Car Insurance

haggle_2

It really makes me mad that every year I have to go through the same process with car insurance providers.

1. I don't claim.
2. My car insurance provider mails me saying the cost of my policy is increasing.
3. I view car insurance comparison sites.
4. I call my car insurance provider and tell them I've got a better price.
5. My car insurance provider stops the price increase.

Is this happening to you or am I in their database as a stupid person?

tinkerbell84

haggle wrote: »

It really makes me mad that every year I have to go through the same process with car insurance providers.

1. I don't claim.
2. My car insurance provider mails me saying the cost of my policy is increasing.
3. I view car insurance comparison sites.
4. I call my car insurance provider and tell them I've got a better price.
5. My car insurance provider stops the price increase.

Is this happening to you or am I in their database as a stupid person?

What would you rather happen?

Perhaps some time spent reading up on how insurance companies work may help you to understand it

lisyloo

No it happens to everybody.
They reply on apathy to make their money.
You should be grateful that there are people that don't shop around because effectively they are subsidising the moneysavers who DO shop around.

It may not be ideal for you but it's the way a lot of businesses work.
They make more money from people that can't be bothered to shop around for a deal.
If everybody was moneysaving and there was nobody to cross-subsidise you then I believe you'd have to pay more overall so in some ways you should be grateful.

dacouch

The market is likely to harden shortly (This means the prices go up), it often happens during recessions. The UK market for car insurance is probably the most competitive in the world (Believe it or not) and the prices are currently so low many companies are making a very small if any return on the capital. If you add this to increasing costs for claims but the other very important reason is they are making very little return on the money (They invest your premiums its where they make most of their money) due to the current economic climate. They are only expected to go up between 5% and 10% though so its nothing to lose sleep about

haggle_2

dacouch, Sucks that car insurance goes up during a recession. Bring on the deflation.

dacouch

Deflation would probably put premiums up as well, Insurers pay out roughly what they receive in premiums in claims.They normally make a few percent, quite a few of them actually lose. They may their money investing the money you know what they say "Money makes money". If there was deflation they would make even less money on their investments. Their claims costs would not really go down as any savings in repairs etc would be out weighed by the increase in car crime (It normally goes up in recessions).

If the police manage to get the majority of the uninsured drivers off the road that would help your premiums a bit as every policy holder pays around £30 towards paying the uninsured drivers costs.

Thank the government for taking away legal aid and to make up for it allowing "No win no fee" agreements for solicitors which caused an explosion in injury claims both valid and dodgy claims and on the back of the solicitors came the credit hire. Both of these have had a massive impact on car premiums but hey it saved the government a few hundred million...

haggle_2

dacouch, thanks for the above.

Does anyone know of a car insurance that doesnt have auto prices increases unless you push back.

dacouch

Well the ones that offer a discount for new customers will mean your premium goes up the next year as you will not be getting the new customers discount. In addition the new customer discounts are subsidised by the existing customers who renew.

The only real way I know is if you go through a normal high street broker. The Insurers know that if they put the premium up to much the broker will just transfer it to another company at a lower premium (Normally). So your only real option is a normal high street broker

heretics

Im also looking round for cheaper insurance at the minute and have stumbled across this news article that explains why our premiums are higher due to fradulant claims and uninsured drivers
http://www.noclaimsdiscount.co.uk/news/art_display.php?show=200902161

dacouch

A good point heretics, hopefully uninsured driving will start to reduce thanks to the police using the ANPR (Automated Number Plate Reading) cameras that are linked to the Insurance Database. Eventually people will realises they are highly likely to be caught driving uninsured so will stop. It is also starting to become as morally unacceptable as drink driving.

That will help the £30 uninsured driver lever next stop the legal fees and injuries but I cannot see much light at the end of the tunnel for those unless the government changes the law. However this is highly unlikely as this part of the market turnsovers £100s of millions. Its so lucrative they can afford all of those adverts on day time tv (I cannot understand why they target the daytime tv audiance....)

haggle_2

How about canceling car insurance and getting people to pay for bumbs themselves?