Car insurance claims plunge as drivers stay at home
12/03/2021 | news | business | 292
The drop in claims is not mirrored in cheaper premiums, but insurers say motorists have been supported.
1
12/03/2021 10:34:05 56 3
bbc
"The ABI said that insurers had faced other costs when supporting customers."

Which they passed onto other customers by not reducing, or even increasing, their premiums so the insurers didn't support their customers at all, their other customers did.
174
12/03/2021 15:09:27 19 2
bbc
Typical insurance (ABI) speak without being transparent about what those 'other costs' where. If you've nothing to hide let the public know what the 'other costs' are.
2
12/03/2021 10:38:37 154 4
bbc
And yet, even though I barely drove, even though I made no claims, my premium still increased in price.
15
12/03/2021 11:03:16 34 3
bbc
Conversely did home insurance claims rise during lockdown due to people staying at home ?
56
12/03/2021 11:53:20 7 1
bbc
I am in a similar situation - LV wanted 21.8% more for renewal.
65
12/03/2021 12:06:08 7 1
bbc
I tried changing my mileage downwards on my policy as I had done only half my usual annual mileage.

It made not one bit of difference to the price, despite the significant reduction to my risk of accidents.
111
12/03/2021 13:04:04 5 1
bbc
Nigel did you contact your insurer to ask for a discount. I did and received a discount of £40
124
12/03/2021 13:29:29 2 1
bbc
My renewal was flat but I went elsewhere and got cheaper. I did not reduce my mileage from 8k to 2k that I actually did Feb 20 to Feb 21. I think I was living in false hope that by April all would be good again.
132
12/03/2021 13:41:32 4 1
bbc
Nigel I bet they didn’t attempt to explain the increase
149
12/03/2021 14:21:05 5 2
bbc
Just log on to a price comparison website and you will save money. Never ever just simply accept the renewal premium from your existing insurer.
165
12/03/2021 14:53:55 2 1
bbc
I think we only did 300 miles in 12 months and the policy shot up by 15%.
170
12/03/2021 15:05:16 2 1
bbc
indeed. Mine went up for 2020/2021 and then again for 2021/2022 and so I moved insurer from one I'd been with for years and saved £100.
191
12/03/2021 15:31:02 2 1
bbc
Same, Nigel! No claims, drove 10,000 miles less than my cover allowed, and even now a secure car park to leave my car. Premium went up £90.
205
12/03/2021 16:01:17 1 1
bbc
Ditto!
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
8
12/03/2021 10:46:37 23 4
bbc
Best joke of the day award goes to...
11
12/03/2021 10:55:52 8 2
bbc
Behave yourself. Aviva alone made £3bn in profit in 2019. Granted, that was across all of their products. Google “Aviva 2019 financial results.”

You can’t just make a statement like yours without backing it up with facts. You just end up looking quite silly.
12
12/03/2021 10:56:02 3 1
bbc
Said no-one. Ever!
14
12/03/2021 11:01:57 4 1
bbc
That's why they are still in business to make money!
32
12/03/2021 11:17:41 1 1
bbc
You must work for the Insurance industry, I see very few Company's leaving the sector but many joining. If they were not making in excess of 35% of capitol employed they would move on, and they don't!
40
12/03/2021 11:28:29 1 1
bbc
I laughed so much at your comment, I almost crashed!
44
12/03/2021 11:32:02 1 1
bbc
If that is the case, why can you save large sums just by thinking of a number, ringing them up and telling them you've had a quote for that, and they nearly always immediately match or beat it! Works for me every time!
77
12/03/2021 12:15:53 1 1
bbc
More likely to be a result of the juicy commissions paid to the fixers than an overburden of competition
163
12/03/2021 14:52:18 1 1
bbc
My quote for this year was up 15% on last year (I've only covered 350 miles since June), shopped around and saved about 60% (yes 60%). Your last sentence is clearly so wrong.
4
12/03/2021 10:41:03 54 1
bbc
I have just received my renewal notice. The premium has gone up by about 16%
37
12/03/2021 11:26:46 34 2
bbc
I hope you did an insurance comparison and moved to a different company.
47
12/03/2021 11:46:03 4 1
bbc
I can tell you what also seems to be going up, broadband fees. They all seem to be sneaking in CPI + 3.7-3.9%.
58
12/03/2021 11:57:17 3 1
bbc
You were one of the more fortunate ones - I was with LV and they increased the amount by 21.8% (and nothing else had changed - except I did very low mileage!)
131
12/03/2021 13:39:42 1 1
bbc
I wanted to down thumb this to show my disgust at your insurer!
204
12/03/2021 15:57:48 1 1
bbc
get on the phone and talk to them.
221
12/03/2021 16:54:50 1 1
bbc
move to a new one - they generally give new customers a discount - then move it again next year when your loyality wont be rewarded with the discount
5
Bob
12/03/2021 10:42:57 24 2
bbc
19% drop in claims, 6% drop in amount paid with rises 'particularly for personal injury'.

This is why premiums continue to rise. Too many scams and people trying it on.
6
12/03/2021 10:43:12 46 3
bbc
Various factors? taking advantage of the situation and making more profit wouldn’t be one though ??
7
12/03/2021 10:46:22 38 3
bbc
This industry makes it up as it goes along!
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
8
12/03/2021 10:46:37 23 4
bbc
Best joke of the day award goes to...
9
12/03/2021 10:48:28 139 13
bbc
Pay out falls by 6%. Cost of insurance falls by 1%.

The 3 most corrupt sectors in the economy are insurance, pensions and banking.

