-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
2024 Insurance Costs
- Thread starter yessuz
- Start date
I used to run a reasonably large consumer facing business (film processing before digital cameras arrived!) and some years we would decide our costs had gone up so we wanted to raise prices. We would raise the prices a little but then lose a sufficient number of customers that negated the price rise and forced us to put our prices back down again. From what I am reading about Tesla owners switching to Admiral, I have a feeling DL will realise their mistake sooner rather than later. They may be thinking "we put our prices up, our profits go up" but if they lose enough customers that is no longer true.
Gosh I love capitalism!
Agreed but we're not looking at 5% price increases to cover costs. We're talking premiums doubling, not only vs. last year, but also vs. main competitors. This isn't profit-growth pricing. The way they're doing it, is go-away pricing for basically anyone who owns a Tesla.
They're quoting me 3k vs 1k at Admiral. I interpret this at 'we're not straight up declining to insure you, but if you do take us up on this offer, you're the kind of idiot customer we'd like to keep anyway'.
Same with insurers offering 10k annual premiums for Range Rovers in Central London...
Last edited:
it reminds me of those booking.com hotel prices, when it is like 2k for the shitty basic room. it's like: well, we are fully booked, but if you REALLY want to stay with us, then we will charge you through the nose and we will put someone else to better hotel for the fraction you pay
To me - doubling the price means we don't want your business.
Insurance is a simple profit/loss really under the covers - you want people paying the most money possible but claiming the least. You attract the right drivers to build what they call "the book" by manipulation of prices while at the same time trying to not lose your existing "good" customers.
The data analysts look at what type of customers are claiming the least - that could be a data point of car type, job description, age, whatever - they propose that to the pricing manager that by making it a bit less for those people they can get another X% of them on the books.
Insurance is a simple profit/loss really under the covers - you want people paying the most money possible but claiming the least. You attract the right drivers to build what they call "the book" by manipulation of prices while at the same time trying to not lose your existing "good" customers.
The data analysts look at what type of customers are claiming the least - that could be a data point of car type, job description, age, whatever - they propose that to the pricing manager that by making it a bit less for those people they can get another X% of them on the books.
I am currently going through the process of getting prices and one of the features thrown up is that some (NFU / AVIVA / AXA / LV / Adrian Flux) will not insure me with an electric car because I am over 75 (I am 76) i.e. they would offer me a price if I was driving an ICE car but not an electric car . . . . why?
Why am I a higher risk in an electric car (any electric car)?
Why am I a higher risk in an electric car (any electric car)?
Pink Duck
Active Member
I called NFU last year and they just basically admitted they were not taking on any new Tesla policies but honouring existing.
Likely a statistical factor showing higher chance of collision/claim/cost for >75 combined with high enough repair cost up-lift for EVs over ICE.
I had a fun call with Adrian Flux the year before that where the final quote was over £4,300 (and I’m under 75).
Likely a statistical factor showing higher chance of collision/claim/cost for >75 combined with high enough repair cost up-lift for EVs over ICE.
I had a fun call with Adrian Flux the year before that where the final quote was over £4,300 (and I’m under 75).
Jason71
Well-Known Member
OR
Admiral will realise that they are the only game in town and will also raise their prices.?
also
I am not sure if this is the case with insurance but if you have too many of the same type of car and then there is a problem e.g. someone suddenly works out an easy way to steal them then you are rather exposed so a bit like a bookie with too many bets on the same horse might would they want to raise prices to mitigate that risk by either bringing in more revenue or keeping it the same on less cars?
And that's fine when it's a single company doing it for an identified risk profile imbalance, which isn't necessarily the same target group as their competitors.
But when all large insurance companies do it simultaneously, all across the board, then, as you are forced to have insurance in this country, then it becomes extorsion...
After all, the insurance business is, to my knowledge, the only industry where you are perfectly allowed to discriminate by genre, address, origin, age, etc....
