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Has car insurance suddenly increased dramatically?

(15 Posts)
Sweetpotatoaddict Wed 17-May-17 14:24:12

We had an old banger of a car insured for £200 for past couple of years, with direct line. Circumstances changed and we no longer needed it, offered it to some friends, cancelled the insurance transferred ownership etc. Our circumstances have changed again and it could be useful, and they have got another car so offered us it back. ( this is all in the space of 6 weeks).
Called direct line to insure car last night and policy cost has doubled, 100% increase. Nothing has changed with the policy, the one we cancelled was taken out the middle of January. Has car insurance really doubled in 5 months? We have now found a quote with axa for £250, so at least we can afford to insure our banger......
Oddly enough I looked at a multi car policy with another company and the breakdown for both vehicles was the same cost, so 2 year old car is same price to insure as the banger!
Wise mumsnetters what's going on??

ChambourcyHippopotamousse Wed 17-May-17 14:35:26

Check that they input your No Claims Discount as this makes a huge difference. If they did and the premium was correct it could just be that Direct Line have re-evaluated their rates E.G. now a higher rate for your postcode/car/drivers. Insurers do this usually at least every 30 days.

Also, if you have been with them for a good while, they may try to keep the rates down at renewal to keep your business. It may be that they now class you as a new customer who must pay new business rates.

Sweetpotatoaddict Wed 17-May-17 14:41:07

We've still got our other car insured with them, it's nearly cheaper for us to cancel our policy with them and take out a multicar policy with another company. If we didn't have to pay £45 for cancelling the policy it would be cost effective!
Was curious to find out if the cost of car insurance has recently soared, or if an old car is seen as a liability. As the quote for the old one is £100 more than we pay for the 2 yr old car.

Newname20 Wed 17-May-17 14:46:14

You can take out the multicar policy without cancelling your other one, the second car gets added to the policy when that policy is up for renewal.

anonymousbird Wed 17-May-17 14:48:03

Yes, it has.

DH works in the business and they've had a really punitive ruling from the Ministry of Justice which turns on its head the way claims to injured parties are calculated. Problem is, it changes for everything as of now, despite the fact that they costed premiums on the past on the "old basis", so the old pot is not enough to cover the "new" way claims are calculated. Hence premiums are hiked massively to bridge the gap.

anonymousbird Wed 17-May-17 14:49:30

Here you go, probably expressed more clearly than my post, all to do with discount rates on lump sums:

Sweetpotatoaddict Wed 17-May-17 15:03:35

Thanks. I wondered if something had happened that had caused such a massive price rise. Some of it still doesn't make much sense but then insurance prices rarely do!

thatdearoctopus Wed 17-May-17 15:04:38

Yes, it has gone up but you can usually shop around and find something more reasonable.

Check that they input your No Claims Discount as this makes a huge difference.
Not if this is a second car. You can't use your NCD on more than one vehicle.

MackerelOfFact Wed 17-May-17 17:27:22

It's definitely worth using a comparison site and playing around with the options.

I usually find that adding older family members as named drivers (my mum and dad, who both have their own cars and have had licences for 35+ years) usually knocks about £100 off the price.

Likewise, playing around with your job title can knock off about £50 -obviously not by lying, but there are various possible combinations of descriptions for many roles.

It's also worth bearing in mind that, weirdly, sometimes fully comprehensive is cheaper than third party.

anonymousbird Wed 17-May-17 18:05:09

Definitely shop around, their pricing policies are often quite deliberately stacked for against a certain section of the population even when it seems illogical, they want certain types of risks and not others, so may make it ludicrously expensive so you won't take out a policy!

YesThisIsMe Wed 17-May-17 18:08:53

What anonymousbird said. And because it only affects the damage you do to other human beings, not damage done to your car, old bangers will show the damage more. All insurance companies will decide to deal with it differently so there's always scope to shop around for a better deal.

anonymousbird Wed 17-May-17 18:31:51

And obviously, you can chop off any extras such as guaranteed hire car, protected no claims (though think carefully about that one - I had someone run into me this year, didn't stop, so I had to claim on my insurance and thank god it was protected as I had 14 years totted up!).

MoreThanUs Wed 17-May-17 18:39:07

Older cars, conversely, get more expensive to insure as they are more likely to be written off (as cost of repair outweighs value of car).

Sweetpotatoaddict Wed 17-May-17 19:50:33

Tried all sorts of combinations, I'm the main driver of the newer large car have only 1 yr no claims and had a no fault claim last year. My husband was going to be named driver on the old car he's got 7 years no claims, is only 1 yr younger than me but he's more expensive....... It's bizarre. My parents also seem to have tipped over that magic age where instead of reducing your premiums they increase them instead.
Think we're now sorted with axa who we're paying a little more than the old policy but given what anonymous said it's an understandable amount.

elkegel Wed 17-May-17 19:54:58

My premium went up from about £320 to £450, but as I did have a minor bump this which was my fault and made a claim which cost them £500 I didn't think it was too bad.

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