Let’s talk about car insurance

[Jack.77]

For about the last 3 yrs with different companies come renewal time the provider wants to hike price up £70-£100 even though I have another year of no claims etc

Each time when I end up shopping around I can get the same or better policy cheaper than the original price so what’s the logic in this ? Are they dumb enough to assume people will just stick with them and pay regardless .

It would be in there interest to keep customers

[Dingu]

It’s only in their interest to keep you are the price they think is right. Anyone writing business they think is unprofitable just to keep you would be dumb.

You are aware how prices are calculated I assume? If the data has changed (likely over time) then the price will alter.

Anyone thinking just because one company is the cheapest one year means they will be the next is pretty dumb tbh.

[Lo-Fi]

Let's talk about car insurance...

..again.

There are many, many threads already going about this.

[Jack.77]

Dingu said:

It’s only in their interest to keep you are the price they think is right. Anyone writing business they think is unprofitable just to keep you would be dumb.

You are aware how prices are calculated I assume? If the data has changed (likely over time) then the price will alter.

Anyone thinking just because one company is the cheapest one year means they will be the next is pretty dumb tbh.

I get what your saying but I did not go with the cheapest but one of the better reliable choices
I guess I’m just interested why I can’t just renewal with the current provider without getting ripped off

[Jack.77]

It’s all very daft really how it’s worked out .as an example old bloke could insure his 5 LTR lhd American yank for about £70 then struggled to keep it on the right side of the road with swerving off as it was so wide

[Dingu]

Jack.77 said:

Dingu said:

It’s only in their interest to keep you are the price they think is right. Anyone writing business they think is unprofitable just to keep you would be dumb.

You are aware how prices are calculated I assume? If the data has changed (likely over time) then the price will alter.

Anyone thinking just because one company is the cheapest one year means they will be the next is pretty dumb tbh.

I get what your saying but I did not go with the cheapest but one of the better reliable choices
I guess I’m just interested why I can’t just renewal with the current provider without getting ripped off

You aren’t getting ripped off. Your current provider feels that is the correct price, they don’t owe you a cheaper price than they think is profitable. Someone else deciding they can do it cheaper is just a benefit to you.

Insurance is painfully easy to compare and saturated with the amount of providers to choose from compared to other things like energy or internet providers.

[swisstoni]

The idea of Customer Inertia is well established.

At renewal time a decent percentage of people each year will not change insurer even though the price is not competitive. They may have left it too late, or not have the time to shop around, be lazy, have a crisis going on, etc,etc.

[Baldchap]

The cost of renewal is based on the fact that a decent number of people will just carry on.

For every customer that reads the letter and shops around, there are several who basically ignore it and pay the price hike. It's in their interests to put the price up for this reason.

You only need to get a 'new customer' quote from your insurer to see what they actually think it should cost.

So no, they're not 'dumb', most of their customers are.

[Dingu]

Baldchap said:

The cost of renewal is based on the fact that a decent number of people will just carry on.

For every customer that reads the letter and shops around, there are several who basically ignore it and pay the price hike. It's in their interests to put the price up for this reason.

You only need to get a 'new customer' quote from your insurer to see what they actually think it should cost.

So no, they're not 'dumb', most of their customers are.

Not particularly relevant since the new regs in Jan 22 linking New Business and Renewal pricing. Although I’m sure a court jester will be along shortly to declare how easily insurers can get around said regulations.

[TwigtheWonderkid]

Jack.77 said:

It’s all very daft really how it’s worked out .as an example old bloke could insure his 5 LTR lhd American yank for about £70 then struggled to keep it on the right side of the road with swerving off as it was so wide

That happen a lot does it? You think insurers are paying out millions for old blokes losing control of their LHD yank tank and deciding to recoup the money off young drivers and to keep charging the old blokes £70?

If old blokes with 5 litre cars are paying £70, it's because £70 is all they need to charge them to still make a profit.

I guess you could be right though. Loads of highly paid and highly qualified insurance actuaries have got it wrong and some bloke on the internet has it all worked out.

[Jack.77]

Out of interest I started my quote again with the current provider as if I would be a new customer and they wanted an extra £50!
Having been looking around a bit they all seem to have similar quotes but why?? It should really be half this price .maybe it will be cheaper in the morning when it runs out

[Sebring440]

Jack.77 said:

Out of interest I started my quote again with the current provider as if I would be a new customer and they wanted an extra £50!
Having been looking around a bit they all seem to have similar quotes but why?? It should really be half this price .maybe it will be cheaper in the morning when it runs out

Read one of (the many) recent threads about this very subject. It will save you a lot of time.

[CraigyMc]

Jack.77 said:

Out of interest I started my quote again with the current provider as if I would be a new customer and they wanted an extra £50!
Having been looking around a bit they all seem to have similar quotes but why?? It should really be half this price .maybe it will be cheaper in the morning when it runs out

Have parts got cheaper for you or the car you will drive into? No.
Have garages and mechanics got cheaper? No.
That's what they are pricing.

[Jack.77]

But 300£ to nearly 500 .think I might insure it just for a few days until found a better deal

[greysquirrel]

Jack.77 said:

Out of interest I started my quote again with the current provider as if I would be a new customer and they wanted an extra £50!
Having been looking around a bit they all seem to have similar quotes but why?? It should really be half this price .maybe it will be cheaper in the morning when it runs out

A) all insurance has increased this year, in some cases quite dramatically.
B) trying to get insurance for the same day/next day is also a flag for them.

[CraigyMc]

Jack.77 said:

But 300£ to nearly 500 .think I might insure it just for a few days until found a better deal

That's pretty much normal this year across the board.
For example, have a read of https://www.theguardian.com/money/2023/aug/16/admi... -- for that company a 44% premium increase is typical year on year.

I have no idea why you think you'll be able to find a better deal at this point. Insurers price on risk and people who insure at the last minute are a higher risk than those who do it weeks before the renewal is needed.

[Jack.77]

Some old guy earlier advised me go the old fashion route and call them all up for quotes .
Maybe i will just leave it for a few weeks and see what changes