2024 Insurance Costs

[Foxsbiscuits]

lack of regulation for something that is compulsory

100%
Show me the claims data at least, otherwise it's cigarette packet maths and we're paying for their expensive work lunches/bonuses.
One theory I have is that it's all the people leasing cars so it isn't just fixing an old banger after a crash, it's a brand new 70k SUV.

 

[spdpsba]

Wow!

Now that is a game changing cost reduction.

and (-)is missing but you never know Elon may do that too.

 

[Durzel]

People go on about being gouged by insurance, also without insight into the data.

I’m not a fan of high insurance premiums - obviously - but it is self-evident that insurance is a very competitive industry with a lot of players. If they’re all ripping us off, then all it would take would be a disruptive newcomer to the market offering policies for £hundreds less to clean up. They’d quickly have more business than they could cope with.

The only argument that works to explain artificially high pricing is that the insurance industry is a cartel. I find that hard to believe also, because of the aforementioned disrupter potential.

So yeah, I’m inclined to believe that insurance premiums are what they are because claims costs have gone up dramatically across the market, and premiums are a function of these total costs.

The insurance industry needs regulation for sure. Every time I hear about someone reporting a claim to their insurer they say they’re being punted off to an accident management company (why isn’t this the insurer themselves?) who are no doubt giving the insurer a kickback while they charge an exorbitant hire car rate to the third party insurer. Insurance claims seem to be treated as an opportunity for one insurer to exploit another, with the customer an afterthought.

 

[Foxsbiscuits]

People go on about being gouged by insurance, also without insight into the data.

I’m not a fan of high insurance premiums - obviously - but it is self-evident that insurance is a very competitive industry with a lot of players. If they’re all ripping us off, then all it would take would be a disruptive newcomer to the market offering policies for £hundreds less to clean up. They’d quickly have more business than they could cope with.

The only argument that works to explain artificially high pricing is that the insurance industry is a cartel. I find that hard to believe also, because of the aforementioned disrupter potential.

So yeah, I’m inclined to believe that insurance premiums are what they are because claims costs have gone up dramatically across the market, and premiums are a function of these total costs.

The insurance industry needs regulation for sure. Every time I hear about someone reporting a claim to their insurer they say they’re being punted off to an accident management company (why isn’t this the insurer themselves?) who are no doubt giving the insurer a kickback while they charge an exorbitant hire car rate to the third party insurer. Insurance claims seem to be treated as an opportunity for one insurer to exploit another, with the customer an afterthought.

I mostly agree with your post, especially the kickbacks and inflating claims because that profits all businesses involved. However I think it's more of a cartel/monopoly.

It's near impossible to be a disruptor because of the size of the pre existing big fish. You'd need a huge amount of capital to challenge the main handful of players and even then once you disrupt and take on a lot of risk you'll need reinsurance to cover yourself which, surprise surprise, is back to the main players who will just gouge the disruptor on rates at this stage. A lot of seeming "disruptors" are just the existing players with a pretty face, a better salesteam for the same underwriters. There's no such thing as a free market in operation, it's a bunch of old rich white men patting each other on the back.

I worked in it for ten years, it's not even that it's some nasty place to work, it's comfortable and once you're in your're in, you could F-up royally and just move sideways. But ultimately an insurance company prioritises profit, not the customer.

Lloyd's tried being progressive briefly with a woman running the show, she lasted all of five minutes. It's an old boy's club and they want to keep the trophies on the wall and the coffers full.

 

[kelvin 660]

FYI - Just checked my Churchill Comprehensive Plus and it does include 90 days EU comprehensive cover and not just third party cover.

 

[Js1977]

The only argument that works to explain artificially high pricing is that the insurance industry is a cartel

Think about it more of smoke and mirrors. There aren't as many insurance companies out there as people are lead to believe.

Its a bit of a spiders web once you dig in... some examples:

Subsidiary companies | Admiral Group Plc

The Investor Relations website contains information about Admiral Group Plc's business for stockholders, potential investors, and financial analysts.

www.admiralgroup.co.uk

U K Insurance - Group Companies

www.u-k-insurance.co.uk

Our organisation

Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz Group, the largest property and casualty insurer in the world.

www.allianz.co.uk

Companies of First Central Group | First Central Insurance & Technology Group

First Central Group is a holding company that has a number of subsidiaries. Find out more about them here.

www.firstcentralgroup.com

 

[yessuz]

@Hurricane you seems to disagree with my comment regarding third party only on EU insurance

Care to elaborate?

 

[yessuz]

FYI - Just checked my Churchill Comprehensive Plus and it does include 90 days EU comprehensive cover and not just third party cover.

