How much Has car insurance gone up

Kryton

Active Member
Feb 28, 2023
122
25
It also helps being organised. Someone told me the other day a factor that had never even considered. If you sort your insurance 3-4 weeks in advance, you are more organised than someone sorting days before. The people leaving til the last minute are prone to leave everything in life til the last minute so rush & become more of a risk so likely to have the same mindset when travelling
 

SRGTD

Active Member
May 26, 2014
2,368
1,258
It also helps being organised. Someone told me the other day a factor that had never even considered. If you sort your insurance 3-4 weeks in advance, you are more organised than someone sorting days before. The people leaving til the last minute are prone to leave everything in life til the last minute so rush & become more of a risk so likely to have the same mindset when travelling

Yes, leaving until the last minute before sorting out your insurance does generally mean the price will be higher.

Also, insurance companies will always be looking for new risk factors that they can use in their assessment of risks and calculation of premiums to;
a) make their prices more competitive relative to the prices of their competitors
b) improve the selection of risks they want to insure
c) improve the profitability of their book of business.

Insurance company pricing algorithms are very sophisticated these days; gone are the days when premiums would be calculated by an insurance company employee using a paper-based rate book or a spreadsheet with just a handful of risk factors (e.g. claims history, driver age, car make/model and postcode) to calculate premiums. Nowadays multiple risk factors are used, some of which might not seem to be entirely relevant to the risk of insuring a car - e.g. a person’s credit rating. Credit rating is an indication of a person’s ability to pay and apparently it’s been statistically proven that there’s a strong correlation between the ability to pay and the insurance risk (poor credit rating; more likely to claim, good credit rating; less likely to claim).

This increased sophistication makes it almost impossible for individuals to compare premiums with one another to determine whether or not the price they’ve been quoted is realistic. IMHO, for anyone who feels the price they’ve been quoted by their current insurance company is too high, then it is better to shop around and use the comparison sites or a high street broker to get a range of premiums that are specific to them, rather than compare with other individuals whose risk profiles are likely to be very different.
 

Kryton

Active Member
Feb 28, 2023
122
25
What I particularly love about insurance is when they said they would level out policies between male & female drivers. I was looking forward to my policy coming down but instead they just hiked up female driver policies. That seems like a lot of extra coming in from 50% of the driving population
 
May 16, 2021
4
0
I just got my renewal through for this year. I paid £582 last year, and the quote this year was £1900, but I realised that I'd moved since so let them know that.

Now the quote is £3400+, not quite sure what to do with that information
 

SRGTD

Active Member
May 26, 2014
2,368
1,258
I just got my renewal through for this year. I paid £582 last year, and the quote this year was £1900, but I realised that I'd moved since so let them know that.

Now the quote is £3400+, not quite sure what to do with that information
Your higher premium suggests that your insurance company considers your new address to be a higher risk (maybe they’ve experienced a large number of car theft or car damage claims in your new postcode area?). In your position, I would shop around and try and find a better price - the easiest way is to use one of the price comparison websites. It would also be worth asking your current insurance company if they can offer you a lower premium to retain your business, especially if you’ve been insured with them for a number of years - when I’ve done this in the past, I’ve been given a lower price; if you don’t ask you don’t get.

You could also consider making changes to your cover to reduce the price;
  • Consider increasing the excess under your policy which should reduce the premium you’ve been quoted.
  • Review the declared estimated annual mileage under your policy; if it’s higher than the mileage you currently drive and you can legitimately reduce it to reflect your actual annual mileage, then consider doing so. However, never be dishonest and give an unrealistically low mileage figure as that would be considered to be insurance fraud.
  • Review any add-ones under the policy - e.g. breakdown cover, courtesy car cover, legal expenses etc. If there are any add-ons that you don’t need (if, for example you have separate breakdown cover elsewhere), then consider deleting them.
Some insurance companies will give a discount if you insure both your home and car with them, so if you currently have home and motor insurance with two separate insurance companies, consider insuring both with a the same company.

Bear in mind that many insurance companies charge higher premium rates the closer you get to your renewal date, so it would be worth doing your research sooner rather than later.
 
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