Car insurance increase - but not at fault - Why?

Avii_2

what is the reason for the insurance company increasing my car insurance.
in March a car hit me and drove off - i informed my insurance like i should, its still in pending form my understanding - yet when i can to renew it this week it increased by almost £100.. i do not understand why it increased when i was not at fault. This seems very unfair.

i was told it did not matter as i was still involved in an accident.

why are insurance company allowed do do this?

thanks

roonaldo

Thats what they do, it doesn't matter that you mad a claim or not, you were involved in a collision and now a higher risk, so higher premiums. You have no proof that you weren't at fault.

This happened to me last year. Try another insurer.

InsideInsurance

roonaldo wrote: »

Thats what they do, it doesn't matter that you mad a claim or not, you were involved in a collision and now a higher risk, so higher premiums. You have no proof that you weren't at fault.

This happened to me last year. Try another insurer.

Assuming the OP is saying it is a hit and run then it is a "fault" claim. Insurance "fault" is not about blame but a much more simplistic question of, if at the end of the claim, they have paid out any money. With the TP untraced they have a net outlay and so its fault.

Similarly if the claim is still open then it will also count as a fault claim until the insurer gets all their money back from the third party/ their insurers

mije1983

Avii wrote: »

why are insurance company allowed do do this?

Because like all businesses they are here to make money, and they are free to charge what they like to do that.

As said by the poster above, find out the prices from another insurer. Although everyone should do that at renewal time automatically whether their premiums have risen or not. The grass IS usually greener on the other side (or at least not as brown!)

Joe_Horner

mije1983 wrote: »

Because like all businesses they are here to make money, and they are free to charge what they like to do that.

Also because, unlike other businesses, there's little real competition in the market and the market itself is more or less captive thanks to the legal requirements. Most of those widely varying prices that make it look so competetive are from different names for the same 4 or 5 companies

Richard53

It helps to understand if you get away from the idea of your own 'guilt' or 'innocence' (which they foster with the idea of a no-claims discount) and remember that insurers assess you on the basis of the risk to them. If you have accidents, even if they are not your fault, you represent a bigger risk to the insurance company and they will hike your premiums.


Say you park your car legally on a public road outside your house every night. You live 50 yards from a pub, and 4-5 times a year some drunk on his way home keys your paintwork, costing your insurance company £200 a time. Not your fault at all, but they see you as a risk to their profits, and they are justified in altering your premiums to reflect this.

mije1983

Joe_Horner wrote: »

Most of those widely varying prices that make it look so competetive are from different names for the same 4 or 5 companies

Which is why it is so important to not just automatically renew with your current provider as you can usually guarantee finding a cheaper price out there.

For example, this year I found a quote 30% cheaper from company x than my current provider (both part of the same group). When I called to cancel the renewal straight away I was told 'Oh yes, I can see the quote you did online with company x. I can match that for you.' I declined anyway as cashback made it even cheaper but it just shows how much they think they can get away with from people who don't compare!

Richard53 wrote: »

It helps to understand if you get away from the idea of your own 'guilt' or 'innocence' (which they foster with the idea of a no-claims discount) and remember that insurers assess you on the basis of the risk to them.

When I took out a policy a few years ago, in part of the welcome pack there was an explanation about the no claims discount. It said it was exactly what it says. A no claims discount not a no blame discount.

Richard53

mije1983 wrote: »

When I took out a policy a few years ago, in part of the welcome pack there was an explanation about the no claims discount. It said it was exactly what it says. A no claims discount not a no blame discount.

Precisely right. But the whole concept of a 'no claims' discount encourages the idea that the policyholder is being rewarded for 'good behaviour'. Many people get the (wrong) idea that if they are not at fault, they should not face increased premiums, and that any increase is somehow unjustified and unfair. Insurance companies, on their part, are simply responding to the evidence of a higher risk.

InsideInsurance

Joe_Horner wrote: »

Also because, unlike other businesses, there's little real competition in the market and the market itself is more or less captive thanks to the legal requirements. Most of those widely varying prices that make it look so competetive are from different names for the same 4 or 5 companies

How many insurance groups do you think there are in the UK?

Add on top of that the number of MGAs and at least a few of the large broking houses that do more than just sell the basic policy at cost +10%

You'll find there is massively more competition than there is in say supermarkets, department stores, DIY shops, cinemas....

Aretnap

If there's a big increase in car theft in your town that's not your fault, but it will still affect your insurance premium.

If you're in an age group which tends to have relatively many accidents (whether the young and reckless or the old and doddery) that's not your fault, but it will still affect your insurance premium.

If you live in a street where drunk drivers or boy racers regularly prang parked cars and !!!!!! off, leaving the residents' own insurers to pick up the bill that's to your fault, but it will still affect your premium.

People need to get away from the idea that their insurance premium is, or is supposed to be, a moral judgement on them as individuals, rather than a dispassionate analysis of a number of risk factors, some of which are within their control, and some of which aren't.

If this is a renewal premium then spend a few minutes on a couple of price comparison sites and see if you can get cover elsewhere for less - nine times out of ten you will. Remember though that if your insurer has had to pay out themselves because the other driver can't be traced or if the claim is still unsettled that will have to be declared correctly - don't just put "no fault" because you don't consider yourself to be to blame or it could cause you a lot of problems later on.

shortchanged_2

InsideInsurance wrote: »

How many insurance groups do you think there are in the UK?

Probably not as many as you think/admit (looking at your user name).

How many of these insurance quotes you see when you do a comparison are actually under the same parent company?

For example elephant is actually admiral. How many different guises does aegas go under?