Insurance prices dropping??......any reason why??

Stubod

After 40+ years of car insurance going up every year (since obtaining full NCB), this year both our car insurances have gone down, (not even changed insurance company). 

Just wonderijng why this would be??

singhini

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

WellKnownSid

singhini said:

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

I see what you did there! 😉

singhini

WellKnownSid said:

singhini said:

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

I see what you did there! 😉

You my friend are one sharp cookie, i hadn't noticed what i did.   👍 

SiliconChip

"Car insurance quotes have dropped 16% year-on-year and nearly 23% since January, according to pricing consultancy Pearson Ham."

https://www.moneysavingexpert.com/insurance/car-insurance/how-to-get-cheap-car-insurance/

Mine went up  

Stubod

..funny, as mine has increased year on year up until this year???

XzavierWalnut

I have just renewed mine and it went down with my current insurer. I have never known this in over 30 years of driving.

MyRealNameToo

Stubod said:

After 40+ years of car insurance going up every year (since obtaining full NCB), this year both our car insurances have gone down, (not even changed insurance company). 

Just wonderijng why this would be??

Insurance market is generally considered to be cyclical so goes through periods of high and low prices, I'm highly surprised you've seen price increases for 40+ years as in my 25 years of buying insurance I've known prices go in both directions. Inflation should mean prices go up every year but the reality is more complex

The main reason, according to some others, thats being credited at the moment is that the used car prices have stabilised so insurers no longer need to add a larger risk margin that the cost of claims going up because car prices go up. 

The ABI has posted some of its own comments https://www.abi.org.uk/news/news-articles/2025/7/motor-premiums-fall---but-repair-and-theft-costs-keep-revving-up-claims/ though its more doom and gloom than explaining why the recent falls. 

EssexExile

My motor insurance costs go up and down like a fiddler's elbow.

forgotmyname

EssexExile said:

My motor insurance costs go up and down like a fiddler's elbow.

Same for me, I pay approx £300 and it creeps up near to £400 before it suddenly drops back to the

£300 again. Sometimes with the same insurer and sometimes I need to switch or get the company
to requote.

This year AVIVA gave a sub £300 quote and a simple online option to make a change to the policy which
only cost £20 to add an additional driver, no admin charges etc. 

But the estimated cost at renewal was closer to £400 again.  Maybe I need to remove the additional driver
at renewal and then add them again?  First time I have ever had to add an additional driver mid term so
something to look into at renewal.