Car Insurance Renewal - Why so high?

[manracer]

Just had my car insurance renewal come through and the details are as follows:

Last year: £565
Renewal: £809

This is for a M140i with a declared stage 1 tune. I have 11 years NCB (protected) with an annual mileage of 5000 (of which 1000 is business), £250 excess and an SP30 from 2019. Parked on driveway, dashcam etc.

I am well versed in shopping around every year and rarely renew however after trawling the comparison sites
, the cheapest on there is £1200.

I know the FCA changed the rules in Jan 2022 and I took the existing policy out in Nov 2021 but from what I can see the FCA forced insurers to be fairer on renewals vs new policy. Ironically from the above that still doesnt seem true at least for me, but has anyone else discovered the same when renewing this year?

I just struggle to acknowledge a 43% increase in premium especially when I drive so little.

I am going to call them when I get time today, I dont really have many options but to try and haggle, just wondered what others experiences were?

Edited by manracer on Friday 4th November 09:01

[Fitz666]

My 2011 Jag XF 3.0V6 went down from £270 to £220.

Quite chuffed.

[Dingu]

You are conflating fair with cheap.

The regulations simplistically require prices to be equalised in the same channels between new business and renewal. Since insurers weren’t really making money year 1 the consequence was prices closed, but year 1 got more expensive.

This year prices generally (on average, there will be exceptions) have risen due to claims costs going up, realistically some of this additional cost has been absorbed by insurers.

As for your circumstances, the price may change year on year (ignoring the above) because:
A) your details change
B) people with similar details (not necessarily the same exact profile but same occupation, post code area, car etc) claim more or less thus raising or lowering the risk profile which gives your price.

ETA: also the renewal price being the most competitive by such a distance does suggest the regulations are having an effect as previously that would have been unlikely.

Edited by Dingu on Friday 4th November 09:08

Edited by Dingu on Friday 4th November 09:08

[RazerSauber]

All my insurance policies this year have gone down. I expected so because they didn't have to compensate for the ultra low pricing they were getting people in with.

Try calling them and seeing what they can do. I knocked about £150 off my 3 insurance policies this year which totalled less than £500 so it was pretty good going.

[Andy665]

Have 3 cars, the daily cars se insurers being swapped every year because renewals are silly money, always manage to find much better deals by switching and its not exactly difficult or time consuming

Only car that has stayed with the same insurer is the TVR because the insurer (Footman James) offers sensible renewal prices

Insurers rely on people just accepting these daft renewals

[ScoobyChris]

manracer said:

I just struggle to acknowledge a 43% increase in premium especially when I drive so little.

Part of the risk profile is based on the area, theft risk, claims for that specific car model etc (and maybe a higher risk being modified). My M140i insurance went up this year; my 107 insurance went down...

Chris

[abzmike]

Direct Line have offered to renew my A6 for £499 - a hike of £120. Quick check with Sergi, and I can get it for £400. So I know what I’ll be doing then.
You’d think part of the process of offering a renewal would be to check the market price, and send out a quote that might be accepted. Maybe too many people are just too lazy.

[Dingu]

abzmike said:

You’d think part of the process of offering a renewal would be to check the market price, and send out a quote that might be accepted. Maybe too many people are just too lazy.

Only if you want a car insurer to go the way of MCE. They all price at the price they feel is fair based on the information they have.

Do you feel at next renewal the company offering £400 (if they are still cheapest then) should check the others and inflate the price above what they think they can sell you insurance for similarly?

[Matt_Zeus]

Last year I was paying £500 for an import V8 mustang.
swapped to an Abarth 595 towards end of policy which ADDED £20 the premium.

Renewal came through at £605.
Quick look on compare the market, got quotes around £420.
Called current insurer and they matched it. Instant £185 saving with same under-writer too. Madness

[abzmike]

Dingu said:

abzmike said:

You’d think part of the process of offering a renewal would be to check the market price, and send out a quote that might be accepted. Maybe too many people are just too lazy.

Only if you want a car insurer to go the way of MCE. They all price at the price they feel is fair based on the information they have.

Do you feel at next renewal the company offering £400 (if they are still cheapest then) should check the others and inflate the price above what they think they can sell you insurance for similarly?

Sorry, trying to decipher your reply.
I am sure they have a team of pricing analysts, working out the maximum they are able to charge without churning customers. the information they have about me is exactly the same as they could run query on their competitors and find a market price I'm likely to accept - Or assume that a number of their customers won't bother. It's either lazy or deliberate.

[cobra kid]

In June, mine went from £360 to £190

[Dingu]

abzmike said:

Dingu said:

abzmike said:

You’d think part of the process of offering a renewal would be to check the market price, and send out a quote that might be accepted. Maybe too many people are just too lazy.

Only if you want a car insurer to go the way of MCE. They all price at the price they feel is fair based on the information they have.

Do you feel at next renewal the company offering £400 (if they are still cheapest then) should check the others and inflate the price above what they think they can sell you insurance for similarly?

Sorry, trying to decipher your reply.
I am sure they have a team of pricing analysts, working out the maximum they are able to charge without churning customers. the information they have about me is exactly the same as they could run query on their competitors and find a market price I'm likely to accept - Or assume that a number of their customers won't bother. It's either lazy or deliberate.

The aim is ensuring a margin is maintained. Whether that is similar to the conclusion company A, B or X come to is absolutely academic. You are free to shop around and it is very easy to do so.

Fact is the price you have received is what Direct Line feel is correct to ensure that their perception of your likelihood to claim is covered. They don’t want to insure you at £400 as they feel that would be loss making. So checking the market is pointless. You have no right to receive the cheapest price on the market from a company.

Whilst companies will monitor their retention levels keeping all customers or keeping customers at a price which is loss making absolutely is not an aim.

What you are describing as your ideal is a cartel.

[Mr Tidy]

Both of my renewals this year were less than the year before, but both cars are quite old now.

Maybe the increase reflects a high theft risk? Anyway I'd still look for alternative quotes.

[LittleBigPlanet]

Similar situation to OP... insurance went from roughly £600 to a renewal of £1200 or so. Got it down to £900 on comparison sites but nautical insurer couldn't get close.

Nothing else has changed.

[GranpaB]

Just had mine through and they have increased my premium the bastids and its gone up by £2.72.

fkers!

[DaveH23]

GranpaB said:

Just had mine through and they have increased my premium the bastids and its gone up by £2.72.

fkers!

Interesting, mine went down £2.17.

[Rozzers]

The Naval gentleman bumped our multicar up this year by a lot despite no claims or the like.

Got cheaper and better cover with 3 separate policies at LV, one on the high risk vehicle, one with a young driver and one vanilla.

[Gavin0478]

Increase your mileage to 10-12k per year as it changes your group, this is from experience.

[Auslander]

Tuned M140i.

It's a clit car, so attracts the appropriate premium.

[Ziplobb]

The 911 went down from £270 to £178 this year - same company did not have to do anything.