Car insurance renewal quote up 65%

musty

Today I received my renewal quote : £431 from £261 paid last year; this amounts to 65% increase. I did a bit of research on the price increase. ABI (association of british insurers) claim that the increase in insurance costs are around 16%; the ONS (Office of National Statistics) put it at 43%. Then we have the usual arguments with little data to support : second hand cars up by 30%; repairs/spare parts also up, supply chain costs, etc. Still how can 65% be justified. I put all of these arguments to my insurer who dropped the price to £409). I searched for the best deals and so far the best is £405. I should also explain none of my circumstance have change (other than the car is bow a year older).

What is the experience of others?

musty

Today I received my renewal quote : £431 from £261 paid last year; this amounts to 65% increase. I did a bit of research on the price increase. ABI (association of british insurers) claim that the increase in insurance costs are around 16%; the ONS (Office of National Statistics) put it at 43%. Then we have the usual arguments with little data to support : second hand cars up by 30%; repairs/spare parts also up, supply chain costs, etc. Still how can 65% be justified. I put all of these arguments to my insurer who dropped the price to £409). I searched for the best deals and so far the best is £405. I should also explain none of my circumstance have change (other than the car is bow a year older).

What is the experience of others?

CSI_Yorkshire

https://forums.moneysavingexpert.com/discussion/6462507/car-insurance-increase#latest

https://forums.moneysavingexpert.com/discussion/6462528/car-insurance-hike#latest

https://forums.moneysavingexpert.com/discussion/6462228/car-insurance-policy-increase#latest

https://forums.moneysavingexpert.com/discussion/6445961/car-insurance-hikes#latest

https://forums.moneysavingexpert.com/discussion/6457848/car-insurance-renewal-has-gone-up-431-from-462-last-year-to-1-992-with-no-claims-or-changes#latest

https://forums.moneysavingexpert.com/discussion/6451151/car-home-insurance-increases-more-than-expected#latest

Threads in the last month.

Barkin

Renewed mine in July - it's gone up from a few quid below 200, to a few quid above. 

baser999

Think you’ll find similar threads on here about car insurance increases  - seems to be pretty much across the whole industry

molerat

Mine went from £261 to £396.  Shopping around couldn't save much.

400ixl

Initial renewal quote went up by around 40%, shopping around could get it to about a 5% increase and current insurer matched it. Had changed the car this year, so 1st year usually does increase it slightly.

Another big factor for insurers is that they are not getting good returns on their investments at the moment which is one of the ways the fund general insurance. You pay your premium, they invest the money until they have to pay it out on a claim to someone. When the investments such as shares and property are doing well they can keep the premiums down, when it isn't they have to raise them.

BikingBud

musty said:

Today I received my renewal quote : £431 from £261 paid last year; this amounts to 65% increase. I did a bit of research on the price increase. ABI (association of british insurers) claim that the increase in insurance costs are around 16%; the ONS (Office of National Statistics) put it at 43%. Then we have the usual arguments with little data to support : second hand cars up by 30%; repairs/spare parts also up, supply chain costs, etc. Still how can 65% be justified. I put all of these arguments to my insurer who dropped the price to £409). I searched for the best deals and so far the best is £405. I should also explain none of my circumstance have change (other than the car is bow a year older).

What is the experience of others?

Is, and always has been, legalised robbery 

DullGreyGuy

musty said:

Today I received my renewal quote : £431 from £261 paid last year; this amounts to 65% increase. I did a bit of research on the price increase. ABI (association of british insurers) claim that the increase in insurance costs are around 16%; the ONS (Office of National Statistics) put it at 43%. Then we have the usual arguments with little data to support : second hand cars up by 30%; repairs/spare parts also up, supply chain costs, etc. Still how can 65% be justified. I put all of these arguments to my insurer who dropped the price to £409). I searched for the best deals and so far the best is £405. I should also explain none of my circumstance have change (other than the car is bow a year older).

What is the experience of others?

Insurers had combined ratios of circa 116% on average for both Motor and Home last year meaning they made an underwriting loss. The causes of those losses haven't gone away this year but in most cases compounded. Insurers will therefore be looking to price to recover from last years underwriting results and avoid further losses this year. 

We are also only in the 2nd year of the new rules on pricing renewals and inevitably there will still be some refining their pricing now they can't discount new business to attract new customers.

The likes of EY etc are predicting substantial increases in premiums this year and next 

discat11

I'm not sure what the average is but mine leapt up 48%. The best I could do, even with extensive shopping around and reducing my mileage/hiking excess was still a 24% hike. 
Best shop around and fingers crossed.

nyermen

Have to wonder, with some people seeing much higher rises than others, if the risk profiles have changed significantly (eg. certain models etc).

For example, mine went up from £550 to £700 in May this year (best broker could find).  Thats a low end 5 year old Audi Q3, max NCD (15y+), and I think my broker upped the excess too.
Whats that?  27% increase I think?