summer = high insurance quotes?

adz

I was just wondering as i previously mentioned in my earlier post car insurance quotes is quite high at the moment for me as compared to a month ago. is this because of the time of year in which people will most likly use their car the most for trips? also is it very likely the premiums will decrease by september/october?

mattymoo

Price levels are not really affected by the seasons. For example, largest increase in claims is around October through till January due to shorter daylight hours, fog and ice.

It is more likely to be affected by the insurers experience of that area / occupation or type of car. The state of the market can also play a major part. For example.

In first quarter you take in £100m in premium but have claims reserves or payouts totalling £80m already. Add in the overheads and IBNR* claims and you are making a loss. Time to increase premiums.

On the other hand, you have low claims reserves but at the same time, only 1 in 10 quotes is converting to a policy, whereas your usual rate should be 1 in 5. Time to reduce premiums.

*IBNR = incurred but not reported. The accident has happened but you have not been told about it yet. These can roll in up to 3 years after the accident.

olly300

mattymoo wrote: »

Price levels are not really affected by the seasons. For example, largest increase in claims is around October through till January due to shorter daylight hours, fog and ice.

I would have thought that but my home contents and car insurance quotes are always cheaper in December and January. So I can only presume it's because most people don't take out insurance in December/January.