Car Insurance Hikes

Have I missed something??

I've had my car insurance renewal through and it's been hiked up 72% from last year, and no, I've not had any claims! I've been with them for years so I contacted them and they gave me a discount but even that is still 32% higher. Inflation isn't that high so why is the premium when I've not had any accidents!?

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  • DullGreyGuy
    DullGreyGuy Forumite Posts: 6,381
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    Have I missed something??

    I've had my car insurance renewal through and it's been hiked up 72% from last year, and no, I've not had any claims! I've been with them for years so I contacted them and they gave me a discount but even that is still 32% higher. Inflation isn't that high so why is the premium when I've not had any accidents!?
    35% is the anticipated increase in premiums this year... Motor insurers have been making underwriting losses for the last couple of years due to secondhand vehicles increasing in value (so more expensive total losses), parts being unavailable (so bigger higher car bills or having to write the car off) and thats on top of the high inflation.

    Insurers will live with underwriting losses for a while but ultimately prices go up to compensate. EY are also predicting notable price increases next year as even with the 35% increase this year it will be another underwriting loss making year
  • mgfvvc
    mgfvvc Forumite Posts: 1,098
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    As well as the general increase in premiums this year, other factors may come into play.
    Age is one possibility. Have you just had a big birthday?
    Sometimes a particular insurer will revise their ratings and decide they were getting too many claims on VW Golfs, so they hike their premiums for Golfs in particular, or too many claims from Slough, etc.
    It's all a bit inscrutable. I've just had my renewals and I have no idea why, in the middle of all these hikes, I've only had a 10% increase. All you can do is follow the MSE car insurance guide and shop around.
  • nyermen
    nyermen Forumite Posts: 1,059
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    edited 12 May at 4:26PM
    Another factor is the removal of the "special rates for new customers", so everyone has to pay the same for the same risk profile.  Can't remember when that happened, but I think its still filtering through.  It means if you shop around (or use a broker like I did), its probably gone up more as changing makes less difference.  Mine was up from 550 to 700.  No change of circumstances except now over 15 years no claims.
    Peter

    Debt free - finally finished paying off £20k + Interest.
  • DullGreyGuy
    DullGreyGuy Forumite Posts: 6,381
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    nyermen said:
    Another factor is the removal of the "special rates for new customers", so everyone has to pay the same for the same risk profile.  Can't remember when that happened, but I think its still filtering through.  It means if you shop around (or use a broker like I did), its probably gone up more as changing makes less difference.  Mine was up from 550 to 700.  No change of circumstances except now over 15 years no claims.
    That took effect on 1 Jan 2022 so the big impact of that would have been felt last year rather than this year; some refining could still be felt this year as the market adjusts to the new ways of working
  • DechanaCoops
    DechanaCoops Forumite Posts: 8
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    My premium last year actually went down from the year before (figured driving less due to covid) so the hike this year seems even more painful! 

    No big birthdays, and while I have moved, its to a lower 'crime' area. 

    Thanks for the input - I'll just have to sell an organ to pay for it! :#
  • cymruchris
    cymruchris Forumite Posts: 4,543
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    It also depends on the vehicle and your local crime stats - if your particular car has become more popular with the less desirables, or car theft in general has risen in your area, both will directly impact your premium without you having done anything. Someone had a similar complaint here recently - and they revealed their vehicle was a land rover range rover evoque - one of the 'easy targets' thieves are going for right now, so it wasn't any surprise their premium went shooting up.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • Reddleman79
    Reddleman79 Forumite Posts: 99
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    55% with Direct Line. Unlike previous years they wouldn't budge on price when I asked. 
  • dogfonos
    dogfonos Forumite Posts: 71
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    60% rise with Churchill. As previously, that included comprehensive UK breakdown cover. No changes in my circumstances or the car's. Didn't bother to haggle - just spent best part of a day trawling through comparison websites collecting and comparing new quotes, as I always do come renewal time.

    Currently, my cheapest quote is still 28% more expensive than last year and for that I have to purchase separate breakdown cover (with AutoAid, no big deal). Actually, just noticed AutoAid now sell car insurance so need to check that out.
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