Not sure how you read it like that??
What i meant was its clearly NOT a blanket overall increase for everyone, but rather for some people dependant on the suggested reasons. In my case no change so obviously its not just all insurance going up, its just some policies and must be to do with multi reasons to do with risk. I keep hearing people saying its gone up across the board and obviously this isnt true.
Yeah, it's nit that simple. Your risk profile may have reduced as part of a re-rating procedure which has negated the increase.
When I worked for an underwriter we had a base price, a starting point if you will & then different factors & loadings effectively acted as multipliers & additions/deductions to it.
Lets say last year your provider had a base rate of £100, your postcode added 10%, your occupation adds 35% to that figure & your choice of car added a further 140% on to that resulting figure you get a premium of £356.40.
Lets say the following year there is a base price increase to £150, your postcode is now slightly higher risk & generates a 15% loading, a re-rating means they no longer consider your job such a risk so that now only adds 20%, claims stats in the last year for your car have fallen or it's been recategorised so now only attracts a 70% loading & your provider has also now calculated that married couples present a lower risk so generates a 5% reduction. You are now paying £334.31, but thats down to the car being lower risk.
The calculations involved in reality are way more complex but outlying individual circumstances can negate the increase even if the average joe has seen a 50% hike.
Personally, i've had one policy shoot up in price from £375 to £622, another has gone up only by about £20 and another reduced by a few quid.
