Car insuance? - Why so expensive?

cheets64 said:
Its gone down the last few years last year it went up £3 a month and now £9 a month, how come its starts off expensive then gets lower then starts to go back up.
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Probably because of the big recession we just had. Two factors here, more scammers about to make a quick buck due to increased unemployment. Notice how your premium goes up when you state yourself as unemployed, this is because statistically you are more likely to make a claim if you are out of work. People are now more than happy to claim for whippy because they feel more entitled to it, hey I paid for insurance, I might as well make use of it?

Secondly the money that insurance companies invest to make a gain on, the return on these investments has dropped which means they need more money to cover the increased costs of claims.

If you look at it like that, the insurance companies have kept prices artificially low and now the bubble has burst.

I could be talking crap, but that's my interpretation of the situation.
 
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cheets64 said:
Its gone down the last few years last year it went up £3 a month and now £9 a month, how come its starts off expensive then gets lower then starts to go back up.
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It really is quite simple. If the cost of providing goods or services rises, then these costs are generally passed on to the customers. Do you not understand that insurance companies are just like any other business? Are you equally as bemused every time the price of anything else goes up?

All other factors remaining reasonably constant, the price of your insurance would fall in subsequent years because the insurance companies recognise the theoretical reduced risk that comes with your increased driving experience. However, all 'good things' must come to an end if it means these companies are to continue to be able to afford to pay out billions in claims and compensation every year. I expect the snow we had last winter wouldn't have helped matters either, plus as already mentioned the amount of morons claiming on account of a sore finger or a headache.
 
Mine has shot down. Used to drive an old banger - a Clio 1.2 that was 15 years old for £98 a month third party. Now I'm driving an MX5 1.8 litre for £103 a month fully compliant.

Probably to do with having a license for over five years and recently turning 23, but I thought the bracket was 21-25 (also known as 'stupid young white male driver Hell nightmare mode insurance').

Do these 'brackets' even exist, or is it gradual? (not taking into account ncb)
 
KNiVES said:
Mine has shot down. Used to drive an old banger - a Clio 1.2 that was 15 years old for £98 a month third party. Now I'm driving an MX5 1.8 litre for £103 a month fully compliant.

Probably to do with having a license for over five years and recently turning 23, but I thought the bracket was 21-25 (also known as 'stupid young white male driver Hell nightmare mode insurance').

Do these 'brackets' even exist, or is it gradual? (not taking into account ncb)
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How many years NCB do you have?

I'm insuring an MX5 1.8i at 25 with zero NCB for £920, which I thought was reasonable enough.
 
I was with directline, my insurance went from 1600 to 1960. Im now with sky insurance and paying 1500. still ridiculous but out of all the comparison sites and local insurers i rang, directline was still the 2nd cheapest with the silly renewal price.
 
My insurance is up too ! 8th December. Max NCB, 47.

What i want is:

Comprehensive Insurance.

Protected No claims.

Courtesy Car.

Break down.

Legal.


Had a renewal from "More Than" £407 up £50.

The AA, sent a postal quote £355. rang up, went up too £475 ?

Direct Line, £450.

Avia, all I wanted, plus having the missus as a named driver, plus, she's with them for her car insurance.

£255.53p


I think I had a result there.
 
=VTA=MANFACE said:
My insurance is up too ! 8th December. Max NCB, 47.

What i want is:

Comprehensive Insurance.

Protected No claims.

Courtesy Car.

Break down.

Legal.


Had a renewal from "More Than" £407 up £50.

The AA, sent a postal quote £355. rang up, went up too £475 ?

Direct Line, £450.

Avia, all I wanted, plus having the missus as a named driver, plus, she's with them for her car insurance.

£255.53p


I think I had a result there.
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At last, someone older than me :D
 
Insurance is also affected by things such as material costs, paint and consumables go up, insurance companies need to pay more money to the bodyshops and so they either pass the charge on or swallow it themselves which they are unlikely to do.
 
but most insurance companies are showing huge profits, looks like they are using a few winter bumbs to shaft the majority.
 
Sone said:
but most insurance companies are showing huge profits, looks like they are using a few winter bumbs to shaft the majority.
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That doesn't mean they won't pass on any price rises in materials costs. Things are changing from what I'm hearing through the industry. Bodyshops want (and some need) to be paid more money what is a very labour intensive job but the insurance companies don't want to lose out so they pass the increases onto us.

Audatex (estimating system) have just incorporated a price rise from one of the many dry goods manufacturers into their prices so estimates going into insurance companies are rising in cost when you think about how many paint/materials manufacturers are out there.
 
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Minxy said:
That doesn't mean they won't pass on any price rises in materials costs. Things are changing from what I'm hearing through the industry. Bodyshops want (and some need) to be paid more money what is a very labour intensive job but the insurance companies don't want to lose out so they pass the increases onto us.
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if its so labour intensive why are you arguing about material costs earlier on :confused:
 
Sone said:
if its so labour intensive why are you arguing about material costs earlier on :confused:
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The amount of labour hasn't changed but for years the insurance companies have been getting away with paying bodyshops crap money for it. Staff expect to have pay increases as well. Dry goods are now on the increase and paint companies generally do the same meaning bodyshops are getting paid crap but putting up with price rises and having to swallow the cost. Now some of those rises are being adjusted into estimates, insurance companies are getting higher costs so are passing them on. Just like any other business would.

P.S I'm not a fan of insurance companies before anyone thinks I am. I would however like to see bodyshops getting paid more than £25 an hour which in some cases they do.
 
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If they didnt have increased costs they would still increase costs, because they can, that's what business's do.

I dont know where all this shock horror comes from when people see an increased premium.
 
are costs in the body shop industry rising significantly above inflation? I highly doubt the amount of costs being "passed on" is any near equal to the current rise in insurance costs.
 
Sone said:
are costs in the body shop industry rising significantly above inflation? I highly doubt the amount of costs being "passed on" is any near equal to the current rise in insurance costs.
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The recent increase from the large dry goods manufacturer I mentioned averages at 8% across it's products.

Dry goods are not a massive perecentage of your average repair but paint and parts also contribute. All I'm saying is that there is a bigger picture. No one ever sees any further than the price on the bottom of their insurance quote.
 
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Ironically, I've just paid out the lowest premium I've ever had in 12 years, on the most expensive car I've ever bought in the highest grouping (group 48).....£460, Fully comp, with 6 trackdays thrown in and they give me another Lotus while mines being repaired if its someone elses fault....

Big thumbs up to Henderson Taylor. Underwritten by Aviva, so its not a cowboy policy either.
 
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