I don't think that is what is evidenced here so far in the thread - there's a clear indication that Admiral seem to be looking to grow their Tesla numbers - or at least based on the feedback of them showing as the most competitive price wise in a lot of cases. Admiral I would consider a big insurance company personally...
They may be offering the most competitive quote, but in my case that's still a 40% increase over last year for no reason...
Which is interesting because I was with Admiral in 2022 as they were cheapest by far. Their quote for 2023 was nothing short of laughable at double the previous year, so I moved to Churchill. For 2024 Admiral are once again the cheapest for me by a long shot, so I switched back...
Car insurance is all smoke & mirrors.
Jason71
Well-Known Member
Pink Duck
Active Member
Admiral refused to erase my data within the insurance industry under GDPR right to be forgotten, similar to financial.
Yes, UKI are owned by Direct Line (group) - that's the company in trouble and possibly have too much exposure to Tesla vehicles. All the DL company brands would be affected - DL, Churchill, Privilege.
Jason71
Well-Known Member
I thought it might be except insurers are not legally allowed to use gender as a factor in calculating car insurance premiums.bad autocorrect for gender
From today's FT:
The chief executive of FTSE 100 group Admiral, one of the biggest UK car insurers, said its motor insurance prices had peaked, signalling the end of a surge in premiums across the industry that sent the cost of cover to a record high.
Car insurance prices have soared in recent years, reaching an all-time high last year according to one industry index, as insurers tried to reprice their policies to absorb spiralling inflation in the cost of claims that created the worst underwriting conditions in a decade.
Milena Mondini de Focatiis told the Financial Times on Thursday that price rises had, for now, caught up with inflationary trends.
“There was a lot to recover but I think we are in a very different situation now,” she said. Admiral had even put through a “small price decrease” in the past few months as it sought to win more business.
“We remain vigilant . . . but at this moment we are not increasing prices and we are very committed to trying to be competitive.” The sector should “try to limit price increases” as much as possible to take pressure off customers, she said.
Admiral posted group pre-tax profits of £443mn for 2023, up almost a quarter on rising car insurance premiums but below analysts’ expectations. Its group combined ratio — a key measure of underwriting profit that shows claims and costs as a proportion of premiums — improved by 8 percentage points to 88.7 per cent. Anything below 100 per cent represents a profit.
The insurer’s motor customer numbers ended the year flat having shrunk earlier in the period as it sought to be disciplined on price at a time of rapid inflation in costs. Admiral’s share price was unchanged in early trading on Thursday.
The chief executive of FTSE 100 group Admiral, one of the biggest UK car insurers, said its motor insurance prices had peaked, signalling the end of a surge in premiums across the industry that sent the cost of cover to a record high.
Car insurance prices have soared in recent years, reaching an all-time high last year according to one industry index, as insurers tried to reprice their policies to absorb spiralling inflation in the cost of claims that created the worst underwriting conditions in a decade.
Milena Mondini de Focatiis told the Financial Times on Thursday that price rises had, for now, caught up with inflationary trends.
“There was a lot to recover but I think we are in a very different situation now,” she said. Admiral had even put through a “small price decrease” in the past few months as it sought to win more business.
“We remain vigilant . . . but at this moment we are not increasing prices and we are very committed to trying to be competitive.” The sector should “try to limit price increases” as much as possible to take pressure off customers, she said.
Admiral posted group pre-tax profits of £443mn for 2023, up almost a quarter on rising car insurance premiums but below analysts’ expectations. Its group combined ratio — a key measure of underwriting profit that shows claims and costs as a proportion of premiums — improved by 8 percentage points to 88.7 per cent. Anything below 100 per cent represents a profit.
The insurer’s motor customer numbers ended the year flat having shrunk earlier in the period as it sought to be disciplined on price at a time of rapid inflation in costs. Admiral’s share price was unchanged in early trading on Thursday.
Similar threads
