Car Insurance Increase despite no claims

theloft

Why is it every year we have to go through the pain of searching for car insurance quotes. I have had no claims and yet my Car Insurance has gone up by 8%. Are all Car Insurances going up ?
Was with LV (good) but last renewal shot up so searched and went with Swiftcover but they have increased as stated. Martin says haggle but you cannot with Insurance as they have set criteria and although they say "We'll have a look" once they feed dats into the computer, they come up with a figure. If you agree a massive Excess you can get it a little cheaper! I used to be able to haggle but quoting cheaper renewals from comparison sites no longer has any effect. Anyone else with suggestions. Does age come into it. We are Senior seniors.

ariba10

Shop around, They tend to offer a good rate to "reel you in" then hope you renew without checking around.

dunstonh

Why is it every year we have to go through the pain of searching for car insurance quotes.

Sometimes you do. Sometimes you dont. However, if you happen to pick companies with high year one discounts then it will obviously have an increased when year 2 pricing is applied.

Are all Car Insurances going up ?

No.

have had no claims and yet my Car Insurance has gone up by 8%.

Some of that will be the IPT increase. Some of that will be inflation. So, in the scheme of things, that isnt too bad.

Fletch7

There are a ton of factors that affect your car insurance price, they will not all be the same as the last time you bought it.

Some of it will be the insurer chancing their arm and hoping you will just renew. Prices will change due to the average price in the market, most insurers don't want to be massively cheaper or dearer than the average. There will be factors not specifically to do with you - e.g. if the neighbours have their car stolen/vandalized then you are now in a slightly higher risk postcode. Age is a pricing factor, whether it increases or decreases the premium only the number crunchers at the insurance company will know.

Aretnap

How much no claims? Once you have about 5 years, additional years tend to make little or no difference to your premium. And at the other end of the scale, insurers often offer an introductory bonus equivalent to about 1 years NCD to people who don't have any NCD but meet certain criteria (something like at least 25 years old, held licence for 5 years, no accidents or convictions in that time). It avoids the problem of people who haven't owner their own car for a couple of years getting sky high rates due to their lack of NCD - but does mean that at your first renewal you lose the introductory bonus and gain a year's NCD - so your first year's NCD may not have as much effect on your premium as you expected.

On the more general point, assuming an insurer has to take (say) £500 per customer in premiums to cover the cost of claims, running costs and a reasonable profit margin, there are essentially two pricing models they can adopt

(1) Charge everybody £500, or
(2) Charge new customers £400 to get their business, then charge renewing customers £600 (if their book is roughly 50/50 new to renewing customers)

Personally I much prefer model (2), because it means that by doing half an hour's work once a year I can pay £400 for my insurance instead of £500.

theloft

I have 5 yrs. NCD, researched 3 comparison sites, plus 2 direct to Ins. companies, the best one saved £50 but after adding in Legal Protection and something else, it came down to about £5. Thanks for replies, but nothing new there, I suppose I was just having a moan, hoping for someone to say try these, they will give you a great deal. Happy Christmas everyone and thanks for your replies.

forgotmyname

They always say that insurance gets cheaper as you get older but it never seems to happen.

As you get older and build up your no claims insurance costs increase.

Quentin

theloft wrote:

Does age come into it. We are Senior seniors..

There comes a time when "senior seniors" hit the age when they do get into a more riskier group, and consequently do get increasing premiums each year much like youngsters start at the top and gradually come down as they "lose" immaturity


Did you check the cashback websites - you can get £50/60 or more back from reputable companies. (If you find a good deal with£50+ cashback, check it's a genuine offer by comparing the cashback site premium against those you have been given in your earlier research)