To think car insurance prices are insane and it’s unfair?

[WaterfallGlitter6]

I’ve had my license since I was 18 and I’m now 21 (22 next week). The insurance cost (£2,600 a year!!) for my Tiguan is insane even though I’ve never had an accident or claimed on my insurance at all. I understand that it’s higher because people my age are more likely to have accidents (I’ve never been involved in one and drive carefully) but for people who have never had to claim on their insurance and who drive carefully it’s unfair. I also understand it’s higher too because I have a Tiguan but I still think insurance prices are insanely high. AIBU to think car insurance prices are insane and it’s unfair?

No claims discounts are there to reward drivers who don’t have accidents so you must have a few years built up now? The area you live in will have a huge effect on prices too, not just your age. My insurance in south wales is pittance compared to when I lived in London.

What's the value of the Tiguan?

Premiums reflect the likelihood and cost of accidents. If you want cheaper get a different car and a black box. (18yo nephew got insurance for 2k the day after he passed his test.)

Get a car that’s cheaper to insure then?

Car insurance costs have been high for your age group at least since I learned to drive. With a no claims bonus it goes down quickly, depending on area.

Get a smaller cheaper car. And a black box. That should help a lot with the cost!

Unless an insurer was proved to be profiteering or illegally discriminating I don't think it is unfair

Other than actuarially how else could it be priced?

I do have a few years of no claim discount built up but my insurance cost is still insanely high and isn’t much lower than it was previously. In terms of where in the country, I’m in Blackpool.

I can’t get a smaller car unfortunately so that’s not an option.

It is v expensive, but all just based on statistics. There is no real way round it.

What insurance group is it?

Why not?

It’s a 67 (2017) plate Tiguan.

It's a big car with a young driver. How much insurance for you think you should pay?

I'm about £200 per year for mine, so I have to disagree. I'm in my 30s, small very average, basic car.

But I do agree for younger drivers the prices are high but it's based on the probability of having an accident and that value of the vehicle. Dreading when we need to pay it for ds in a few years.

Ironically the fines for driving without insurance can be much less than the actual cost of taking out insurance these days.

My insurance is with Churchill. The car is insurance group 21.

Well you’re driving a (possibly) 2L SUV at 21 years-old, of course your insurance is going to be high.
My partner was driving a 2L car with 360bhp at 21 and whinged about his insurance 😂 it’s a powerful car and you’re in “that” age bracket.
It will lower with age but would also lower if you got a smaller car with smaller engine.

I'm 44. I've just renewed my car insurance on a small kia picanto 2014.
Its gone down so I can't complain. Tax is only £20 per year as well.
My priority is getting on the housing ladder. The car just needs to be safe and clean for me.

Is it an newish expensive Tiguan or a cheap old one? Fast? Either way, you’ve only been driving for three years, it’s a big car and you’re young so yes, it’s going to be expensive. So many additional factors will affect the cost. Just do all you can to minimise what you pay (e.g. the tips from Martin Lewis). At 21 I made sure I drove something that was in a very low insurance group.

I’m middle aged, haven’t had any accidents or points for a good few years, and the insurance on my (20 year old, so cheap) powerful sports car is just £250 a year. Now that’s insane.

Buy a cheaper car. You can’t buy an expensive car and then complain it’s expensive to insure.

No, the car. Each car will belong to a 'group' - a numerical group from 1-50 - the higher the group number is, the more it usually costs to insure.

You are missing the point entirely by characterising this situation as “unfair”.

Insurance companies compete for business using an an analysis of risk. You are a young driver driving a big car, so they calculate the risk of you making a claim, and that claim being quite large, as high.

Thatnis why your insurance is expensive. Not fair, not unfair, just what the market will stand.

Insurance group relates to the car you drive. A small low powered car will be in a low group with lower premiums. The bigger more powerful and most commonly stolen cars are in higher insurance groups and have higher premiums. Its something you should be aware if next time you buy a car so that you can factor in insurance costs.

Blackpool will be the issue as well as your car - it’s a higher risk location.

It’s in insurance group 21.