Car Insurance - Future Planning
Discussion
Hi,
So I'm looking to buy an EV, I'm considering the ENiro but really like the look of an Ioniq-5. I've also considered a E-Tron but I'm not sure the value for money is really there for me.
Obviously insurance has gone up over the last year or so and I've read some horror stories about huge increases year on year where things have increase by thousands. I've got quotes for an Ioniq-5 which at cheapest I've managed to get around £800 which is fine for this year but my concern is if things increase over the 8 years or so I plan to have the car.
I am a bit confused though, insurance quotes are £180 cheaper for me on a Polestar 2 despite that being a 34E and the Ioniq-5 being 29E. The polestar seems to come in at a similar price to a ENiro which is 27A. I guess I don't want to be blind sighted in the future and find myself paying £1.5k and above for insurance, particularly as it gets older and the resale value of the car starts to drop more substantially. Obviously there are various factors that come to play in the insurance price but is there a way to make an informed decision on what insurance will look like in the future and any ideas as to why a 34E car is cheaper to insure than 29E and similar in price to 27A?
Thanks in advance
So I'm looking to buy an EV, I'm considering the ENiro but really like the look of an Ioniq-5. I've also considered a E-Tron but I'm not sure the value for money is really there for me.
Obviously insurance has gone up over the last year or so and I've read some horror stories about huge increases year on year where things have increase by thousands. I've got quotes for an Ioniq-5 which at cheapest I've managed to get around £800 which is fine for this year but my concern is if things increase over the 8 years or so I plan to have the car.
I am a bit confused though, insurance quotes are £180 cheaper for me on a Polestar 2 despite that being a 34E and the Ioniq-5 being 29E. The polestar seems to come in at a similar price to a ENiro which is 27A. I guess I don't want to be blind sighted in the future and find myself paying £1.5k and above for insurance, particularly as it gets older and the resale value of the car starts to drop more substantially. Obviously there are various factors that come to play in the insurance price but is there a way to make an informed decision on what insurance will look like in the future and any ideas as to why a 34E car is cheaper to insure than 29E and similar in price to 27A?
Thanks in advance
Trying to gauge your premium's over the next 8 years is going to be a thankless task.
Premiums have obviously been going up tremendously over the last year or so but this rise seems to be tailing off slightly.
The industry as a whole last made a double digit profit on an NCR basis in 2018 with 2021 being a few points profit.Since then triple digit ratios ie 10-15% loss each year -I would guess that 2024 ultimately will be a modest profit.
Fundamentally the average car insurance premium in the UK appears still" too low "relatively speaking and this is compounded by the fact that the Industry is both market share and cyclically driven.
A quick google shows the average Premium was circa £ 475 in 2018 with then fluctuations down or flat to circa £ 425 in 2022.
EV's data is still in its relative infancy v ICE but the signs aren't good.
If I had to guess I'd say 2024 will become more normalised with then 2025 being also relatively stable but from there will depend on results generally.
Car Insurance is driven ( no pun ) by actuarial based computer modelling with the complication that both are rear facing and only as good as the latest data sets. Covid and its aftermath is a good example of an event not being priced into models.
I've never been involved in UK motor underwriting but I was a senior market Property Catastrophe underwriter for many decades and a Board member.
I'm sure Twig will be along to correct anything incorrect from his usual excellent legal knowledge.
Premiums have obviously been going up tremendously over the last year or so but this rise seems to be tailing off slightly.
The industry as a whole last made a double digit profit on an NCR basis in 2018 with 2021 being a few points profit.Since then triple digit ratios ie 10-15% loss each year -I would guess that 2024 ultimately will be a modest profit.
Fundamentally the average car insurance premium in the UK appears still" too low "relatively speaking and this is compounded by the fact that the Industry is both market share and cyclically driven.
A quick google shows the average Premium was circa £ 475 in 2018 with then fluctuations down or flat to circa £ 425 in 2022.
EV's data is still in its relative infancy v ICE but the signs aren't good.
If I had to guess I'd say 2024 will become more normalised with then 2025 being also relatively stable but from there will depend on results generally.
Car Insurance is driven ( no pun ) by actuarial based computer modelling with the complication that both are rear facing and only as good as the latest data sets. Covid and its aftermath is a good example of an event not being priced into models.
I've never been involved in UK motor underwriting but I was a senior market Property Catastrophe underwriter for many decades and a Board member.
I'm sure Twig will be along to correct anything incorrect from his usual excellent legal knowledge.
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