Car insurance hike - is this just the norm now?

[Whateveryouwant1]

Ok I get it everything is going up and we're all paying more for everything but I got my car insurance renewal through and it's gone up by 50%!!
Im older, got years and years of driving experience and no claims, loyal customer with other policies with the same company. Nothing has changed, nothing apart from another years no claims.
Company will not budge AT ALL on the renewal price.
Anyone else seeing the same? Aibu to think insurance companies are just jumping on the bandwagon? 😖

The value of second hand cars has increased too, so the ‘value’ that they’re covering, even though it’s the same car, may have increased.

I’m in insurance…

A year ago your price would have reflected expected (at that time!) inflation of say 5%. But prices for your insurance company for each crash in the year they insured you then went up more like 15%. So insurance companies had an awful year last year. This year’s price reflects last year’s actual inflation and then expect inflation this year at say 10%. So you’ve been hit twice..,because repairing the same car in 2023 is expected to cost 30% more than it was expected to when you last renewed.

Phoned to cancel and they brought the price down considerably.

This is what I really don't understand. Whenever we question insurance price hikes, we're told that it's the result of a very sophisticated risk analysis and based on claim costs across the market.

Then, when you tell them you'll leave them, they can suddenly magically lop a big chunk off, just like that.

It makes them seem like they're very shady indeed as a company - no better than these nasty firms that prey on the elderly and disabled in their homes with the hard-sell, asking £8,000 for a high-tech mobility-friendly bed or armchair that actually costs £1,000 - but which, after a call to the boss, they can do you a super-special mega discount for 'just' £5,500, as long as you agree to sign up and pay instantly.

Yes, it's normal this year. All insurances have risen significantly - 20-50% seems to be common. As a PP noted, several underwriters in the car and home insurance markets have pulled out and withdrawn their products this year.

The best thing you can do is ring/visit a couple of good insurance brokers. Ditch the direct/comparison insurance websites if that's what you've been using - they're rarely good value.

Shop around. Friend was with Saga I think insurance who hiked the price. She shopped around, got a good price with someone else, far less than the renewal and its underwritten by Saga!!!!

You need to shop around. Some people change every year as there is no loyalty from insurance companies any more.

Just make sure that you check like for like and get exactly the same cover

Ours doubled in the renewals quote last week. Just accepting an offer tonight (y next job!) from another insurance company at the same rate we paid last year.

So no, not a done deal.

Mine went up 50% in the last few days. Went on to a well known meerkat site and got a quote from a household name for £100 cheaper. Loads of quotes from firms I had not heard of, but went for a well known name and was still cheaper. I would try the comparison sites. Its always worth checking.

Same for my DH car - could not get it lower priced despite intense shopping around

Some people change every year
I must be the only person here to use an insurance broker to do this automatically. They do a check for the best value policies, they hold my details on file, their fee is reasonable. They send me the reminder before my old policy expires and include at least two options - always the offer from the previous underwriter, and one from a different underwriter. They give an opinion as to which is best - sometimes the cheaper policy is poorer value based on the details.

DH's went up from £300 to £480. Special pretty rare sports car. He checked prices on comparison site before ringing up but they would only drop it £30.
Got it for £130 through Saga.

I shop around every single year - I've always managed to get it cheaper elsewhere.

"Rare" and "sports car" both indicate he would be better going to a specialist rather than a comparison site. The owners club for the make/model of car will have a list of specialists that will almost certainly be much cheaper than a meerkat with a stuffed toy. Footman James and Lancaster are both worth a try.

Mine went up by about 30% i did an online search with with compare the mearcat and found a cheaper option then called my insurance company and negotiated a better price.

Mine is due for renewal and the offer price is £100 up on last year, from £250 to £350.

Also mid fifties, clean driving license, not a sporty car at all.

Off to investigate Saga price...

I had this so swapped my insurance provider cut the cost of it by more than half for same level of cover with a company that I trust. I wasn't going to spend almost a grand on my car insurance when I've been driving over 20 years and never made a claim.

...and it's £50 more with Saga...

I renewed last month and it went up by £170 😱, have had no claims and nothing has changed. The person on the phone's reasoning was that it's the cost of living crisis, which baffled me a bit tbh. They know we have to pay it so they can pretty much hold us to ransom, it's very unfair. (Comparison sites didn't make it reduce enough to make it worth my whole going to the hassle of changing and I think they know that too! )

Loyalty doesn't pay with car insurance! I used 3 comparison websites and it was £40 more
Went via Quidco and got £40 cash back so same price as last year

How come we're told the 'reasons' for the hikes, which sound like factors that would surely affect the whole industry/company - cost of living, number and cost of claims gone up, increase in value of second-hand cars etc. - but then there appear to be some companies that are somehow not affected by any of these, and they can thus afford to massively undercut all of those that obviously are?

They're not trying it on, their costs have risen massively, as another PP said, parts shortages, costs of labour, costs of second hand cars, having to have a replacement car for longer etc is all contributing. If some insurers were ripping everyone off then there would be some that remain much cheaper on comparison sites but they're all struggling on motor insurance at the moment

Yes, just this week, with the same insurance company for nearly 20 years and was paying £370, quoted £580, told them we found better quotes on compare the market but they could only reduce quote by £70. Have left and gone with a quote for £390. Check online on a comparison website for a better quote.

I get that, I know the market forces have been challenging for them too - but then how come other companies can undercut them so significantly? Are the latter companies going to go under before long, if they've been charging unsustainable prices?

...That was in response to my Ted-friend DrinkFeckArseBrick!

Renewal quote was a 40% on last year so shopped around and actually got policy for £6 more than last year.