Insurance renewal shocker!

[ms1007]

It's that time of year again - my renewal notice from More Th>n came in at a not unreasonable £656. :'(

Having a quick scout around Directline came in at £900, Prudential at £1100 and LV at £1300!

Hmm...

More Th>n it is then.

But how can there be such a massive difference between these mainstream companies?

[Soot1e]

They have all jacked their premiums up since last summer. They used to blame it on oil wells blowing up big insurance claims disasters etc. What will it be this time?

[SK_Rebel]

Direct Line were my insurance company for 10 years as no one ever came close to their price but this year they sent a comedy renewal price (when I read it I was looking for the silly string, balloons and just kidding card...

I ended up going with a company found from the Meerkats

[ednmra]

This is the first year (for about 15) I've renewed with my previous year's company (LV) becasue their renewal quote was within about £5 of my compare site finds.

Previously my renewal quotes have been at least £100 more than using a new, well known company, and for no good reason (no claims, no convictions etc)

[Sonic_Vrs]

Try Chris Knott and ADrian Flux before you renew. Always far cheaper for me with them and I have saved a lot of friends hundreds by referring them.

Callum

[luke_a]

The annoying thing is they all seem to be doing it... so shopping around won't help. It didn't help me.

http://www.bbc.co.uk/blogs/watchdog/2010/11/car_premiums.html

Edited 31 December, 2010 by luke_a

[a_waugh]

Try the guys that advertise on here.

I managed to get a really good deal with Sky Insurance. All you need to do is quote the forum you seen them on and your username. Usually get discount. Im sure i got about 15% off my renewal last year.

[prolfe]

renewal was cheaper for me with existing company unless i wanted to pay 3k in excess!!

[sdwilliams72]

Tesco put our renewal up by 25%, so we go compared and found cheaper, spoke to tesco who then reduced by 30% to match a different quote. If it wasnt for the fact they dealt with a claim for us in a 1st class manner a few years back, I would have told them to stuff it!!

We did find 1 that was half the price of tesco, but excess was really high, and i had never heard of them.....

[BilboBaggins]

Recently decided to add my 17 year old daughter who just passed her test to SWMBO's insurance on her Yaris. Learning to drive was done in my car, as no increase in insurance since it is a company lease car.

Having been with esure for as long as I can remember they refuse to insure drivers under a certain age, and wouldnt budge when we phoned.

tried several of the comparison sites, and one or two who claim not to be on sites. For a 52plate 1 litre Yaris with three named drivers and £400 excess we usually got 1-2 quotes under £1000, with the worst being £8k (car coms with a value on Parkers site as £2300)

DIrect Line ended up with the business as they gave a good level of cover for reasonable bucks and ability to pay monthly

[Pickings01]

I renewed mine with my wife on it last July - Full NCB, both aged low 30's - £235.00

Bell Direct or Elephant had similiar price but stayed with Bell.

The renewal quote was pumped up as usual but an online quote brought it back down.

[ednmra]

Strange isn't it. There is no actual "the price" for anything these days. Whether it be insurance, even from the same provider, an air ticket, a hotel quote, it all seemingly depends on where you go for your quote.

Talk about "it pays to shop around". Never more so than today.

[ednmra]

Strange isn't it. There is no actual "the price" for anything these days. Whether it be insurance, even from the same provider, an air ticket, a hotel quote, it all seemingly depends on where you go for your quote.

Talk about "it pays to shop around". Never more so than today.

[Alex1980]

It's that time of year again - my renewal notice from More Th>n came in at a not unreasonable £656. :'(

Having a quick scout around Directline came in at £900, Prudential at £1100 and LV at £1300!

Hmm...

More Th>n it is then.

But how can there be such a massive difference between these mainstream companies?

Im also insured with More Th>n and have just renewed with them. Yet again they were cheaper than anyone else, using the comparison sites.

I did however get More Th>n to reduce their price, as they had me and my Dad down as only having our licences for 6yrs, as there internet site only lets you put in 5 or more years. After they updated their system and re-ran the quote, I got another £30 off!!

[wmscud]

I am insured with More Th>n nobody else could get near on comparison sites.One company in particular no matter what car I got a quote for was ridiculous.Makes you wonder if they want any business.I am early forties with full no claims and no points(had 3 points in 21 yrs driving)and one quote for a fiat 500 was almost £1300.Yet more th>n quoted £430.

[harveys]

Likewise,I renewed with Aviva, the first time I've ever stayed with anyone ! not because of a great price or service (which was pretty much take it or leave it when I queried the renewal which had gone up a little)...no... because the quotes from others were a real shocker !

It's little wonder some folk take the risk & don't bother !

[luke_a]

It's little wonder some folk take the risk & don't bother !

It's harder to get away with it nowadays with the likes of ANPR cameras, but yes, it isn't surprising at all that people drive without insurance given the prices - especially for younger drivers.

