Hybrid
- Civic Hybrid
HR-V Hybrid
HR-V 2026 Petrol 1.5L Automatic 5 doors ELEGANCE E:HEV: 32
Jazz Hybrid
Jazz 2026 Petrol 1.5L Automatic 5 doors ELEGANCE I-MMD E:HEV: 21
CR-V Hybrid
CR-V 2026 Petrol 2.0L Automatic 5 doors ELEGANCE E:HEV: 34
Civic Hybrid
Civic 2026 Petrol 2.0L Automatic 5 doors ELEGANCE I-MMD E:HEV: 26
How to check your vehicle’s insurance group
Most third party comparison sites such as MoneySupermarket have a tool where you can either enter the vehicle’s reg, or if you’ve not chosen a car yet just the make, model, year and grade.
How to reduce your car insurance costs
Fortunately, Honda’s reputation for award-winning reliability and safety will both positively influence your insurance premiums and whilst insurance costs vary by driver and location, there are a few things you can do to potentially reduce the cost.
Shop around
Often insurance companies don’t offer you the best price in your renewal so do your homework to make sure you’re getting the best deal.
The Association of British Insurers offers some tips
Don't leave it until the last minute!
According to MoneySavingExpert, the cheapest time to buy car insurance is 20 – 27 days before your renewal, with the sweet spot being 26 days, as cover becomes more expensive the closer you buy to your renewal date.
Pay annually
If you can afford it, this is normally cheaper than paying monthly.
Park privately
Park your vehicle on a private driveway, or in a garage overnight if possible – this generally means your vehicle will be more secure and less of a risk than being parked on a public road.
Increase your voluntary excess
This often reduces the premium.
Install a black box
Think about installing a black box or telematics – this monitors your driving speeds and breaking, and can reward safer drivers.
Add named drivers
If anyone else will be driving your vehicle, adding them as a named driver can sometimes reduce your premium, particularly if they are experienced, but you must only add someone if they will be driving your car.
Opt out of optional extras
Add-ons such as legal protection and key cover increase the premium cost so remove them if you don’t need them.
Choosing the right insurance and level of cover is essential so always take your time and look at all the small print to ensure all your details are correct and it covers everything you need. It can be confusing if you don’t know what you’re looking at, so look out for the Defaqto star rating when you’re searching for motor insurance.
They maintain the UK’s most comprehensive financial products database, scoring over 45,000 with an independent star rating between 1 – 5, letting you see at a glance how your insurance policy ranks.