Don't expect any honesty or decency in that lot.
27
ken
12/03/2021 11:20:19 72 8
bbc
I agree but would add politicians
109
12/03/2021 13:08:39 3 5
bbc
So, would you rather outlaw all 3 of these “corrupt sectors”, keep your fingers crossed you don’t have an accident, keep your money under your mattress and hope you don’t get burgled and recieve your wages & pay all yourbills in cash? They’re there out of necessity, not because of want or desire.
130
12/03/2021 13:36:15 2 1
bbc
I made the same comment to a colleague, I have never claimed on Insurance thankfully due to lack of need. His house was broken into the same week his car was rear ended, He said all was sorted with little or no fuss. He said it is nice to know if you need it is there. However I still feel bitter about paying it every year. It feels strange to buy something you hope you don`t need.
220
12/03/2021 16:52:25 2 1
bbc
I would disagree - these are some of the industries with the heaviest legislation and regulations - if there is any corruption is is by those who set the regulations - politicians and the like!
246
12/03/2021 22:34:02 2 1
bbc
You forgot estate agents
10
12/03/2021 10:51:16 40 3
bbc
My quote for renewal with LV went up 21.8% (with no change of circumstances).
28
12/03/2021 11:10:07 41 3
bbc
Same. In my view if it's required by law to have insurance maybe it should be provided by the goverment. The private company will always look at way to make the service profitable. I'd prefer to pay £300 to the goverment and see some better infrastructure.
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
11
12/03/2021 10:55:52 8 2
bbc
Behave yourself. Aviva alone made £3bn in profit in 2019. Granted, that was across all of their products. Google “Aviva 2019 financial results.”

You can’t just make a statement like yours without backing it up with facts. You just end up looking quite silly.
183
12/03/2021 15:23:56 3 1
bbc
Out of interest I did google Aviva results. As you say it was profit across all their products (& most of it appears to be life-related).

Thing I found interesting was the 'COR' (combined operating ratio) of 97.5% on general insurance. That basically means for every £100 of Insurance premium taken, they spend £97.5 on claims, cost & expenses.

Seems like pretty tight profit margins to me?!
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
12
12/03/2021 10:56:02 3 1
bbc
Said no-one. Ever!
13
12/03/2021 11:00:39 2 6
bbc
19% is hardly a plunge?
212
12/03/2021 16:28:20 1 1
bbc
give 19% of your take home pay to charity

then tell me its not a plunge
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
14
12/03/2021 11:01:57 4 1
bbc
That's why they are still in business to make money!
2
12/03/2021 10:38:37 154 4
bbc
And yet, even though I barely drove, even though I made no claims, my premium still increased in price.
15
12/03/2021 11:03:16 34 3
bbc
Conversely did home insurance claims rise during lockdown due to people staying at home ?
34
12/03/2021 11:22:21 3 1
bbc
Mine did.
74
Ian
12/03/2021 12:13:59 1 1
bbc
Yes - one of the downsides of wfh
151
12/03/2021 14:26:56 2 1
bbc
Mine did and I phoned up to complain. The insurance companies taking the proverbial.
164
12/03/2021 14:53:53 1 1
bbc
Shh!
You'll give insurance companies ideas
They'll claim home claims went up so that's why they haven't been able to pass motoring savings on or something like that
171
12/03/2021 15:05:29 0 1
bbc
our home insurance went down
175
12/03/2021 15:10:05 2 1
bbc
No burglars if you’re home all the time. Should have gone dow, as well.
260
Tim
13/03/2021 06:26:32 0 1
bbc
I doubt it, most claims would be for for theft and that is down too. The savings went on fat cat bonus, which are what the ABI call "Covid Costs"
16
12/03/2021 10:56:19 3 4
bbc
You van only drive 5 miles out of the area unless its for work....yet you can go flying around the world
17
DDC
12/03/2021 11:10:56 9 2
bbc
Your insurance renewal premium will still go up
18
12/03/2021 11:11:11 31 1
bbc
I drove the grand total of 400 miles last year (with one fill of petrol since Feb 2020); I expect to have a big argument with my insurer if they don’t give me a reduced premium this year
95
12/03/2021 12:51:17 14 1
bbc
Good luck!

I tried changing my mileage downwards on my policy as I had done only half my usual annual mileage.

It made not one bit of difference to the price, despite the significant reduction to my risk of accidents.
168
12/03/2021 14:59:36 1 1
bbc
My situation was similar to yours. I didn't even give them the opportunity to adjust the quote. Voted with my feet and saved a small fortune.
19
12/03/2021 11:12:58 40 1
bbc
"Drivers who are financially stretched have also been given the option to pay premiums in instalments" .....This line is a joke , Insurance companies have always offered credit facilities which is highly profitable. Not like they are giving anything away. My quote only sent to me last week was for £608 fully comp when last year it was £460 .... Insurance complete joke. Insurance racketeers !
173
12/03/2021 15:06:51 12 2
bbc
Definitely not a joke, not funny in any way. They are total rip-off merchants.
20
12/03/2021 11:14:20 23 7
bbc
So do we get a reduction in Car Tax then ?

No ? Thought not - keep paying for something that we are (to some large extend) not allowed to do.
62
ben
12/03/2021 11:59:19 6 7
bbc
What car tax?
113
12/03/2021 13:10:17 0 2
bbc
SORN your car if you’re not using it
21
12/03/2021 11:16:18 33 1
bbc
Large corporations gain from situation at the consumer's expense? Wow, colour me shocked. Next year they'll use the lockdown period as a base and say claims have "gone up" 20% compared to the last few years, so "sadly" premiums will have to rise accordingly.
275
13/03/2021 09:24:44 2 1
bbc
There’s a job in the ONS or even OBR for you Richard. Watch a few episodes of Yes Minister and your training is complete!
22
12/03/2021 11:16:59 85 2
bbc
And my insurance company LV tried to increase my premiums by 20% recently - despite my annual mileage being about 800 miles, the car permanently locked in my attached garage. Yet no one would steal it - it's over 20 years old!! No accident or claims for over forty years. Rip-off company. I changed to another company for less than two-thirds the cost.
31
12/03/2021 11:24:16 66 2
bbc
Someone has to pay for all those TV adverts
38
12/03/2021 11:24:15 3 1
bbc
Similar position for me. Premium went up from LV. I decided to move to AA. This was last March. This year AA decided to increase renewal 30% up. Considering lower mileage with no refund. Now I have moved to another insurer.
55
12/03/2021 11:51:46 3 1
bbc
Fairly similar situation - with LV they wanted 21.8% extra!
119
12/03/2021 13:15:30 2 1
bbc
LV insurance is owned by Allianz, a German company. So best stick to Uk domiciled insurers if you don’t want to feel ripped off. But THEY’RE ALL AT IT! Oh, hang on, aren’t the Government trying to ban price walking at renewal?
186
12/03/2021 15:22:12 3 1
bbc
I can top that...

