What is the car insurance rating tier system?
Insurers use the car insurance rating tier system to determine auto insurance rates. They use levels to examine you and your driving history. Certain states have begun to move into this tiered system. The previous system featured a standard rate that all drivers received.
What do insurance ratings mean and how are they used?
Individual insurers will generally use these ratings as a key input to their underwriting process but will also take account of their own claims experience to guide their pricing decisions. Attached to most of the advisory group ratings is a suffix, which illustrates the level of security fitted as standard to that vehicle.
What is a group rating for car insurance?
Group Rating system. The Group Rating Panel, administered by Thatcham Research, assigns new car models to an insurance group from 1 (cheapest to insure) to 50 (the most expensive). Cars in the highest groups, typically high performance models, are likely to cost insurers the most in insurance claims.