When I first passed my test, the quotes I was getting for my own policy were ridiculous.... third party on a piece of **** car (ancient ford fiesta, 1.0l, or any lame car I could think of) when I was 18 was over 3 grand. Yet I could be added as a named driver to my mum's 1.4l brand new 12 grand lupo for £300. Nothing can justify the difference in cost, just completely unfair on those who can't be named drivers on other people's policies, besides you are not supposed to be the main driver if you are on someone elses policy. So I owned motorbikes until I was 23, I just couldn't afford to insure my own car.

Now I'm 25, and after years of people saying, oh it will be cheaper when you build up NCB, oh it will be cheaper when you are 25, blah blah blah blah blah. I started with 0 NCB on my car, and every year my policy has gone up.

Its easy for middle aged middle england to scoff and say "oh well you shouldn't have a car if you can't afford to insure it'". Whilst I agree with that, it is irresponsible to drive uninsured, I would never do it, but I understand why people do it. Have you ever had a policy that is 3 months wages? Unlikely. Public transport for the majority of the country is useless, and people have to travel a long way to find work. Sure there is another way, they could move, but life is never that simple.

I really think as insurance is a legal requirement, there should be a list of **** cars, that cost a maximum of say £500 to insure on a third party only policy. That may go some way to reduce the number of uninsured drivers.

Don't get me started on Third Party only... When I had bikes it was great, TPO was actually cheaper. For cars, I can insure mine for £700 Fully comp, or £1200 TPO. Makes no sense at all.

[PowerMalc]

Luke. a very thoughtful and useful post. Thank you

When I got to 25 my insurance did go down dramatically, I had a Ford Escort RS2000 at the time, quite a performance car then.

Roll on to 2011 and I am staggered at the cost of insurance for my 17 year old daughter, it seems so much more expensive than in the 70's and 80's.

As you say you can understand why people drive uninsured, still wrong though

[harveys]

It's harder to get away with it nowadays with the likes of ANPR cameras, but yes, it isn't surprising at all that people drive without insurance given the prices - especially for younger drivers.

When I first passed my test, the quotes I was getting for my own policy were ridiculous.... third party on a piece of **** car (ancient ford fiesta, 1.0l, or any lame car I could think of) when I was 18 was over 3 grand. Yet I could be added as a named driver to my mum's 1.4l brand new 12 grand lupo for £300. Nothing can justify the difference in cost, just completely unfair on those who can't be named drivers on other people's policies, besides you are not supposed to be the main driver if you are on someone elses policy. So I owned motorbikes until I was 23, I just couldn't afford to insure my own car.

Now I'm 25, and after years of people saying, oh it will be cheaper when you build up NCB, oh it will be cheaper when you are 25, blah blah blah blah blah. I started with 0 NCB on my car, and every year my policy has gone up.

Its easy for middle aged middle england to scoff and say "oh well you shouldn't have a car if you can't afford to insure it'". Whilst I agree with that, it is irresponsible to drive uninsured, I would never do it, but I understand why people do it. Have you ever had a policy that is 3 months wages? Unlikely. Public transport for the majority of the country is useless, and people have to travel a long way to find work. Sure there is another way, they could move, but life is never that simple.

I really think as insurance is a legal requirement, there should be a list of **** cars, that cost a maximum of say £500 to insure on a third party only policy. That may go some way to reduce the number of uninsured drivers.

Guys - I couldn't agree more. I don't condone folk not insuring cars (& have never done it) but I too have been there with older cars not worth much & been shafted. I was lucky in the end to have a company car for a few years...but came back to insurance heaven to find I was almost back to square one (they use any excuse !) now things are back to sensible, but I dread having to deal with it when my kids get to 17.

Don't get me started on Third Party only... When I had bikes it was great, TPO was actually cheaper. For cars, I can insure mine for £700 Fully comp, or £1200 TPO. Makes no sense at all.

Luke. a very thoughtful and useful post. Thank you

When I got to 25 my insurance did go down dramatically, I had a Ford Escort RS2000 at the time, quite a performance car then.

Roll on to 2011 and I am staggered at the cost of insurance for my 17 year old daughter, it seems so much more expensive than in the 70's and 80's.

As you say you can understand why people drive uninsured, still wrong though

Ooops - see further reply below

Edited 1 January, 2011 by harveys

[harveys]

It's harder to get away with it nowadays with the likes of ANPR cameras, but yes, it isn't surprising at all that people drive without insurance given the prices - especially for younger drivers.

When I first passed my test, the quotes I was getting for my own policy were ridiculous.... third party on a piece of **** car (ancient ford fiesta, 1.0l, or any lame car I could think of) when I was 18 was over 3 grand. Yet I could be added as a named driver to my mum's 1.4l brand new 12 grand lupo for £300. Nothing can justify the difference in cost, just completely unfair on those who can't be named drivers on other people's policies, besides you are not supposed to be the main driver if you are on someone elses policy. So I owned motorbikes until I was 23, I just couldn't afford to insure my own car.

Now I'm 25, and after years of people saying, oh it will be cheaper when you build up NCB, oh it will be cheaper when you are 25, blah blah blah blah blah. I started with 0 NCB on my car, and every year my policy has gone up.

