February is my car insurance renewal month and I thought I'd look into it today....shocked by the price increases! I renew every two years (alternating between my wife and I)...a crappy Ford Fiesta, 16 years NCD. My renewal 2022-2023 was £270 with Churchill. This year all the major providers (Churchill, Aviva, Admiral etc)...between £1100 and £1400!
I'm forced to look at the cheaper end of compare the market...providers I haven't heard of (eg 'Yoga Insurance') or branded insurances underwritten by other companies (eg RAC), these are still about £600. Normally I'd avoid these based on the reviews when it comes to making a claim, but with a £600 difference, I'm starting to think about taking the calculated risk of ditching Churchill for RAC.
500% rise in two years beats general inflation, energy price rise etc....whats driving it?
Must admit I’m a little apprehensive about my renewal and will seriously consider selling what is effectively a second “summer” car, if there is a significant increase. Thought about it in the past, but insurance has been so cheap (less than £200) that it’s never been too much of a concern whether I used the car or not given the relative outlay. Doubt I will feel the same if there is a seismic change. Some would argue less than 1000 miles in three years warrants keeping anyway……..
Got my renewal quote from the company I’ve been with for a few years and it’s £60 more than last year. I used comparison sites last night and disappointingly couldn’t get it any cheaper. It’s an absolute racket.
Seems to be a ‘perfect storm’ with all variables costing more - parts, labour, and an increase in EV cars I guess means an ICE car is more likely to be in an accident with an EV or hybrid?
Slightly more reassuring. I’ll stop drafting that PistonHeads ad…………Originally Posted by TaketheCannoli
As an aside, for those changing providers, don’t forget to use TopCashback or similar through the comparison sites. Usually circa £45 cash back.
I almost posted that it’ll all be the fault of EVs… :-D
My 2015 Golf GTE was damaged in a crash back in 2016, other than needing to go to a workshop that had the trained personnel to work on it, it was the same as repairing any other car.
I think it’s just as you say, the mad cost increases in anything and everything to do with cars and services. Ambulance chasing ‘claims management companies’ inserting themselves into the process for even minor traffic shunts must be part of the problem as well.
A friend of mine had a no fault crash a few months ago, her insurer handed her off to a claims handling company who promptly wanted to put her in a £400 a day hire car and were keen to pursue her injury claim, even though she told them many times nobody had been injured.
She went back to her insurer and said she didn’t want a BMW 3 Series courtesy car, just a Corsa or something like the one that was being repaired.
If she hadn’t done that, the hire car bill would have been around £6k, the car repair was around £2.8k…
My monthly renewal premium hasn't changed in over 5 years (One Call, 5-series estate, £30pm). Maybe I'm just lucky.
I guess there are a lot of personal factors in it. I'm in greater London and live amongst the Range Rovers etc that I see almost see weekly posts on local facebook groups about them being stolen from the driveway. Even though comparitively, that makes my car even less desireable to steal than a neigbour's car, I'm probably penalised heavily for living in this area. I suspect vehicle theft increase is probably a big factor in the last couple of years rather than accidents.
How relevant is that from 7 years ago ??
There are going to be a lot of uninsured cars on fake plates driving around,
Or even more on electric scooters :)
Unfortunately this is going to be the new reality & drive premiums higher from uninsured driver costs.
Insurance due early Jan (paid 633 in 2023) No claims or changes to cover, renewal is 864 with Aviva!
You must live in a high risk area. I’m looking at a 2020 mini JCW and it was £350 with aviva - £300 excess
It was a Hybrid with a HV system, there were even fewer places that would work on them back then, so I was just saying it shouldn’t be a factor in insurance increases, that’s all.
I was replying to a post suggesting hybrids and EVs being a factor.
I’m in Essex and drive a dirty diesel. Value of car approximately 8k according to We Buy Anycar. Parked on drive overnight and car is standard no mods with 9 years NCB.
I was reading recently (on Money Saving Expert) that the timing of the quote is key to determining the cost - apparently 21 days before renewal or thereabouts is the sweet spot. Earlier or later than that will deliver higher figures apparently. As I just had my home insurance quote in (33% increase) I tested this and found that I could get near last year’s cost.
I have a vague recollection about a Tesla costing £££££s to repair for relatively minor sill damage due to the extra protection needed for the battery pack, or something?
Also, components still scarce + inflation x lack of workforce = stupid price hikes
I think the Model Y has a one piece ‘Giga casting’ and that the battery itself is structural, so hellish expensive to repair if that gets damaged.
Our Model 3 appears to have standard sills not attached to the battery pack, but must admit I haven’t given it much of a look.
Ouch! I bet the sales people never mention that.
