Car Insurance

[TheCountOfNowhere]

Got my car insurance quote in this year.

Gone up 15%

Are they trying to get a bigger slice of the pie since people can afford more with lower interest rates.

Or are they just thieving c****s ?

I've always said that since we are forced to have car insurance, all car insurace should be done on a not-for profit basis.

Some chance.

I can see what people now drive without insurance now. Cant blame them.

I cant image what it costs for someone who is 18....no jobs, massive housing costs, massive beer costs, huge insurance premiums, price of clothes going up....oh to be 18 again.

[ken_ichikawa]

Companies have always been theiving like that they entice you with a low price for one year, many people like my dad (who curiously still keeps a car in the UK even though he spends 2 weeks a year here) don't bother to hunt for renewal prices therefore they get stung by the higher price.

Me other than a brief period in 2006-7 I change companies every year and never buy more than the absolute minimum because if you are full comp and you claim, they'll load your premiums and get the money they paid back to you via increased premiums. All insurance companies will act like a cartel based on this as all of them have an agreement to load your premiums if you ever dare to claim.

Tbh anything above the bare min is a scam anyway.... Japan isn't bad though, the road tax there has the absolute bare minimum of road insurance needed, but licences are expensive, £750 for a <400cc motorbike licence.

[council dweller]

Companies have always been theiving like that they entice you with a low price for one year, many people like my dad (who curiously still keeps a car in the UK even though he spends 2 weeks a year here) don't bother to hunt for renewal prices therefore they get stung by the higher price.

Me other than a brief period in 2006-7 I change companies every year and never buy more than the absolute minimum because if you are full comp and you claim, they'll load your premiums and get the money they paid back to you via increased premiums. All insurance companies will act like a cartel based on this as all of them have an agreement to load your premiums if you ever dare to claim.

Tbh anything above the bare min is a scam anyway.... Japan isn't bad though, the road tax there has the absolute bare minimum of road insurance needed, but licences are expensive, £750 for a <400cc motorbike licence.

Yeah we should use the same insurance system as Japan, basic cover could be paid for with the MOT and a sticker could be cut from the MOT pass certificate and could be displayed on the windscreen. Those wanting more cover could buy privately.

[TheCountOfNowhere]

Yeah we the same insurance system as Japan, basic cover could be paid for with the MOT and a sticker could be cut from the MOT pass certificate and could be displayed on the windscreen. Those wanting more cover could buy privately.

Something like that would be better and fairer.

What happened to labours fairer society ?

I've gone through moneysupermarket and gocompare and a couple of other car insuracne websites.

Havent found one to beat my car insurance quote. Im with www.elephant.co.uk

Any recommendations ?

[rxe]

Dunno, mine's gone down. I sure as hell wouldn't insure a 4.6 litre car for £205, it always amazes me that they do it.

[Phil S]

Yeah we should use the same insurance system as Japan, basic cover could be paid for with the MOT and a sticker could be cut from the MOT pass certificate and could be displayed on the windscreen. Those wanting more cover could buy privately.

My car insurance renewal was nearly 40% higher than last years, as was my wife's and fathers. We all swiftly moved from Churchill to LV which was much cheaper.

One of my gripes is the way risks are assessed. For example, the policyholders home address is taken into account, but NOT their place of work. This means that someone who lives in a rural area can obtain much cheaper insurance than a work colleague who lives in the city, despite the fact that both their cars sit in the same car park for half the day. And as most claims are for accidental damage, the rural driver is most at risk of an accident out of the two of them, as he/she drives longer distance in the rush hour twice daily!

[LivingWithTheInlaws]

What happens is the money from premiums is invested to help pay for claims. You might have noticed recently that investments haven't been doing too well so premiums have to be higher to bridge the gap. But you're right, with insurance being compulsary, there ought to be a non-profit driver only 3rd party cover system so that individuals can obtain some bear minimum cover, even if they don't own a car.

[neil324]

They always do this to existing customer's thinking you will not move, go on any comparison website and you will beat the price you paid last year.

[DavidSWP]

Only 50% of money paid into insurance premiums is ever returned to customers in claims.

http://money.uk.msn.com/insurance/articles.aspx?cp-documentid=152697151

So their business model works like this, 'Hello, would you like to give us £500 and receive £250 in return? Go on I know you want to... What you don't?!? Sorry it's the law.'

The other 50% just goes into company profit and lawyers mainly, i.e. the already rich. This is what always happens when something is made compulsory by law, it destroys any kind of real free market and prices sore.

[TheCountOfNowhere]

They always do this to existing customer's thinking you will not move, go on any comparison website and you will beat the price you paid last year.

I know, I always check to see if I can get a better deal....this eyar though...nothing. Churchill how 300 quid more !!!

