Joke Insurance quote- sorted!

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I can only assume that I now longer fit the profile of customer that Es### want, or that they are getting out of the car insurance business.

Last year= £320

This years quote- it must be a joke = £570 !!!

Increase £250 or 78% !!!

AV### Zero  £220

imaginary "saving" (based on joke quote) = £350

Actual saving on budget £130

Result

The Other Car went the same way last month, so I 'phoned them to try and get a more sensible quote (not easy to do) and they were not interested in keeping my business- and I've been with them for years.....

DullGreyGuy

UK average up to £635 so even the "joke" premium is notably below what the average person is paying (the average person has full no claims and not had any claims declared too)

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£685!!!  Is the "average person" aged 23 with a DD40 on their licence, driving their Range Rover (when it isn't stolen) 90,000 miles a year around Central London?

DullGreyGuy

facade said:

£685!!!  Is the "average person" aged 23 with a DD40 on their licence, driving their Range Rover (when it isn't stolen) 90,000 miles a year around Central London?

No, its the UK average of everyone who bought insurance in the last 3 months... includes the £10,000 premium for that person you mention and the £300 for the 55 yo with clean licence and £2,000 1L car in the suburbs of a small town. 

Car_54

DullGreyGuy said:

facade said:

£685!!!  Is the "average person" aged 23 with a DD40 on their licence, driving their Range Rover (when it isn't stolen) 90,000 miles a year around Central London?

No, its the UK average of everyone who bought insurance in the last 3 months... includes the £10,000 premium for that person you mention and the £300 for the 55 yo with clean licence and £2,000 1L car in the suburbs of a small town. 

Has your source defined what they mean by "average"?

It's probably the arithmetic mean, but the mode or the median are far more meaningful in these contexts.

My apologies to all the forum users to whom that was pedantic and meaningless, but it is important!

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Car_54 said:

DullGreyGuy said:

facade said:

£685!!!  Is the "average person" aged 23 with a DD40 on their licence, driving their Range Rover (when it isn't stolen) 90,000 miles a year around Central London?

No, its the UK average of everyone who bought insurance in the last 3 months... includes the £10,000 premium for that person you mention and the £300 for the 55 yo with clean licence and £2,000 1L car in the suburbs of a small town. 

Has your source defined what they mean by "average"?

It's probably the arithmetic mean, but the mode or the median are far more meaningful in these contexts.

My apologies to all the forum users to whom that was pedantic and meaningless, but it is important!

We've digressed, but it shows the pointlessness of the arithmetic mean in this case, a single person paying £10,000 takes 24 people paying £225 to bring the mean down close to £635.

The median would be more useful to know, as half the people would have paid the median or less.

Well, I've done my bit to help bring this 3 month's mean down from £635 to £634.99!

Hoenir

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I can only assume that I now longer fit the profile of customer that Es### want, or that they are getting out of the car insurance business.

No one runs a business at a loss. Cost of claims is exceeding premiums. That's the bottom line. 

DullGreyGuy

Car_54 said:

DullGreyGuy said:

facade said:

£685!!!  Is the "average person" aged 23 with a DD40 on their licence, driving their Range Rover (when it isn't stolen) 90,000 miles a year around Central London?

No, its the UK average of everyone who bought insurance in the last 3 months... includes the £10,000 premium for that person you mention and the £300 for the 55 yo with clean licence and £2,000 1L car in the suburbs of a small town. 

Has your source defined what they mean by "average"?

See for yourself https://www.abi.org.uk/news/news-articles/2024/4/motor-premiums-stabilise-but-cost-to-insurers-mount/

Hoenir said:

facade said:

I can only assume that I now longer fit the profile of customer that Es### want, or that they are getting out of the car insurance business.

No one runs a business at a loss. Cost of claims is exceeding premiums. That's the bottom line. 

Claims is only one factor, there are plenty of other costs of running an insurer than claims. Insurance isn't a 1 year time horizon, it's a long game. We often talk about underwriting profit/loss which is premium -v- total costs but premium isn't the only revenue stream in with both investments (not great for short tail business like Motor/Home) and ancillary services income (eg selling passing customers to accident management firms)

Bonniepurple

OP - my insurance was over £1000 this year.  Sadly it’s a specialist vehicle (wheelchair accessible) and my husband is a mature student who’s had a couple of recent claims.  I’m stuck without the vehicle so I have to pay (and hope that DH doesn’t destroy any more cars!)

tifo

If the OP thinks £570 is a joke quote (for him/her) then they should look at what others are getting, esp inner town/city areas and ethnic drivers. That'll surprise him/her. I'd be glad if i was quoted a £570 premium. For the record, I paid £550 last year, renewal was £1,227 and I got it for £850. That's on a small ford car worth a tenth what the previous one was. Also for the record and the OP, my 2 kids pay on average £3,500 - £4,000 a year car insurance, each, on premium german cars.

And i have no accidents in last 5 years and 'full' NCD and been driving for 35 years.