Car insurance risen 25%!?

lisyloo

My Bike insurance in October was fine (£120 including european breakdown cover).
Luckily we don't have to buy anymore until August and I have a claim that expires in June.

howeller_2

You all appear to be very lucky; my insurance with Churchill has gone up by 61%. I am a 59 year old woman with no claims bonus, very risky for them obviously. £312 last year, now it's £502. Any suggestions. No I don't drive a Maserati. I drive an 8 year old Ford focus.

BoltonGirl_2

I think I win the most extortionate premium - I drive (or did up until I tried to renew) an 11 year old Tigra (hardly a Bentley) and my insurance has gone up this year from £800 to £1500 - that was the cheapest. The car is only worth £500 hence why its now off the road. I have one claim from 3 years ago when my previous car was stolen (my house was burgled and the car keys stolen and car driven away and burnt out). Outrageous!

boltongirl1

My renewal arrived today for £278
paid £235 last year. I have also turned 50 last year and drive a 1.25 Fiesta which is 4 years old
(COYWM)

dunstonh

I am a 59 year old woman with no claims bonus, very risky for them obviously.

Postcode is a major contributor to risk.

I have one claim from 3 years ago when my previous car was stolen (my house was burgled and the car keys stolen and car driven away and burnt out). Outrageous!

So, pretty high risk in that case.

losgiganteskid

dunstonh wrote: »

Car insurance has been losing money. £123 for every £100 of premium. It hasnt been a big profit maker even during better times but now it relies on cross subsidy and investment returns.

Isn't it therefore bizzare in the extreme that motor insurers are falling over themselves to secure new business !! - with advertising ploys such as "10 months for the price of 12" etc and advertising campaigns costing millions of £££'s - and then lose money !. If they really are losing best idea is to get out of the business altogether and try and find something they can make money at !!.

Just checked my insurance premiums over the last 5 years and found that in each year I have managed to secure a lower premium than the previous year - i'm not saying that the renewal invitation has offered me a cheaper quote than the previous year - but I always speak to "renewals department" to see if I can get a better quote than the one they sent me in paper form, always works for me :hello:

SteveBentley

One insurer I've spoken to has suggested that I might be getting high quotes because I'm in a dodgy area, which isn't a description of this area which I would recognise. The crime maps at police.uk don't reflect this.

Do they insurers have a single source of data about each postcode, could it be that they have some duff information, and is there any way of checking?

Would a local insurance broker with local knowledge be able to do any better than the likes of the meerkat?

pineapple

losgiganteskid wrote: »

but I always speak to "renewals department" to see if I can get a better quote than the one they sent me in paper form, always works for me :hello:

I never dared to do that but nothing to lose I guess. Also, since my last renewal, I retired and am doing much less mileage. That surely should count for something!

dunstonh

Isn't it therefore bizzare in the extreme that motor insurers are falling over themselves to secure new business !! - with advertising ploys such as "10 months for the price of 12" etc and advertising campaigns costing millions of £££'s - and then lose money !. If they really are losing best idea is to get out of the business altogether and try and find something they can make money at !!.

Not at all. They are relying on cross subsidy to make up that loss. Just as most retail products in many areas of retail have loss leaders. The problem has been the cross subsidy element from the investment returns vanished during the credit crunch and whilst there has been some recovery on that front they are having to rebuild solvency with the incoming changes.

Some providers price themselves on a first year discount model and move more expensive from year 2 and use the x% that stay with them to cross subside it. Others are more consistent on their pricing.

ne insurer I've spoken to has suggested that I might be getting high quotes because I'm in a dodgy area, which isn't a description of this area which I would recognise. The crime maps at police.uk don't reflect this.

Do they insurers have a single source of data about each postcode, could it be that they have some duff information, and is there any way of checking?

Postcode is one of the biggest factors. It may not be down to volume of claims necessarily but total cost of claims. For example, an area where £50k per car is the norm vs an area where £500 per car is the norm would likely suffer a greater risk premium for theft. The poor area can have 100 cars stolen for every one for the higher value area. Plus the cheaper cars are less likely to even have an insurance claim as the excess is probably too high for the value of the car.

The insurers have their own stats based on the own claims history and that of their re-assurers.

Risk appetite by insurers has also been a cause of premium increases. Low risk areas have not seen the scale of increases or any real increase at all above inflation. High risk areas/individuals have gone up significantly in comparison.

losgiganteskid

losgiganteskid wrote: »

for "10 months for the price of 12"

Read "12 months for the price of 10" !! - although thinking about it if the adverts read 10 months for the price of 12 maybe insurers would start to make some money.

Pleased that posters after my original post did not spot my deliberate mistake. Even if they had delighted to report I am insured against mistakes I make on the internet