MSE News: The AA: Car insurance costs could finally fall

This is the discussion thread for the following MSE News Story:

"Car insurance have risen by up to 40% but there is hope on the horizon for motorists, says the motoring giant ..."
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Replies

  • mcjordimcjordi Forumite
    4.2K Posts
    Part of the Furniture Combo Breaker
    we shall soon see.. my claims and points dont have to be decalared at next renewal in may 2012 so mine "should" be less than the £600 im paying atm..
    Sealed pot challenger # 10
    1v100 £15/300
  • I used gocompare and then waited for my renewal from Saga, not happy that it had gone up £40 from last year, I told them the cheapest quote I'd got from gocompare and they immediately dropped the renewal to £23 cheaper than last year..and £17 less than the gocompare cheapest quote( with Hastings direct)...Saga and AA are same company now so I then added AA breakdown/relay and got that for £35...no complaints at all.....only paying a few pounds more than a couple of years ago....
  • mcgspmcgsp Forumite
    100 Posts
    Just had a renewal quote 30% more than last year. I have not had a claim in the past year.

    Typical?

    I will check around and see if I can get a better quote with the similar cover.
  • moleratmolerat Forumite
    26.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    We shall see. While insurers are quite happy paying out £1000 in car hire costs + fees whilst sorting out a £650 claim I can't see how premiums will reduce.
  • wookie66wookie66 Forumite
    130 Posts
    Tenth Anniversary 10 Posts Combo Breaker Car Insurance Carver!
    Forumite
    I have absolutely no doubt that the insurance industry is absolutely fleecing the honest driver who cough up extortionate premiums year on year with very little hope of a drop. They and the utilities industry really need to be independently investigated and be given strict instructions to put their houses in order. My recent renewal is classic case, i am a clean driver with twenty plus years no clainms (but can only build up to 11 years max) in a stable job and drive an unmodified modest X reg Audi A3 1.8 petrol auto w value of approx £2500 so I am def no boy racer!
    This year they want to rob me to the tune of £600! I paid £450 last year and have no incidents accidents etc at all so far to my renewal date.
    Where is the logic in this. Furthermore I also know I am paying a massive premium because of my postcode. I put a friends postcode in using my personal details on same car and lo and behold the quote was £300 cheaper!!! How can they honestly justify loading such a premium when I know for a fact if my car were to be damaged stolen vandalised because I live in what they consider a high risk area, they are only going to turn around and write the vehicle off and offer me a paltry £2000 less any excess! Its win win for them yet Im coughing up over £300 extra to line their pockets.
    Dont get me wrong I totally appreciate car insurance is a complex business of calculating risks and they use various factors to work out premiums but I strongly believe all the insurance companies are in cahoots in keeping prices extortionately high
    It then becomes a vicious circle since once you price people out they will obviously risk driving without insurance and lo and behold who then carries this increased risk....YES YOU AND I through our increased premiums. I am absolutely sick to death of being ripped off here there and everywhere whilst the government sits there like a toothless dog just giving out sound bites and rhetoric that the insurance (and utility) industry just laugh at. I for will be hard pushed to ever believe premiums will come down, after all they have their shareholders to think about so what chance have we got.
  • raskazzraskazz Forumite
    2.9K Posts
    wookie66 wrote: »
    I have absolutely no doubt that the insurance industry is absolutely fleecing the honest driver who cough up extortionate premiums year on year with very little hope of a drop.

    Can you provide some evidence for this please?
    wookie66 wrote: »
    They and the utilities industry really need to be independently investigated and be given strict instructions to put their houses in order.

    The insurance industry is regulated by the FSA, the consumer ombudsman (FOS's) decisions are binding on the insurer, and the Government's Transport Committee has undertaken an investigation into the cost of motor insurance.
    wookie66 wrote: »
    My recent renewal is classic case, i am a clean driver with twenty plus years no clainms (but can only build up to 11 years max) in a stable job and drive an unmodified modest X reg Audi A3 1.8 petrol auto w value of approx £2500 so I am def no boy racer!
    This year they want to rob me to the tune of £600! I paid £450 last year and have no incidents accidents etc at all so far to my renewal date.

