If you have recently renewed your car insurance you’ll be aware there has been a significant increase (probably).
I was doing the usual prudent online checks as my insurance is up for renewal, as the company I’m with have increased my premium this year by almost 10% even though I still have full no claims discount.
However, while doing the online comparisons I found some amazing results, using the exact same information for all there was massive differences in cost & cover.
I didn’t find a cheaper quote for my renewal but the range of increases were anywhere from 10% – 155%, yes you read that correctly 155% (over three times the cost, of my current quote)
How in the world can insurance companies justify this massive difference?
Well apparently, there is more than 150,000 uninsured cars on the roads this figure has doubled in the last five years, but this is a catch 22 situation with the rising costs of insurance people may be taking the chance on no insurance because they just can’t afford it. (I can see why, but do not condone this)
Here are some more factors combining to cause these increases, including;
- Previously low levels of premium resulting in poor returns for Insurers
- The knock on effect of insurer collapses and impact on the Insurance Compensation Fund
- Capital strengthening requirements faced by Insurers
- Increased Fraud
- Increased legal costs and court awards
- Lower investment returns experienced by Insurers
- Increased cost of regulation
- Higher incidents of accidents/claims with increasing traffic
How can I find out why my insurance has increased?
Insurers will soon be required to explain to drivers why their car insurance premiums have increased. Cost of Insurance Working Group a special government working group set up to examine the high cost of car insurance premiums.
It will focus several key areas, such as improving data availability reducing the costs in the claims process, with a view to bringing down high car premium costs for consumers.
I guess only time will tell whether this will work and or whether the cost of this group & report will be passed on to the consumer and or the tax payer.
Have you recently renewed? Did your insurance increase? By how much?
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