they have a target demographic of customer that they want to aim for. Prime example of this is direct line insurance. Direct line can be one of the cheapest insurers for young performance car owners ... if you've got a clean license
As soon as you add points, they no longer become competitive and become deliberately uncompetitive. In marketing speak, they have a typical customer demographic in mind. He'll be of a certain age, driving a certain type of car, with a certain type of lifestyle.
In their experience, drivers with points are more likely to speed, therefore more likely to be involved in accidents therefore more likely to cost them money
Thus they quote silly figures to warn away potential customers who dont fit their target
Its possible your current insurer has re-assessed what customers cost them money (higly likely in the current climate) and has now moved you into the group of people they no longer want to do business with.
Marks and spencer insurance for example, will be targetting their typical store customers - that is 40+ people, married, with cars they've owned forever that are practical and not at all interesting and NCBs as long as your arm. They will only be interested in this sort of person, and quote everybody else (like me) stupid insurance premiums of 5 AND A HALF THOUSAND POUNDS !!
i got the hint with M&S and went elsewhere