I believe its an increase in crime and dwindling police numbers all over the country. Im from affluent Romsey in Hampshire and residents are sick of the crime levels. Remember a suggestion by one resident on FB a while back for everyone to chip in for a private security company to patrol the area!
Or could it be a orchestrated effort to reduce car ownership...... who knows. Either way its mental
As posted in the previous threads bemoaning the same thing
Insurance Premiums have gone up this year for a number of reasons, in no particular order, none of which are "profiteering". Straight off the top of my head
1) Parts for cars are still in short supply so repair costs are increasing
2) Garages are raising their labour rates to offset increases in energy bills for all the kits they run
3) After 2+ years of "work from home" people are going back to work and driving more so there are now more cars on the road. More cars = more accidents
4) People's already dubious driving skills and awareness have deteriorated after 2 years of not driving much so they crash more
5) Delays in parts being available and the increased costs of those parts are resulting in more cars being written off, which gives a higher claims cost
6) Society has changed, and crime rates and types have altered resulting in a differing profile of the risk
7) Impending ULEZ expansion has lowered the value of non-compliant cars/vans in ULEZ areas. This in turn will result in an increase in such cars "getting stolen" by some from people desperate to get as much money for their car as possible which may have halved in resale or part ex-value
8) Increased numbers of electric vehicles on the road, the subsequent increase in accidents involving them resulting in a higher repair cost and an increase in vehicles being written off due to batteries being damaged.
9) Insurers re-align their market position and underwriting philosophy to reflect the above and try to balance the books. Certain areas, vehicles, types of driver, etc are no longer viable to have as a business due to the high number and value of claims involved with them e.g Landrovers / Ranger Rovers
10) Under insurance regulations, insurers are required to hold enough funds in reserve to meet their claims exposure. More / higher claims means increased premiums to ensure legal responsibilities are met.
and to answer the question of "Why don't they offer the best price at renewal instead of making us ring around?
Have you ever gone into a shop to buy something, and when you pay for it you got told "Oh by the way, you could have bought this 20% cheaper at xxx shop over the road". Retailers sell a product for what they think customers will pay for it. You could try and ask for a discount but because we are British, we tend not to.
Or had a tradesman or a garage ask "What's your budget for this?" and quote you just short of that amount? Then when you tell them you have had cheaper quotes elsewhere they miraculously lower the price to a far more reasonable level "just because it's you and you're a good customer" etc etc.
... it happens in all areas of business.
Customers who do their research and look around for the best price nearly always save money, Insurance is no different other than you don't get a physical object for your money, just a promise that they will be there when it goes wrong.
It's just easier to "shop around" for insurance with all the available comparison sites that can give you a multitude of prices in seconds, and "haggle" to get a reduction with the information available. If an insurer wants to keep you as a customer then they will offer you a deal...if they don't, they won't.
The main reason for high insurance prices is that we have to have it by law and the government get a cut, it doesn't take a genius, that's why the government are keeping very quiet regarding the huge increases.
I'm pretty sure there's more than just a little bit more to it than that....🤔
So if we didn't have to have insurance you think the companies attitudes to their customers would be the same?
It really isn't.
Look at the profits made by car insurers over the few years and see why prices have had to rise. They've made an average operating margin of under 1% since 2016.
https://www.milliman.com/-/media/mil...ve%20to%202020.
Surely to believe the accounts of these companies a full forensic audit of their consolidated accounts would be required, showing exactly where the money goes, especially between the top and bottom lines, if the 1% is true then they wouldn't bother,
In that report they seem to bury a significant amount as expenses rather than a full breakdown of operating costs
Last edited by adrianw; 2nd January 2024 at 15:05.
2 cars on a multi policy; 1 a weekend toy and the other a high annual mileage EV SUV. Did fear a huge increase and was quite relieved with approx 20%.
did try another provider and just for the EV they wanted 30% more than the multi did for both; so I gave up and took the deal
Government gets theirs at source:
https://www.independent.co.uk/adviso...ar%20insurance.
"if your annual car insurance premium is £400, your total cost will be £448 when factoring an IPT rate of 12 per cent or £480 at the higher rate of 20 per cent. If your premium cost is £500, it will be £560 with an IPT rate of 12 per cent or £600 with a rate of 20 per cent.
IPT was introduced in October 1994, and the standard rate has increased from 2.5 per cent to its current level of 12 per cent."
Yes, I get that, but claims have been the real driver behind premium rises.
Look the accounts up then - Companies House is your friend. Hours of completely free information.
I'm not clever enough or had the training, the accountants have presented the numbers and that's that. My business partner for 30 years is an FCCA, a regular joke when we were doing a presentation was, what do you want the answer to be.
Had my renewal through today, Esure- about a 20% increase to £650 ( high milage business use ) not too bad considering the movement in the market I thought, but its crept up by that amount the last 2 years so thought I would 'compare the market', the cheapest new equivalent quote is by Aviva Zero ( whatever that means ) is £350! Crazy discrepancy, Im going through it with a fine tooth comb to find the catch.
