Car Insurance Fiddle

Chris_Cat

Hello.

We have multicar insurance with Admiral, we've had it for 2 years. We just changed the car from a 58 plate Picasso (group 17) to a 58 plate corsa (group 5).

For the balance of the year, (9 months) we had to pay £58 extra. The agent on the phone couldn't understand why and checked and phoned us back. It was explained thus: when you get a new (to you) car, you are more likely to crash it, hence the policy goes up. Well. I've never heard such rubbish. Has anyone else had experience of this?

Antimoron

I guess the rationale is new car which you aren't used to.

They reckon you'll stamp on the accelerator pedal thinking its the brake?

Seriously, the logic is you aren't as used to controlling the car as the previous one - thus more risk,

Aretnap

It's unlikely that the bloke on the phone wrote the underwriting manual so it's probably just guesswork on his part, but it's certainly plausible that you're more likely to have an accident in an unfamiliar car than one you've had for years. More likely Admiral just rate Corsa's as higher risk than Picassos. The insurance group doesn't mean very much, insurers will rate on their own experience of how many claims hey get from each car type, and Corsas are popular with young drivers (stereotypical boy racer car) so likely account for a lot of claims.

OddballJamie

I've noticed this with Tesco quotes too, own the car a month or two and it's about 10% higher than 3+ months.

It's only understandable if you're going from something like a Micra to a Galaxy or a KA to a Focus RS.

Flipping statistics and machines ruling the world!

motorguy

Lets be honest here, its simply because they can charge you a disproportionate amount of money because they know that you are 'locked in' for the remainder of the year.

Their margins are naff compared to what they used to be so they recoup that margin wherever they can.

OddballJamie

motorguy wrote: »

Lets be honest here, its simply because they can charge you a disproportionate amount of money because they know that you are 'locked in' for the remainder of the year.

Their margins are naff compared to what they used to be so they recoup that margin wherever they can.

Agree, they also pull it when you move house part through the policy.

The reference I made to Tesco was on a brand new policy regarding the section that stated when you bought the car. Haven't bought gave a higher quote, then 1-2 months ago was slightly lower, then 3+ months was normal price.

scheming_gypsy

£35 of it will probably be an admin fee and the increase will be for numerous reasons. A Corsa may be a lower insurance group but it doesn't mean it's cheaper to insure; a Picasso is more likely to be a family car whereas a Corsa is popular for youngster to stick twin cannons, alloys, LED's, and a stereo worth more than the car... Then crash it whilst parping round McDonalds car park trying to impress Shardonnaee, Krsytal and Shazza

Strider590

Chris_Cat wrote: »

Hello.

We have multicar insurance with Admiral, we've had it for 2 years. We just changed the car from a 58 plate Picasso (group 17) to a 58 plate corsa (group 5).

For the balance of the year, (9 months) we had to pay £58 extra. The agent on the phone couldn't understand why and checked and phoned us back. It was explained thus: when you get a new (to you) car, you are more likely to crash it, hence the policy goes up. Well. I've never heard such rubbish. Has anyone else had experience of this?

It's because the Corsa is higher risk, typically owned by boyracers and new drivers, more Corsa's find themselves wrapped around a lampost than Picasso's do.
And before you mention insurance groups, these don't take into account crash statistics.

paddedjohn

A while ago I got a quote for my daughter to drive our old corsa (04), instead of hers which was an 03 plate, was quoted an extra £85 to switch because it was a new car but when I explained that we had owned it from new and the cars were identical they suddenly dropped the extra charge and changed vehicles foc

Chris_Cat

Thank you for your replies. My 48 year old wife would love to be a boy racer, but sadly not. She has 15 years no claims bonus.

Anyway I told them what I think of them and that we're off next year, though I expect they're all the same.

Ho hum.

InsideInsurance

Chris_Cat wrote: »

Hello.

We have multicar insurance with Admiral, we've had it for 2 years. We just changed the car from a 58 plate Picasso (group 17) to a 58 plate corsa (group 5).

For the balance of the year, (9 months) we had to pay £58 extra. The agent on the phone couldn't understand why and checked and phoned us back. It was explained thus: when you get a new (to you) car, you are more likely to crash it, hence the policy goes up. Well. I've never heard such rubbish. Has anyone else had experience of this?

The groups you quote sound like the ABI groups, these are effectively a measure of the cost of repair and security for a vehicle (read http://www.thatcham.org/what-we-do/group-rating)

1) Most insurers dont use these any more but have their own bandings

2) This doesnt take into account the accident frequency or TP losses

a Corsa is a classic teenager car and therefore is frequently heavily rated against because all insurers find they are often wrapped round trees with a couple of occupants who then sue the driver and so large PI claims.

The ABI groups can be a basic indication but are a long shot from the full picture. Without a doubt part of the cost you've been given is an admin fee (though they should be telling you this) and there could be some element of you being a captive audience

You are asked how long you've had a vehicle, and if you start getting high powered then they may well ask about your previous vehicles, is a rating factor with the fact that the longer you've owned a vehicle the lower the premium due to you being used to it but it is probably as much the car you've gone for than this point.

As a comparison, I have a new group 50 3.5L car and currently pay 675 a year premium. If I do a quote for a new Peugeot 208 GTI 1.6L group 31 then my insurers are quoting 690 even though its a lower group, less powerful, slower and about a quarter the price to buy.