Car Insurance companies scam prices

Sharingcaring

Currently renewing my car insurance. Unfortunately someone rear ended my car, their fault 100%.
No claim was made on my insurance but the company was notified as required.
I had a renewal price prior to the accident, following the accident the company wanted an extra £130 for the exact same policy. How is this even legal? How does someone hitting my car make me a greater risk to the insurer? I've never had an accident or claim before. 
Anyone have experience changeling such unfair hike prices?
I'm thinking of suing the driver in the small claims to recoup the difference that i'm out of pocket. Any have experience with this also?

(On a side note - why do insurance companies ask the market value of a completely standard non modified car ? If they have to pay out they tell you the market value, but when you create the policy they want you to tell them. Seems like another set up to screw the policy holder in the event a claim is made.)

On-the-coast

I’ve had no accidents in last 10 years, shop around and still my insurance has increased about 25% each of the last 2 years 

Sharingcaring

Its criminal ! i remember when your insurance would go down every year if you didn't have any accidents. It was one of the few perks of getting older.
Now premiums go up annually and so to does insurance companies pre-tax profits. There's a correlation here! 

subjecttocontract

The increase may not have anything to do with the accident......unless you know differently. Many people have seen increases to car insurance premiums generally, why would you be any different to them. Why not ask the insurers or shop around for other quotes.

Sharingcaring

The increase had everything to do with the accident. Its explained in the OP.

400ixl

Sharingcaring said:

Its criminal ! i remember when your insurance would go down every year if you didn't have any accidents. It was one of the few perks of getting older.
Now premiums go up annually and so to does insurance companies pre-tax profits. There's a correlation here! 

No there isn't. Insurance has gone in cycles for decades depending on the financial position of the world economy. General insurance is not a profitable business for most insurers, the very best make at best 6% with many making a loss.

It has been proven that statistically someone involved in an accident, fault or non fault is more likely to be involved in another, meaning their risk is higher and as such their premium will be more.

There is no scam it's about statistically spreading the risk to those items applies to.

We are currently in a financial cycle where costs for insurers are increasing due to cost of repairs, ambulance chasers and accident management companies.

People who use accident management companies and use credit hire vehicles as part of their claims add significantly to everyone's premiums.

Hope you didn't use either as part of your 3rd party claim.

Peter999_2

When I worked for Aviva I went to a conference about general insurance including car insurance (I worked in IT but was always interested in eactly how insurance worked).

They mentioned that if they acheived 1.75 then all the company would get a bonus.  I asked at the end of it what 1.75 was and it was the percentage of profit - they earnt 1.69% the year before.    Shocking that they make such a small amount of profit - life insurance profits were about 30% to 35% at the time. 

Just goes to show how the rip off is actually the repair industry, not the insurance companies.   The annoying thing is that the insurance companies just seem to let it happen.

Green_hopeful

Definitely shop around. Our quotes ranged from £570 to £915 all with the same company and details. It seems the renewal cost is still much more than starting afresh. I rang and asked about the difference and they said I would have to stop the auto renewal and take out the new policy. There was a glitch with a slight variation in the spelling of my name but they then added the new policy to my existing account. 

LightFlare

Sharingcaring said:

Its criminal ! i remember when your insurance would go down every year if you didn't have any accidents. It was one of the few perks of getting older.
Now premiums go up annually and so to does insurance companies pre-tax profits. There's a correlation here! 

The correlation as well is overheads - everyone seems to applaud when minimum wage is increased in budgets but then get equally outraged that the cost of stuff goes up. 

Sharingcaring

400ixl said:

Sharingcaring said:

Its criminal ! i remember when your insurance would go down every year if you didn't have any accidents. It was one of the few perks of getting older.
Now premiums go up annually and so to does insurance companies pre-tax profits. There's a correlation here! 

No there isn't. Insurance has gone in cycles for decades depending on the financial position of the world economy. General insurance is not a profitable business for most insurers, the very best make at best 6% with many making a loss.

It has been proven that statistically someone involved in an accident, fault or non fault is more likely to be involved in another, meaning their risk is higher and as such their premium will be more.

There is no scam it's about statistically spreading the risk to those items applies to.

We are currently in a financial cycle where costs for insurers are increasing due to cost of repairs, ambulance chasers and accident management companies.

People who use accident management companies and use credit hire vehicles as part of their claims add significantly to everyone's premiums.

Hope you didn't use either as part of your 3rd party claim.

Someone rear ending me does not make me more likely to have an accident in the future - to the point they increase my premium by 25% !!!!
This is the entire point of having insurance - you shouldn't be penalized when you need to use it through no fault of your own.
Have a quick look at some of the larger insurance firms pre-tax profits over the last 5 years. They've increased more than my insurance has!
It's joke and they shouldn't be defended.

DE_612183

Sharingcaring said:

400ixl said:

Sharingcaring said:

Its criminal ! i remember when your insurance would go down every year if you didn't have any accidents. It was one of the few perks of getting older.
Now premiums go up annually and so to does insurance companies pre-tax profits. There's a correlation here! 

No there isn't. Insurance has gone in cycles for decades depending on the financial position of the world economy. General insurance is not a profitable business for most insurers, the very best make at best 6% with many making a loss.

It has been proven that statistically someone involved in an accident, fault or non fault is more likely to be involved in another, meaning their risk is higher and as such their premium will be more.

There is no scam it's about statistically spreading the risk to those items applies to.

We are currently in a financial cycle where costs for insurers are increasing due to cost of repairs, ambulance chasers and accident management companies.

People who use accident management companies and use credit hire vehicles as part of their claims add significantly to everyone's premiums.

Hope you didn't use either as part of your 3rd party claim.

Someone rear ending me does not make me more likely to have an accident in the future - to the point they increase my premium by 25% !!!!
This is the entire point of having insurance - you shouldn't be penalized when you need to use it through no fault of your own.
Have a quick look at some of the larger insurance firms pre-tax profits over the last 5 years. They've increased more than my insurance has!
It's joke and they shouldn't be defended.

Well it probably does.

It means that you drive in an area where people are less careful, and if you have had one rear-end, then the chances of it happening again are increased.

The insurance companies don't look at it personally - it's all about risk - if something has happened once - then the natural conclusion of it happening again are greater - hence the increased risk.

That's why premiums go up even if it's not your fault.

Companies also look at the postcode you live in - if more accidents happen to cars in your postcode area, then that's an increased risk as well....