Had a search on the net and found a coupleof articles:

http://www.financialadvice.co.uk/news/insurance/87459-uk-motor-insurance-premiums-increase-yet-again.html

http://www.whatcar.com/car-news/drivers-face-record-insurance-increase/246862

"Age group % increase from Jan '09

17-24 24.87%

25-34 22.01%

35-44 18.92%

45-54 17.82%

55-64 15.99%

65+ 14.96%

I've never had a car insurance premiium go up in line with inflation, but 15% is mental !!!

Have they not read the news...aconomic woes...cut backs...etc etc etc

[singlemalt]

They always do this to existing customer's thinking you will not move, go on any comparison website and you will beat the price you paid last year.

Do this then go back to your existing insurer and tell them to match it, saves you the hassle of moving. They will match just to keep your custom (if you haven't made a claim, i.e low risk). I have for the past 2yrs.

[deflation]

My car insurance renewal was nearly 40% higher than last years, as was my wife's and fathers. We all swiftly moved from Churchill to LV which was much cheaper.

One of my gripes is the way risks are assessed. For example, the policyholders home address is taken into account, but NOT their place of work. This means that someone who lives in a rural area can obtain much cheaper insurance than a work colleague who lives in the city, despite the fact that both their cars sit in the same car park for half the day. And as most claims are for accidental damage, the rural driver is most at risk of an accident out of the two of them, as he/she drives longer distance in the rush hour twice daily!

The highest part of your cover is the theft cover. The rural area is much less likely (so the insurers think) to have his car stolen. How many cars get stolen from work's car parks? A few maybe but not enough to really affect the premiums. You're right about the rush hour risks though, you can get lower premiums if you opt for SDP only (NOT using your car to commute to work).

My cover went up 30% this year for the same car, no matter how hard I looked. Comparethemeerkat, confused, gocompare the lot. Direct Line used to be the best for me but they're about 50% higher than the others now, for me anyway. I did switch to a company offering free legal assistance and protected NCB. I know that last bit is not as good as it sounds because any claim history jacks up the 'starting price' but as it was included for free, I don't mind.

[MinceBalls]

This happens to me EVERY year without fail. I call them up and say 'seeing as I haven't EVER claimed from you how come you are putting up my insurance?' to which they reply, 'yes sir, i understand, perhaps if you were to search around for a cheaper alternative and then come back we can do something' And so I go on GO Compare or similar, get a cheaper quote and go back to them. They then reduce the quote for re-insurance to whatever that was, sometimes less than the previous year.

They are theiving scum, they take advantage of those not in the same position to me who do not have easy access to the internet or the telephone. It is robbery.

Got my car insurance quote in this year.

Gone up 15%

Are they trying to get a bigger slice of the pie since people can afford more with lower interest rates.

Or are they just thieving c****s ?

I've always said that since we are forced to have car insurance, all car insurace should be done on a not-for profit basis.

Some chance.

I can see what people now drive without insurance now. Cant blame them.

I cant image what it costs for someone who is 18....no jobs, massive housing costs, massive beer costs, huge insurance premiums, price of clothes going up....oh to be 18 again.

[wjk]

Got my car insurance quote in this year.

Gone up 15%

Went up about that much for me too. I now pay $2600 CAN for the wife and I despite no accidents or tickets in many years.

[koala_bear]

The highest part of your cover is the theft cover. The rural area is much less likely (so the insurers think) to have his car stolen. How many cars get stolen from work's car parks? A few maybe but not enough to really affect the premiums. You're right about the rush hour risks though, you can get lower premiums if you opt for SDP only (NOT using your car to commute to work).

My cover went up 30% this year for the same car, no matter how hard I looked. Comparethemeerkat, confused, gocompare the lot. Direct Line used to be the best for me but they're about 50% higher than the others now, for me anyway. I did switch to a company offering free legal assistance and protected NCB. I know that last bit is not as good as it sounds because any claim history jacks up the 'starting price' but as it was included for free, I don't mind.

The rate of claims particularly for personal injury has rocketed since the start of the recession (which they blame on fraud inc. the cash for crash scams). The firms are all struggling to make money at the moment, they are effectively not allowed to make a loss in the medium or long terms

[Caveat Mortgagor]

Bloke who works with me had the same problm.

Ins renewal said premium up from £240 - £410!!!!!! Despite no claims in 9 years with same insurer.

He asked them why and was told a lot of people had claimed so they were putting up everyones premium. He explained that maybe their business model should penalise bad drivers and encourage good drivers.

Drove it down to just over £300 in the end after ringing round.

My advice to OP, try Aviva.

