30 is the new 20 on LCV insurance groupings

Friday, June 5, 2015 - 15:00
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The Transit Courier is Ford’s premier LCV

The insurance group rating system for Light Commercial Vehicles is to be restructured for 2016

Thatcham Research, who administer the insurance group rating process on behalf of the Association of British Insurers (ABI), will introduce the change from 1st January 2016, when the existing 20 group system will increase to 30 groups in order to increase the sensitivity of the rating scale, and to more clearly define differentials in vehicle size and performance.

All Light Commercial Vehicles which are grouped up until the end of December 2015 will fall under the existing 20 group system and will retain their current grouping. Those grouped from January onwards will be allocated with a group between 21 and 50 which is intended to clearly differentiate the system under which the vehicle was grouped.

The move to 30 groups reflects a similar change which took place on cars in 2009 when they were converted from a 20 to a 50 group system. As with cars, the expanded grouping system on LCVs means that each model can be more accurately banded with vehicles of similar characteristics, making it possible to reflect additional factors including the presence and performance of standard fit Driver Assistance Systems such as Autonomous Emergency Braking (AEB).

The new LCV 30 group system also brings with it the introduction of some new factors into the rating process including vehicle performance, vehicle dimensions, a new geometric bumper assessment, a change to parts pricing and repair cost calculations and a simplification of the existing security assessment.

Senior Group Rating Manager at Thatcham Research, Howard Barron, said “The new system takes into account all pertinent factors and also now seeks to encourage and reward manufacturers for the standard fitment of innovative crash avoidance systems.”

This will be the first major change to LCV rating in over a decade, driven by insurers wanting a system that will deliver more accurate pricing and benefiting those drivers and fleets who choose safer, lower risk vehicles.

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