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The traditional 20-group insurance system has been scrapped, in favour of a 50-group scheme. The new system was first introduced in 2007, but since January 1, 2010 it became compulsory for all manufacturers and insurance providers to use the new rankings.

Insurers will now be able to distinguish more clearly between different vehicle makes and models, to offer customers more precise insurance premiums.

The cheapest cars to repair with low performance will qualify for group one insurance, while insurance group 50 models will be expensive, high performance vehicles with costly parts. A family hatchback will have a rating of around 10-20 depending on its engine and trim level.

To determine a vehicle's insurance group the following factors are taken into account:
- The model's retail price, including variations in trim level
- Performance - including 0-60mph time and top speed
- The cost of replacement parts from a standard list of 23 components
- Security levels for the model

The independent organisation Thatcham, provides the Association of British Insurers with 70 per cent of the data it requires to rank each model. Its engineers subject vehicles to a 15km/h impact and then determine the cost of replacement parts and the amount of time it takes to return the vehicle to its pre-accident condition.

Thatcham also tests vehicle security, including the alarm/immobiliser systems and award cars with its group rating system. To find out more, visit Thatcham's online database of new car insurance group rankings .

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