Car insurance renewal or rip off

[KJI]

Just got my Sons car insurance renewal through- last year it was £640 this year with another years no claims and now being 21 it went up to £680 reason 'well sorry sir insurance has gone up", my view -Rubbish. Now the interesting part - I did the on line comparison sites and would you believe the same company quoted £501 with additional cover for passengers and european cover, then adding his mum to the policy we got a further saving making it £480 happy days.... Always worth investing 30 minutes of your time.

[CharlieHotel]

That's a good price overall.
I was 21 in August and my insurance is £1200 with Admiral 10 month bonus accelerator.
What car does he drive?

[KJI]

2004 Honda Civic 1.4 but we are thinking of changing and got a quote for a Merc 200 slk that was £850, try a broker they can help out sometimes.

[RZ1]

Thats pretty good especially for the age, my insurance went up by over £400 this year.

[ZOLLAR]

KJI said:

Just got my Sons car insurance renewal through- last year it was £640 this year with another years no claims and now being 21 it went up to £680

NCB doesn't dictate the premium, there are alot of other things that affect the price too.

KJI said:

reason 'well sorry sir insurance has gone up", my view -Rubbish.

Really?, why is that explanation rubbish?.

KJI said:

Now the interesting part - I did the on line comparison sites and would you believe the same company quoted £501 with additional cover for passengers and european cover,

Not really interesting, most insurers give large discounts online if you ring your sons insurer they may match the price.

KJI said:

then adding his mum to the policy we got a further saving making it £480 happy days.... Always worth investing 30 minutes of your time.

Again, by adding more experienced drivers it can reduce the premium as the risk is spread.

HTH

[OMNIO]

£480 is nice!

Im 21 and I'm paing £1090 but Im on a completely different type of car to your son!

[Crow555]

I never, repeat NEVER accept the renewal price. I always compare prices each year to see if there's anything I can get off the price.

That said, it is true that insurance prices have gone up. This year I was only able to get within £30 of the renewal figure, but a saving is a saving.

[Sgwilliams]

as above, look on the documents and find the part that states your renewal figure will come down with each year you are claim free. insurance companies rates will change more times in a year than people think , so from one year to the next your price can go up, stay the same, come down. entering different details on an internet quote will always give you a different price as the bigger picture will change.

[KJI]

the point I am making is that it is the same company.

[ZOLLAR]

KJI said:

the point I am making is that it is the same company.

Yes, but when you did the quote online you changed details which would have a large affect on the price and also as I said you get additional discounts online it isn't a rip off its just you've done a bit of leg work and negotiated a better deal.

[Sgwilliams]

i can see your point, but you putin different details aswel, if you said everything was exactly the same and the price was different then it would be a case of the internet discount out weighs the renewal discount this year, if its different details then it could be more a case of the overall risk is better with the newer details

[geeteeaye]

ZOLLAR said:

KJI said:

Just got my Sons car insurance renewal through- last year it was £640 this year with another years no claims and now being 21 it went up to £680

NCB doesn't dictate the premium, there are alot of other things that affect the price too.

KJI said:

reason 'well sorry sir insurance has gone up", my view -Rubbish.

Really?, why is that explanation rubbish?.

So another years NCB and more importantly, now being 21 doesn't make enough of a difference to offset the general rise in insurance? I think so.

Secondly the explanation 'insurance has gone up sir' is rubbish, as he went online and found a cheaper quote with the same insurer, proof if proof were needed that insurers attempt to rip people off at renewal, hardly news though.

[ZOLLAR]

geeteeaye said:

So another years NCB and more importantly, now being 21 doesn't make enough of a difference to offset the general rise in insurance? I think so.

Turning 21 and reducing your premium is more of a coincidence, turning 21 Does not guarantee your price to go down and 1 extra year NCB won't always decrease your price.

geeteeaye said:

Secondly the explanation 'insurance has gone up sir' is rubbish, as he went online and found a cheaper quote with the same insurer, proof if proof were needed that insurers attempt to rip people off at renewal, hardly news though.

Sure the explanation is rubbish, but we weren't on the call so we can't be sure what was said on it.
I've already explained about the cheaper quote online answer I'm not in the habit of repeating myself so just scroll back up the page abit.

[Sgwilliams]

geeteeaye said:

So another years NCB and more importantly, now being 21 doesn't make enough of a difference to offset the general rise in insurance? I think so.

Secondly the explanation 'insurance has gone up sir' is rubbish, as he went online and found a cheaper quote with the same insurer, proof if proof were needed that insurers attempt to rip people off at renewal, hardly news though.

so two things(ncb + age) out of maybe 30 have worked out better so the whole premium comes down? i dont think so.

same with all things even with some companies (e.g. online deals/online only) they will give different prices as your doing all the work. i would like to say there is a really good chance that there are some changes on the internet quote aswel that are not the same on the renewal docs, no matter how small the change it effects the bigger picture. you are right it can be explained a lot better than "its just gone up" but bottom line is....... it has

Edited by Sgwilliams on Tuesday 29th March 17:15

[OMNIO]

ZOLLAR said:

geeteeaye said:

So another years NCB and more importantly, now being 21 doesn't make enough of a difference to offset the general rise in insurance? I think so.

