Renewal shock....

[RainbowFire]

So, the renewal came around on my car, via a broker......"we'd like to fleece you the princely sume of £460 sir"

 

Sod that.

 

I went and compared the Meerkat (all of 5 minutes online).......£230 for an indentical policy from elsewhere. However, on the list was the same insurer that the broker was offering, but at about £300.

 

No point in talking to the broker, because a "price match" or "see what we can do" would reveal some blatant profiteering. Been with this broker several years.....not any more. I understand that businesses need to make money, and people need to make a living, but that price was just ridiculous by comparison.

 

Lessons:

1) Loyalty and an empty box is worth the box.

2) It defintely pays to shop around.

3) "Specialist brokers" may be great at specialist insurance, but not so good at "run-of-the-mill-daily" stuff. If you've not got a modified or "special" vehicle: GoCompareTheMeerkat.

 

[ColinD]

It's all different, I dare say there is a pattern and an algorithm. So many inputs, you'd hope the same values gave the same answer. A friend pays less for his brand new superb than I do on my citigo, he has a good postcode, I dont'. With pay as you go insurance around the corner ( I think ) it's going to get worse for many and better for a few.

 

I got some cheaper quotes than CK on meerkat, but the policy didn't have the cover I wanted. I still pay <240, meerkat cheapest was only just 200. 40+male 15+no claims and never pointed lic... so I kept on with CK

 

I've noticed most of the insurance products now, house, life etc, have a little cover paragraph about shopping around. 

 

I did hear a rumour older cars are now being hit for more, so whereas a brand new one costs more, you're far more likely to look after it than say a 10yr old 2k one. Thats one crazy strategy, but there we go.

[ChrisKnottIns]

If members do find a better quote than the renewal their current insurers are inviting through us, we're very happy to see if the existing insurer will respond to it. It may be that your alternative quote is with a provider or on a scheme we don't have access to. Obviously once we're aware of it we can talk to the insurer on your behalf and see what they might be prepared to do to help us keep you.

 

best,

Nick

[MickA]

I've just had a long conversation with an insurance provider (based in Wales) they explained when asked "why the price differs wildly with the so called big players?" One answer they gave, some insurers target certain groups when quoting or preparing your renewal. If you don't fit into that group that particular year that could be the reason for the price difference or as I would class "price hike"

 

Whether the above is correct who knows but it's certainly annoying every year we go through this ritual of finding the best deal out there. It would be understandable if you've had a less than clean bill of health (driving wise) to show them but when that's not the case the mind boggles as to why one can hike prices whilst others can be more reasonable.

[ChrisKnottIns]

It's more likely that their claims experience during the year is being reflected. For example, and simplistically, if in that insurer's client bank more Seat Toledo's were crashed or stolen last year the insurer will want to make sure there's an increase in premium on those cars the following year to reflect the risk. Take any and all of the other risk factors and the insurer will be applying their claims experience on those too.

 

There's another issue affecting this year in isolation too. This Ogden rate change that you may have heard about (insurers being on the line for a massive increase in injury payouts). Basically, as each insurer comes to renew their re-insurance they are seeing increased costs to them because of this and they're needing to pass it on to policyholders. Depending on when their reinsurance is due, you'll get a different rate from those who've already passed the cost on, those who are just doing it now and those who've decided to absorb the cost either partially or fully.

[MickA]

Not saying that's untrue or having a go at anyone but a different reasons for price rises are explained every year.  

I've heard two more recently, claims for whiplash injuries are on the rise and even more recently "cash for crash" claims are on the rise. 

Maybe I'm totally wrong but it seems it's an excuse to extract more or your hard earned from you.

Shouldn't it be in my case, and yes it's been said over and over again, no accidents, no convictions absolutely nothing to put a blemish on a 41 yr driving record and I get the price hiked?

 

I look at it this way with insurance you need it to stay legal on the road, the cheapest way to do that I'll take. If it means moving insurers every year so be it.

 

[VWD]

I'd suspect the increases in renewals is down to the things insurance companies/brokers think that they can add on to renewal premiums. For a few years, I've had one dealer attempt to add "policy issue /admin charges or introduction fees" to my policy. Hey, insurance brokers, I always thought that the insurance companies paid a premium for an intro- so has this stopped, or we being fleeced.

Personally, I go looking as  a "BRAND NEW CUSTOMER" and find that companies will not charge fees in the first year. Possibly the best way of dealing with this is to  walk at first hint of any charges for admin /etc charges.

God example today- my home policy has now had a £25 admin fee added. Broker has now been told to FOXTROT OSCAR ,or remove admin fee. Broker will now not have payment from insurance company, as I can get policy from a compare site, same Insurance company with no broker fee. 

[KenONeill]

I'd agree @VWD's point; "leading comparison websites" keep saying "we can save me up to £X on my car insurance": There was a point about 5 years ago where delivering a £X saving would have meant the insurer writing me a check for £X/3!

 

More generally, maybe this is one reason why some people don't switch (at least regularly); they're happy with their existing arrangements?

[MickA]

I've hit the comparison sites recently, always do at insurance renwal time. One company gave me a comparison site quote of £338 and you have to think why do they bother when they then ring me and say they can do it cheaper.

So are all of them over quoting on the comparison sites?

 

Thought I read a while ago all insurance companies now need to show admin/arrangement fees separately. They have always had an admin fee or similar in the quoted price, just not made it clear before, hence why folk seemed peeved at the added fee.

Edited 10 November, 2017 by MickA