+50% renwal price with no claims

Bert85

Hi everyone
I have been quoted £670 for renewing my car insurance, compared to £429 I paid last year. No claims or accidents done, nor DVLA issues.

Other compare sites are not much better... Why?!?

What should I do?

TheMilkmansDad

Several threads on the same subject. General increase across the board along with any (or all) of increase in risk age bracket + increase in crime rate + no longer a desired customer.

As to what you should do - either accept the renewal quote or find another provider

sevenhills

Some things like technology bring down the Governments preferred measure of CPI inflation figure down to 14%, but some products such as food have increased by 30%+
So insurance increasing by 50% is no surprise.

tifo

It's apparently the cost of replacement parts as they've gone up with everything else.

Car_54

tifo said:

It's apparently the cost of replacement parts as they've gone up with everything else.

Plus delays in parts delivery = longer car hire.

tifo

Car_54 said:

tifo said:

It's apparently the cost of replacement parts as they've gone up with everything else.

Plus delays in parts delivery = longer car hire.

Yes, esp parts for german cars.

DullGreyGuy

Car_54 said:

tifo said:

It's apparently the cost of replacement parts as they've gone up with everything else.

Plus delays in parts delivery = longer car hire.

Or more cars being written off because delays are unacceptable.

There is also the fact that car prices were escalating and so whereas typically a £8k car would be worth £6k by the end of the policy and so the average total loss would be a little under £7k instead they found the car appreciated to £10k and so average total loss settlement was actually just under £9k so £2k more than anticipated.

The results of all of the above was insurers made underwriting losses for the last few years and with how insurance finance works even with the increases this year more losses are anticipated and more rises next year to compensate. 

Bigphil1474

I'm with Sheila's Wheels, and my premium went up from £235 to £246 earlier this year. I expect your insurers didn't want your business. Shop around (a lot).

Rogerrabbit777

I live in europe and costs havnt increased infact mine have gone down. I presume its the B word?  Very surprised at the cost of uk car insurance when planing a possible return (ontop of being screwed over for driving outside of the uk). Paying approx £220 in 2014 now looking at least double for the same. Good old rip off britain

DullGreyGuy

Rogerrabbit777 said:

I live in europe and costs havnt increased infact mine have gone down. I presume its the B word?  Very surprised at the cost of uk car insurance when planing a possible return (ontop of being screwed over for driving outside of the uk). Paying approx £220 in 2014 now looking at least double for the same. Good old rip off britain

There is a massive difference on how injury claims are calculated in different countries. The below is an example done by a multinational reinsurer on how much compensation would be required in law for a 30 year old male with wife and two kids who is made a quadriplegic in a non-fault car accident and requires €100,000 of care for the rest of their life:

Country | Award (€m)
France | 8.0
Germany | 8.75
Italy | 3.0
Netherlands | 1.6
Spain | 1.75
Sweden | 0.8
UK | 14.5

The differences are predominately driven by what its felt the insurer should pay for and what the state should pay for. Similarly to that is how long the insurer should pay and what discount rate should be paid on future years (to represent investment returns until the money is actually spent)

Given the UK insurer has to pay out almost 20x that of the Swedish insurer is it any surprise that the premiums are higher? Its slightly unfortunate that the table didnt also include the US as that would probably be 10x what the UK is but given in California you are only required $15k of third party cover its likely at least $100m would fall on the driver to personally pay.

facade

Rogerrabbit777 said:

I live in europe and costs havnt increased infact mine have gone down. I presume its the B word?  Very surprised at the cost of uk car insurance when planing a possible return (ontop of being screwed over for driving outside of the uk). Paying approx £220 in 2014 now looking at least double for the same. Good old rip off britain

The B word hasn't helped, with car makers shifting operations to Europe it means spare parts are more difficult to get, and cost more.

Then there is the W word, virtually every component of European cars is/was made in Ukraine, from wiring harnesses to paint. Plus Ukraine supplied the neon used in the chip fabrication plants.

Then the C word. When it was officially an Apocalyptic Pandemic no-one was driving about, and now it is downgraded to "Man up, it is just a sniffle" everyone is back behind the wheel, and half of them have forgotten how to drive, so accidents rocketed.

So loads more accidents, massive delays in getting hold of spare parts inflating claim costs with car hire and storage fees, and more expensive parts in the first place has cost the insurers dear, and the only way they get to pay for the bubbly at the shareholders meeting is by increasing premium prices.

Just like supermarkets, as long as they keep an eye on each other's prices and all ramp up to the same figure together every one wins (except the customer...)