Insurance Premiums Rocket.

[hawk20]

If you have recently needed to renew your car insurance the chances are you've received a big shock.

That's because new research shows average premiums have rocketed by just under 20% over the past year. That's almost seven times the current rate of inflation and the largest-ever annual increase.
The average premium is now £564.69 - up 19.6%, according to a detailed and independent survey by market research experts, Consumer Intelligence. They looked at 100,000 quotes covering every type of driver from the young to the old; those with clean driving licences or with dodgy driving histories, and for all types of car from the runabout to the supercar.

And for younger drivers - those aged 17 to 24 - the news is even worse, with average premiums now almost a quarter higher (24.87%) over the year. This age group was already facing an average bill of £1,275 last January but now they're having to pay just under £1,500!

Men saw the largest increase on their premiums at 20.1% to an average of £599.65. However, women have nothing to celebrate given that their premiums rose by almost as much - 19.1% to £523.55.

Older drivers might get some satisfaction that younger drivers are suffering the most but they've still no reason to celebrate because although the over-65s have seen the smallest rise in premiums, it's still only a whisker under an eye-watering 15%.

According to the insurance companies, the reason for the rise has been the rising cost of personal injury claims and fraud.
http://www.dailyfinance.co.uk/2010/02/10/motor-insurance-premiums-are-rocketing/

 

[Sp!ke]

Funny that, I saved on my insurance costs this year despite changing from a 230CE to an SL500

 

[GrahamC230K]

I generally struggled and for the first time I can remember saw a premium increase over last years price without a change in circumstance. So I can beleive it.

 

[mbenz76]

I have never in my 16 years of driving ever had a renewal cheaper than the year before. Even when shopping around the best I ever get is just slightly more than last year. NCD makes no difference as every year I earn another year and every year it goes up.

 

[wemorgan]

According to the insurance companies, the reason for the rise has been the rising cost of personal injury claims and fraud.

On another forum I recently read that someone had had written-off their car (not their fault).

Another member, totally without shame, suggested also claiming for whiplash, to compensate for the aggravation and likely low valuation offer from the other insurance company.

His post was quickly shot down. But with such attitudes out there it must be difficult for insurance companies to separate legitimate claims from exaggerated ones.

 

[st4]

My premium is just above that of the average for a male, not bad for 24 with a MB E class. Should go down as 25 since renewal.

BTW my renewal in November was FAR cheaper than any other new quote with other companies and same £ as with the same folk.

 

[wemorgan]

My premium is just above that of the average for a male, not bad for 24 with a MB E class. Should go down as 25 since renewal.

Mostly throughout my 20s my premiums went quickly down. Claims for fire (Citroen BX caught fire whilst driving down the M4) and damage (white van man drove down the side of my parked Ford Mondeo) caused short term blips. At 25 I had a Honda Prelude 2.2VTi and remember paying roughly £1k in the first year then ~£700 the second. A nice reduction, but still a lot of cash to me then.

Now in my 30s it hardly changes at all whether I'm in a Smart ForTwo or a CLK320. The wise man would maximise on this feature and buy a V8. So I went out and bought a 3 cylinder thingy

 

[wemorgan]

Well I've just gone through some unopened post and what should I find, my A2 insurance renewal notice!

The renewal was for £325. A price comparison website took it down to £305. With the CLK320 being £330.

£305 still feels a little high being 35 with 6 yrs NCB, no accidents or convictions.

 

[AMGeed]

Every year at renewal time I get a price comparison from at least a dozen other insurers. Without fail I have been lucky enough to reduce the annual premium on the E280 until this month. Staying loyal to one company doesn't pay in my experience.
Saga have upped the premium from £163 to £171 for Comprehensive ,full NCB of 9yrs and protected NCB with the wife driving too. I'm not complaining at that.

 

[Jukka]

Well I've just gone through some unopened post and what should I find, my A2 insurance renewal notice!

The renewal was for £325. A price comparison website took it down to £305. With the CLK320 being £330.

