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Is there any logic to car insurance premiums?

Discussion in 'The Lounge' started by Bazarchie, Sep 7, 2017.

  1. Bazarchie

    Bazarchie Well-Known Member

    My car insurance automatically renewed without my knowledge. Apparently they sent me an e-mail 3 weeks before the renewal date but I did not receive it. I have checked the junk mail and spam folders, nothing. The only reason I found out was when they called today to ask if I wanted to increase the level of cover.

    When I asked what the new premiums were for each car I was horrified. My car, which I added to the policy during the last year had the annual premium increased by approx 3 times. There have been no changes in my circumstances, the only reason they gave was a different risk assessment applied to my car now.

    I am insured with a well known company, seems like sharp practice to me, not at all happy.
     
  2. PhotoEcosse

    PhotoEcosse Well-Known Member

    Just had the "experience". My renewal notice came in from SAGA - they wanted £649 (up from £344 last year - possibly partly due to having moved from Stirling to the high-crime area of Harrogate!).

    So I went on to Confused.com and they gave me 66 different quotes (including one for £480 from AXA who are the provider of the SAGA policy). The lowest was £288 and I accepted this. Slightly higher voluntary excess than before but otherwise similar.

    Fortunately I did notice the "automatic renewal" sentence in the SAGA renewal letter and was able to phone and stop that.
     
    Bazarchie likes this.
  3. Mark101

    Mark101 Well-Known Member

    Pretty much the norm to really hike the rates at the two or three year period, that's why most people have get new quotes each year. I've never been able to stay with any car insurance company more than three years due to this factor.
     
  4. DaveS

    DaveS Well-Known Member

    I've been with Admiral for yonks, but the last premium was just too much for a 17 yr old Rover 25. Confused showed up a good quote from the AA (I'm a member), so switched. Unfortunately I'd forgotten about the auto renewal until I got my credit card statement. I managed to cancel but still got stung for about £25 or so for the time it had been running.
     
    Bazarchie likes this.
  5. MJB

    MJB Well-Known Member

    I've been with the same insurer (CIS) since my first motorbike in 1987. They've always been competitive on price and I've never had any big premium hikes. More importantly, they've been excellent on the few occasions I've needed to claim, which is the real test of whether your premium is value for money.
     
    Roger Hicks likes this.
  6. Blurred Image

    Blurred Image Active Member

    Mine has just come in, up from £340 to £468 with automatic renewal. Cheap first year and a bit more second but OK. Then right up in price with some of the features knocked off.

    It's the same with every car insurers I've been with. Even if the price remains similar each year they change the policy so there's less to it. Usually excess doubles, protected NCD gets knocked off and a few other tricks.

    I think the only way not to get stiffed is to cancel every policy before automatic renewal kicks in and go to a comparison site to get a completely new policy. Renewal is a mugs game
     
  7. Roger Hicks

    Roger Hicks Well-Known Member

    So is wasting a large chunk of your life on comparison sites.

    Cheers,

    R.
     
  8. Bazarchie

    Bazarchie Well-Known Member

    Fortunately I have 7 days left on the cooling off period and they have agreed to waive the admin fee.

    It seems insurance companies are no better than cowboy builders. Hardly professional.

    I should have learnt my lesson by now.
     
  9. IvorCamera

    IvorCamera Well-Known Member

    Lesson learnt!......everybody who reads this cancel all Automatic Renewal arrangements no matter what its for including on line virus protection........
     
  10. Zou

    Zou Well-Known Member

    It's all a scam. I hope to never pay another penny to that industry.
     
  11. daft_biker

    daft_biker Action Man!

    Aye, but if you drive something that is a low risk for stealing and shrugs off dunts it's the "tax" that is the bigger problem. Or at least it has been for me for all except the first year where it would have cost a grand to insure anything......hate to think what the young ones have to pay to get started!
     
