Car Insurance continue to spiral😥😥

[Dustydog]

According to National news today.
On average, UK drivers are now spending £776 to insure their vehicles, a sharp increase from £222 just one year ago.
Is there no stopping this runaway economic disaster?

 

[Buckman]

Not sure why insurers have increased the price so drastically as surely the war in the Ukraine should not affect premiums nor should the high cost of living? IMHO they are taking advantage and using COL excuses to bump up premiums! After all since last year when we purchased our vehicle it has devalued by £3-4000 so should cost less to insure however I am not an economist.

 

[otherclive]

That 300% increase is totally indefensible. Surprised the regulator doesn’t get involved or CMA.

 

[RogerL]

That 300% increase is totally indefensible. Surprised the regulator doesn’t get involved or CMA.

Other reports have posted an increase of 16% - understandable given the real rate of inflation.

Part of the increase in average cost is that buyers of new cars are gradually switching to electric and hybrid cars which often have higher insurance grouping than their IC equivalent

 

[otherclive]

This link is from the ABI and relates to a period earlier this year, and it's nowhere near a 300% increase. Wonder where Dusty obtained the information from.

Rising cost pressures push up the price of motor insurance | ABI

The average price paid for motor insurance rose by 8% in the fourth quarter of last year according to the ABI’s latest Motor Insurance Premium Tracker.

www.abi.org.uk

 

[Buckman]

Other reports have posted an increase of 16% - understandable given the real rate of inflation.

Part of the increase in average cost is that buyers of new cars are gradually switching to electric and hybrid cars which often have higher insurance grouping than their IC equivalent

Taking inflation into account and the fact that over a year a car depreciates probably by anything up to 20% the premium should be about the same or lower.

Not sure why you think EVs are the cause of the increases although they are written off more easily than an ICE vehicle, but at the present time EVs are very much in the minority? Surely the owners of EVs should have their premiums loaded to reflect the issue of EVs being written off even after a minor collision?

 

[RogerL]

Taking inflation into account and the fact that over a year a car depreciates probably by anything up to 20% the premium should be about the same or lower.

Not sure why you think EVs are the cause of the increases although they are written off more easily than an ICE vehicle, but at the present time EVs are very much in the minority? Surely the owners of EVs should have their premiums loaded to reflect the issue of EVs being written off even after a minor collision?

The value of the car has surprisingly little effect on insurers' costs and therefore premiums - the main costs are personal injury and car repair costs, both of which only go up.

EV drivers are, rightly, being charged more for insurance - that's what's pushing up the statistical average.

 

[Beachball]

My wife car insurance on her Mitsubishi colt 1.1 had gone up roughly £20 more this year but it like everything on the rise

 

[Buckman]

The value of the car has surprisingly little effect on insurers' costs and therefore premiums - the main costs are personal injury and car repair costs, both of which only go up.

EV drivers are, rightly, being charged more for insurance - that's what's pushing up the statistical average.

On the other post about car insurance, using the money savers comparison site my car was undervalued by £9000 which obviously made the premium seems very reasonable and fitted in with Money savers profile. However changing the value more in keeping with the market replacement value nearly double the premium from last year for the few cheapest quotes. Generally the majority of quotes were well over 100% of last year's premium.

 

[Raywood]

Taking inflation into account and the fact that over a year a car depreciates probably by anything up to 20% the premium should be about the same or lower.

Not sure why you think EVs are the cause of the increases although they are written off more easily than an ICE vehicle, but at the present time EVs are very much in the minority? Surely the owners of EVs should have their premiums loaded to reflect the issue of EVs being written off even after a minor collision?

I do hope insurers do add the extra cost of dealing with EV's on the EV's premiums but you cannot tell.

 

[Buckman]

I do hope insurers do add the extra cost of dealing with EV's on the EV's premiums but you cannot tell.

We are all probably paying for those EVs that are written off due to minor bumps.

 

[Dustydog]

This link is from the ABI and relates to a period earlier this year, and it's nowhere near a 300% increase. Wonder where Dusty obtained the information from.

Rising cost pressures push up the price of motor insurance | ABI

The average price paid for motor insurance rose by 8% in the fourth quarter of last year according to the ABI’s latest Motor Insurance Premium Tracker.

www.abi.org.uk

Clive, It was a quote from Wednesday mornings news cast.
The printed version is slightly different

Why has the price of car insurance gone up so much?

