MSE News: Car insurance prices 'to soar by 25% this year' – check yours now

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  • zagfles
    zagfles Posts: 20,357 Forumite
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    edited 24 January 2016 at 4:30PM
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    As I at least intimated above, I see little point in continuing this discussion generally because we've long since passed the point where it is constructive. However, given that you've raised this again I thought I'd do a bit of research and actually inform myself on this subject. I found the answer to your question here. It's the second page if you're interested, but this is the important part;


    So essentially, there are no whiplash claims in France because all motorists that are injured in accidents benefit from a 'no fault law' that automatically pays out compensation whether they are at fault or not.
    But they need to prove that they are injured.

    http://www.telegraph.co.uk/finance/personalfinance/insurance/10185382/Why-Britain-is-the-whiplash-capital-of-Europe.html
    Whiplash now accounts for 78pc of all personal injury claims in the UK, compared with just 3pc in France. One of the major differences is that in France, diagnosis requires "objective proof based on more rigorous medical testing", according to Axa. Claimants are also forced to pay for an initial report into the injury. The result of far fewer claims is that motor insurance costs 40pc less.
    Oh hang on, that's by Axa, an insurance company. They're obviously lying. I'll buy their shares immediately, they're sure to soar.
    In other words, they don't need to claim. Given your stance on compensation for injuries, I doubt you think that's a better system than here. I certainly don't.
    It's better, because they seem to require a higher level of proof of injury, and also the way the compo is paid presumably cuts out ambulance chasers and claims management companies. End result, the French pay less for insurance, so it's certainly better IMO.

    ETA: and section 1.4 of the link you posted seems to back the Telegraph/Axa, especially about medical reports and the burden of proof being on the plaintiff.
  • rs65
    rs65 Posts: 5,682 Forumite
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    This thread is all because of a sensationalistic story that premiums will rise 25% this year?


    I don't even see the AA guy giving a reason other than IPT.


    He says whiplash continues to haunt the industry but doesn't blame the rise on it.
  • Zebrdee
    Zebrdee Posts: 225 Forumite
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    Checking Google car insurance comparison as recommended on MSE, I'm disappointed and surprised their quotes were between 2x and 5x my 2016 quote.
  • Marvel1
    Marvel1 Posts: 7,181 Forumite
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    No doubt so called whiplash claims!!

    I have been rear ended and it was not even a little tap/bump, nothing wrong with me and people were saying claim whiplash!!!
  • dlv13
    dlv13 Posts: 13 Forumite
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    Afternoon all

    Hopefully this is the right forum for someone to be able to offer some advice.

    I'm 37 years old, work as a Manager in an office job, have a reasonable salary though live in rented accommodation after splitting from my partner just over a year ago. I've been driving 19 years this year and though I've previously had nine points on my licence (not simultaneously) this was all more than five years ago.

    In 2014 I was in a non fault accident and my claim was paid out no problem after my car was written off but I maintained my NCB which is now at three years.

    I do live in what is deemed a "high risk" area of Manchester though where I am is really quiet and a lovely part of the area (it is the only area I could afford that wasn't rough which enabled me to live near my children - hence moving not being an option.)

    I know the repeated myths that car insurance goes down once you're over 30, that length of driving reduces premiums and that a non fault claim should not affect your premiums (I have worked in commercial insurance in a senior technical position for a number of years so I know insurance very well, but seemingly not motor and not as well as I'd thought!)

    As I only really need a car to pick up the kids a few times a week and my current car is up for it's MOT (which I'm fairly certain it will fail on a couple of minor points), I'm getting rid of my car and getting an old car with a small engine (1 litre or less probably - literally spending £250, nothing more if I can help it.) Thinking changing from my current (albeit 13 year old) hot hatch with a 2 litre engine would save me a bundle I've looked for quotes only to discover my insurance could potentially go up by £500 a year!! (Seriously, so far the cheapest quote on comparison sites is £1200 for third party only.)

    Can anyone shed any light or have any tips? I'm absolutely baffled as to why a cheaper, less powerful, less theft attractive car would cause my premiums to shoot up so much for the same address, slightly less miles and the same driver (now with a full three years no claims)?? I'm also now genuinely concerned that if I decide to keep my car that my renewal premium will be just as, if not more, obscene in it's increase.

    Does anyone know something I don't?!
  • Quentin
    Quentin Posts: 40,405 Forumite
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    You can find out what your renewal premium for your current car is likely to be now by doing dummy quotes online.


    And do quotes for your proposed new car for comprehensive cover (often cheaper TPFT)
  • dlv13
    dlv13 Posts: 13 Forumite
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    Hi Quentin

    I've checked fully comp, third party fire and theft and third party only and £1200 is the cheapest (so far I might add.)

    My current insurance runs out in April so I will go to them for a quote on a potential new (to me) car just to switch over; though I'm loathe to pay an admin fee it may be a price worth paying.

    I'm just shocked, especially as I know so many people whose insurance has been cheaper than mine (all of them younger and less experienced, one of them had been driving four years, no NCB and six points to my, at the time, seventeen years experience, one years NCB and three points - his insurance on a similar vehicle was £200 cheaper!!)

    If I can't sort it out it may no longer be in any way viable for me to have a car, yet I need one to ensure I see my children (their mother is still a close friend so is understanding, but I couldn't ask her to contribute to any costs, she doesn't drive and my son is disabled so it's incredibly difficult to use public transport.)

    I'm at a loss really - whether I like it or not it looks like I'm going to have to pay between £40 and £70 more a month than I currently do which will financially have a massive impact, not to mention that I really don't understand why?!
  • Just_Some_Guy
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    There are some parts of Manchester, not necessarily the rough bits, which are notorious for fraudulent motor claims. If you live near there then you will pay through the nose for your cover no matter what you do. There isn't much you can do about this besides moving.
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