Car insurance gone up against last year ? :s

mulmul

Just had my car insurance renew, compared it with last year cheapest it has actually gone up £60 even I currently holding 5 Years of NCD and over 25 years old:(

I mean what gives!

I thought more NCD gives a better discount ?

anyone had similar problem with their insurance?

gordikin

Car insurance premiums have gone up...shop around.

bengalknights

its due to the economy and rising insurance fraud

dunstonh

anyone had similar problem with their insurance?

What problem?

I mean what gives!

Global recession - which leads to increased consumer fraud, lower investment returns and a need to improve the balance sheets - and an increase in widespread claimable events.

mulmul

dunstonh wrote: »

Global recession - which leads to increased consumer fraud, lower investment returns and a need to improve the balance sheets - and an increase in widespread claimable events.

didnt recession started like a year ago? how is that affected this year's preimum

Quote

Watch the news and learn to write properly.

What do you expect anyone else to do about your insurance going up? Bite the bullet.

mulmul

Quote wrote: »

Watch the news and learn to write properly.

What do you expect anyone else to do about your insurance going up? Bite the bullet.

cant watch the news, world cup got in the way

not expected anything / anyone else do anything about it, just wanna know more insight about it

raskazz

The simple answer is that many motor insurers (and indeed the market as a whole) are making losses which are not sustainable, and so have to either increase their rates or withdraw from the market. Every time someone asks me 'why has my insurance gone up this year?' the obvious answer is 'because it was too cheap last year'. There are lots of reasons for this, including:

• The recession, which means that (i) insurers are getting lower returns on investments and (ii) they are experiencing increased numbers of fraudulent claims.
• The rise of aggregators (i.e. comparison sites), which (i) increase competition and lead to consumers focusing almost solely on price, forcing rates down, (ii) increases the incidence of 'point of sale' fraud i.e. people choosing inaccurate job titles, concealing motoring convictions etc as they can see quickly and easily how failing to disclose material facts accurately can lower the premium and (iii) the aggregators are trying to squeeze insurers and brokers into paying them higher commission.
• As customers focus on price, 'churn' increases, i.e. customers are less likely to renew. This increases insurers' costs due to the increased admin required and increased advertising spend to maintain levels of new business coming in.
• Higher claim severity due to increased incidence of personal injury claims/higher number of claimants per accident and 'ambulance chasers' i.e. no-win no-fee lawyers.
• The prolonged period of severe weather over the winter and the resultant accidents.
• The rise of credit hire firms like Drive Assist and the associated increase of third party hire costs.

My gut feeling is that premiums will soar over the next year as investors have had enough of the losses sustained by the sector and there will follow several withdrawals and insurer mergers/acquisitions. Certainly when Quinn withdrew from the market in spring, young driver rates and van insurance rates jumped almost overnight. Expect the same for your cars.

dunstonh

didnt recession started like a year ago? how is that affected this year's preimum

The downturn started in late 2007. It was largely over by 2009 but of course you dont recover overnight.

Quote

mulmul wrote: »

cant watch the news, world cup got in the way

not expected anything / anyone else do anything about it, just wanna know more insight about it

Why? To what end? For what purpose?

Did you start a "Why is my house price going down?" thread? Or a "Why are fuel prices going up?" thread?

The information you need is on the internet. Google is your friend.

roddydogs

Mine hasnt...........just use this site, its under "Insurance", ...ie "Moneysupermarket" see what it comes up with, if your curerrent insurer wont match, change insurers.