£305 still feels a little high being 35 with 6 yrs NCB, no accidents or convictions.

Ouch. I'm 38 with no NCB (awaiting letter from company insurance co for 2 years), 15000 miles a year + Class 1 Business and I pay less than £400 for a CLK 230K (99 year). If I had 2 years NCB it would be under £320. The price comparison websites started at £550 al the way up to £1500!

 

[wemorgan]

I should have added, £305 includes: protected NCB, windscreen cover, legal cover and courtesy car. The basic premium is near £250 without all those options.

 

[Dryce]

If you have recently needed to renew your car insurance the chances are you've received a big shock.

Ho hum.

I'm trying to think of any year I have not seen the insurance industry put out some generalised news about premium rises.

And I'm also trying to remember if this 'news' has ever correlated to the premium I've paid.

Now turning my cynicism setting up a bit I'd say that this 'news' gets run out in various forms each year to prime the public's expectations to make higher renewal premiums appear more acceptable and discourage them a bit from looking about.

 

[hawk20]

Ho hum.

I'm trying to think of any year I have not seen the insurance industry put out some generalised news about premium rises.

.

I agree that that often happens. But in this case it is based on independent research. The relevant bit is "according to a detailed and independent survey by market research experts, Consumer Intelligence. They looked at 100,000 quotes covering every type of driver from the young to the old; those with clean driving licences or with dodgy driving histories, and for all types of car from the runabout to the supercar."

 

[wemorgan]

On another forum I recently read that someone had had written-off their car (not their fault).

Another member, totally without shame, suggested also claiming for whiplash, to compensate for the aggravation and likely low valuation offer from the other insurance company.

His post was quickly shot down. But with such attitudes out there it must be difficult for insurance companies to separate legitimate claims from exaggerated ones.

It's seems honestly is less than common on the thread I've been reading

Hope you manage to get a good deal sorted with the insurance company...I'm sure you must have suffered some whiplash injuries which you could claim for from the other insurance company as well....to offset against the purchase of a new car!!

I know people think that you shouldn't claim (and I didn't have any plans to orignally) but you do deserve to be recompensed for the accident, and whiplash is the easiest way forward. I've had problems ever since my accident, but the biggest reason I want compensation is because it's costing me almost double in fuel because of my heap of sh*te hire car

Shameful behaviour.

 

[S207]

i am beginning to feel quite good about my recent quote. £298, full no claims, 2 windscreen claims in last 5 years, 1 SP30 in last 2 years, full business 20,000 miles.

forgot to say - 10% saving over Volvo S80 that was less powerful and lower value.

 

[grober]

Think unfortunately all you can do is shop around come renewal time. One aspect of car insurance in recent years has been the much higher incidence of car write-offs after the deployment of multiple safety devices in collisions making economic repair less likely. Saving lives or avoiding serious injury is costing more which I suppose in a way is a good thing.

 

[timwood2000]

Happy to agree with Hawk20 for once (usually disagreeing over the leg room in R classes).

Just had my renewal through, and it's up about £300 to £950, which frankly I find a bit OTT given that I am claim free, conviction free, 42 etc etc and full NCD.

Even shopping around, I can only find premiums coming in at around £750/800.

On a slightly different note, when they ask about modifications, does the fact that I have switched from one type of MB issue wheels to another type of MB issue wheels become a reportable event?

Thanks

 

[Dryce]

Happy to agree with Hawk20 for once (usually disagreeing over the leg room in R classes).

Just had my renewal through, and it's up about £300 to £950, which frankly I find a bit OTT given that I am claim free, conviction free, 42 etc etc and full NCD.

Coincidentally I have started getting quotes for this year. Hardly a scientific test but ....

Privilege are quoting £2 more than last year. Tesco are about £30 lower. Direct Line are £6 cheaper than last year.

As with last year Privilege are cheapest by a mile, followed by Tesco, and then D/L. The only significant change is that Tesco are a good bit cheaper than last year.

That was also claiming the same NCD as last year rather than bumping it up by one.

Their systems are identical (same underlying insurer).