Mysterious Car Insurance Premium Hike

impy78

According to this, everyone's insurance has gone up by a ridiculous amount, due to a rise in unisured drivers (some of whom presumably don't have it as they can't afford it - what a logical solution to that one!)


http://www.independent.co.uk/life-style/motoring/motoring-news/spiralling-premiums-push-rise-in-uninsured-drivers-2029762.html


And ambulance chasers..I hated them anyway, but now double that hatred!

mikey72

dunstonh wrote: »

For many companies, IFAs are the cheaest distribution channel. Even cheaper than doing it direct. However, IFAs do not provide car insurance.

You're a cost, if you're worth it, you'll be in a job. If you're not, you wont. All the players you have mentioned don't just sell car insurance.
And car insurance isn't the only insurance that has increased in price, unless you're seeing the policies you sell going down in cost year on year?

StephenMarsh

mikey72 wrote: »

They can always reduce commission to IFA's and brokers on products sold through them if they really need to save money, or just choose to sell directly and pay none.

Broker business is one of the more cost effective ways to distribute for an insurer, claims ratios tend to be better than business obtained via comparison sites.

Comparison sites have had such a negative impact on the industry and peoples opinions. Whilst its been great for the consumer with prices being driven down year on year the impact on the motor insurance industry as a whole has been extremeley negative because the market just cannot sustain those rates and something had to give.

That give was price increases everyone in any sort of know, knew it had to happen but when it did the consumer was up in arms and to some degree I can see why but just be thankfull of the years of cheap insurance you did have because thankfully that looks to be over.

mikey72

StephenMarsh wrote: »

Broker business is one of the more cost effective ways to distribute for an insurer, claims ratios tend to be better than business obtained via comparison sites.

Comparison sites have had such a negative impact on the industry and peoples opinions. Whilst its been great for the consumer with prices being driven down year on year the impact on the motor insurance industry as a whole has been extremeley negative because the market just cannot sustain those rates and something had to give.

That give was price increases everyone in any sort of know, knew it had to happen but when it did the consumer was up in arms and to some degree I can see why but just be thankfull of the years of cheap insurance you did have because thankfully that looks to be over.

I'm glad I'm not in the know then.
I prefer to be as ignorant as possible, and shop around for the best price. My target is to be better than last year, and from my ignorant experience I can obtain it both on car and house insurance from names I recognise.
Maybe it is supported by those in the know happily paying more to subsidise me.

Quote

I don't think you have any idea what better means.

mikey72

Quote wrote: »

I don't think you have any idea what better means.

Seriously, that's the best comeback you have?
After over three hours?
Put your hat back on, your head's getting cold.

Quote

Do you mean better or cheaper?

darich

sexpot wrote: »

Hi, i could not belive how much my insurance had gone up, when i phoned they had the cheek to tell me (its because of all the claims that other drivers have made ). I cant get my head around this as ive been driving for 25 years and never made a claim. Why do we have a no claims discount ( what a load of cr::::::: ) I am so angry, what are we supposed to do?

No claims discount is independent and different from increased premium

25% of £1000 premium means you get 25% off and pay only £750
30% of £1200 premium means you get 30% off and pay only £800.

Overall premium has increased but so has NCD meaning you get a bigger discount. But since the premium has increased more than the discount, the amount you pay goes up.

NCD has no connection whatsoever with premium price.

bouncydog1

mikey72 wrote: »

I don't criticise them. I choose to use cost effective ones.

By cost effective you mean where you pay less than you did last year or if you do pay more, you mean the one where the increase is the lowest %.

But do you compare the terms of cover by looking in detail at the policy wordings? If you do well done - if you don't then you cannot say "cost effective" because you are not comparing like with like. And you're only likely to find out what your cover is when you have a claim and find out that your "cost effective" policy wording may not be as wide as the one where you would have paid more.

However all individuals have a choice and if paying the least is your choice rather than having the scope of cover, then that is up to you.

tobykim

This could have something to do with the rise in premiums

http://www.bbc.co.uk/news/uk-11044315