  12. Footloose

    Footloose Well-Known Member

    I remember decades ago when the reason given for hikes on M/cycle insurance, was due to the number of claims made by motorcyclists pranging into car drivers who weren't at fault ... A few years later, the car insurance companies were saying the reason their rates were increasing was due to car drivers not noticing motorcyclists. These claims were made by companies that insured cars and motorcyclist, so they were 'milking' revenue off both parties. I'm not talking of 'knock for knock' policies where both sides were clobbered when a claim was made.
     
  13. RovingMike

    RovingMike Crucifixion's a doddle...

    Absolutely. They will pounce on you in year 2/3 if you don't. In many cases you only have to tell them what you have been quoted elsewhere and they cave in. Time spent on comparison sites repays itself handsomely, but don't take the first offer. Log out and go back a while later, price can go down when it sees you are shopping around. They are institutional extortionists.
     
    daft_biker likes this.
  14. Roger_Provins

    Roger_Provins Well-Known Member

    I use a broker for all my insurances, have done so for years, it's just a small family firm that been around forever. They always give me a call at renewal time and discuss options. Okay they obviously must get a cut but they also get me a good deal. :)
     
  15. AGW

    AGW Well-Known Member

    Bistromathics.
    Bistromathics itself is simply a revolutionary new way of understanding the behaviour of numbers. Just as Einstein observed that time was not an absolute but depended on the observer's movement in space, and that space was not an absolute, but depended on the observer's movement in time, it is now realised that numbers are not absolute, but depended on the observer's movement in restaurants.

    The first non-absolute number is the number of people for whom the table is reserved. This will vary during the course of the first three telephone calls to the restaurant, and then bear no apparent relation to the number of people who actually turn up, or to the number of people who subsequently join them after the show/match/party/gig, or to the number of people who leave when they see who else has turned up. The second non-absolute number is the given time of arrival, which is now known to be one of those most bizarre of the mathematical concepts, a recipriversexcluson, a number whose existence can only be defined as being anything, other than itself. In other words, the given time of arrival is the one moment of time at which it is impossible that any member of the party will arrive.
     
  16. Blurred Image

    Blurred Image Active Member

    Hardly a large chunk of your life. 10 minutes on a comparison site instead of a forum and you can save hundreds of pounds. Come on, what other way can you effectively produce as much money at that hourly rate?

    Seriously assume 30 minutes to search and pay, less if you're more decisive than me. Result you save £100, a modest saving after the second or third year premium hike. That's £200 an hour equivalent pay for that time. Now if you're earning more then you're right about waste of time. If not then you're throwing money away. You don't work for an insurance company do you?;)
     
    PhotoEcosse likes this.
  17. MickLL

    MickLL Well-Known Member

    My car insurance is due now. I got a letter with the new premium (258) it told me what I paid last year (236) . There are no changes to the T&C's. I know that the increase (or at least most of it) is down to having a new driver, license held for less than a year, on the policy for the complete year rather than a part year.

    I nevertheless went to a comparison site and was unable to find a better deal although a couple of years ago I did find a better deal - from the same insurer!!! They were completely unfazed when I phone and told them and even beat the internet price by a few pounds. They blamed an 'introductory discount' for the lower price.

    I have no complaints whatever about my insurer.

    MickLL
     
  18. Andrew Flannigan

    Andrew Flannigan Well-Known Member

    My car insurance went up £4 this year. The previous year it went up £38 but that was because I went from a tiny car to a medium size car. I use A-Plan Brokers who are very good at shopping around for me.
     
  19. DaveM399

    DaveM399 Well-Known Member

    I was put onto A-Plan when I retired, having been on a company policy for over 20 years. Our fleet managers recommended them to me as being helpful for people moving back to a personal policy from a fleet one. I've used them for several years and have had good service and competitive quotes from them.
     
  20. beatnik69

    beatnik69 Well-Known Member

    Especially virus protection. If I were to auto-renew I would have to pay around £80 whereas I can buy the software for under £20. Utter con.
     
    Zou likes this.

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