55% increase in car insurance premium

Update: I managed to reduce the initial proposed insurance premium by £50. When I first complained they offered a £25 reduction. However, I decided to go online and it was even cheaper with the same insurance company! So overall, I've still had to pay a 38% increase, which I still think is way over the odds, but it's better than their original quote.

Moral of the story - always do a price comparison and always obtain an online quote from your current insurer because it may be cheaper than their initial offer for renewing with them.

Just read an article in Martin Lewis circular which said three insurance companies were repaying £30 million to some customers who have been overcharged since 2021. Apparently this error came about when existing customers were charged more for renewal than they would have been as a new customer with the same requirements. Frightened to list the companies as I may have remembered wrongly but one was definitely Direct Line and I am with them. Fingers crossed!

Husband was hit from behind last year and had his car repaired by a repairers arranged by his insurers. When he came to renewing his insurance he had to find out how much the repairs had cost - £11,750! It was a broken bumper, some minor scratches and no mechanical damage. Even at half that price it would have been a rip off. Insurers are raising their prices to cover their costs because repairers are overcharging.

Thank you for the info Monica, much appreciated.

I must have been prescient. There is a long article in the i today on the rise in car insurance.

While it is not all approval it points out that Brexit has caused supply chain issues. Shortages of semi-conductors and other arts has driven prices up, and the total cost of vehicle repairs has increased by 33% in the past year.

The average age of a garage owner is 65 and many are giving up the business when they retire, so the number of garages around to undertake repairs is causing pressure on resources.

So, as I said, the costs for some parts of the economy are going up faster than others.

Opal official rate of inflation measures the rise of prices across the economy, as a whole, rates of inflation in different sectors can go up by more or less than average.

The price of new and secondhand cars has risen faster than the average and possible other costs - parts, labour - have risen faster as well.

GSM We too were with NFU , with bonuses. However lately said bonus has not covered any increase. Which has been prodigious. DH did a lot of research and we have got the exact same insurance with Sainsbury’s at two thirds of the price. Well worth shopping around these days for any form of insurance.

I renewed my car insurance last month. It had gone up about 30% so I clicked on an ad that offered to find cheap insurance and ended up with a company that saved me about £150 for pretty much the same cover. When I rang my existing company (Churchill) to tell them I had found a cheaper quote they didn't even bother to argue.

I'm with LV a d mine only went up by quite a small amount. I do do quite a low mileage but have to say I was pleased with the price after hearing all the narrow stories. My husband also had a quote after his insurance costs spiralled and he has also decided to go with them. I know you only find out how good an insurance company is when you have an accident but they appear to have a good reputation. Hope you find something to suit your budget.

Thanks for all your responses ladies. It seems that all insurance has gone up across the board. I just object to the enormous hikes, way over the current rate of inflation.

I've got to renew within the next two weeks, so I'll keep you posted if I find any bargains

Hello 👋 Opal!

When my car insurance renewal comes in, I always phone them and explain politely that it is too dear, but I would like to stay with them as I had excellent service from them when I had a claim some years ago.
I mention some quotes from Compare the Market. They always reduce my renewal figure.
Last week I was quoted £313, previous year was £230, we agreed upon £260.
I'm with the AA.

crazyH For the last 32 years we have had holiday home in Normandy, and I drive when I am there. But all that will end soon as we are 80 this year and have decided that this is the time to sell it, so it is ccurrently on the market.

So next year I may not need European cover.

Monica - I am so jealous. Driving in Europe - wow !

Innsurance companies take a lot into account when calculating insurance rates. Your age (that changes every year), your average mileage, the cost of car repairs, and every other potential cost of a claim, the cost of new and secondhand cars.

Charleygirl5 I have just reached 80 and my insurance went up about £200 to £560. I went on a comparison site, asking specifically for quotes for people over 60 and the cheapest rate was under £400. The one I took was £460 because I wanted extra's like being covered to drive in Europe.

Mine was over £600, I wondered if I was putting a down payment on another car but other companies gave me similar quotes. I have never had an accident but I am about to reach the magic age of 80 but most of my marbles are intact.

No Allsorts, but you have been involved in an ‘incident’. Your no-claims bonus is protected, but it doesn’t prevent your premium from increasing. Unfortunately, they’ll use any excuse.

My car insurance has doubled, I tried compare the market but it’s no cheaper. Someone reversed into me, he admitted liability and my insurance company claimed all back, I had protected no fault too, why would it double? I’ve never made a claim.p

I've just renewed my car insurance too and was astonished at how much it had gone up. Last year it was just under £200, this year £330! I managed to haggle it down to £270 and before committing to it, I looked at all of the comparison sites online but they were even higher. Road tax has also gone up this year.

I have been looking for Travel insurance and am horrified at te quotes I've been given.

You did well Jaxjacky.

It took a lot of time, but mine is a few pounds cheaper this year and my husband’s 5% more, I did them both about three weeks ago.

I have been with the same car insurance company for several years. Every year I receive a renewal notice offering me the same cover with an inflated premium figure. Every year I ring them and tell them that I will not pay more than the previous year, and every year I get the premium I have asked for. I think the computer churns out random figures and if you are not going to negotiate, they're happy. Don't be afraid to haggle for the price you want.

My car insurance came in with a renewal up about 30%. I spent an hour ringing around and got several quotes that were much less. Some were cheaper than my last year price. I then rang my provider who came down to just £20 above my last year price. I've been with them many years and also have my house insurance with them. They are a local broker and if I had an issue I can visit the office to discuss.

I was shocked when I got my renewal notice but looked around and it’s similar to others but better cover.

They will all be increasing their prices I’m sure. We have been with NFU for house and car insurance for some years and they are excellent - and we get a loyalty bonus each year.

Do check that the cover provided by other insurers is sufficient - ie read the small print carefully.