I removed my business mileage (wfh), lowered regular mileage, and got a quote just below what I paid year before (about 350)... wait for it...

A month goes by and I notice another £200 come off my cc, so I phone them up...

Turns out their “new business team” (I was actually an existing customer but there you go) had “reviewed” ....

continued below
203
12/03/2021 15:54:36 3 1
bbc
Cont.

...”reviewed” my policy and decided to up my annual mileage by 8000 miles without asking me !!!! I kid you not I must have put in no more than £100 fuel in my car in a year.

Why in gods name would you instruct your staff to do this ? In 2020 of all years ?

Turns out they are just brokers so they had to go back to market and buy me another policy at a loss to themselves.

Greedy idiots
285
13/03/2021 13:41:40 0 0
bbc
Likewise. Our LV car insurance renewal had gone up 15%. No change in circumstances. Tried to get some reduction , as is normal procedure if you show any loyalty, by phone. They would not budge so said 'bye', and also took home insurance to someone else as well without waiting for their elevated renewal premium.
23
12/03/2021 11:17:23 18 2
bbc
My premium did reduce this year (renewed at the start of Feb) and also my insurance company (Admiral Multicar) refunded their customers £25 per car sometime last year as well (so £50 in my case).
24
ken
12/03/2021 11:18:17 20 1
bbc
they are all the same a cartel if ever i seen one
25
12/03/2021 11:19:15 106 6
bbc
1. Record reduction in claims
2. Probable financial benefit from furlough scheme
3. Staff working from home so greatly reduced office costs

But please believe us when we say we are not profiteering from not passing any of these savings to our customers.

The insurance companies will never change, its daylight robbery.
33
12/03/2021 11:20:15 58 7
bbc
It's a racket - in any other line of business it would be called theft.
46
12/03/2021 11:40:46 0 3
bbc
Companies kept 0.0p of furlough scheme. Every penny (plus) went to the employees.
117
12/03/2021 13:14:32 3 2
bbc
1)Cost of fully comprehensive insurance is at a 4 year low... Also one good year doesn't pay for several bad years previous. Thank neck injury lawyers..
2)most insurance broker and underwriters have worked through pandemic so no furlough
3)staff working from home but still have to be paid..
4)the same company that insures your car probably insured the Olympics and glastonbury...
176
12/03/2021 15:12:10 1 1
bbc
Got my renewal quote yesterday - down by ~10% for same vehicle and no changes to policy.
26
12/03/2021 11:19:36 20 3
bbc
Car insurance claims plunge as drivers stay at home...but premiums have increased so the fat cat insurers continue to fleece customers. Very little effort made to reduce premiums for less use and by definition less risk. Ditto regarding milage driven, which is a key factor in premium pricing. The Government need to step in to ensure that Insurers start to provide refunds and credits for less use
36
12/03/2021 11:26:40 6 9
bbc
They don't fleece customers.

Highly competitive market. Do not put your isa or work based pension into a car insurers fund. You won't make extraordinary profits.
9
12/03/2021 10:48:28 139 13
bbc
Pay out falls by 6%. Cost of insurance falls by 1%.

The 3 most corrupt sectors in the economy are insurance, pensions and banking.

Don't expect any honesty or decency in that lot.
27
ken
12/03/2021 11:20:19 72 8
bbc
I agree but would add politicians
59
ben
12/03/2021 11:57:11 4 1
bbc
We can vote for different ones but we don’t.

Ones who fix these but the press wouldn’t allow that.
226
12/03/2021 17:31:12 1 1
bbc
Of ALL colours
10
12/03/2021 10:51:16 40 3
bbc
My quote for renewal with LV went up 21.8% (with no change of circumstances).
28
12/03/2021 11:10:07 41 3
bbc
Same. In my view if it's required by law to have insurance maybe it should be provided by the goverment. The private company will always look at way to make the service profitable. I'd prefer to pay £300 to the goverment and see some better infrastructure.
45
12/03/2021 11:33:57 2 6
bbc
And the government have no incentive to minimise costs (or give decent service) so likely will more more expensive. Pity people are too young to forget just how poor the Post Office was at delivering telephone service. Think BT are bad, they are nothing compared to how it was before privitisation.
61
ben
12/03/2021 11:58:06 4 1
bbc
Water is private and can’t even change supplier! Don’t expect insurance to be private soon
79
12/03/2021 12:22:27 3 1
bbc
In Australia third party insurance included with road taxes
134
12/03/2021 13:44:46 0 2
bbc
You would still get ripped off.
29
12/03/2021 11:22:37 10 2
bbc
I'm absolutely sick of this racket.

My latest renewal quote went up several hundred quid, same as every year. You have to move to see a saving.

You always have to call to cancel. That option is never online.

It's oligopoly price-fixing to catch out people who aren't on the ball, like working families or the elderly.

