Car insurance is becoming prohibitive.

[RJRB]

I have spent the last week trawling through comparison sites and seeking out several insurers who do not appear on these sites.

The reason being that my current insurer (LV) who hiked the price last year from £500 to £605  is now quoting £990 p.a

This despite another claims free year ,changing my car from a 2ltr diesel to a 1.6 ltr petrol hybrid and for particular reasons reducing mileage from around 10,000 miles to around 6000 miles.

Obviously loyalty counts for nothing having been with LV for about 5 years.

The results from Confused .com,Compare The Markets ,Money Savings Expert ,suggest that there is a cartel operating and also that some companies are just do not want my business.

Other than one company coming in at around £620 that requires a box being fitted,the “competitive “ quotes cluster around £720 to £800  whilst  the high quotes can be double this.

I did get a warning e mail from LV regarding the reasons for insurance premiums which I partially accept but a 60 % increase !!!

What is the experience of others in recent months?

I am very tempted to look at my overall insurance as I have never claimed on house contents insurance in 50 years.

Perhaps it’s time for one big claim and then no renewal for this particular insurance 😜

[Padders]

I was with Hastings last year, it went up about £150  to just short of £500.

Got my daughter to ring around (I'm useless)

Finished up with the RAC.  £386 fully comp. that's for an MG 3.

Must add, I'm limited to 4000 miles per year.

[Resident]

Insurance companies claim to have had millions to pay out, probably in the wake of the airport multi-storey fire and that they've had to increase premiums to stay afloat, all whilst posting profit margins in the millions.

Some conspiracy theorists claim the increases are designed to price people out of their ICE cars and into EVs or public transport.

[hackey lad]

I paid £480 last year . This year it nearly doubled.

[peak4]

Mine went up from about £700 to £800 renewal last month, but that's for a modified Landrover, Jap import Discovery, kit car & four motorcycles all on the same policy.
I'm glad from that perspective, that I no longer live in S10 postcode, which is one of the higher ones.
Back in 2017, when we moved here to Buxton, it was  about £650 for the same vehicles with the same insurer (RH Classic).

When in Sheffield S10, in 2016, my premium jumped from £740 to £840 from the previous year, with a different insurer; they quoted £880 for the following year (2017), which would have covered vehicles moving between the two addresses, as we didn't sell the Sheffield house immediately.

[peak4]

1 hour ago, hackey lad said:

I paid £480 last year . This year it nearly doubled.

Did you hit a significant age deadline? say becoming 65, 70 or 75, as that can make a big difference.

[altus]

5 hours ago, Resident said:

Some conspiracy theorists claim the increases are designed to price people out of their ICE cars and into EVs or public transport.

 

Car insurance companies are part of a conspiracy to get people to ditch cars and use public transport? That's hardly going to boost their profits is it. I can see a conspiracy theorist proposing that but anyone with functioning brain cells will see what nonsense it is.

[peak4]

Some weird theories out there;
Why is electric car insurance so expensive? The Electric Car Scheme

According to Confused.com, the average insurance premium for all car types has gone up by 58% in the last 12 months, reaching a record £924 from £586.

However, this overall increase doesn't fully capture the higher surge in premiums for electric vehicles (EVs), which spiked by 72% during the same period.

In comparison, premiums for petrol and diesel cars increased by 29%.

A report from Thatcham Research, a specialist in automotive risk intelligence funded by insurers, sheds light on the challenges insurers face when covering EVs and the factors contributing to their higher premiums. These factors include more expensive incident claims for EVs compared to traditional internal combustion engine (ICE) cars, lengthier repair times, and the costly necessity of safely storing damaged EVs. According to the Association of British Insurers, claims for EVs are 25.5% pricier than their petrol and diesel counterparts, and their repair times are 14% longer.

[Delbow]

A lot of people (not all, but a lot) could buy a bicycle to make shorter journeys, thereby saving on petrol to offset the insurance hikes. It would also mean fewer cars on the road which might translate into fewer claims and lower premiums. Or it might not. Either way, it helps you stay healthy - I just biked into town and back and I feel great!

[El Cid]

On 14/06/2024 at 08:58, RJRB said:

changing my car from a 2ltr diesel to a 1.6 ltr petrol hybrid and for particular reasons reducing mileage from around 10,000 miles to around 6000 miles.

 

 

Changing your car can result in more accidents due to different characteristics of the car, so higher premiums.