Excessive increase in car insurance renewal

I’m aware that car insurance is on the increase but I am absolutely staggered at the increase my daughter’s received from Direct Line. She’s been a loyal customer since she passed her driving test 9 years ago. No accidents, no claims and a protected no claims discount. Basic ford fiesta, kept in a locked garage compound in London. Last year’s premium was around £400 this year they’re asking for £900. Surely this can’t be right?
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Comments

  • Robin9
    Robin9 Posts: 12,095 Forumite
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    Loyalty doesn't count for anything.

    Shop around but expect a big jump whoever she uses.
    Never pay on an estimated bill
  • DullGreyGuy
    DullGreyGuy Posts: 10,313 Forumite
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    logies said:
    I’m aware that car insurance is on the increase but I am absolutely staggered at the increase my daughter’s received from Direct Line. She’s been a loyal customer since she passed her driving test 9 years ago. No accidents, no claims and a protected no claims discount. Basic ford fiesta, kept in a locked garage compound in London. Last year’s premium was around £400 this year they’re asking for £900. Surely this can’t be right?
    Direct Line's underwriting result (ratio of premium in -v- expenses out) was considerably worse than the industry average and the industry average was companies paid out more than the premium they received.  It isn't surprising that after a poor year the year before they may be making bigger changes this year. You've also go the aggressive takeover attempt by Ageas which a healthier balance sheet would be good for. 

    Shop around, it's rare anyone stays in any single insurers sweet spot forever. 
  • Ayr_Rage
    Ayr_Rage Posts: 1,032 Forumite
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    edited 15 March at 2:39PM
    Yes, it's right, that's the way insurance premiums have gone and are going right now.

    Time to shop around, loyalty with any insurer has always been a bit of a mug's game.

    I have just changed cars around renewal time, my last insurer would actually have been cheapest if I had not moved from my Aygo, first time that has happened in 10 years, however they wanted £880 for my new car.

    I shopped around and got cover for £287 and will also get £45 back from Topcashback in a couple of months.

    A lot seems to depend on the demographic each insurer is after these days along with the enormous increase in repair costs.
  • Keep_pedalling
    Keep_pedalling Posts: 16,604 Forumite
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    My RAC renewal quote was £1071, up from £440 (no claims or convictions added) I switched from DL after it went from £420 to £600 last year. I am begging to think the insurence companies use a random number generator to come up with the renewal price. Best I have found so far £580. 
  • DullGreyGuy
    DullGreyGuy Posts: 10,313 Forumite
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    Keep_pedalling said:
    I am begging to think the insurence companies use a random number generator to come up with the renewal price.
    No need to beg, certainly before the new pricing rules came in at least some insurers did include a random number element to the price, its how they test customer elasticity and thus predict the impact of pricing changes before they make them. 

    Dont know if such elements would pass the new customer pricing rules or not 
  • oldernonethewiser
    oldernonethewiser Posts: 1,772 Forumite
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    edited 15 March at 2:52PM
    logies said:
    I’m aware that car insurance is on the increase but I am absolutely staggered at the increase my daughter’s received from Direct Line. She’s been a loyal customer since she passed her driving test 9 years ago. No accidents, no claims and a protected no claims discount. Basic ford fiesta, kept in a locked garage compound in London. Last year’s premium was around £400 this year they’re asking for £900. Surely this can’t be right?
    That is a mindset that needs to change.  There is no benefit in loyality, sadly.

    Things that are differerent: draw & drawer, brought & bought, loose & lose, dose & does, payed & paid


  • logies
    logies Posts: 12 Forumite
    First Post
    Thank you for the comments and advice. She did a comparison on Money Supermarket - a few have come in at around £480 but not with names she's familiar - Hastings / People's Choice / Insure Pink - time to do a bit of research into those. Such a shame loyalty counts for nothing these days.
  • Hoenir
    Hoenir Posts: 2,031 Forumite
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    logies said:
    I’m aware that car insurance is on the increase but I am absolutely staggered at the increase my daughter’s received from Direct Line. She’s been a loyal customer since she passed her driving test 9 years ago. No accidents, no claims and a protected no claims discount. Basic ford fiesta, kept in a locked garage compound in London. Last year’s premium was around £400 this year they’re asking for £900. Surely this can’t be right?
    That is a mindset that needs to change.  There is no benefit in loyality, sadly.

    The benefit comes from the NCB.  If everyone received a loyalty bonus the cost would remain the same. Pies can only be cut so many ways. 
  • dunstonh
    dunstonh Posts: 116,332 Forumite
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    Such a shame loyalty counts for nothing these days.
    Loyalty only exists in personal services.  Not national or international companies.  

    Most of an insurers customers are not loyal to the insurer.  So, why should they be loyal back.   They have a product and a price and you either like that price or you don't.   Forget loyalty.



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • baser999
    baser999 Posts: 1,134 Forumite
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    edited 15 March at 3:20PM
    logies said:
    Thank you for the comments and advice. She did a comparison on Money Supermarket - a few have come in at around £480 but not with names she's familiar - Hastings / People's Choice / Insure Pink - time to do a bit of research into those. Such a shame loyalty counts for nothing these days.
    Am surprised she’s not heard of Hastings Direct, despite their tv advertising? Personally never heard of the other two
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