Insurance shake-up

By Richard Yarrow

Motoring Issues

02 March 2007 09:14

4x4 drivers to pay more for insurance

The biggest shake-up in Britain’s car insurance for 15 years is to take place – and 4x4 drivers are facing policy price hikes. That’s because for the first time a vehicle’s weight is to be taken into account when its group rating is calculated. The move means heavier cars such as SUVs will suffer. In addition, the existing 20-group structure is being scrapped, and in future will feature 50 different risk categories. The insurance industry initiated the changes internally last month, but the new system will run in parallel with the old one until July 2008.

The reason weight is to be included in future is simple – insurers believe the heavier a vehicle is, the greater the potential for the driver to be liable for injury or damage to third parties in a collision. The fact that the bulk of some larger 4x4s means they suffer little damage themselves is seen as irrelevant. The increase in rating groups is to reflect the growing number of market segments – such as compact MPVs and lifestyle SUVs – that didn’t previously exist. A consultation process with car manufacturers has been launched to make sure they’re happy with the groupings.

By Richard Yarrow