Car insurance premium increases

Alanmelon

I've just had a renewal quote and some price comparison figures for an upcoming car insurance renewal and despite no changes to my status, as most people are finding, there's quite a significant price increase on last year. The insurance companies are making a big point of this being due to inflation and rising repair costs, but my question is why aren't these passed on to the premiums of those who actually make the claims rather than everyone else?! 

sheramber

Those that claim will have a bigger increase in their premiums  than those who don't.

Insurance works by everyone paying into the pot and some claiming from it.  Those who don't claim subsidise the
clams of those who do.

That's the way all insurance works.
 

EssexExile

If only we knew who was going to make a claim in the upcoming year.

Aretnap

It would rather defeat the point of insurance if only people who made claims contributed to the costs of those claims 

MikeJXE

I have just increased mine but not a renewal as I am over their age restriction 

Last year mine was £803

This year £884 but includes £250 free towards excess and RAC roadside so I'm happy 

facade

I just renewed mine today.

Esure wanted £211, up from £136.

Going through the Meerkats prices range from £131 to £800!!

Ignoring the outliers, there was a group at £165, which I thought was fair, so I phoned ESure, and their call centre in India wouldn't come down even a penny, so I jumped ship to Aviva.

Now I'm wondering if I should have used the live chat rather than phoned a call centre.

Have to say I wasn't impressed by the Aviva sign-up process via the Meerkats, there is no way to check if the Meerkats forwarded all my details correctly, I suspect they will have not communicated Something Important, and it will cost me another £50 to get it put right.....

Nobbie1967

Alanmelon said:

I've just had a renewal quote and some price comparison figures for an upcoming car insurance renewal and despite no changes to my status, as most people are finding, there's quite a significant price increase on last year. The insurance companies are making a big point of this being due to inflation and rising repair costs, but my question is why aren't these passed on to the premiums of those who actually make the claims rather than everyone else?! 

Because everyone is at risk of making a claim. Insurance is priced based of how statistically likely you are to have a claim and how much this will cost. Even if your risk remains the same, if the costs escalate the insurance will be more expensive.

user1977

Alanmelon said:

 my question is why aren't these passed on to the premiums of those who actually make the claims rather than everyone else?! 

Because if you have to pay back anything you claim, what would be the point of insurance? Have a think about it.

DullGreyGuy

user1977 said:

Alanmelon said:

 my question is why aren't these passed on to the premiums of those who actually make the claims rather than everyone else?! 

Because if you have to pay back anything you claim, what would be the point of insurance? Have a think about it.

And last years claims had to be paid with money the insurer had last year... this years premiums are for this years losses. Whilst those that have made one claim are more likely to make another one a large proportion of those that make a claim in any given year are those that haven't claimed in the last 5 years. 

So you load those that have had claims more than those that haven't but everyone has to cover the cost of increased claims costs as anyone can be the victim of a hit and run or theft claim etc

Mildly_Miffed

I've just reinsured one of mine today.

2022 - £159
Last year - £166
Renewal - £364
New insurer - £188

Bigphil1474

I've just renewed mine (now 21 years since my last claim), last year premium was £245, this years best deal I could get is £385 and that's staying with same insurer. That's a 57% increase.