All insurance - hiked up prices?
Discussion
It's been notice that car insurance has had a massive hike, which in some ways I can see with every little dink ending up with 30 whiplash claims, outrageous body shop fees through approved repairers, and like for like hire cars running into months.
But I've noted that ever other insurance seems to have taken a massive hike, at least a third extra on everything from house insurance, medical insurance, professional indemnity... I'm sure life and critical illness are the same.
Surely, these haven't seen the same increase in claims (both in volume and cost)? Are insurers and underwriters just taking their turn to price gouge? Or is it just me on all insurances!?
But I've noted that ever other insurance seems to have taken a massive hike, at least a third extra on everything from house insurance, medical insurance, professional indemnity... I'm sure life and critical illness are the same.
Surely, these haven't seen the same increase in claims (both in volume and cost)? Are insurers and underwriters just taking their turn to price gouge? Or is it just me on all insurances!?
They would argue that all costs have gone up, be they car repair, medical bills and home repairs.
However the scale of the increases, particularly in car insurance needs scrutiny from the regulator, in my view.
Given its ‘compulsory’ cover there should be a regulatory formula for premiums, or maybe even a state-run third party cover included as part of the VED, as there is in Australia.
However the scale of the increases, particularly in car insurance needs scrutiny from the regulator, in my view.
Given its ‘compulsory’ cover there should be a regulatory formula for premiums, or maybe even a state-run third party cover included as part of the VED, as there is in Australia.
RemarkLima said:
It's been notice that car insurance has had a massive hike, which in some ways I can see with every little dink ending up with 30 whiplash claims, outrageous body shop fees through approved repairers, and like for like hire cars running into months.
But I've noted that ever other insurance seems to have taken a massive hike, at least a third extra on everything from house insurance, medical insurance, professional indemnity... I'm sure life and critical illness are the same.
Surely, these haven't seen the same increase in claims (both in volume and cost)? Are insurers and underwriters just taking their turn to price gouge? Or is it just me on all insurances!?
And lots of expensive cars being stolen and either chopped up for bits or sent abroad, insurance companies weren't making any money from private car insurance, takes a lot of £300 premiums to cover a Range Rover vanishing or some utter helmet driving their BMW through a metre of water and then wonder why the engine stops and wont start again.But I've noted that ever other insurance seems to have taken a massive hike, at least a third extra on everything from house insurance, medical insurance, professional indemnity... I'm sure life and critical illness are the same.
Surely, these haven't seen the same increase in claims (both in volume and cost)? Are insurers and underwriters just taking their turn to price gouge? Or is it just me on all insurances!?
Plus the ambulance chasers, crash for cash merchants, fraudulent claims and all the stuff you mentioned.
Its as if there are consequences to stupidity and greed, and its not always on the part of the insurance companies.
Talking to a pal in the industry he also said there was a shortage of experienced assessors, so what is happening is that the default for anything that looks a reasonably large claim, is to just write it off. Like techies at main dealers don't mend, just replace.....
Given the number of Cat C and Cat N cars when I search AT seems to higher than ever before, there might be some truth in this.
Robertb said:
Given its ‘compulsory’ cover there should be a regulatory formula for premiums, or maybe even a state-run third party cover included as part of the VED, as there is in Australia.
How many cars in Australia compared to here? What's their traffic density? How many accidents per annum? I keep hearing about this state run insurance. Do people really want to be trying to get hold of a state run insurer to discuss a claim. Hasn't trying to talk to DVLA or HMRC taught you anything? Having an accident is stressful enough, without having to phone a state run insurer, being told your call is important to them and you're 243rd in the queue, then listening to 2 hours of Chris DeBurgh's Lady In Red on the Peruvian panpipes before being disconnected!
How can my old Honda Jazz be ‘too high risk’ to insure?
https://www.theguardian.com/money/2024/jan/29/how-...
Even sheds are becoming uninsurable.
https://www.theguardian.com/money/2024/jan/29/how-...
Even sheds are becoming uninsurable.
I don't think it's necessarily a universal thing
My cars have gone up by around £150 to £573 but still for three cars (A6 Allroad, an Elise and wifeys TT) I don't think that's bad at all.
My house insurance has gone down slightly, PI Insurance stayed roughly the same and my PL insurance gone up by around a tenner.
My cars have gone up by around £150 to £573 but still for three cars (A6 Allroad, an Elise and wifeys TT) I don't think that's bad at all.
My house insurance has gone down slightly, PI Insurance stayed roughly the same and my PL insurance gone up by around a tenner.
Car insurance is well covered, but are underwriters then upping their charges on everything to cover their losses elsewhere?
I guess all materials, energy, healthcare costs have risen and the insurance reflects that... But it's a pretty big hike when added up over everything.
Lotobear, good t hear it's not on everything - I've just noticed with a few renewals some chunky increases and nothing has dropped for me. Maybe I was already fairly low risk so just unlucky?
If the VED had a third party cover which was still administered by regular insurers, and therefore paid to their coffers it could work... But it would be open to abuse and another example of public fund being transferred to private hands, which never works out too well either.
I guess all materials, energy, healthcare costs have risen and the insurance reflects that... But it's a pretty big hike when added up over everything.
Lotobear, good t hear it's not on everything - I've just noticed with a few renewals some chunky increases and nothing has dropped for me. Maybe I was already fairly low risk so just unlucky?
If the VED had a third party cover which was still administered by regular insurers, and therefore paid to their coffers it could work... But it would be open to abuse and another example of public fund being transferred to private hands, which never works out too well either.
Edited by RemarkLima on Monday 29th January 09:45
Robertb said:
Given its ‘compulsory’ cover there should be a regulatory formula for premiums, or maybe even a state-run third party cover included as part of the VED, as there is in Australia.
