Car Insurance Increase - Age Related?

peachyprice

I just got my renewal through from Tesco, they want to put it up by a massive 30%.

Nothing has changed, I've had no accidents, not to much as a new windscreen, same car, same address, same use. The only thing I can think of that might be the cause of such an horrendous increase is that I turn 50 NEXT February. Would they really weigh the policy for the entire year because I'm going to be 50 for the last 2 months of it?

I'm not too bothered because if they don't decrease it when I phone them I can still get it from plenty of other companies for the same as it is now, it's just annoying that they're trying it on.

Oh, but it's all right, I got a card through yesterday telling me if I renew I get a £25 shopping voucher. Whoopy freaking doo.

Norman_Castle

In my experience the price generally increases in the second or third year. I suspect they are hoping for customer apathy. 30% increase is an invitation to shop around.

Aretnap

Generally speaking premiums will drop slightly as you get older, at least until you start to get towards 70 or so when they start to creep up again. Though even then not by 30% - see page 4 here for some typical figures for each age group.

The other thing that might make a difference is that the car is a year older, and old cars are often more expensive to insure than new ones (don't have modern safety features, more likely to be in poor mechanical condition, driven by people who are less likely to take care of them etc). Still not very likely to account for 30% increase though.

More likely it's just because you've been with them for a while - according to your point of view they're either no longer applying the new customer discount, or they're trying it on in the hope that you'll blindly renew. Check the price comparison sites and if you can get equivalent cover more cheaply elsewhere it's probably time to move.

vaio

Yep, certainly from my experience 50-60 is the golden age as far as car insurance goes.

I suspect it's the "loyal customer" tax they apply. Answer is to hit the web and move elsewhere. The main site has a good guide but I rarely get past the first stage as prices are low anyway.

peachyprice

Oh well, I just phoned them, they wouldn't budge, so it's bye bye Tesco.

Maybe it was the age of the car, it's 5 years old now, not exactly a banger and only 8k max a year mileage.

When I used the comparison sites they were way way down the list, I had a choice of a good 15 other insurers before I got to them. I guess they just didn't need my business.

Hopefully it will go down a bit next year when I am actually 50

InsideInsurance

Have you dont a new business quote online to see what they come out at?

Typically age doesnt start pushing premiums back up until mid 60s.

Its most likely the erosion of new customer/ online discounts combined with any general rating changes if you areas become more risky or they've had a spate of claims from people with your type of vehicle etc

kingstreet

Are you female?

Since the EU gender directive was introduced you may find your cover more expensive.

peachyprice

Yes, new customer came out exactly the same.

Would that EU thing really make 30% difference? Although if it were just that I would have thought it would then come out at the same price everywhere.

It's only a Mitsubishi Colt, not exactly the kind of car that gets pinched for it's boy racerability or stunning good looks (and it's the worst colour it comes in):D

Strange, like I said, they just didn't want by business.

InsideInsurance

I suspect you'll find its the culmination of a lot of things, 15% new business discount lost, 10% female driver discount, 3% for how the areas changed etc.

Or perhaps they think this ones is yours?

Aretnap

The gender ruling only really had a big effect on young people - young men have a much higher accident rate than young women, and consequently used to pay much more than young women for car insurance. By the time you get to middle age there's not really much difference in risk profile between men and women, so there wasn't too much difference in their premiums to start off with.

Re the new customer quote - some insurers have started to set up their systems so that they recognise an existing customer doing a quote, and so quote for them as an existing customer rather than a new one. If you're curious you could try using a made up name, your next door neighbour's address and obviously not your real registration number and see if it comes out any different.

Another possibility is that Tesco (or rather, their underwriters) have had some biggish claims in your area recently, and so rate your postcode as riskier than they did a year ago. Other insurers may have had different experience, so still rate it as lower risk.

peachyprice

InsideInsurance wrote: »

I suspect you'll find its the culmination of a lot of things, 15% new business discount lost, 10% female driver discount, 3% for how the areas changed etc.

Or perhaps they think this ones is yours?

You've seen me in Sainsbury's car park then :rotfl: