Car insurance renewal

1050Steve

Hi my 2nd car's policy is due for renewal, (27/4), currently with Saga, (other car with LV), have my renewal quote but my wife has gained an SP30 for speeding since inception, (overworked community nurse), so was doing new quotes as per usual. We are also waiting for our house sale to complete, (probably before the renewal date). Did quotes on my current address then thought should use new address. Prices jumped and fewer quoting. So my question is which address should we do quotes with? Are quotes higher because any (soft) credit search won't find us? So should we use current address then change it? Its bad enough when your sale/purchase has been dragging on for 6 months because of covid without this! Thanks

PRAISETHESUN

You should always use your current details otherwise it is essentially application fraud. Apply using your current details and then change address when needed. Also be careful when using comparison sites with multiple sets of personal details (address, etc) as this can get reported to the insurers who may decide you are higher risk. It's also possible that some insurers may just not provide cover at your new address and/or it is a higher risk area, hence higher premiums and fewer quotes. 

RTK_1982

Yeah as you say, the higher the credit score you have at an address; the lower the risk is which can reduce your premium.

Tgolf

I have just tried to renew my car insurance with LV. Over the last 12 months I have only done 2,000 miles instead of the 10-12K anticipated. During 6 of those months my car was kept in a locked garage save for a 1 a week trip to a local farm shop (1000 yds away). When I queried would I get a rebate for the fact that my insurance risk was significantly lower over the last year due to the pandemic, they said no. In addition they increased the proposed renewal fee on the instructions of the underwriters. I complained that it was a disgrace and a rip off of consumers. I also pointed out that the previous year the pandemic had only had lockdown for 2 months and I got a rebate (albiet miserly for the lower risk) after government guidance, so wher was this years. They said HARD CHEESE! so I informed the customer service advisor that I was very upset that a company like LV should be so dismissive and greedy that I would certainly not renew with them, so cancel the auto renewal.

People need to complain about this behaviour especially as you can't reduce your mileage for the renewal because last years mileage was so low (i.e. base your estimate on the last years actual mileage) as to do so may negate your insurance should you make a claim.

We need a campaign by Martin Lewis to sort out this scam and dishonest behaviour.

k12479

Tgolf said:

Over the last 12 months I have only done 2,000 miles instead of the 10-12K anticipated....When I queried would I get a rebate for the fact that my insurance risk was significantly lower over the last year due to the pandemic, they said no.r.

Who do you think is a more proficient, and therefore safer and lower risk, driver - one that drives 10-12k miles/yr or one that drives only 2k miles/yr?

Grumpy_chap

If your mileage is too low, then you may not have sufficient experience / maintain sufficient experience to be a skilled driver.  With any practical skill, it is no good just learning once and then forgetting.  That may be the consideration that the insurance company have.  You can, of course, shop around and renew elsewhere if the price from LV is not competitive.

Why did you drive the 1,000 yards each week to the farm shop?  Would walking not have been better?

chrisw

It's not a scam or dishonest behaviour. If you don't want to insure with them, you are perfectly free to go elsewhere.

pinkteapot

As everyone else said, your insurance cost isn't on a per-mile basis. Statistically, very low and very high mileage drivers are probably the ones most likely to have claims. You may even find it costs more to insure for 2000 miles per year than 12000 miles per year. 

If you adjust your mileage mid-term (e.g. halfway through your insurance year you stop doing a long commute so you reduce your policy mileage for the remainder of the year) you may get a part-refund or have to pay more - entirely depends on how your individual insurer rates the risk associated with annual mileage. There will be some variation between insurers.