May's data from the Office for National Statistics (ONS) saw motor insurance far outstripping overall inflation - at 43.1% compared to 8.7%.

news.sky.com

More alarming a number of our old blue chip Insurers are pulling out of the U.K. Motor Insurance Market. eg Zurich, R&SA.
R&SA were acquired by overseas owners . This public statement says it all😥😥

Intact and RSA announce exit from UK Personal Lines Motor market

Intact Financial Corporation (TSX: IFC) (Intact, IFC or the Company) and its subsidiary RSA, announced today initiatives aimed at improving the strength and sustainability of the UK and International business.

www.rsainsurance.co.uk

I wonder who will be the next to exit Motor Insurance in the U.K.?

 

[otherclive]

Clive, It was a quote from Wednesday mornings news cast.
The printed version is slightly different

Why has the price of car insurance gone up so much?

May's data from the Office for National Statistics (ONS) saw motor insurance far outstripping overall inflation - at 43.1% compared to 8.7%.

news.sky.com

More alarming a number of our old blue chip Insurers are pulling out of the U.K. Motor Insurance Market. eg Zurich, R&SA.
R&SA were acquired by overseas owners . This public statement says it all😥😥

Intact and RSA announce exit from UK Personal Lines Motor market

Intact Financial Corporation (TSX: IFC) (Intact, IFC or the Company) and its subsidiary RSA, announced today initiatives aimed at improving the strength and sustainability of the UK and International business.

www.rsainsurance.co.uk

I wonder who will be the next to exit Motor Insurance in the U.K.?

Market consolidation is everywhere, even LV are now owned by Allianz and they could be one to watch. in future. Could we be in a race to the bottom?

 

[Buckman]

I wonder if the crash for cash is causing issues as it seems to be the "IN" thing to do for easy cash with some unscrupulous motorists.

 

[Raywood]

It is a factor, but not that great. The use of dash cams is making this far less productive and making criminal offences involving this far easier to prosecute.

 

[Buckman]

It is a factor, but not that great. The use of dash cams is making this far less productive and making criminal offences involving this far easier to prosecute.

Actually on my most recent quote for the first time ever I was asked whether we had a dashcam fitted. Strangely the question is not asked on the comparison sites?

 

[otherclive]

Actually on my most recent quote for the first time ever I was asked whether we had a dashcam fitted. Strangely the question is not asked on the comparison sites?

Mine (LV) asked about dash cam, and when I asked if there was a reduction in premium the answer as "no".

 

[Raywood]

I have seen the question and can answer yes. I would not want it as a condition though in case it failed and I could not show an accident.

 

[Hutch]

Mine (LV) asked about dash cam, and when I asked if there was a reduction in premium the answer as "no".

I have just had a quote yesterday fro LV and they didn't ask me. And surprisingly on two different price comparison sites LV came back with vastly different quote , almost £100. So I am going for the lower of the two.

 

[Buckman]

I have just had a quote yesterday fro LV and they didn't ask me. And surprisingly on two different price comparison sites LV came back with vastly different quote , almost £100. So I am going for the lower of the two.

Be careful as sometimes the lower one is because of higher excess or the vehicle is undervalued. Almost got caught that way recently.

 

[Hutch]

Be careful as sometimes the lower one is because of higher excess or the vehicle is undervalued. Almost got caught that way recently.

Both quotes were for exactly the same values,

 

[Raywood]

The insurers have different contracts with the different sites which can produce some discrepencies but this looks a bit too much for that. You can also get errors in the quotes due to inputting or other errors, as my son in law had the job of finding these at one time.

 

[Dustydog]

We lost RSA as a motor insurer. A few weeks ago I am told Zurich have pulled out. What or who next?

 

[otherclive]

Admiral increased rates by 20% as they were loosing money. They lost a lot of customers, but returned to profit. I read that on average motor insurers are paying out £1.10 for each £1.00 of premiums. Our multi car policy is due for renewal in October. Be interesting to see what it will be. We have 10% reduction with LV as we have cars, home and travel with them.

 

[Dustydog]

Admiral increased rates by 20% as they were loosing money. They lost a lot of customers, but returned to profit. I read that on average motor insurers are paying out £1.10 for each £1.00 of premiums. Our multi car policy is due for renewal in October. Be interesting to see what it will be. We have 10% reduction with LV as we have cars, home and travel with them.

I think we are all in for a big shock at renewal Clive. When two blue chip Insurers pull out. I’m concerned. Can you imagine an HMG scheme 🤮🤮🤮