Risen Insurance Costs

connor1122

My car insurance is due for renewal next month, so have been shopping around for latest quotes. Insurance quotes are now more expensive for me than 2 years ago when I passed my test. Have had no accidents or claims. Also now have 1 year NCD, but quotes are still way overpriced. Any suggestions as to why this has happened?

connor1122

Also to add, prices prior to corona virus were up to 50% cheaper. Not sure if this is a factor due to medical costs rising.

dacouch

Insurers often pay out more in claims than they receive in premiums and instead look to make a profit from investing the money. We're entering a recession and investment returns are down so premium increases are a distinct possibility and historically premiums tend to increase during a recession

AdrianC

connor1122 said:

My car insurance is due for renewal next month, so have been shopping around for latest quotes. Insurance quotes are now more expensive for me than 2 years ago when I passed my test. Have had no accidents or claims. Also now have 1 year NCD, but quotes are still way overpriced. Any suggestions as to why this has happened?

Everything else is identical? Your address, car?

If so, then it may well be because actuarial stats could show people with a couple of years experience get complacent, lose the caution of "I've only just passed", and think they know it all. Which is what leads to expensive claims...

tl2098

I am with LV for insurance of my KIA Sportage. Their automatic renewal letter dated 27/05 to renew as from 25/06 came in with a premium of £516.96, increased from £448.11 last year.

Because of Covid19 phoning LV was totally impractical.

Through Moneysupermarket I re-insured on a new policy with LV for £339.61 on 18/06 and subsequently registered for online business with LV. Part of the reduction, about £27, was due to removing our son as a named driver. Our property insurance is with LV too.

Today. 22/06, I received an email from LV assuring me that my car insurance was renewed and they would take the £512.96 from my card on 25th June.

Good luck, LV. My card was replaced with a different number before Christmas so they will no doubt make further contact to ask for a replacement card.

Watch this space,

EdGasketTheSecond

connor1122 said:

 Any suggestions as to why this has happened?

Inflation and expect more to come with all the currency creation by government. When they create billions of QE stimulus, it devalues the pound in your pocket. Don't believe the CPI lie, the things people really need to buy are increasing much more than CPI.

facade

EdGasketTheSecond said:

 Don't believe the CPI lie, the things people really need to buy are increasing much more than CPI.

I haven't found where they shop for the CPI, but wherever it is, it makes Aldi look like Fortnum & Masons.

https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceindicescpiandretailpricesindexrpiitemindicesandpricequotes

connor1122

Just tried removing my girlfriend who has been driving twice as long as me, which then dropped my annual premium by over £1k. 

EdGasketTheSecond

Women are always a big expense one way or another.

anniecave

https://www.thisismoney.co.uk/money/cars/article-7986653/Six-reasons-car-insurance-reach-record-highs-2020.html

This article lists some reasons.  I've seen other articles commenting on the keyless cars issue and changes to the amounts paid out for serious injuries.  I also thought that companies cold-calling encouraging people to claim compensation for "injuries" was on the decrease, but I had one such call last week, so maybe that's part of it too.

Hasbeen

tl2098 said:

I am with LV for insurance of my KIA Sportage. Their automatic renewal letter dated 27/05 to renew as from 25/06 came in with a premium of £516.96, increased from £448.11 last year.

Because of Covid19 phoning LV was totally impractical.

Through Moneysupermarket I re-insured on a new policy with LV for £339.61 on 18/06 and subsequently registered for online business with LV. Part of the reduction, about £27, was due to removing our son as a named driver. Our property insurance is with LV too.

Today. 22/06, I received an email from LV assuring me that my car insurance was renewed and they would take the £512.96 from my card on 25th June.

Good luck, LV. My card was replaced with a different number before Christmas so they will no doubt make further contact to ask for a replacement card.

Watch this space,

So you were unable to email or write to them and they auto renewed?

When they take the money, as I believe the old card will be linked to your new one. Someone will confirm or not?

If / when they do, ensure you contact them and state that you have 2 policies and make sure you get the old one cancelled and refunded.