Cheers..
Jase
You said why would the government bother with 1% profits on the companies final accounts, the government isn't bothered by final accounts or our insurance premiums going up as they get their cut direct thus avoid "it's another bad year for insurance companies" that I've heard since I started riding/ driving yet they still keep going.
Agreed feels like a lot of people rusty driving post covid, EVs, Land Rovers, (Luton airport- is that sorted yet) and floods are going to hurt but I don't recall refunds for those not going out during covid and has the risk and cost for a petrol car in a non risk (flood or theft) really gone up that much (plus tax) - are the same rises happening in Europe- I'd imagine the French would be on strike or at least expecting the government to reduce their cut from the trough?
So I'm trying to say is it a real jump or an excuse to keep share holders happy, or a bit of both?
I fear you’ve misunderstood my comments about accounts - simply, it’s evidence that the insurance companies are not getting rich from car insurance. I stand by my statement that insurance companies have been losing money on car insurance, primarily as a result of claims.
All sorts of ulterior motives can be read into this but of course the insurance companies are trying to satisfy their shareholders - this is why they exist!
For the first time ever I cant get what a I regard as a reasonable quote.
Not only has the price gone up so has the excess, with a £400 excess and £500 damage you wont call them and they know it.
The excess is even more if you dont use their repairer.
They also seem to be loading +£200 for a year old SP30 which didnt used to effect policys.
Direct line are sending me £25 though for poor service answering the phones and that.
That one call someone mentioned had worse quotes and I couldnt find a phone number.
At the moment the AA seems marginally the best.
Last edited by bwest76; 12th January 2024 at 15:41.
If it helps you can separately insure your excess I had a quick look and £1000 excess would be about £60 so if increasing your excess to a higher level reduces your premium by more than that it gives a bit of a saving
Sent from my moto g(7) plus using Tapatalk
Who and how does that work?
https://www.ala.co.uk/ is one company who offers this cover. Essentially you are buying a separate insurance policy to cover your excess amount. If you have an accident you make a claim for the excess amount
Sent from my moto g(7) plus using Tapatalk
Thanks will look into it.
I've done this myself in the past, cost twenty something pounds for £450 excess if my memory serves me right. The £450 voluntary excess reduced the insurance premium by about a hundred compared to taking the policy with the minimum excess. Quids in when I had to claim.
My car insurance premium last year on a Volvo V70 was £145.
Even though I have now sold the car, they emailed me with this years premium of £395, or 2.7 times the cost of last year.
This was without shopping around as I don’t own the car anymore.
Someone mentioned somewhere top cash back,thank you.
I got a better quote even if I dont get the cash back (not sure how it works)
AVIVA was £500 with £250 total excess, legal protection was free the first year ,other stuff like a hire car was included etc.etc.
Its online only, but as no one answers the phone anymore it maybe less stress.
It said cashback was £45,if I get it then I will have paid about £200 less than most quotes.
I also tried the excess ins. thanks for the tip,but it didnt work for me this time.
Clever ploys insurance companys use.
You see a low,low quote but nothing is covered you add the essential bits you need and the low quote is now the highest quote.
Many (not all, I'm sure) EVs do seem to be hellishly expensive to repair.
I remember we were all told that they'd be cheaper, because they had so few moving parts...
It seems, though, we're all paying to make the likes of Elon Musk EVEN richer - How wonderful.
I wouldn't have a Tesla now if someone gave it to me.
M
Breitling Cosmonaute 809 - What's not to like?
EV repairs are on the long list of things that have raised prices.
Everything has got more expensive, it’s like the inflation numbers we’ve all been seeing and experiencing the last couple of years haven’t applied to car insurance for some reason?
Just renewed with LV. Two vehicles insured, the 2021 EV went up by 20%, the 2015 diesel Octavia by 47%. Go figure. Combined total just short of a grand now, feels like I got off lightly.
Don't just do something, sit there. - TNH
A mate got lightly bumped in the rear (oooh, Matron!) of his 2015 Octavia a few days ago. The 3rd party offered to pay cash instead of insurance, so mate got a quote to fix the dented bumper. Bearing in mind the boot still closes and locks, and the bump was at about 10mph, leaving a bit of a dent and scrape on top of the bumper.
The quote was £1,000+ for a new bumper. Can it be repaired? Nope, needs a new bumper. He's now gone through his insurance and if it's anything like my experience, he'll be waiting a long time to get it fixed, assuming Skoda can even get a new bumper.
The whole insurance/repair/car hire business is a huge legal scam. No wonder there are so many uninsured drivers.
I'm dreading the renewal in June.
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