I hope one of these days we'll see a provider hauled across the coals.
60
12/03/2021 11:59:30 2 1
bbc
Renewal quotes are negotiable and those who blindly accept the quote are getting taken advantage of. It is a faff to call them but often worth it for a 10 minute call to get the quote down.
88
12/03/2021 12:39:24 2 1
bbc
As a full time employee with children, I am unsure why this would prevent me obtaining a new insurance quote.
People will work for an hour to earn £14 but feel 10 minutes effort to save £50 is too much hassle.
30
12/03/2021 11:14:57 37 1
bbc
Just received my renewal from LV for a 2 car policy, no surprise it's gone up, through out the period 1 car was "SORN", any offer of rebate, not a chance. With so many at home, Car claims and home burglary claims must have fell significantly, The insurance sector have made a killing out of this national disaster!
22
12/03/2021 11:16:59 85 2
bbc
And my insurance company LV tried to increase my premiums by 20% recently - despite my annual mileage being about 800 miles, the car permanently locked in my attached garage. Yet no one would steal it - it's over 20 years old!! No accident or claims for over forty years. Rip-off company. I changed to another company for less than two-thirds the cost.
31
12/03/2021 11:24:16 66 2
bbc
Someone has to pay for all those TV adverts
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
32
12/03/2021 11:17:41 1 1
bbc
You must work for the Insurance industry, I see very few Company's leaving the sector but many joining. If they were not making in excess of 35% of capitol employed they would move on, and they don't!
25
12/03/2021 11:19:15 106 6
bbc
1. Record reduction in claims
2. Probable financial benefit from furlough scheme
3. Staff working from home so greatly reduced office costs

But please believe us when we say we are not profiteering from not passing any of these savings to our customers.

The insurance companies will never change, its daylight robbery.
33
12/03/2021 11:20:15 58 7
bbc
It's a racket - in any other line of business it would be called theft.
182
12/03/2021 15:22:47 0 1
bbc
yet when a solicitor issues a letter and charges circa £50 or £ 100 no batters an eyelid....
15
12/03/2021 11:03:16 34 3
bbc
Conversely did home insurance claims rise during lockdown due to people staying at home ?
34
12/03/2021 11:22:21 3 1
bbc
Mine did.
35
12/03/2021 11:23:31 4 5
bbc
Kids, go into insurance for a career. It's money for nothing! (Some of you may have to pay for your chicks though...)
26
12/03/2021 11:19:36 20 3
bbc
Car insurance claims plunge as drivers stay at home...but premiums have increased so the fat cat insurers continue to fleece customers. Very little effort made to reduce premiums for less use and by definition less risk. Ditto regarding milage driven, which is a key factor in premium pricing. The Government need to step in to ensure that Insurers start to provide refunds and credits for less use
36
12/03/2021 11:26:40 6 9
bbc
They don't fleece customers.

Highly competitive market. Do not put your isa or work based pension into a car insurers fund. You won't make extraordinary profits.
4
12/03/2021 10:41:03 54 1
bbc
I have just received my renewal notice. The premium has gone up by about 16%
37
12/03/2021 11:26:46 34 2
bbc
I hope you did an insurance comparison and moved to a different company.
283
13/03/2021 11:58:41 0 1
bbc
Best not to use comparison websites as they are paid for promoting certain companies far better phone get a quote or use the insurers website !!!
22
12/03/2021 11:16:59 85 2
bbc
And my insurance company LV tried to increase my premiums by 20% recently - despite my annual mileage being about 800 miles, the car permanently locked in my attached garage. Yet no one would steal it - it's over 20 years old!! No accident or claims for over forty years. Rip-off company. I changed to another company for less than two-thirds the cost.
38
12/03/2021 11:24:15 3 1
bbc
Similar position for me. Premium went up from LV. I decided to move to AA. This was last March. This year AA decided to increase renewal 30% up. Considering lower mileage with no refund. Now I have moved to another insurer.
39
12/03/2021 11:28:06 6 2
bbc
The Regulator should force insurance to refund part of the car insurance premiums. But house insurance claims must also have reduced significantly with everybody forced to stay at home - indeed all types of home insurance claims - burglary, fire and water damage.
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
40
12/03/2021 11:28:29 1 1
bbc
I laughed so much at your comment, I almost crashed!
41
12/03/2021 11:28:37 9 1
bbc
The public have no protection from these rip-off insurers. The AA wanted a 28% hike for my renewal despite my car being virtually out of use for 12 months and insurers saving billions on claims.
70
12/03/2021 12:10:29 5 1
bbc
You need to swap every year. There are only a few insurers that will keep or lower your bill for being an existing customer. Maybe we should name and shame those insurance that always hike second year premiums ...
42
12/03/2021 11:29:32 26 1
bbc
Amazed when my insurer nearly doubled what they charged last year despite off street parking and very low mileage - excuse was reassessment of model. Needless to say I’ve moved to another provider (for less than last years rate for same cover)
53
ben
12/03/2021 11:42:39 36 1
bbc
I hate this little game you have to play. Loyalty is alway punished. It’s farcical.
43
12/03/2021 11:29:44 66 2
bbc
Always the same.

"We have an unprecedented number of claims and unfortunately as a result premiums must rise"
or
"We have had a very low level of claims and unfortunately as a result premiums must rise"
52
ben
12/03/2021 11:42:08 3 7
bbc
Last year when we all got a 5 pound rebate!
236
12/03/2021 19:13:45 1 1
bbc
Yes that will be them all over.
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
44
12/03/2021 11:32:02 1 1
bbc
If that is the case, why can you save large sums just by thinking of a number, ringing them up and telling them you've had a quote for that, and they nearly always immediately match or beat it! Works for me every time!
28
12/03/2021 11:10:07 41 3
bbc
Same. In my view if it's required by law to have insurance maybe it should be provided by the goverment. The private company will always look at way to make the service profitable. I'd prefer to pay £300 to the goverment and see some better infrastructure.
45
12/03/2021 11:33:57 2 6
bbc
And the government have no incentive to minimise costs (or give decent service) so likely will more more expensive. Pity people are too young to forget just how poor the Post Office was at delivering telephone service. Think BT are bad, they are nothing compared to how it was before privitisation.
25
12/03/2021 11:19:15 106 6
bbc
1. Record reduction in claims
2. Probable financial benefit from furlough scheme
3. Staff working from home so greatly reduced office costs

But please believe us when we say we are not profiteering from not passing any of these savings to our customers.

