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Friday 4 September 2015

A Simple Guide to Understand the Classification of Cars

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When it comes to purchasing your first vehicle, or upgrading to something bigger and better, understanding the car classification system in place will point you in the right direction to getting the perfect car. Many people like the idea of owning a certain type of car, such as a sports hatchback or SUV, but the more you understand about why these different classifications exit, and how they can have an impact on your insurance policies, you may think differently.


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To help with tax duties, insurance fees and safety regulations, both governments and private organisations have created a long list of different sorts of vehicles and have put them into different classifications. Whilst different types of classification occur abroad, in Australia, the Federal Chamber of Automotive Industries carries its own car classification system, which we will look at today.

In this classification system, vehicles are classed by size, vehicle use and engine size to determine which category the vehicles fall into. The three main groups of car classification are:

A. Passenger Cars
B. SUVs and people-movers
C. Commercial vehicles

Within these three groups, there are separate subgroups within the classification, as there are a huge number of different sorts of a vehicle each with its own purpose. These subcategories are as follows:

A. Passenger Cars

  • Light
  • Small
  • Medium
  • Large
  • Sports
  • Hybrid
  • Luxury

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Let’s look at the different sorts of car allocated to each subgroup. A small car is a vehicle that is often referred to as a C Segment or a hatch. These vehicles often contain a small engine with great fuel economy and come in 2-door and sometimes 4-door variants. They have their own tax and insurance class as determined by the government.

The Kia Cerato Hatch is a great example of a small car that is positioned perfectly in this category. The Kia Cerato hatch has a number of different engine options including greater performance but still resides in this class due to other factors such as size and form factor.

B. SUVs and People-Movers

  • Small SUV (Compact)
  • Medium SUV
  • Large SUV
  • Luxury SUV
  • People Movers

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Within this category, we have a whole range of budget and luxury KIA cars that encompass the sports utility vehicle classification. Unlike the Kia Cerato hatch, these vehicles are often 4-wheel-drive vehicles that are built for rugged terrain, that often include much larger engines than the first classification of vehicles.The Kia Sportage is a great example of this classification as it sits within the Medium SUV category, making it a great choice between choosing an SUV or a sedan.

C. Commercial Vehicles

  • Vans
  • Buses
  • Trucks
  • Utes (4wd)
  • Utes (2WD)
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In this category, we find the vehicles used for everyday commercial business such as courier vans, buses and utility trucks used in farming and other industries. As the vehicles are designed for commercial purposes you can find a wide range of upgrades and custom fittings for each vehicle, depending on your commercial venture.


Vehicle classification is a great way for you to choose a vehicle based on its purpose, its suitability for everyday use and the overall costs that will impact on its upkeep. Many new crossover vehicles that take advantage of larger engines, better fuel economy and still remain in the same category such as the Kia Cerato hatch are a great way to find better performance and bang for your buck.