Its easy for middle aged middle england to scoff and say "oh well you shouldn't have a car if you can't afford to insure it'". Whilst I agree with that, it is irresponsible to drive uninsured, I would never do it, but I understand why people do it. Have you ever had a policy that is 3 months wages? Unlikely. Public transport for the majority of the country is useless, and people have to travel a long way to find work. Sure there is another way, they could move, but life is never that simple.

I really think as insurance is a legal requirement, there should be a list of **** cars, that cost a maximum of say £500 to insure on a third party only policy. That may go some way to reduce the number of uninsured drivers.

Don't get me started on Third Party only... When I had bikes it was great, TPO was actually cheaper. For cars, I can insure mine for £700 Fully comp, or £1200 TPO. Makes no sense at all.

Luke. a very thoughtful and useful post. Thank you

When I got to 25 my insurance did go down dramatically, I had a Ford Escort RS2000 at the time, quite a performance car then.

Roll on to 2011 and I am staggered at the cost of insurance for my 17 year old daughter, it seems so much more expensive than in the 70's and 80's.

As you say you can understand why people drive uninsured, still wrong though

#

Guys - I couldn't agree more. I don't condone folk not insuring cars (& have never done it) but I too have been there with older cars not worth much & been shafted. I was lucky in the end to have a company car for a few years...but came back to insurance heaven to find I was almost back to square one (they use any excuse !) now things are back to sensible, but I dread having to deal with it when my kids get to 17.

[teebee]

Im also insured with More Th>n and have just renewed with them. Yet again they were cheaper than anyone else, using the comparison sites.

I did however get More Th>n to reduce their price, as they had me and my Dad down as only having our licences for 6yrs, as there internet site only lets you put in 5 or more years. After they updated their system and re-ran the quote, I got another £30 off!!

Collected my new VRS CR DSG Hatch on 29/12. Renewal due end of Jan. Been with Direct Line for approx. 8 years. I`m a young 56!

Allowing for new car being a higher insurance group than my 2007 mdl Leon TDI 140 dsg etc, cannot believe some of the prices quoted using comparion sites + used Auto Express 2010 reader poll top 5 verdict. A few examples:

Direct Line £376 (waiting for renewal docs to confirm,then will renew) Also have house contents insurance with them. Has made a big difference

NFU Mutual £869 (apparently this year they are concentrating on non automotive insurance. Last yeat matched Direct Line quote)

RIAS £969

Frizzell £446

Lowest average £450 - £490. Some were more than £1000. Do some of these companies want new business?

Would be interesting to know if this is now the reality

Edited 1 January, 2011 by teebee

[kevberlin]

Collected my new VRS CR DSG Hatch on 29/12. Renewal due end of Jan. Been with Direct Line for approx. 8 years. I`m a young 56!

Allowing for new car being a higher insurance group than my 2007 mdl Leon TDI 140 dsg etc, cannot believe some of the prices quoted using comparion sites + used Auto Express 2010 reader poll top 5 verdict. A few examples:

Direct Line £376 (waiting for renewal docs to confirm,then will renew) Also have house contents insurance with them. Has made a big difference

NFU Mutual £869 (apparently this year they are concentrating on non automotive insurance. Last yeat matched Direct Line quote)

RIAS £969

Frizzell £446

Lowest average £450 - £490. Some were more than £1000. Do some of these companies want new business?

Would be interesting to know if this is now the reality

Not for me. I am a young 56 too. Most quotes in the £350 area for my new VRS tdi dsg with small excess and pnb. However, More Than came in at £270, but I still beat this marginally through my own professional body insurance scheme. (Same price but even better cover). The insurance services linked to this site and Skoda UK were not competitive for me. However, as we all know, insurance comparisons are difficult because each is tailored to meet individual circumstances. I feel sorry for many younger drivers who are paying vastly inflated premiums.

[ednmra]

Had a chat with a friend over the weekend, who had been in the business, and they reckoned a company made almost nothing out of a first year premium, due to admin costs. If that is true, you would think they would be especially keen to retain your business for the following year/s.

[luke_a]

Had a chat with a friend over the weekend, who had been in the business, and they reckoned a company made almost nothing out of a first year premium, due to admin costs. If that is true, you would think they would be especially keen to retain your business for the following year/s.

Sounds like a load of *******s... admin fees my arse. Sure many providers do discounts for new customers, but other than that, how is it more expensive to administer an insurance policy for the first year rather than any other year.

The reason most insurance companies send out a letter with a more expensive renewal price is they hope you are lazy and allow it to automatically renew at that price. Calling up usually gets the price a bit lower.

If you have a policy that is £500, and you don't make a claim, the insurance company won that bet and they add it to the pile of money they call their profits.

Edited 2 January, 2011 by luke_a

[Monkeyboyo]

Insurance companies typically make a loss on the insurance business but make it up by investing the cash you've paid up front.

They used to make more money on the investment than they paid out in insurance claims.

Now that the investment market does not make money (mostly the bond markets as that what insurers invest on) then they have to make money on insurance premiums

Edited 2 January, 2011 by Monkeyboyo