How do you explain higher insurance on a lower insurance car??

maddogb

there is only 1 reason..
We have to have motor insurance, it's the law, so a fixed market where traditionally legislation and control is so poor and confusing is an ideal high profit market for these ruthless business types.
Insurers are in the business to make money, as much as possibl,e and if they can take %50 of your annual income to increase their profits by 1 billionth of a percent they will do so, even if it means "dodging" inconvenient legislation.

mattk_180

As others have said, there are certain factors involved. I wouldn't take Parkers vehicle groups as anything other than a guideline. 90% of insurers will use their own groupings anyway.


Firstly, you have to consider claims history, if a certain insurer pays out more claims on 306's than Golf's, then they will charge more on 306's. It is also correct about ownership discount - the longer you own a car, the cheaper it gets. Statistically you would be more likely to crash a car you've never driven before compared to one you've owned for 5 years.


Age will certainly have more of an affect as well. More likely to be written off or if not, more expensive to fix and parts may be more difficult to obtain as they are not manufactures for that particular car any more. All examples of the small things insurers will take in to account.


All in all, the two options given of accepting it or taking the cancellation charge hit and moving it elsewhere if you can find it for cheaper.


maddogb - Although some "high street" insurers might be like this, there are plenty that aren't. Some practices carried out by certain companies are certainly questionable, but the FCA, in my experience is one of the most strict regulators out there. I've certainly come across many insurers who are not "high profit, ruthless business types". Just my personal view.