View attachment 1008500

Yes, probably few more expensive policies cover it as well. But when it costs like 400 pounds more than the one with third party only (with very ambiguous wording) then mot sure how to look at it

 

[Foxsbiscuits]

Yes, probably few more expensive policies cover it as well. But when it costs like 400 pounds more than the one with third party only (with very ambiguous wording) then mot sure how to look at it

Yes. The price is simply built in. I think that's the same for AB, some policies already price for the max the car can do and won't charge extra if you declare AB because they've already charged you extra. (IMO)

 

[kelvin 660]

Yes, probably few more expensive policies cover it as well. But when it costs like 400 pounds more than the one with third party only (with very ambiguous wording) then mot sure how to look at it

Just to say my insurance cost £420 for my SR+, so not that expensive really!

 

[Foxsbiscuits]

Just to say my insurance cost £420 for my SR+, so not that expensive really!

Hmm. Without asking for personal details it's hard to know why yours comes in at half some of the other quotes.

I can only imagine 100 years no claims, kept in an underground bunker each night, and only used for supermarket trips

 

[Js1977]

Hmm. Without asking for personal details it's hard to know why yours comes in at half some of the other quotes.

I can only imagine 100 years no claims, kept in an underground bunker each night, and only used for supermarket trips

Defo not just for supermarket trips as that would make it uninsurable....Chances are that he put himself down a bed ridden for occupation

 

[Skie]

Not due for a few months but had a check and best quote was £666

 

[Js1977]

Not due for a few months but had a check and best quote was £666

Your money and your soul

 

[Whyone]

Hmm. Without asking for personal details it's hard to know why yours comes in at half some of the other quotes.

I can only imagine 100 years no claims, kept in an underground bunker each night, and only used for supermarket trips

Insurance for my 2022 M3 LR is a similar price with Direct Line - safe post code, no accidents / convictions in last 5 years, car kept on drive, 10 years+ NCB, 8k miles a year, SDP only, SWMBO a named driver (also no accident / convictions)

 

[MrBadger]

Lots of people mentioning more than 9 years NCD.

If thinking about changing insurers and putting >9 years in quote, make sure that your existing insurer will give you proof of >9 years. Many insurers cap NCD at a limit, so when you go to get proof you may find that the proof is not what you were expecting.

I got caught out, with DL and another insurer only providing 9 years proof, even though I would have had 30yr or so.

Whilst NCD is diminishing returns, the difference between >20 years that I was quoted on and 9 years that I got proof on was >£70.

Thankfully I was able to raise the issue with new insurers and after a bit of a fight (that I argued on a technicality due to a descrepancy in their paperwork) got the difference refunded, but I have no idea even now what my provable NCD will be if I ever move on. That particular insurer has a max 15 years NCD.

You can get an idea if it’s likely to be an issue by how the insurer describes their NCD limit. iirc DL describe max NCD as 9 years, which seems to be exactly what they passed on to my previous insurers (I wasn’t aware of this at the time so never queried it), who also had a max 9 years. Hence ending up with proof of only 9 years and losing >20 years of NCB.

 

[Roger20]

I think many of us are in the same position. I have over 30 years without a claim but it's probably capped at 9 years now. LV= used to limit any discount to 9 years anyway so if other insurers aren't recognising anything beyond that it's probably academic nowadays.

Insurance nowadays is just a complete nonsense with no logic whatsoever to the way premiums are generated - you just have to play the game every year. Very tedious

 

[MrBadger]

Where I fell found cost wise is that my new insurer did iirc 15 years, so when I could only officially prove 9 years I was effectively on 2/3 of max NCD in their eyes, hence the £70+ bump (that I later got refunded).

It’s not an edge case. It could for example affect anyone moving from DL to Admiral.

 

[Pink Duck]

MoneySuperMarket NCD lookup reports:

• QuoteDetective = 15 years (15%)
• GoGirl/Insure2Drive = 17 years (17%)
• Sterling = 20 years (70%)
• AXA = 20 years (variable % max discount)
• The AA = 29 years (29%)

Fun fact: With 21 years NCD Sterling quoted me £1,555.69 last time around - vs £404 with Churchill (£717.77 DL, £497 Admiral)

Half of the insurers just check the MID database to verify what you have picked.

 

[Jonnymack74]

Pretty sure it was a tongue in cheek comment but it will happen as it already does and always has done.

Ive seen some fluctuations in my time but nothing as extreme as this and the lack of regulation for something that is compulsory and affects every driver out there will exacerbate the issue... Im sure the extra tax revenue will go a long way towards backing up the post office instead

It's robbery is what its is..and we all sit there and take it instead of refusing to pay..if we all refused renewals and got the bus/train for a few weeks most of these insurance firms would go under and the rest would soon fall into line and provide acceptable prices