The insurance companies will never change, its daylight robbery.
46
12/03/2021 11:40:46 0 3
bbc
Companies kept 0.0p of furlough scheme. Every penny (plus) went to the employees.
80
12/03/2021 12:24:00 3 2
bbc
Well, we would know that if the Government published a list of the companies that claimed furlough and how many employees they have claimed for. However, they will probably never release this data, so we will never know if widespread fraud has occurred. I suspect there are a number of companies up and down the land there have claimed for people that continued to work...
184
MM
12/03/2021 15:24:59 1 1
bbc
Yes assuming there are no ghost employees on the books.
4
12/03/2021 10:41:03 54 1
bbc
I have just received my renewal notice. The premium has gone up by about 16%
47
12/03/2021 11:46:03 4 1
bbc
I can tell you what also seems to be going up, broadband fees. They all seem to be sneaking in CPI + 3.7-3.9%.
48
12/03/2021 11:46:39 3 2
bbc
Why can’t insurance companies just lower the rate they charge premiums always go up not down as soon there is a disaster up go the charges they never lower do they ????
84
12/03/2021 12:31:46 1 4
bbc
Except
Average premiums are lower than in 2018.
So much lower in real terms
https://www.moneysupermarket.com/car-insurance/price-comparison-index/
49
ben
12/03/2021 11:41:40 2 2
bbc
Still making plenty of money though on a legal requirement.
50
12/03/2021 11:48:23 3 1
bbc
My insurance again was extortionate for the last year. I haven't made a claim in over ten years, no points on my licence and have 20+ years of driving experience. As insurance companies have seen savings to the tune of 19% less claims surely they should be made to reimburse the drivers they are charging, particularly if their mantra is based upon the likely payouts for individuals based on risk?
86
12/03/2021 12:32:25 1 1
bbc
Similar mate. I don't know how young people and ones making multiple claims can keep a car on the road
51
12/03/2021 11:48:51 4 1
bbc
why is anyone surprised - they are all out to screw as much money out of you as they can!
43
12/03/2021 11:29:44 66 2
bbc
Always the same.

"We have an unprecedented number of claims and unfortunately as a result premiums must rise"
or
"We have had a very low level of claims and unfortunately as a result premiums must rise"
52
ben
12/03/2021 11:42:08 3 7
bbc
Last year when we all got a 5 pound rebate!
93
12/03/2021 12:49:34 5 1
bbc
Not all got a £5 rebate. That was just your particular insurer.
225
12/03/2021 17:23:42 4 1
bbc
I did not get a £5 rebate for any of the three vehicle insurance policies i hold, all with different insurers. So it was not "all", though it may have been "some". Either way £5 verses the average cost of a policy, still amounts to an insult.
42
12/03/2021 11:29:32 26 1
bbc
Amazed when my insurer nearly doubled what they charged last year despite off street parking and very low mileage - excuse was reassessment of model. Needless to say I’ve moved to another provider (for less than last years rate for same cover)
53
ben
12/03/2021 11:42:39 36 1
bbc
I hate this little game you have to play. Loyalty is alway punished. It’s farcical.
178
12/03/2021 15:14:13 2 1
bbc
Same with house insurance, I have been a “ new customer” to same company for 6 years now, always cheaper than renewal quote
266
13/03/2021 08:02:18 1 1
bbc
I well remember the day when Loyalty was rewarded, the whole game was turned upon its head. They all chase new customers and shaft those that stay around.
54
12/03/2021 11:49:26 11 4
bbc
Car insurance is nothing but legalised theft, companies increase profits by any means they can invent. One of the worst is the "No claims" rip-off. Whist at my wedding reception, my PARKED car, in a car park, was struck by a taxi. There was no question of liability, taxi firm paid up, but because my claim had to be made via my insurance, my premium was increased. Pure theft!
22
12/03/2021 11:16:59 85 2
bbc
And my insurance company LV tried to increase my premiums by 20% recently - despite my annual mileage being about 800 miles, the car permanently locked in my attached garage. Yet no one would steal it - it's over 20 years old!! No accident or claims for over forty years. Rip-off company. I changed to another company for less than two-thirds the cost.
55
12/03/2021 11:51:46 3 1
bbc
Fairly similar situation - with LV they wanted 21.8% extra!
2
12/03/2021 10:38:37 154 4
bbc
And yet, even though I barely drove, even though I made no claims, my premium still increased in price.
56
12/03/2021 11:53:20 7 1
bbc
I am in a similar situation - LV wanted 21.8% more for renewal.
78
12/03/2021 12:19:05 4 1
bbc
Mine just came in, up 10% on last year
172
12/03/2021 15:06:22 2 1
bbc
I was with LV, had been for years, but changed and saved £100.
188
12/03/2021 15:28:31 3 1
bbc
I bought again online as a 'new' LV customer and paid £113 below the price they quoted for my automatic renewal as an existing customer. Expect they all take the p*ss in this way, then claim they've lowered premiums. Always shop around folks.
57
12/03/2021 11:53:35 0 1
bbc
Wind down your mileage but be careful about extrapolating too much

You might have already missed the boat on this - I had a Feb renewal and even 9K down from 12K was a bit excessive as I was anticipating a lower amount of driving

We're just in the habit of not going places now - and it really will be hard to change that

But if you're not going abroad you might do +600 miles on a weeks UK hols
76
12/03/2021 12:15:00 1 1
bbc
When I was getting quotes, changing from 5k to 10k or vice versa made no difference at all to the price.
4
12/03/2021 10:41:03 54 1
bbc
I have just received my renewal notice. The premium has gone up by about 16%
58
12/03/2021 11:57:17 3 1
bbc
You were one of the more fortunate ones - I was with LV and they increased the amount by 21.8% (and nothing else had changed - except I did very low mileage!)
27
ken
12/03/2021 11:20:19 72 8
bbc
I agree but would add politicians
59
ben
12/03/2021 11:57:11 4 1
bbc
We can vote for different ones but we don’t.