CTP in Oz, as you say is third party only, and varies from state to state. You still have to get a quote from 4 to 6 insurers that offer it in each state - that's a lot less than the scores of Insurers quoting for comp cover here.How much does CTP cost in Queensland?
Registration fees for common vehicles
Vehicle 1, 2 or 3 cylinders, electric or steam Cost as at 1 July 2023
Registration $283.55
Traffic improvement fee $62.90
CTP $369.60
Total $716.05
So CTP is around £160 for third party only cover. Then most people with an normal car will need fully comp cover:
"Male drivers pay an annual average of $1,578 (£819) for their car insurance while female drivers only pay $1,358 (£705) per year. Drivers who were under the age of 20 paid the most annually, averaging $2,855 (£1482) , compared to drivers who were over 70 who were only paying $1,051 (£545)."
How is this significantly cheaper when both are added together?
vikingaero said:
Robertb said:
Given its ‘compulsory’ cover there should be a regulatory formula for premiums, or maybe even a state-run third party cover included as part of the VED, as there is in Australia.
CTP in Oz, as you say is third party only, and varies from state to state. You still have to get a quote from 4 to 6 insurers that offer it in each state - that's a lot less than the scores of Insurers quoting for comp cover here.How much does CTP cost in Queensland?
Registration fees for common vehicles
Vehicle 1, 2 or 3 cylinders, electric or steam Cost as at 1 July 2023
Registration $283.55
Traffic improvement fee $62.90
CTP $369.60
Total $716.05
So CTP is around £160 for third party only cover. Then most people with an normal car will need fully comp cover:
"Male drivers pay an annual average of $1,578 (£819) for their car insurance while female drivers only pay $1,358 (£705) per year. Drivers who were under the age of 20 paid the most annually, averaging $2,855 (£1482) , compared to drivers who were over 70 who were only paying $1,051 (£545)."
How is this significantly cheaper when both are added together?
One of the biggest misunderstandings of the Australian insurance industry. Most states roll it into your car registration (road tax). CTP only is effectively driving uninsured.
In Australia you've the option of going third party only (TPP or Third Party Property) which means you're covered for whatever you hit but aren't covered for your own vehicle. This is a cheap way for young people to build a NCB (or if you drive a banger).
My last car in Oz was a modified Nissan 200SX (S15) and that was insured fully comprehensive, agreed value, open driver policy (which means I could.lend it to my sister or friends). It was also one of the 10 most stolen cars in Western Australia and only 4000 of this model we're imported. My last renewal.wasy just over A$900 (about £450).
If the regulators were to look into insurance I bet they'd find a lot of things rotten but it'll never happen because the government benefits from high premiums due to IPT (Insurance Premium Tax) which is 12% (20% for certain types of car insurance).
Lotobear said:
I don't think it's necessarily a universal thing
My cars have gone up by around £150 to £573 but still for three cars (A6 Allroad, an Elise and wifeys TT) I don't think that's bad at all.
My house insurance has gone down slightly, PI Insurance stayed roughly the same and my PL insurance gone up by around a tenner.
It's been discussed almost endlessly on other threads but to my mind it's the exceptions that make the whole thing particularly weird.My cars have gone up by around £150 to £573 but still for three cars (A6 Allroad, an Elise and wifeys TT) I don't think that's bad at all.
My house insurance has gone down slightly, PI Insurance stayed roughly the same and my PL insurance gone up by around a tenner.
OK, I get the "rebalancing of risk" etc arguments but if car insurers costs have gone up massively how can they absorb inflation for some customers such that they're able to cover them for a couple of hundred quid?
Just renewed cover on wife's car and the renewal was +68%. Shopping around, any company you've heard of was +100%. Admiral was +200%. I changed every variable in one of the quote systems - they typically made a few pounds decrease or sometimes increase (it increased if I made her 40 instead of 60), but nothing got close to what she was paying last year.
I'm convinced that the big problem is the FCA's "price walking" rules - they're stopping insurers doing intro discounts now so they know it's pretty pointless shopping around and relying on that intro discount every year to keep your premium low.
I noticed a couple a BBC news article about young drivers insurance this morning had a 19yr old who drive an Ocado van, but is being quoted £8K for his car. Also another, unrelated, article about busses featured an 18yr old bus driver. Maybe the kids should buy vans and busses!
My Insignia went up a little but no more than inflation. The other Half's Panda, with no NCB was remarkably cheap, my Mustang classic policy was the same and my son's "first year age 17) MR2 is not due until June but is looking to be reasonable at half what he paid in the first year.
Depends on who you are and where you live, not necessarily the car itself.
Depends on who you are and where you live, not necessarily the car itself.
RemarkLima said:
My comments are were about all insurance seems to be hiked up, not just car insurance.
Good to hear that some of costs are stabiliser / dropping. Most of my insurance costs haven't changed much for the best part of a decade... I don't think the area has gone downhill too much either
Everything is on the increase. We insure a number of commercial properties and all have increased by £200 (standard shops) to £800 (listed stuff) over last years premium.Good to hear that some of costs are stabiliser / dropping. Most of my insurance costs haven't changed much for the best part of a decade... I don't think the area has gone downhill too much either
MBVitoria said:
Renewal quote for the wife's Mazda 3 has gone from £290 to £395. Nothing has happened in terms of claims etc to justify that.
Shopped around on confused etc and to be fair, the cheapest quote I could find for the same cover was £370.
Renewal quote is at the low end of the supposed market average premium increases. Shopped around on confused etc and to be fair, the cheapest quote I could find for the same cover was £370.
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