Car Insurance- My Quotes have Increased This year? Why?? (confused.com, gocompare)

Danny_G

I am 27 years old (Licence for 7 years)

My car insurance last year was £250, (elephant.co.uk)
but the renewal quote is now £310.

The details haven’t changed, no convictions, nothing else changed!
(I have 1 more year of having a driving licence though)

and now when on go compare, and confused.com (which is what I was on last year)

The lowest price is about £280 + (from another car insurer)

a) howcome the price has gone up this year?

b) is the price increase for all car insurance companies generally?

c) is it due to 'economical factors'

d) Has it happened to you? - has your price gone up?

(Please answer a) b) c) and d) Separately)

gettingbetter

erm might be the vat increase

wacko911

_____b_____

maninthestreet

gettingbetter wrote: »

erm might be the vat increase

2.5% of £250 is only £6.25.

esmerobbo

They reckon car insurance has risen quite a bit this year so it sounds about right!

http://www.independent.co.uk/news/business/news/car-insurance-premiums-rise-26-per-cent-as-legal-bills-soar-1976358.html

drew2k9

according to martin lewis this morning on daybreak insurance has gone up "a massive 30% this year% in comparison to last year.

i work in the insurance industry, everything has gone up, the claims culture has had a huge effect, its getting worse every year, and also IPT is up another 1%, dont think VAT applies to insurance as it has IPT instead, at 6% now.

in answer to your questions specifically though

a) see above
b) yes - see above
c) yes the economic downturn has had an effect also.
d) not to me specifically, did a search on the online comparison sites for my renewal price, and its down a few quid, but since i was on 0 years NCb and am a 21 year old male passed my test three years ago, it could only really go down for me, but if you are at a maximum NCB at the lowest you can go, then yes, generally your insurance will go up, or stay the same, it may not go down, but im sure there will be a lucky few who will get lower insurance quotes.

also just a point to note, a lot of companies will have you on a "deal" for your first year, applying special intro discounts to get you in, you may not even know, then at your first year renewal it may shoot up a few hundred quid, and when you ask them they will say, "that deal has ended" even though you didnt know you were on a special deal. it happened to me on my bike insurance, i was paying £280 for the year on a 125cc bike fully comp at the age of 20 with no riding experience, was allowed to ride other bikes of equal cc and had breakdown etc all included, then at my renewal it went up to £900!!! got the above response.

hope all that firstly makes sense, and secondly hope it helps!

Gordon_Hose

Car insurance goes up, it's been going up for a long time. That's the nature of this particular beast. Blame uninsured drivers, people putting in fraudulent claims and boy racers lol

Jackinbox99

Mine goes up every single year. Fact of life. If i shop around, i can sometimes get the quote down, but its still more than the previous year. Ive got 20 years NCB now, so another years NCB doesnt really make any difference to me, likewise, ive been driving for years now, so experience doesnt seem to factor into their quotes. In fact, theres very little which insurance companies seem to factor in to reduce premiums from my experience, but they are quick to load it up.

andy8442

Question- Who owns the insurance companies?
Answer- The banks!

House insurance is flying up also. Those bankers have to get their bonus's somehow.

Inactive

It isn't just car insurance, inflation is on the increase, almost everything is going up.

Well apart from income for most that is, of course that doesn't include Bankers, and they caused this mess in the first place.:mad:

Quentin

gettingbetter wrote: »

erm might be the vat increase

There is no VAT charged on insurance premiums (though the special IPT tax on car insurance has gone up 1%)

Although the VAT increase doesn't alter your premium, it does increase the payouts insurers have to make to repairers.

All bills the insurer pays when paying out to repairers have VAT added.

Insurance companies cannot reclaim the VAT they pay out, thus the increase in VAT does indirectly affect premiums.