Rich_P Posted March 25, 2009 Share Posted March 25, 2009 I've been getting some quotations today for the 2A 88. It appears that insurance rates have increased considerably in the past twelve months. A year ago I got quotations of the following from these two companies: NFU: £1,400 fully comprehensive, NFU: £1,100 third party fire and theft, Footman James: £1,200 fully comprehensive, Footman James: £670 third party fire and theft. Nearly twelve months on, these are the quotes I got from them this time: NFU: £1,900 fully comprehensive, NFU: £1,400 third party fire and theft, Footman James: £1,600 fully comprehensive Footman James: £830 third party fire and theft. These are just a couple of examples of the increase in insurance premiums I'm faced with. What baffles me is that, I am a year older and have another year's driving experience, and I have had no claims/incidents nor are there any DVLA conditions on my licence. I also have Pass Plus, and I'm coming up to 20 years of age, yet the rates are going up! I am aware that my postcode is listed as one of the highest risk postcodes in the UK, but it has been like that since before I started driving three years ago. So why are my premiums going through the roof? At a guess, is it a possibility that the insurance rates are interlinked with the banks and the country's complete collapse of its financial system? Quote Link to comment Share on other sites More sharing options...
geoffbeaumont Posted March 25, 2009 Share Posted March 25, 2009 I think (others on here could probably tell you for sure) that insurance companies make most of their money from investing the premiums - ie. their business model in the past has been to cover their costs with the premiums, the profit coming from investing the money while they hold it. With the current state of the financial markets this probably isn't working very well! Quote Link to comment Share on other sites More sharing options...
simonr Posted March 25, 2009 Share Posted March 25, 2009 There is also the fact that in hard economic times, the number of fraudulent claims increases. This is evidenced by the increased differential between 3rd party and comprehensive premiums. Si Quote Link to comment Share on other sites More sharing options...
TJ101 Posted March 25, 2009 Share Posted March 25, 2009 Yep, its all on the increase,, Just doing mine now Been with Norwich Union for a good few years, maybe 12 ,, Normally my premiums has been around the £7500-£8000, for the last 3/4 years !! This time the renewal is £9600, and they ain't budging, as yet !!! no change in circumstances !! They are quoting all the reasons that Geoff ans Si mention above, plus the fact, they recon its been too cheap for years etc, and want to get the proper market price !!! Quote Link to comment Share on other sites More sharing options...
nathan Posted March 25, 2009 Share Posted March 25, 2009 Insured my lightly nodded non LR 4x4 last Friday. TPFT £368 with A. Flux Tried an online quote with Frank Pickles and thay came back with £131 for the same cover. Frank Pickles Insurance Went back to A. Flux and after providing evidence of the F Pickles quote they have insured me for £122 It pays to shop around. Quote Link to comment Share on other sites More sharing options...
simonr Posted March 26, 2009 Share Posted March 26, 2009 They are quoting all the reasons that Geoff ans Si mention above, plus the fact, they recon its been too cheap for years etc, and want to get the proper market price !!! There is actually some truth in that. Contrary to popular belief, motor delivers the lowest return (highest loss ratio) of virtually all types of insurance. Premiums would have to rise significantly to bring in similar returns to other insurance types. Previously there has been a lot of competition previously which has kept premiums down. Now many of the underwriters are in trouble and they just cannot afford the low returns. They are trying to shed the bad risk - or at least make it a better risk - by increasing premiums. This is very similar to what has happened in the mortgage market. I think we'll see an increasing difference between the cheapest and most expensive policies. Persuading the insurance company that you are a low risk is going to become more important than what other companies are offering. If you are a poor risk, your insurer may be glad to be shot of you. Si Quote Link to comment Share on other sites More sharing options...
disco tony Posted March 26, 2009 Share Posted March 26, 2009 just insured my new disco for £189 comp. online quotes, cheapest was approx £230 Was insured with e-sure on an Audi, they wouldn't even swap cover and want £50 to cancel policy!!! scagging BA"£%^DS. try Glynwood insurance. Quote Link to comment Share on other sites More sharing options...
disco_al Posted March 26, 2009 Share Posted March 26, 2009 mine seems to have stayed the same this year at £230 f/c for the disco. Norwich Union quoted in the well unhappy territory - £960 fully comp for the same vehicle!!! Must be something to do with paying Bruce Willis and co to do the fancy ads..... Quote Link to comment Share on other sites More sharing options...
PaulMc Posted March 26, 2009 Share Posted March 26, 2009 Norwich Union quoted in the well unhappy territory - £960 fully comp for the same vehicle!!!Must be something to do with paying Bruce Willis and co to do the fancy ads..... All that pointless corporate rebranding nonsense costs money - and it's the punter that's paying for it They should have changed their name to - Robin B'Stard & Co. Quote Link to comment Share on other sites More sharing options...
Rich_P Posted March 27, 2009 Author Share Posted March 27, 2009 All that pointless corporate rebranding nonsense costs money Might be because it's fun to hear a certain "ethnic minority" try to say Norwich Union. Sometimes comes out like Norweee Yewnon. Quote Link to comment Share on other sites More sharing options...
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