    You say "rob". Can you please provide some quantitative evidence that this premium will provide the insurer with an actuarially expected supernormal proft?
    wookie66 wrote: »
    Where is the logic in this. Furthermore I also know I am paying a massive premium because of my postcode. I put a friends postcode in using my personal details on same car and lo and behold the quote was £300 cheaper!!! How can they honestly justify loading such a premium when I know for a fact if my car were to be damaged stolen vandalised because I live in what they consider a high risk area, they are only going to turn around and write the vehicle off and offer me a paltry £2000 less any excess! Its win win for them yet Im coughing up over £300 extra to line their pockets.

    Theft/attempted theft and malicious damage represent a very small part of the risk associated with geographical location. Of far greater importance are the risks of third party personal injury claimsand fraud, both of which are highly correlated with geographical location.
    wookie66 wrote: »
    Dont get me wrong I totally appreciate car insurance is a complex business of calculating risks and they use various factors to work out premiums but I strongly believe all the insurance companies are in cahoots in keeping prices extortionately high

    Again, evidence please.
    wookie66 wrote: »
    It then becomes a vicious circle since once you price people out they will obviously risk driving without insurance and lo and behold who then carries this increased risk....YES YOU AND I through our increased premiums. I am absolutely sick to death of being ripped off here there and everywhere whilst the government sits there like a toothless dog just giving out sound bites and rhetoric that the insurance (and utility) industry just laugh at. I for will be hard pushed to ever believe premiums will come down, after all they have their shareholders to think about so what chance have we got.

    The Government are undertaking the investigation. Please also provide evidence of the supposed massive profits that motor insurers are making.
  • Bring back indentured slavery.

    Implant uninsured drivers who cause injuries and death with pain inducer chips. Sell them to gang masters for cash. We give them a humane choice by a quick execution by the victim or representative of victim.

    Set up a charity, put the cash from selling the uninsured drivers, plus tax deductible contributions from insurance companies. The charity should be run by the victims, not the insurance companies.
  • Hi wookie, I find that by spending a few hours every year I have been able to either hold my premium at its present level or sometimes reduce it.

    For example a recent quote for my upcoming renewal was £227 for 2.2dci xtrail and £167 for 1.3L petrol runabout making £394 then £55 off for insuring 2 cars making total £339 and then £125 cashback from quidco for taking multicar making net total price for 2 cars of £214 !!
  • lisyloolisyloo Forumite
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    Part of the Furniture 10,000 Posts Name Dropper
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    I find that by spending a few hours every year I have been able to either hold my premium at its present level or sometimes reduce it.

    Anecdotal evidence from people that have already shopped round, would imply that not everyone can do that.
    I can't do that this year and I always shop around. I'm not complaining as my premiums are very low and amazing value IMO but I can't hold/reduce them.
  • edited 9 October 2011 at 10:18AM
    keith1950keith1950
    2.6K Posts
    1,000 Posts Combo Breaker
    edited 9 October 2011 at 10:18AM
    Hi lisyloo, I come into contact with a lot of people throughout the year and from discussions with them I find that when they say 'I have been searching for better quotes', it turns out they have tried a couple of comparison sites. If I can save £100 or more I am happy to spend hours accomplishing it.

    I realise that this doesn't work for everyone and sometimes your first quotes can be the best, but surely it's worth trying?

    I do agree that sometimes there comes a point where the quotes don't get any better and the lower your premium the harder it is to reduce it.

    Another point is to find the insurers that will quote 2 -3 months ahead because I find the earlier I search the better my quotes, it may be just my imagination but from experience it does seem to get better quotes.

    I think the worst thing people can do is leave things to the last minute.
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