Car Insurance Prices - What the hell is going on!!!

[JoshB]

Just been looking at getting an new Saxo and thought I'd get a VTR to run round in, slowly tweaking the chassis while I do a monster engine build.

Best quote I could get was £500 TPFT!!! I'm 26 with 2 years no claims, no accidents (company car driver), 3 points and a good post code.

I remember looking a couple of years ago and I was getting quotes for £320, no wonder people dont bother with insurance these days.

Did a quick quote for a VTS and that came back £600!!! Might as well get one, could always sell the stock engine after then as well.

Why have insurance prices rocketed in the last 2 years?

[Proffitt]

Why have insurance prices rocketed in the last 2 years?

More and more people driving without insurance / crashing / getting points / claiming / getting caught with un-declared mods etc etc.

[SAM-S44MDS-]

More and more people driving without insurance / crashing / getting points / claiming / getting caught with un-declared mods etc etc.

The cold/icy winter last year didn't help, alot of crashes in that which put insurance up :n:

[shannon-ob]

wait for the winter weather to go, insurance prices should calm down a bit more.

[Proffitt]

The cold/icy winter last year didn't help, alot of crashes in that which put insurance up :n:

And i reckon it will be colder / icy-er (sp lol) this winter which in turn will bump up insurance for next year as well :homme:

[SAM-S44MDS-]

And i reckon it will be colder / icy-er (sp lol) this winter which in turn will bump up insurance for next year as well :homme:

icy-er lol :clapping:

I think it will be aswell, hopefully not though, can't be assed with it but when I went out to recover the saxo about 11 and there was a little bit of ice already down :n:

[BazzaC]

Another big reason is due to the fact that everytime now when someone has a claim, magically they have whiplash.

Personal injury claims are paying out lots and lots from the motor insurance pool every year and the only way to get money back into that pool in order for there to be a big enough reserve is to up premiums.

Sucks I know, but unfortunately, thats the way it is. Feel sorry for the 17 year old who cant get a quote cheaper than £1.5k on a clapped out 1.0.

[DAN_ADRIANFLUX]

Just been looking at getting an new Saxo and thought I'd get a VTR to run round in, slowly tweaking the chassis while I do a monster engine build.

Best quote I could get was £500 TPFT!!! I'm 26 with 2 years no claims, no accidents (company car driver), 3 points and a good post code.

I remember looking a couple of years ago and I was getting quotes for £320, no wonder people dont bother with insurance these days.

Did a quick quote for a VTS and that came back £600!!! Might as well get one, could always sell the stock engine after then as well.

Why have insurance prices rocketed in the last 2 years?





Hiya,

Thanks for the thread and it has become a common topic, not just on forums, as to why Motor insurance premiums have risen sharply recently.

There are a whole host of reasons as to why insurers have had to make these increases and we'll attempt to explain some of the more obvious ones:-

- The rise of an increase in fraud by ‘crash-for-cash’ opportunists.

There have been numerous documentaries concerning criminal gangs and even just unscrupulous individuals 'staging' false personal injury claims. There are certain areas of the UK where statistics have shown this to be more prevalent but the knock-on effect is that if insurance companies pay-out huge sums the cost will inevitably be passed-on to every driver.

Sources show that Insurance companies have been paying out £123 in claims for every £100 taken in premiums over the last ten years, a situation which is ‘unsustainable’.

- Everyone is aware of the UK's burgeoning 'Claims/compensation Culture' where you are actively encouraged to sue, regardless of whether you sustain an injury or not.

AA sources show: ‘Personal injury claim rates in Britain are four times those of any other European country – yet we have fewer accidents. ‘Either we have excessively weak necks or respond to the lawyers who encourage to claim for Personal Injury, Hire cars, loss of earnings etc, etc.'

Kelly Ostler-Coyle of the Association of British Insurers said: "Personal injury claims are increasing and legal costs for insurance firms are expensive.

"More and more people are claiming for minor injuries such as whiplash, which adds to the problem. For every £1 paid out in compensation there's another 40p for the lawyers.

- Fronted 'Risks.' Middle-aged parents who include their offspring under their own cover are part of the reason the average cost of comprehensive cover has risen in the last year. But putting a 19-year-old son on to an insurance policy for a three-year-old Ford Fiesta could cost a mother an extra £1,000 a year. We have long been aware of these 'fronted' cases and as a rule wouldn't cover anyone under 25 years old on another's policy.

- 'Uninsured Drivers' - Additionally, £30 of a typical premium is thought to cover the costs of crashes involving the UK's 1.6 million uninsured drivers.

Prior to these increases the insurance market was thought to have been 'soft' or premiums kept to an artifically low level, while companies expanded and investments gained. With a downturn in the world economy companies can no longer rely on this.

All of the above all adds up to an increase in premiums. Please bare in mind Flux are an intermediary and all of the above are opinions reflected by a source of insurers.

We will of course endeavour to search our panel of 40 insurers to obtain members competitive insurance rates.

Thanks
Dan

[JoshB]

Great read Dan, thanks very much for all the replies guys.

I was just shocked in how I was getting quotes for nearly £200 more and i'm 2 years older and have 2 years no claims!

Might get a furio then!!!

[chinkostu]

Another big reason is due to the fact that everytime now when someone has a claim, magically they have whiplash.

Personal injury claims are paying out lots and lots from the motor insurance pool every year and the only way to get money back into that pool in order for there to be a big enough reserve is to up premiums.

Sucks I know, but unfortunately, thats the way it is. Feel sorry for the 17 year old who cant get a quote cheaper than £1.5k on a clapped out 1.0.

I paid £1600 for a 1.3 fezzy when i started. still this side of a grand, but thats my own fault

[chuckie01_4]

im looking to renew my insurance my flux quote come back at £1232 i didnt even pay that for my first year of driving. ive had one crash my fault. 23yrsold 2yrs no claims and mum on the policy just to help

this is not fronted I AM THE POLICY HOLDER.

just incase

[JoshB]

^ Thats daylight robbery.

In my second year of driving at 18 I insured an Escort RS 2000 for £1300 TPFT

Prices are just insane.

[DannyVTS]

shop around man its only a renewal

a high renewal is usually a way of the insurance company saying we dont want to insure people like you anymore

[JoshB]

Its not a renewal, I'm looking at getting another car.

And believe me, I am shopping around! Seriously tempted with a Furio

EDIT: Scratch that, just done a quick quote on confused.com and its coming out £12 a year less than a VTR..... pointless.