Car insurance renewal

Arty60

What is what is happening with car insurance renewals? Got mine today from Hastings. Last year £266 this year £585 no claims but windscreen chip and replace. Tried Aviva they wanted £1000+, went on uswitch and Aviva was £422, lowest I could get was Tesco £395.
Why such an increase I am 63 with Merc GLC 2017. This seems like profiteering to me.

la531983

Arty60 said:

What is what is happening with car insurance renewals? Got mine today from Hastings. Last year £266 this year £585 no claims but windscreen chip and replace. Tried Aviva they wanted £1000+, went on uswitch and Aviva was £422, lowest I could get was Tesco £395.
Why such an increase I am 63 with Merc GLC 2017. This seems like profiteering to me.

The cost of materials and labour for repairs has gone up, nothing more to it. Mine is going from 285 to 412 and nothing I can do about it. 

maman

You're right @la531983, that insurance companies have said that the increases are due to the increased costs of parts and labour. The report I read about this week said on average a 50% increase which is your experience.

My experience though (90+% increase) is more like @Arty60. We've had a massive increase. In my case, I haven't changed my car and cost them zero in terms of parts and labour. If it's not profiteering then there's something very wrong with the algorithms the underwriters are using. ☹️

la531983

maman said:

You're right @la531983, that insurance companies have said that the increases are due to the increased costs of parts and labour. The report I read about this week said on average a 50% increase which is your experience.

My experience though (90+% increase) is more like @Arty60. We've had a massive increase. In my case, I haven't changed my car and cost them zero in terms of parts and labour. If it's not profiteering then there's something very wrong with the algorithms the underwriters are using. ☹️

My renewal with the same company would be over double, I am having to go elsewhere although I haven't rang them yet to see if they will match the lowest. The OP has gone from 266 to 395, so that's about the same percentage as me. 

Shop around. Pointless staying with the same company. 

CSI_Yorkshire

maman said:

If it's not profiteering then there's something very wrong with the algorithms the underwriters are using. ☹️

Well it's not profiteering if there are legitimate reasons for the rise, and your price going up doesn't make the algorithm wrong.

maman

If we accept that increased costs are responsible for an average increase of 50% then some other factors must be used for deciding whose premium is above or below that average.

If my premium has increased by 90+% and @Arty60 is over 100‰ then they must be using some other criterion, bearing in mind that I've not cost them a penny in the 12 months. 

CSI_Yorkshire

maman said:

If we accept that increased costs are responsible for an average increase of 50% then some other factors must be used for deciding whose premium is above or below that average.

If my premium has increased by 90+% and @Arty60 is over 100‰ then they must be using some other criterion, bearing in mind that I've not cost them a penny in the 12 months. 

You might not have, but the quote isn't based on what you personally have cost them.  That's not how it works.

"The Algorithm" isn't supposed to calculate anything specifically about you.

It could be people in that or similar postcode.  People with that or similar mileage.  People with that or similar vehicle.  Age.  Driving history. etc etc.

Parts and labour might have gone up 50%, but what about claims handling costs?  Payments for injuries?  Losses to uninsured parties?  Failed recoveries?

ch3shirecat4

mines the same! it's gone up so much for no reason it absolutely ridiculous not sure what is going on with the world nowawdays 

MorningcoffeeIV

ch3shirecat4 said:

mines the same! it's gone up so much for no reason it absolutely ridiculous not sure what is going on with the world nowawdays 

I think you meant to say it's gone up for LOTS of reasons.

dunstonh

This seems like profiteering to me.

So profitable that they lost money last year.

You may not have realised but inflation is running very high at the moment.   Motor related inflation is running higher than the headline rate.   Massive increase in the cost of second hand cars (so write off values up), shortage of parts resulting in more cars being written off that would normally be repaired,  shortage of hire cars, increased consumer fraud.  

maman

While I fully accept the arguments about increased costs and inflation and the many and various potential reasons for increased premiums, what is difficult to accept are the huge discrepancies between one customer and another.

I think most people understand that if, for example, you have an accident or are a new driver then premiums will be higher. 

What's very hard to swallow is a higher than average increase with no apparent explanation despite much thought about what's the potential reason. 

Just being told there are many reasons doesn't cut it for me. I want to know what's caused my increase. If I knew  I could perhaps influence it for the future by driving differently, changing my car or other action.