Help with high insurance quotes

raskazz

In terms of children, the reason why some insurers ask the question IMO has nothing to do with any potential issues of 'distraction'. I'm fairly certain that they ask it for two reasons, which could have opposing effects on the premium:

1) Many private car insurers incorporate what is called 'lifestyle' underwriting techniques in their pricing. This looks at things like occupation, marital status, home ownership, children and socio-economic data like Experian's MOSAIC in order to paint a picture of how the driver is likely to behave (for example, on average an insurer would prefer to cover a married accountant who owns his home and has a couple of kids than a single motor trader who does not own a home and has no kids).

2) Personal injury claims in respect of minors can drag on for years and years and years because they have until they are aged 21 to make a claim in respect of any accident incurred whilst they were still a minor. For this reason an insurer might want to actually raise the premium for policyholders with kids.

In terms of mileage and private car policies, some insurers just increase the premium as mileage increases. However, other insurers (especially on SDP+C use rather than SDP only use) will give the cheapest rates for, say, 3000 to 8000 miles a year and increase rates below and above this segment - so if you had a graph of premiums vertically against mileage horizontally you would have a shallow 'U' shape.

I think if the OP could confirm their postcode (or at least the first part and the first number of the second part), it would immediately be obvious whether it was this that was affecting the premium.

iamana1ias

custardy wrote: »

well with over 17 years of driving experience
i can assume you,my insurrance has gone down since dropping to 8K per annum

(sigh)

insurance is all about balance. There is a point at which it makes a difference either way.

If the national average mileage is 12,000 per annum, then there won't be much difference in price if you do between 10,000 and 15,000. If you do significantly less, say 2,000 or 4,000 you'll pay more because you don't have much driving experience. If you do 20,000 or 25,000 miles a year you'll pay more because you have much higher exposure through being on the roads more.

iamana1ias

raskazz wrote: »

In terms of children, the reason why some insurers ask the question IMO has nothing to do with any potential issues of 'distraction'. I'm fairly certain that they ask it for two reasons, which could have opposing effects on the premium:

1) Many private car insurers incorporate what is called 'lifestyle' underwriting techniques in their pricing. This looks at things like occupation, marital status, home ownership, children and socio-economic data like Experian's MOSAIC in order to paint a picture of how the driver is likely to behave (for example, on average an insurer would prefer to cover a married accountant who owns his home and has a couple of kids than a single motor trader who does not own a home and has no kids).
.

admiral's training programme explicitly stated that stats showed people with children had more accidents through distraction. the previous view was that people with children would drive more carefully.

custardy

iamana1ias wrote: »

(sigh)

insurance is all about balance. There is a point at which it makes a difference either way.

If the national average mileage is 12,000 per annum, then there won't be much difference in price if you do between 10,000 and 15,000. If you do significantly less, say 2,000 or 4,000 you'll pay more because you don't have much driving experience. If you do 20,000 or 25,000 miles a year you'll pay more because you have much higher exposure through being on the roads more.

you stated explicitly that lower milege increases risk
so that would result in a raise in premiums?
if you want to make sweeping generalisations then expect to be pulled up for them
i just did a quick conused quote on a fiat punto (purely as i can see the reg plate from here)
50K miles £578.77
18K miles £504.58
8K miles £418.10
2K miles £392.90

would you like screenshots or want me to try another varient?

einalem

Hi all my postcode is L6(liverpool 6)

I haven't moved house I was here last year and the price seems to have gone up with everyone the cheapest is just under £1000(confused.com, moneysupermarket, tescocompare, direct line aviva, plus a few more)

My renewal date is end of july so my current insurer has not given me a renewal price yet(I rang them and they said they can't till 30 days before) but every year (5 years no claims) my insurance has gone down as I have got older and increased my ncb so you can imagine my shock when this year as usual I start looking at prices month and a hlaf before my renewal date and its double
I even went onto my current insurers site and got a new quote they wanted £1745 this is the same company who I am currently with for £481 (quinndirect) :eek::eek::eek:

I also have tried different occupation titles as some firms have mature student listed which I am but I am also a medical student and this does not make a difference others just have student which they might assume I'm younger but that never made a difference

custardy

your postcode lists as a 'refer' which i assume is bad!
however Im in a D* area and those quotes are high

edit: its your address
i changed my address on the £418.10 to an L6 address
this raised up to £1044.95
so given my area isnt great for insurance,yours is very bad!

raskazz

The main reason behind the high premium for the OP is definitely the postcode. A lot of insurers 'redline' L6 postcodes - i.e. they won't quote them at all. The ones that do quote will load the premium significantly.

iamana1ias

custardy wrote: »

you stated explicitly that lower milege increases risk
so that would result in a raise in premiums?
if you want to make sweeping generalisations then expect to be pulled up for them
i just did a quick conused quote on a fiat punto (purely as i can see the reg plate from here)
50K miles £578.77
18K miles £504.58
8K miles £418.10
2K miles £392.90

would you like screenshots or want me to try another varient?

You are quoting one example based on one facet of the quote. I worked for an insurer for several years and generated many thousands of quotes. Have posted a general point based on one insurer's thinking during the period I worked for them to illustrate a point.

So no, I don't really want to see your screenshots.

custardy

iamana1ias wrote: »

You are quoting one example based on one facet of the quote. I worked for an insurer for several years and generated many thousands of quotes. Have posted a general point based on one insurer's thinking during the period I worked for them to illustrate a point.

So no, I don't really want to see your screenshots.

you stated that low milage would increase the risk/premium
I have shown this isnt always the case

Norman_Castle

If you do significantly less, say 2,000 or 4,000 you'll pay more because you don't have much driving experience.

(sigh)
Nonsense.