Thatcham Research launch new vehicle assessment system

Thatcham Research launch a new vehicle assessment system called Vehicle Risk Rating  (“VRR”). It is intended to offer a more detailed and adaptable evaluation of vehicle risk compared to the outgoing 1-50 Group Rating system and give greater clarity to insurers, manufacturers and consumers over the relative risk factors associated with each vehicle. 

Rapidly developing safety and security technologies mean that insurers are less able to rely on their historical experience of vehicle types to determine premiums. Vehicle Risk Rating is designed to assist insurers in determining the impact of new technologies. 

For the first 18 months, motor insurers will be using Vehicle Risk Rating alongside the existing Group Rating System to calculate premiums. Following this period of adjustment, and assuming no issues, Vehicle Risk Rating will become the sole reference for vehicle risk assessment. These assessment systems are relied upon along with other rating factors to calculate insurance premiums.