Car insurance gone up against last year ? :s

mulmul

Funny enough , all the price comparison sites and others, like First Direct, Directline, Aviva are all way higher than my current insurer.

my current is Churhchill with written premium is £270 with Car breakdown, where as others are around £250 marks without anything.

I guess for 26 y/o student with a 1.4 Citroen C2 and 5 years of NCD isnt such a bad quote from Chruchchill :A:A

but i did pay only £214 for them all in last year, which kinda strike me with that huge rise, but since @raskazz explained it in details that kinda make sense

Tigsteroonie

I expected mine to have gone down this year, now that I have a year's NCB. But comparison sites showed that all prices had gone up, so I considered myself lucky to find a company priced at the same premium as last year.

Pound

I was about to start a thread with this very thing. Every time renewal comes around I'm a year older, I have another year of no claims, another year of no motoring convictions but car insurance doesn't seem to get cheaper. In 2008 my insurance was £328, in 2009 it was £306, this year the cheapest quote is £380.

I'm seriously thinking of selling my car before renewal because I'm fed up of shelling out money.

Evilm

Renewals usually are more expensive than last years policy and with inflation and the rest rates go up all the time. Look around and try to find someone cheaper or negotiate with your current insurer.

Pound

Evilm wrote: »

Renewals usually are more expensive than last years policy and with inflation and the rest rates go up all the time. Look around and try to find someone cheaper or negotiate with your current insurer.

Without considering the current state of the economy surely renewals should go DOWN, not up. Since the driver has an extra year of not making a claim and risk should go down as driving experience and age goes up.

galba

And you would think the insurer would be anxious to retain their no conviction, no claim clients, rather than frightening them off with unreasonable premium hikes.

Evilm

Pound wrote: »

Without considering the current state of the economy surely renewals should go DOWN, not up. Since the driver has an extra year of not making a claim and risk should go down as driving experience and age goes up.

Every one I know seems to get their renewal through as higher than last years policy price. looking around usually gets quotes that are lower but the renewal from the existing insurance co is usually higher. annoying as I agree, the risks go down so it should be lower...

(and that is without any changes to the policy or accidents as well)

dunstonh

You are looking at it from a personal point of view though. The biggest issues to the insurer are not you as the individual. Its the lower investment returns, increased solvency requirements being set by the regulator, liquidity concerns and a general trend of increasing fraud and widespread claimable events.

Another issue is just how few insurance companies there are left in the UK. The regulator has been driving them out of business and the UK is now the least profitable Western country for insurance. This is why you have seen so many brands disappear and insurance companies looking to close their doors or sell off their UK business to focus on the emerging markets.

The risk is not being spread as wide as it used to be. You also have to have the investors that underwrite the risk (mainly large investors at institutional level) willing to take risks with their capital. As you may have heard, the tolerance for risk and illiquid investing has not been there for the last few years. To get it, the terms offered have to be more attractive but that extra cost has to be recovered and the premiums reflect that.

hethmar

Try admiral for a quote, they are surprisingly good.

mulmul

hethmar wrote: »

Try admiral for a quote, they are surprisingly good.

it works out the same as churhchill's written quote when added Recovery on top ;-)

thx though for the suggestion