Turning 21 and reducing your premium is more of a coincidence, turning 21 Does not guarantee your price to go down and 1 extra year NCB won't always decrease your price.

geeteeaye said:

Secondly the explanation 'insurance has gone up sir' is rubbish, as he went online and found a cheaper quote with the same insurer, proof if proof were needed that insurers attempt to rip people off at renewal, hardly news though.

Sure the explanation is rubbish, but we weren't on the call so we can't be sure what was said on it.
I've already explained about the cheaper quote online answer I'm not in the habit of repeating myself so just scroll back up the page abit.

I can vouch for that! RAC quoted over £5,000 to renew my Insurance on a 2.0L mondeo (21 with 3 years NCB). They were happy to insure me when i was 18 with 0 ncb on the same car for £1500!

[ZOLLAR]

OMNIO said:

I can vouch for that! RAC quoted over £5,000 to renew my Insurance on a 2.0L mondeo (21 with 3 years NCB). They were happy to insure me when i was 18 with 0 ncb on the same car for £1500!

As I said coincidence, it may have happened to you but it doesn't happen for everyone, there isn't a special rule in which insurers reduce the price when you turn 21.
The general public tend to harp on about it as if its their god given right to get cheaper prices at 21

[geeteeaye]

ZOLLAR said:

I'm not in the habit of repeating myself so just scroll back up the page abit.

Intriguing you should say that as I see you trotting out the same stuff day in, day out defending the angelic car insurance companies. Glad I've never been so defensive about the industries I've worked in.

Sgwilliams said:

so two things(ncb + age) out of maybe 30 have worked out better so the whole premium comes down? i dont think so.

same with all things even with some companies (e.g. online deals/online only) they will give different prices as your doing all the work. i would like to say there is a really good chance that there are some changes on the internet quote aswel that are not the same on the renewal docs, no matter how small the change it effects the bigger picture. you are right it can be explained a lot better than "its just gone up" but bottom line is....... it has

Edited by Sgwilliams on Tuesday 29th March 17:15

'Doing all the work' - so you think it's more work for a company to renew an existing policy as opposed to setting up a completely new one Which is what has happened in this case.

It's a moot point to say other parameters may have changed to improve the quote, as they may well not have. Assuming everything else is constant, an extra years NCB and reaching age 21 should make a significant difference, hence why at age 21 you become entitled to various benefits/able to drive hire cars/obtain commercial insurance and a much higher number of companies offer cover.

[sneakypete]

Different insurance companies want different types of business. Excessive quotes are designed to drive you away. They don't want your business unless you are stupid enough to pay up.

Try comparison sites first and narrow it down. Do the same quote on the actual sites in your shortlist. Add older, more expeienced, drivers to spread the risk, lower miles if you can. Sometimes keeping the car on the drive instead of the garage can see a reduction. A little time can save a decent amount.

I just saved £80 with less excess.

[ZOLLAR]

geeteeaye said:

ZOLLAR said:

I'm not in the habit of repeating myself so just scroll back up the page abit.

Intriguing you should say that as I see you trotting out the same stuff day in, day out defending the angelic car insurance companies. Glad I've never been so defensive about the industries I've worked in.

You're right I do repeat myself when posting about insurance, perhaps if you stopped getting your information wrong and stopped thinking the whole thing is a scam I wouldn't have to keep repeating myself .

[geeteeaye]

ZOLLAR said:

You're right I do repeat myself when posting about insurance, perhaps if you stopped getting your information wrong and stopped thinking the whole thing is a scam I wouldn't have to keep repeating myself .

One last comment, on something I've just seen on the ABI website WRT drivers under 21

ABI said:

Why is motor insurance for young drivers so expensive compared to other drivers?
The cost of any type of insurance has to reflect the risk. The greater the risk of a claim being made the higher the premium. The evidence shows that, sadly, young drivers are much more at risk on our roads.
-17-20 year old male drivers are nearly ten times more likely to be killed or seriously injured on the roads than more experienced drivers.
-Eight out of ten accidental deaths involving 15-19 year old males occur on the road.
-The crash risk for young drivers rises threefold when carrying three or more passengers
This increased risk means that young drivers between aged 17-20 are twice as likely to make an insurance claim than other drivers and, on average, their claim costs will be three times higher.

Again, hardly news but the fact that the 17-20 bracket is singled out as the highiest risk must mean there is a considerable reduction in risk at 21 and subsequently premium? Maybe a friendly Actuary can confirm.