Updated Cheap Car Insurance guide - new system

wealdroam

Persondriving wrote: »

I have just bought insurance from another company but found that Co-op Eco insurance had taken money from bank account even though there was no option to opt in or out of auto renewal. They claimed it was on the renewal letter but I believe that they have to have this in the online process since that is how I signed up for the policy in the first place. (Consumer Act 2015)
They have agreed to refund the premium and will not charge any cancellation fee; just as well as I would have fought this.

Why didn't you read the renewal letter they sent you?

staceydee

hi

I am at my wits end i currently pay approx £650 a year for my car insurance but when my renewal has come through for over £1000?

I have looked on hundreds of insurance sites and compare sites and they are coming out at more than my renewal i just don't know what else to do??

Nothing has changed within the last 2 years of me having this car, no accidents no claims nothing - i have been driving 9 years, have 7 years no claims and am 35 ?? I had an accident which was not my fault in 2012 and it was all claimed through the third party as it was his fault so didnt affect my no claims??

I only drive a bmw 118 so nothing really fast i just dont understand why it has increased so much ?? I have queried it with esure who i am with now and they adv £1000 is the best they could do:eek:

Anyone any help or advise - I am a single parent and just do not know what to do?

thanks
stacey

paddyandstumpy

staceydee wrote: »

hi

I am at my wits end i currently pay approx £650 a year for my car insurance but when my renewal has come through for over £1000?

I have looked on hundreds of insurance sites and compare sites and they are coming out at more than my renewal i just don't know what else to do??

Nothing has changed within the last 2 years of me having this car, no accidents no claims nothing - i have been driving 9 years, have 7 years no claims and am 35 ?? I had an accident which was not my fault in 2012 and it was all claimed through the third party as it was his fault so didnt affect my no claims??

I only drive a bmw 118 so nothing really fast i just dont understand why it has increased so much ?? I have queried it with esure who i am with now and they adv £1000 is the best they could do:eek:

Anyone any help or advise - I am a single parent and just do not know what to do?

thanks
stacey

Ok, there are several factors here.
1) The cost of insurance has gone up over the last year, so most people will see higher rates than they paid last year. However, you're at a 'good' age, you've got 7 years ncb so this should work in your favour.
2) Insurers improve rating year on year. Your price last year could have been calculated quite rudimentarily, whereas this year they have refined how they rate, and you now fall on the 'wrong side' of the line.
3) Credit score. Insurers use this, I don't know if esure did, but I would hazard a guess they do now. I know some of their new management structure and I know they are hot on things like this. What is your credit score like?
4) When is the insurance due to start? If it's soon, the rate goes up. You're always better off quoting 21 days in advance.
5) Your location. Is it an affluent area? Is there lots of crime? Perhaps the insurer has redone their area file, and again this isn't working in your favour any more.

Especially the last one, if the price last year seemed more than reasonable, it suggests that esure were selected against by not having as granular rating as the rest of the market. And they've now caught up and it sounds like provided a quote in line with the market?

As to reducing it, there are guides on here how to reduce the cost, but I'd advise caution over too much quote manipulation, as this will be tracked.

The ones I'd focus on; employment and drivers.
I'm making a massive presumption and apologies in advance if this isn't the case; but don't put unemployed as an occupation unless you're receiving JSA, try inputting 'housewife' or something like that.
Also, adding an older driver (a parent or friend perhaps?) could lower the cost, even if they never then drive the car.

Sorry for lengthy post, I've tried to explain why the rate could have jumped, and what you can look to do about it. Fundamentally though it sounds like they are offering a competitive market rate.

staceydee

paddyandstumpy wrote: »

Ok, there are several factors here.
1) The cost of insurance has gone up over the last year, so most people will see higher rates than they paid last year. However, you're at a 'good' age, you've got 7 years ncb so this should work in your favour.
2) Insurers improve rating year on year. Your price last year could have been calculated quite rudimentarily, whereas this year they have refined how they rate, and you now fall on the 'wrong side' of the line.
3) Credit score. Insurers use this, I don't know if esure did, but I would hazard a guess they do now. I know some of their new management structure and I know they are hot on things like this. What is your credit score like?
4) When is the insurance due to start? If it's soon, the rate goes up. You're always better off quoting 21 days in advance.
5) Your location. Is it an affluent area? Is there lots of crime? Perhaps the insurer has redone their area file, and again this isn't working in your favour any more.

Especially the last one, if the price last year seemed more than reasonable, it suggests that esure were selected against by not having as granular rating as the rest of the market. And they've now caught up and it sounds like provided a quote in line with the market?

As to reducing it, there are guides on here how to reduce the cost, but I'd advise caution over too much quote manipulation, as this will be tracked.