[winkie]

To be fair, alot of insurance brokers and companies, provide the renewal quotes that always go up by some degree or another. Its the lazy ones who dont shop around who pay it though. My renewal came in 20% up so I shopped around got it for £10 more than last year and guess what its underwritten by the same underwriters.

If you focus on the underwritters though, there are only I think 4 main underwriters for car insurance in the UK so is that enough competition?

...life is getting more and more like that....companies try their luck and hope you will not complain or look for a better deal, shop around they rely on your apathy and complacency......more and more hurdles to jump I am afraid, making things more like hard work....existing loyal customers end up paying more ...but an elephant never forgets.

[FreeTrader]

As measured by the latest CPI index (August), transport insurance is up 37.7% year-on-year.

[aa3]

The cost of doing anything in the UK is so extreme that an interesting change is happening in insurance. Even relatively minor damage, they are just buying the person a brand new car. Instead of bothering with repairing. Even the slightest repairwork is like £600 pounds. Plus the insurers cannot be sure that repairs will actually fully repair the car. And then if the owner is still complaining it becomes a dispute over whether more repairs should be paid for. And of course you can imagine the legal costs if there is a dispute.

So increasingly the insurers are just giving the person a brand new car. And maybe liquidating the old one and seeing what they can get for it. Maybe it will be repaired up and sold in Eastern Europe.

I think eventually we will see cars go like electronics and computers have. When ever anything happens you will just go and get a new car.

[Bloo Loo]

The cost of doing anything in the UK is so extreme that an interesting change is happening in insurance. Even relatively minor damage, they are just buying the person a brand new car. Instead of bothering with repairing. Even the slightest repairwork is like £600 pounds. Plus the insurers cannot be sure that repairs will actually fully repair the car. And then if the owner is still complaining it becomes a dispute over whether more repairs should be paid for. And of course you can imagine the legal costs if there is a dispute.

So increasingly the insurers are just giving the person a brand new car. And maybe liquidating the old one and seeing what they can get for it. Maybe it will be repaired up and sold in Eastern Europe.

I think eventually we will see cars go like electronics and computers have. When ever anything happens you will just go and get a new car.

usually, I like your posts, but this is jut nonsense.

some policies have a deal for the first year replacement for a write off....Most claims you dont GET a new car,you get a cheque or sent to the local authorised dealers to get three quotes. If its too much, its a write off and you get a cheque.

[19 year mortgage 8itch]

As measured by the latest CPI index (August), transport insurance is up 37.7% year-on-year.

A worthy bump, thanks FT for looking.

[TheCountOfNowhere]

I'm going to say it for the third and final time ( or is it the 2nd or 5th, I cant be bohered reading the crap I post )

I'VE SHOPPED AROUND AND THE 15% HIGHER QUOTE IS STILL THE BEST QUOTE SO FAR!!!!

I always shop around every eyar when I get the renewal quote because it always goes up...usually you can find a better deal, but not this year. Looks like they finally have a cartel going.

I'll try aviva though, thanks for the tip.

[aa3]

usually, I like your posts, but this is jut nonsense.

some policies have a deal for the first year replacement for a write off....Most claims you dont GET a new car,you get a cheque or sent to the local authorised dealers to get three quotes. If its too much, its a write off and you get a cheque.

Good point.. Now that you mention it.. I should have said they are encouraging people to buy that option for new car replacement, which is costing less and less an increase over time.

Right now they are doing the typical bank/cheapskate option of sending the person a cheque for write off value. I've had friends say they got in a minor accident, and their car seemed fine, but the insurance company just wrote it off and sent them a meager cheque.

I think in time people will demand the new car replacement. I think cars will become throw aways. Whent hey don't work, you will just get a new car. I already see many people doing this once the car goes off warranty, and they hear something like transmission needs repairs soon. Its just take it down to the dealer get some trade in value and buy a new car.

[aa3]

I'm going to say it for the third and final time ( or is it the 2nd or 5th, I cant be bohered reading the crap I post )

I'VE SHOPPED AROUND AND THE 15% HIGHER QUOTE IS STILL THE BEST QUOTE SO FAR!!!!

I always shop around every eyar when I get the renewal quote because it always goes up...usually you can find a better deal, but not this year. Looks like they finally have a cartel going.

I'll try aviva though, thanks for the tip.

Anyone know why insurance costs are going up so much. Are mechanics suddenly making a lot more money. Are parts getting more expensive. Commercial rent rates going up? Legal liabilities with long term disabled?

[skewed value]

In my experience, getting a similar quote from another company, then playing them off between each other for your custom works well.

Also the cheapest deals are normally outside of the comparison sites.

If you're younger (under 30) put your parents as named drivers on your policy, 20% discount for me. Even putting your partner on the policy will reduce the premium normally.