Ones who fix these but the press wouldn’t allow that.
29
12/03/2021 11:22:37 10 2
bbc
I'm absolutely sick of this racket.

My latest renewal quote went up several hundred quid, same as every year. You have to move to see a saving.

You always have to call to cancel. That option is never online.

It's oligopoly price-fixing to catch out people who aren't on the ball, like working families or the elderly.

I hope one of these days we'll see a provider hauled across the coals.
60
12/03/2021 11:59:30 2 1
bbc
Renewal quotes are negotiable and those who blindly accept the quote are getting taken advantage of. It is a faff to call them but often worth it for a 10 minute call to get the quote down.
105
12/03/2021 13:06:32 1 1
bbc
The only reason they do that is to catch people out. They already have all of your information so why the massive price hike.

I'm stunned that you'd even somewhat defend them.
158
12/03/2021 14:46:22 3 1
bbc
Yes but they are sharing the prices you get from other insurers between themselves. Clearly collaborating to keep prices artificially high.
28
12/03/2021 11:10:07 41 3
bbc
Same. In my view if it's required by law to have insurance maybe it should be provided by the goverment. The private company will always look at way to make the service profitable. I'd prefer to pay £300 to the goverment and see some better infrastructure.
61
ben
12/03/2021 11:58:06 4 1
bbc
Water is private and can’t even change supplier! Don’t expect insurance to be private soon
72
12/03/2021 12:12:31 1 3
bbc
It’s private already, but even in the highly unlikely circumstance that it was nationalised the last people to benefit would be car owners. Just imagine how much bunce could be creamed off by the suits from Serco led by the likes of Dido Harding. Because that’s how public services are increasingly being delivered. You only need to look closely at the fiasco that is test and trace, for guidance
20
12/03/2021 11:14:20 23 7
bbc
So do we get a reduction in Car Tax then ?

No ? Thought not - keep paying for something that we are (to some large extend) not allowed to do.
62
ben
12/03/2021 11:59:19 6 7
bbc
What car tax?
123
12/03/2021 13:29:21 4 1
bbc
While technically it may be VED. The DVLA, government, police, councils, courts and general public refer to car tax.
63
12/03/2021 12:02:54 5 2
bbc
I've seen "Regulators" mentioned, who are they? Ex-, or would-be nsurance company emloyees/executives, without the power, (or will), to control the insurance mafia dealings, an insult to the ripped-off suckers who pay their wages. Try taking a case to the Ombudsman - total joke!
64
12/03/2021 12:04:32 4 1
bbc
I tried changing my mileage downwards on my policy as I had done only half my usual annual mileage.

It made not one bit of difference to the price, despite the significant reduction to my risk of accidents.
2
12/03/2021 10:38:37 154 4
bbc
And yet, even though I barely drove, even though I made no claims, my premium still increased in price.
65
12/03/2021 12:06:08 7 1
bbc
I tried changing my mileage downwards on my policy as I had done only half my usual annual mileage.

It made not one bit of difference to the price, despite the significant reduction to my risk of accidents.
66
12/03/2021 12:07:53 4 1
bbc
Does this mean our premiums will see a reduction in kind? Somehow I doubt it. Nice money spinner for the insurance companies.
67
12/03/2021 12:09:15 6 1
bbc
In Australia you insure the vehicle and not the driver, insurance is SIGNIFICANTLY cheaper there.
189
12/03/2021 15:29:16 0 1
bbc
That's not correct. Each state over there runs a compulsory insurance for TP liability, for the driver, you can't register the car without it. But it's for injury only, not property damage. So of course that's cheaper than here, otherwise it would be too good to be true. Nearly everyone here is Fully Comp, if that's cheaper there, fair enough, but it sounds like you're comparing apples and pears.
68
12/03/2021 12:07:34 4 2
bbc
When purchasing car insurance the should be a 14 day cooling off period by law as is the same for other purchases over the internet. why should insurance be any different. 'Some Insurances' Do provide this so it should be no problem for others.
99
12/03/2021 12:54:53 0 1
bbc
There is. . .
69
12/03/2021 12:08:44 5 1
bbc
so in theory insrance policy prices should drop. fat chance that happening.
73
12/03/2021 12:13:30 2 1
bbc
No chance, also should be able to get refund based on proposed and actual milage. No chance of that either. I declared 8000 this coming year. They were on to me asking lots of questions about this being too low. They really can't handle it being not in their court. Imagine it will go up though year on year still though. Rip off.
41
12/03/2021 11:28:37 9 1
bbc
The public have no protection from these rip-off insurers. The AA wanted a 28% hike for my renewal despite my car being virtually out of use for 12 months and insurers saving billions on claims.
70
12/03/2021 12:10:29 5 1
bbc
You need to swap every year. There are only a few insurers that will keep or lower your bill for being an existing customer. Maybe we should name and shame those insurance that always hike second year premiums ...
71
12/03/2021 12:11:21 6 5
bbc
Insurance companies are just legal theives. They take our money for something that is required by law, put it up each year for no reason and sometimes will charge more than what you pay for the car (I kept a quote for this) and then when it is written off pay out less than what the car is worth.

Not to mention they should really pay back some at the end of the year, its basically gambling
92
12/03/2021 12:44:23 4 1
bbc
What's your logic for them paying money back at the end of the year? The whole point of insurance is to cover you again occasional large claims in exchange for years when you don't claim.