The ones I'd focus on; employment and drivers.
I'm making a massive presumption and apologies in advance if this isn't the case; but don't put unemployed as an occupation unless you're receiving JSA, try inputting 'housewife' or something like that.
Also, adding an older driver (a parent or friend perhaps?) could lower the cost, even if they never then drive the car.

Sorry for lengthy post, I've tried to explain why the rate could have jumped, and what you can look to do about it. Fundamentally though it sounds like they are offering a competitive market rate.

thanks so much for your reply - last year it had gone up for no reason also i complained and they agreed to reduce it but say they cannot do this again this year??

i am self employed and have put that as my job as well as adding my 55 year old mum on to the quote

i do have a bad credit rating but i never miss a payment on my insurance or anything else

i do live in a bad area - blackburn lancashire??

i just dont know what to do

thanks again
stacey

paddyandstumpy

staceydee wrote: »

thanks so much for your reply - last year it had gone up for no reason also i complained and they agreed to reduce it but say they cannot do this again this year??

i am self employed and have put that as my job as well as adding my 55 year old mum on to the quote

i do have a bad credit rating but i never miss a payment on my insurance or anything else

i do live in a bad area - blackburn lancashire??

i just dont know what to do

thanks again
stacey

If I'm honest, there might be not a lot you can do.

What is your job? Do you use the car for business use? Certain occupations like courier will carry hefty loads.

Unfortunately, your area and credit score will be reflected in the price. With regards to credit score, it's not about if you've missed a payment, stats show that credit score is indicative to risk.

All I can suggest (and I know this is a big ask) is try and pay the insurance in one lump sum to save interest, if its a £1k premium up to £200 of that could be interest alone (and the interest rate is also reflective of credit score, so a double bad whammy). Perhaps try and put the cost on an interest free credit card, or try and borrow it if you can?

staceydee

paddyandstumpy wrote: »

If I'm honest, there might be not a lot you can do.

What is your job? Do you use the car for business use? Certain occupations like courier will carry hefty loads.

Unfortunately, your area and credit score will be reflected in the price. With regards to credit score, it's not about if you've missed a payment, stats show that credit score is indicative to risk.

All I can suggest (and I know this is a big ask) is try and pay the insurance in one lump sum to save interest, if its a £1k premium up to £200 of that could be interest alone (and the interest rate is also reflective of credit score, so a double bad whammy). Perhaps try and put the cost on an interest free credit card, or try and borrow it if you can?

My job is just working from home online but it doesnt give internet business as a job in the lists so i put company director retail

i did have a look at a quote for paying in one lump sum compared to paying altogether and it didnt really alter the total price all that much if im honest?

I am just on with equifax now to see if there is anything can be done and i have escalated a compalaint with esure my insurance is due at the end of oct

the thing that gets me if i change my car to a newer one i usually gives me a better price??

i really dont understand why each company differs so much - surely this needs to be taken up in parliament but thats another story:rotfl:

thanks again
stacey

Onmyway2

Followed Martins guide and managed to beat my renewal quote (£336.85 from Aviva) by over £100. Cheapest quote came from MoneySupermarket, cover provided by Hastings with free legal, courtesy car and road side recovery - proper bargain!

penelopeessence

It certainly does take time to find the best deal. I have spent hours if not days analysing the results from comparison sites, other insurers, excesses, start dates, money off vouchers, levels of breakdown cover and being on the phone, Someone should produce a spreadsheet!
After all that I have returned to the AA who reduced their insurance quote by £57 to only £153 (£66 less than last year).
Breakdown cover is another matter. Although the AA have reduced their original quote by £95 it is still £116 (too high) for the level I want.
Was it all worth it? It depends on whether your time or money is more valuable. And the £152 saving so far will more than pay for a good Christmas dinner.

alexwb

Can someone help me find car insurance for 2-3 weeks as all i get are yearly quotes?

thanks,

dolly365

Here's a good one that some of you might enjoy and be able to use to your own benefit.

I am a newly qualified driver but it's my second year of insurance as I had my car insured for a year as a provisional driver with diamond, premium approx. £530 for the year.

Passed my test about ten days before insurance was due for renewal and most quotes were up over £1,000 (I had been warned this may happen because statistically newly qualified drivers bear a greater risk).

I then quoted with Aviva and surprisingly got a quote similar to my previous year's premium - I had expected it to be similar to all of the other new quotes! Added a friend with much more driving experience and got it down by about £100 or so. That was fine so I purchased that policy. Bog standard cover for S, D, P & C.

I then found out about the Aviva Drive challenge which I completed and got a high score. So, still being within the cooling off period of my policy, I rang them and asked if there was anything they could do in terms of giving me some money back on my premium price etc. They initially said no but when I discussed it with them a little further, they gave me £125 back. Goes to show, sometimes talking to an actual human being can be beneficial!