I don’t know tbh, I’m not an underwriter, but Can guess it’s due to the state of the economy at the moment.
mine went up 70% renewed in June. I was 72 this year. Shopped around but couldn't get anything worth switching to so phoned insurers who explained it was the rise in cost of repairs and car hire which I don't accept. Trouble is we're a captive audience
Rise in cost of repairs is a bit of a catch all. The costs have gone up but equally not by the same margin across the board. Newer cars have all kinds of electronics in their bumpers, which cost many times more and need calibrating when radar involved, windscreens are heated and cost many times more, cars are heavier and have bigger wheels, tyres, brakes, suspension components which cost many times more but worst of all for cost of claims are the electric cars particularly those which have their battery integral to their structure. A small dent in the battery casing and the car is written off as it can't be economically repaired. Could be £40k a time. All of this needs paying for and I'm not convinced the premiums are directly loaded to reflect the individual risk at the moment but are actually more widely spread. This will probably change as the risks and claims history are better understood. Costs have gone up though, think I read Direct Line paid out 10% more than they collected in premiums due to the above factors, and others, meaning they underestimated the risk. Think Quidco use MSE comparison engine but you get cashback too. I got a renewal from Direct Line up loads. Quoted direct with Churchill their sister company and got a few quid off. Went through Quidco search and it took about £100 off and £25 cashback on top, with Churchill as the top result at £225!Totally bizarre but hey ho signed up and moved on . . . do shop around without signing up to a cheap and terrible company that will be a pia if you have to claim would be my advice
Some of the hire daily rates are extortionate mate. Doesn't surprise me in the slightest. Parts prices from abroad have also risen, due to the world economic 'crisis'.
Years ago I was insured through the RAC (broker), I got some quotes off them and picked a company. after a year, got my renewal quote , it had gone up by around 30%. Went back to RAC for new quotes got a quote from the same company that sent me the increased price for less than I paid the previous year. it was much cheaper being a new customer than a renewal. this is how the companies suck you i, cheap price to start with then keep on increasing, because a lot of folk just don't want to be bothered changing........same with banks!
Just a guess, but EVs might be un -insurable if the costs were not spread out so that those who drive normal cars pay extra too. Just a bit more green fanaticism to help us all along.
Can’t remember the company ( possibly Hastings) but on receipt of renewal - plus about 50%- I did compare the market and found a quote of +5% - it was with same company . I rang and said well just give me that lower price , to be told to elapse the existing policy and apply for a new one. I suggested that if they dropped their price they would get 105% , but if I took a new one , surely they’d only get 105% less whatever compare the market take ? They weren’t bothered .
Most companies work on the basis that people will be attracted by a low introductory price, then laziness will set in as they gradually increase the price. Given the growth in comparison sites I'm surprised that is still the case, but there is clearly enough evidence of people renewing to make this a sustainable strategy.
I thought a new rule had came out a couple of years ago where all people got exactly the same quote, new or old?
Think it fell in the category of if you don’t like what the govt imposed , then ignore it cos the govt won’t follow it up
They're not allowed to do that any more. It's been outlawed by the FCA under Pricing Practices regulation. Companies must off a new business equivalent price at renewal.
Hope so , although if it’s evened out , I’ll probably have to pay more than I might have done with a “ shop around” price in 6 weeks time
I'm in my 50's with a 10 year old car doing only 6000 mpa, no endorsements or accidents and my insurance doubled this year. Went on the comparison site's and the qoutes were the same or more expensive, so may as well stick.