Would you also agree to them asking you for thousands of pounds at the end of the year if you do have an accident?
135
12/03/2021 13:47:39 2 1
bbc
Motor insurance doesn't just cover the cost of repairing or replacing your car - most of the premium reflects the risk that you will damage other cars and/or injure or kill other people. These claims can be millions of pounds, regardless of what car you drive.

Therefore it is perfectly possible to have an insurance quote for more than the cost of the car.
61
ben
12/03/2021 11:58:06 4 1
bbc
Water is private and can’t even change supplier! Don’t expect insurance to be private soon
72
12/03/2021 12:12:31 1 3
bbc
It’s private already, but even in the highly unlikely circumstance that it was nationalised the last people to benefit would be car owners. Just imagine how much bunce could be creamed off by the suits from Serco led by the likes of Dido Harding. Because that’s how public services are increasingly being delivered. You only need to look closely at the fiasco that is test and trace, for guidance
69
12/03/2021 12:08:44 5 1
bbc
so in theory insrance policy prices should drop. fat chance that happening.
73
12/03/2021 12:13:30 2 1
bbc
No chance, also should be able to get refund based on proposed and actual milage. No chance of that either. I declared 8000 this coming year. They were on to me asking lots of questions about this being too low. They really can't handle it being not in their court. Imagine it will go up though year on year still though. Rip off.
15
12/03/2021 11:03:16 34 3
bbc
Conversely did home insurance claims rise during lockdown due to people staying at home ?
74
Ian
12/03/2021 12:13:59 1 1
bbc
Yes - one of the downsides of wfh
75
12/03/2021 12:14:05 4 1
bbc
GREAT NEWS!

Expect my premium will drop significantly next year then!!!!

Or will the Directors and Shareholders get bigger payouts????????

I am not Confused I am ............
57
12/03/2021 11:53:35 0 1
bbc
Wind down your mileage but be careful about extrapolating too much

You might have already missed the boat on this - I had a Feb renewal and even 9K down from 12K was a bit excessive as I was anticipating a lower amount of driving

We're just in the habit of not going places now - and it really will be hard to change that

But if you're not going abroad you might do +600 miles on a weeks UK hols
76
12/03/2021 12:15:00 1 1
bbc
When I was getting quotes, changing from 5k to 10k or vice versa made no difference at all to the price.
81
12/03/2021 12:27:15 0 1
bbc
In some cases, a driver who's doing 10K and regularly honing their driving skills might be safer than a driver who's only doing 2K and driving once a month. I'd expect by the time drivers get up to 5K there'd be some difference, however.
3
12/03/2021 10:39:59 10 35
bbc
Motor insurance companies make very little profit (if any) due to the competitive market place. So insurance premiums are as low as they can be
77
12/03/2021 12:15:53 1 1
bbc
More likely to be a result of the juicy commissions paid to the fixers than an overburden of competition
56
12/03/2021 11:53:20 7 1
bbc
I am in a similar situation - LV wanted 21.8% more for renewal.
78
12/03/2021 12:19:05 4 1
bbc
Mine just came in, up 10% on last year
112
12/03/2021 13:09:38 7 1
bbc
I told my insurance company that I wanted a full explanation of the price rise. They did not answer with a good response. Told them I would take my business to a rival company, but waited before doing it. 10 days before the policy expired the original company came back with an offer with discount £35. You have to PLAY the GAME - no customers means no profits, so threaten to leave - it works.
28
12/03/2021 11:10:07 41 3
bbc
Same. In my view if it's required by law to have insurance maybe it should be provided by the goverment. The private company will always look at way to make the service profitable. I'd prefer to pay £300 to the goverment and see some better infrastructure.
79
12/03/2021 12:22:27 3 1
bbc
In Australia third party insurance included with road taxes
46
12/03/2021 11:40:46 0 3
bbc
Companies kept 0.0p of furlough scheme. Every penny (plus) went to the employees.
80
12/03/2021 12:24:00 3 2
bbc
Well, we would know that if the Government published a list of the companies that claimed furlough and how many employees they have claimed for. However, they will probably never release this data, so we will never know if widespread fraud has occurred. I suspect there are a number of companies up and down the land there have claimed for people that continued to work...
128
Ber
12/03/2021 13:31:52 1 1
bbc
They do publish which companies claimed furlough, and a guidance on how much they claimed... https://www.gov.uk/government/publications/employers-who-have-claimed-through-the-coronavirus-job-retention-scheme
76
12/03/2021 12:15:00 1 1
bbc
When I was getting quotes, changing from 5k to 10k or vice versa made no difference at all to the price.
81
12/03/2021 12:27:15 0 1
bbc
In some cases, a driver who's doing 10K and regularly honing their driving skills might be safer than a driver who's only doing 2K and driving once a month. I'd expect by the time drivers get up to 5K there'd be some difference, however.
82
12/03/2021 12:28:10 2 1
bbc
A few years ago my then current car insurer quotes a renewal price higher than on a cost comparison site for the same car and cover. I complained and they reduced the premium accordingly. Every year I now check cost comparison sites and companies on non comparison sites for exactly the same mileage and cover. It pays to shop around every year and you may be surprised and the different quotations.
89
12/03/2021 12:39:54 8 2
bbc
Shouldnt have to shop around like this, or haggle, or change provider every year like this. The market is a scam especially for those that havent made claims for many years.
83
12/03/2021 12:31:09 3 1
bbc
My motorcycle renewal has just INCREASED by 12% despite it being sorned for the whole of 2020.
48
12/03/2021 11:46:39 3 2
bbc
Why can’t insurance companies just lower the rate they charge premiums always go up not down as soon there is a disaster up go the charges they never lower do they ????
84
12/03/2021 12:31:46 1 4
bbc
Except
Average premiums are lower than in 2018.
So much lower in real terms
https://www.moneysupermarket.com/car-insurance/price-comparison-index/
133
PHA
12/03/2021 13:41:56 1 1
bbc
Not really. Try comparing each quarter figures in 2018 and 2020. First 3 quarters show lower premiums in 2018 than in 2020.
85
12/03/2021 12:32:09 3 1
bbc
My insurance renewal had an increase in premium, 10%. the accompanying letter said that due to COVID there was a reduction in staff in the office, and therefore the quote was a final, non-negotiable amount..

