Car insurance renewal

400ixl

You do know already.

Your driving history, where the car is kept, when it is driven, how much it is driven, what your occupation is, etc etc

They are not going to break down every portion of that risk into a sub price as that is their competitive IP.

Something else that has a big impact is the financial markets, they invest your premium into stocks, property, bonds etc to make money before they have to pay it out as claims, overheads etc. Those stocks and properties are not performing anywhere near as well at the moment so that is another big hole they have to fill with increased premiums.

General Insurance is not a profitable part on an insurers business, the best are only making small margins. It is an essential part of a wider business to gain customer base to sell other more profitable services to.

Arty60

la531983 said:

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. 

I get that inflation has been high and power, materials and labour has increased but how can Aviva quote £1000+ on their own site and £422 on Uswitch for exactly the same details. I can only assume they offering massive reductions to get new customers.

dunstonh

Arty60 said:

la531983 said:

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. 

I get that inflation has been high and power, materials and labour has increased but how can Aviva quote £1000+ on their own site and £422 on Uswitch for exactly the same details. I can only assume they offering massive reductions to get new customers.

Often differences like that are down to:
a) product differences
b) capacity too high via one distribution method and excess capacity available on another.

molerat

I believe there has also been a big change in "certain models in certain areas" loadings with one poster having to change their car because of a massive renewal increase and other insurers refusing to quote.

CSI_Yorkshire

maman said:

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. 

Then become an insurance actuary and go and work for an underwriter.

Arty60

CSI_Yorkshire said:

maman said:

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. 

Then become an insurance actuary and go and work for an underwriter.

Although my previous insurance only shows I have 9 years + no claims it is actually nearer 20.
i understand that insurance is based over a number, not an individual but the individual suffers.
These increases are almost like the Energy increases we saw and will have the same impact for low earners. 
I agree I would like a full description of what has caused the increase. Like we have with council tax, what is the breakdown.

CSI_Yorkshire

Do you ask for a full description of the price increases in Tesco?

Council tax is part of the public sector so you have a limited right to know - and it isn't actually broken down into what any increase is for, just who.

A private company is under no obligation to disclose its commercially sensitive pricing information to you, nor should it be.

maman

To use your analogy @CSI_Yorkshire, when I go into Tesco I know food prices have increased for many legitimate reasons. That I understand. 

What I would expect an explanation for is if I buy an identical basket of shopping to the person in front of me at the checkout but we're charged differently. To use the car insurance figures, I'm charged 90% more than last year but the other customer only the average 50%.

None of the reasons put forward on here are relevant to me. I'm not aware that my potstcode has had any increase in crime. Nothing has changed in my driving history other than me and my car being a year older. 

CSI_Yorkshire

So for other places it's ok that they have "many legitimate reasons" but for insurance you need to know specifically what each of the individual reasons are and precisely how each of them have affected your quotation?  That's just nonsense.

You may "not be aware" of changes to underlying factors, but they are there.  Just the things that you actually mention:

You are a year older - statistically more likely to have an accident.
Your car is a year older - statistically more likely that spare parts are more difficult to find.
You are not aware of more crime in your postcode - that's good for you I guess, but it isn't specifically your postcode or the amount of crime that matters (or is your insurance policy only covering theft from home?).

All of the things mentioned here are relevant to the risk that you pose for the insurer in terms of both chance of incident and the cost of any incident if it occurred.  You not happening to notice or understand that they are relevant does not change that.

Marvel1

Thry have to pay their shares out to the employees