Being a reliable driver gets you punished

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82080929#Comment_82080929

UK has some of the higher insurance prices because if you do have a major accident your insurer is going to have to pick up a significant amount of all future costs for the third parties whereas in other european countries and further afield the state will pick up certain elements (eg long term care) rather than the insurer.

Certainly low value claims the UK is much worse for insurer, PSLA can be for any value whereas in Ontario (since amendments) claims below $155k gets $47k removed meaning small track and fast track claims here simply cant exist there.

What is a big difference though is there is mandatory cover in Ontario that isnt here, plus rates there are regulated meaning they are much slower to change whereas unregulated here so can change by the hour. There is some minor form of punitive damages there too, though nothing close to the scale of the US.

rocketrob5

Fraud, uninsured drivers and accident management companies are big influences on what we pay. As with most in life, everyone in the chain is looking to rip us off make a little profit.

Albermarle

We live in a capitalist society and the number one priority ( despite what they sometimes say), of the vast majority of private companies is to make money. We might not always like it, but when dealing with companies it is best to remember what their primary motivation is.

Dannydee333

https://forums.moneysavingexpert.com/discussion/comment/82080885#Comment_82080885

No, the new car is the better one, a safer one. It's an Audi A3 Saloon. The previous one was a little 206 baked bean can.

I don't think it's ridiculous to be unimpressed at being charged more for no reason when EVERYTHING has stayed the same AND you have not claimed or crashed or anything.

HedgehogRulez

I’d have thought the significant cause for premium increases is the cost of repairs and related costs (car hire etc) increasing year on year rather than your accident history

Dannydee333

So my actual renewal letter from my current provider came…

Last year, £600

Renewal offer, £885

It's a scam.

Grumpy_chap

If you don't like the renewal offer, shop around.

the_lunatic_is_in_my_head

https://forums.moneysavingexpert.com/discussion/comment/82080160#Comment_82080160

Google says Admiral Group is the largest car insurance company in the UK and their net profit margin was 14.45%?

https://markets.ft.com/data/equities/tearsheet/financials?s=ADM:LSE

Peter999_2

https://forums.moneysavingexpert.com/discussion/comment/82085422#Comment_82085422

Admiral did used to be the largest car insurance company but are now second to Aviva after their takeover of Direct Line.

The 14.45% profit is for the Admiral Group - they aren't just a car insurer, they also provide Home Insurance, Pet Insurance, Travel Insurance, Personal Loans, Car Finance (PCP), Mortgages. The 14.45% profit is for the whole of the company not just the car insurance part.

The company I worked for also sells very similar things to the Admiral Group and their profit was pretty high all together. They sold Life Insurance as well for example and the endowment policies had a profit level of about 30%.

Dannydee333

https://forums.moneysavingexpert.com/discussion/comment/82085252#Comment_82085252

I already did and I can get it for about £700.

The point I'm making here is if I can receive an offer from another provider for much less, then why don't the current provider just give me their best possible price without me having to "ask them to match the other provider"?

Ae s we all know, this is an insurance company "chancing their arm" as they do with literally everyone every year; they send out an inflated price and hope you will just let it run.