not sure how that ties to increased costs.
209
12/03/2021 16:14:41 2 1
bbc
sounds like the insurance company is getting fed up with dealing with a bunch of calls every day of people saying their quotes are excessive.

if a company offered a fair price, there would be less negotiating, and they would likely save some money.
50
12/03/2021 11:48:23 3 1
bbc
My insurance again was extortionate for the last year. I haven't made a claim in over ten years, no points on my licence and have 20+ years of driving experience. As insurance companies have seen savings to the tune of 19% less claims surely they should be made to reimburse the drivers they are charging, particularly if their mantra is based upon the likely payouts for individuals based on risk?
86
12/03/2021 12:32:25 1 1
bbc
Similar mate. I don't know how young people and ones making multiple claims can keep a car on the road
87
12/03/2021 12:39:21 1 1
bbc
Don't worry, premiums will go up.
29
12/03/2021 11:22:37 10 2
bbc
I'm absolutely sick of this racket.

My latest renewal quote went up several hundred quid, same as every year. You have to move to see a saving.

You always have to call to cancel. That option is never online.

It's oligopoly price-fixing to catch out people who aren't on the ball, like working families or the elderly.

I hope one of these days we'll see a provider hauled across the coals.
88
12/03/2021 12:39:24 2 1
bbc
As a full time employee with children, I am unsure why this would prevent me obtaining a new insurance quote.
People will work for an hour to earn £14 but feel 10 minutes effort to save £50 is too much hassle.
106
12/03/2021 13:08:02 2 1
bbc
It's well known, particularly for the elderly, that people let their renewals slip occasionally. You then face a fee for cancellation, double insurance, blah blah.

It's obvious why they set this system up to be so obstructive.
82
12/03/2021 12:28:10 2 1
bbc
A few years ago my then current car insurer quotes a renewal price higher than on a cost comparison site for the same car and cover. I complained and they reduced the premium accordingly. Every year I now check cost comparison sites and companies on non comparison sites for exactly the same mileage and cover. It pays to shop around every year and you may be surprised and the different quotations.
89
12/03/2021 12:39:54 8 2
bbc
Shouldnt have to shop around like this, or haggle, or change provider every year like this. The market is a scam especially for those that havent made claims for many years.
90
12/03/2021 12:43:18 3 1
bbc
Of course premiums will go up.
91
12/03/2021 12:43:36 12 2
bbc
Just had my renewal through - it had jumped by 21%!!!!! When I questioned why, it was "your vehicle type is now seen as a higher risk" which is BS. When I voiced my displeasure, the quote was then dropped to within £10 of last years premium, and as a good will gesture they offered £20 as I'd only travelled 6K miles instead of 12K miles in the last 12 months. Absolute vultures!!!!!
125
12/03/2021 13:29:49 0 3
bbc
Why are you moaning? You got a good deal.
71
12/03/2021 12:11:21 6 5
bbc
Insurance companies are just legal theives. They take our money for something that is required by law, put it up each year for no reason and sometimes will charge more than what you pay for the car (I kept a quote for this) and then when it is written off pay out less than what the car is worth.

Not to mention they should really pay back some at the end of the year, its basically gambling
92
12/03/2021 12:44:23 4 1
bbc
What's your logic for them paying money back at the end of the year? The whole point of insurance is to cover you again occasional large claims in exchange for years when you don't claim.

Would you also agree to them asking you for thousands of pounds at the end of the year if you do have an accident?
52
ben
12/03/2021 11:42:08 3 7
bbc
Last year when we all got a 5 pound rebate!
93
12/03/2021 12:49:34 5 1
bbc
Not all got a £5 rebate. That was just your particular insurer.
94
12/03/2021 12:50:28 5 1
bbc
Until they make automatic renewal illegal premiums will continue to rise way above inflation as the insurer knows that for every customer that shops around there is another who just goes with the automatic renewal at the higher price. When you buy a 1 year policy it should be for 1 year only and not rolled over ad infinitum.
18
12/03/2021 11:11:11 31 1
bbc
I drove the grand total of 400 miles last year (with one fill of petrol since Feb 2020); I expect to have a big argument with my insurer if they don’t give me a reduced premium this year
95
12/03/2021 12:51:17 14 1
bbc
Good luck!

I tried changing my mileage downwards on my policy as I had done only half my usual annual mileage.

It made not one bit of difference to the price, despite the significant reduction to my risk of accidents.
96
12/03/2021 12:51:46 4 1
bbc
Who is surprised, they are insurance companies, all they care about is making money.
97
12/03/2021 12:52:50 4 3
bbc
"The ABI said that insurers had faced other costs when supporting customers."

Of course they did.

Was anyone actually naive enough to believe that the rise in insurance premiums was solely down to covering the costs of payouts and that once the levels of claims dropped that premiums would go down accordingly?
98
12/03/2021 12:53:51 1 4
bbc
The premiums of the many pay for the losses of the few - fundamental principle of insurance. One good year doesn't pay for multiple poor years People need to understand that uk motor is a small part of a global insurance market, which has paid huge amounts for the pandemic. Think how much delaying Olympics/cancelling all events let alone medical and life insurance losses... +10% is a good deal!
68
12/03/2021 12:07:34 4 2
bbc
When purchasing car insurance the should be a 14 day cooling off period by law as is the same for other purchases over the internet. why should insurance be any different. 'Some Insurances' Do provide this so it should be no problem for others.
99
12/03/2021 12:54:53 0 1
bbc
There is. . .
100
12/03/2021 13:01:23 3 2
bbc
19% v 1%
Just like the banks then with interests rates nothing is ever a two way street in this country