Insurance Increase Again!

Fester999

Active Member
May 17, 2020
73
19
50
I had one of these calls.
The young lady said "I'm calling about your accident."
I replied "it was all sorted out."
She said "oh you've had one then!" In a gleeful voice.
I hung up.
 

280jl

Active Member
Nov 20, 2015
152
51
Bromley
Oh don't even start me on insurance..

I'm 28 now with 11 years clean licence and 10 years no claims, and I'm paying £650 for my cupra 300, when I first got my 280 cupra 5 years ago, I was paying £450.... makes no sense

I'm presuming living in South London does not help, but still, can not get my head around it.

Adrian flux quoted me about £1800 when I checked last year
 

SRGTD

Active Member
May 26, 2014
1,155
508
Oh don't even start me on insurance..

I'm 28 now with 11 years clean licence and 10 years no claims, and I'm paying £650 for my cupra 300, when I first got my 280 cupra 5 years ago, I was paying £450.... makes no sense

I'm presuming living in South London does not help, but still, can not get my head around it.

Adrian flux quoted me about £1800 when I checked last year
Yes, insurance is unfortunately a necessary evil that we need to have but no one likes buying!

When I got quoted a large renewal increase on my car insurance a few years ago, I got a friend who works in insurance to explain why we seem to get shafted regularly by insurance companies. I’m acting as the messenger here, just passing on what I‘ve been told so please don’t shoot the messenger! This is what they told me (there are no doubt other factors, but they kept it simple for me :)).
  • cars have become more hi-tech, and much of that tech is expensive to replace or repair, which adds to the cost of parts and labour rates for repairs.
  • claims management companies who put people in expensive hire cars while their own cars are being repaired, rather than letting them use a repairer’s small courtesy car for a couple of weeks also adds to overall costs that we all end up paying for through increased premiums.
  • the government increases Insurance Premium Tax every so often; the insurance companies are a collections agency for the government for this tax so don’t get to keep it, but it’s seen as a premium increase by customers.
I found these articles below on car insurance claims inflation. These do highlight the year on year inflation rate on car insurance claims is significantly higher than the general inflation rate, and Insurers will need to increase their premium rates on average by an amount that’s equal to claims inflation just to stand still, so if claims costs go up, then we end up paying more.


@280jl; I did a ‘back of the fag packet’ calculation to see if your current £650 premium could be reconciled back to what your were paying 5 years ago. I assumed a car claims inflation rate of 7% a year, which seems a reasonable assumption, based on those articles at the links above. 7% per year for 5 years gives a cumulative figure of just over 40%. On top of that, insurance premium tax has increased from 9.5% November 2015 to the current rate of 12%, so that’s another 2.5% on top of the 40%. Increasing your £450 premium from five years ago by 42.5% gives a premium of £641, which is pretty close to your current premium.

At the end of the day, insurance will always be a grudge purchase, and I’d encourage anyone to always shop around at renewal time - especially if their existing insurance company is being greedy.
 

xyz

Full Member
Feb 28, 2004
429
122
oxford
Visit site
Yes, insurance is unfortunately a necessary evil that we need to have but no one likes buying!

When I got quoted a large renewal increase on my car insurance a few years ago, I got a friend who works in insurance to explain why we seem to get shafted regularly by insurance companies. I’m acting as the messenger here, just passing on what I‘ve been told so please don’t shoot the messenger! This is what they told me (there are no doubt other factors, but they kept it simple for me :)).
  • cars have become more hi-tech, and much of that tech is expensive to replace or repair, which adds to the cost of parts and labour rates for repairs.
  • claims management companies who put people in expensive hire cars while their own cars are being repaired, rather than letting them use a repairer’s small courtesy car for a couple of weeks also adds to overall costs that we all end up paying for through increased premiums.
  • the government increases Insurance Premium Tax every so often; the insurance companies are a collections agency for the government for this tax so don’t get to keep it, but it’s seen as a premium increase by customers.
I found these articles below on car insurance claims inflation. These do highlight the year on year inflation rate on car insurance claims is significantly higher than the general inflation rate, and Insurers will need to increase their premium rates on average by an amount that’s equal to claims inflation just to stand still, so if claims costs go up, then we end up paying more.


@280jl; I did a ‘back of the fag packet’ calculation to see if your current £650 premium could be reconciled back to what your were paying 5 years ago. I assumed a car claims inflation rate of 7% a year, which seems a reasonable assumption, based on those articles at the links above. 7% per year for 5 years gives a cumulative figure of just over 40%. On top of that, insurance premium tax has increased from 9.5% November 2015 to the current rate of 12%, so that’s another 2.5% on top of the 40%. Increasing your £450 premium from five years ago by 42.5% gives a premium of £641, which is pretty close to your current premium.

At the end of the day, insurance will always be a grudge purchase, and I’d encourage anyone to always shop around at renewal time - especially if their existing insurance company is being greedy.
You’ve just answered a long standing question about what happens to prostitute’s children - they work for claims management companies. I see middle men in lots of areas - backloads in the haulage industry, the training industry. Proper c#nts who needlessly inflate prices, depress rates and skim off for their own profits.


Sent from my iPad using Tapatalk
 

Pipster 59

Active Member
May 23, 2020
36
17
59
Essex
Hi All
Just had my renewal come through from LV for my Cupra Lux 290 at £438 so did a compare, as you do and the second cheapest quote was £351 from LV!
Quote was with a reduced annual mileage of 15K down from renewal quote of 18K and a voluntary excess of £250 as opposed to the renewal figure of £150 voluntary excess so pleased to stay with them, so made a call to LV to ask if they would match their own quote, which they agreed to do as it also covered business use which I also had on my existing policy.
Needless to say I am classed as an old *it as over 50, but wanted to share my story with you all.
 

Peller

2018 Cupra 290 without the copper bits
Mar 29, 2016
518
160
Edinburgh
I've just had an email regarding my GAP insurance. The 2 year policy expires soon.

I''m not sure if I'll need that now? Hopefully not as I'm already paying enough for a car that is hardly being used



Sent from my moto g(7) power using Tapatalk
 

CupraGeezer

Active Member
May 11, 2018
324
135
Just had my renewal come through from LV for my Cupra Lux 290 at £438 so did a compare, as you do and the second cheapest quote was £351 from LV! So made a call to LV to ask if they would match their own quote, which they agreed to do.
This happens every year with the insurance on my bike (Hastings Direct). Annoys the hell out of me. Why can't they just give a competitive renewal quote?
 
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