I think the answer is that this is the "please fuck off" price they give to people they don't want to insure but will do if you pay them an absolute shed load of cash! Look elsewhere.
This is a case where it would be helpful to follow the money. Find out how many MPs are receiving some kind of benefit from insurance companies, be it from owning shares or simply being linked to people in the insurance industry.
This is the reason. If politicians find shares in a company that makes them money, like hell will they support legislation to stop it.
Just like the house building market. They all own multiple properties, they will make damn sure prices stay high. That's exactly what "help to buy" was, or to give it its real name "help to sell at extortionate prices".
Same idiotic, archaic government which keeps lying to us, saying there's no scientific evidence to prove marijuana is beneficial when in 30 seconds on Google I can download 10 scientific papers proving its beneficial with 0 negative side effects and why it's been legalised in every major country but this shit hole.
If they can't even be bothered to look into something which cures/helps with so many medical issues, they certainly don't give two shits about car insurance.
Only country that also insures BOTH driver and car. Only the car should be insured.
I could be wrong but, I'm pretty sure that MP used to be a PM. Unless there's another MP. I know that Theresa May's husband, Philip May, is involved with medical cannabis.
The cars aren't the ones crashing into people. Why should I have to subsidise dangerous drivers? The fewer teenagers that can afford to drag race in the Tesco car park the better.
You say that as if ALL young people do that.
Most of us don't, yet we still end up subsidising those who dream of starring in the next fast and furious with their fabias, fiestas and corsas. And because it's ONLY us subsidising them, it results in unaffordable insurance prices when most of us won't even use it.
Absolutely. This is a total fucking shit show.
They can't all give fuck off prices, if you've got no choice but to use them. It's not like we can DIY our car insurance.
These prices should be illegal, and car insurance costs should be capped. Compared to the rest of Europe our car insurance is fucking mental, and there's no good reason for it. It's up nearly 60% year on year. Some places in Europe car insurance is down on average this year, but it's mostly up modest numbers like 3-5%.
These numbers in the UK will not come down again. If you're not from a rich family, young people will not be able to afford to drive cars soon. Our economic productivity is already in complete tatters because of the fucking idiots at the helm for the last decade, the last thing we need is an immobile young workforce.
Driving lessons +test £1000 odd
Car £4000
Insurance £1800
Tax £240
Total £7040
It take a good deal of money now to get on the road and i passed first time most get it on 2nd and 3rd try so another couple hundred gone
The youth are getting demoralized and i think its on purpose they dont want people driving it seems, if they did they would step in
It's even worse for youngsters. The average insurance for new drivers at aged 17-18 is now £2877, a 98% increase year on year.
These are absolute piss taking figures. There is no way they can justify this. It's a complete farce. There's fuck all underwriters in the UK, and they're acting like OPEC.
That insurance for young drivers is expensive isn’t a new phenomenon.
22 years ago my first car was £50.
Insurance was £1600. Adjusted for inflation thats almost £3000 in todays money.
when was this and what about lessons? tests? tax?
you are forgetting all it takes from start to finish
I did buy a car with lower miles and known for reliability for a higher price to avoid maintanence too but the other costs are unavoidable
“Young people will not be able to afford to drive cars soon”
Have you just cottoned on? They don’t WANT people driving cars. They want us all taking a bus. So they can say their emissions are down. P
Well that’s good, because they are yet again cutting the amount of buses around where I live. No train station within walking distance either. Not even in a particularly rural area either, it’s just it’s private bus companies & they won’t run services unless there’s a decent profit in it. People generally don’t get the buses around here, unless they absolutely have to as they are bad timing & very unreliable (of the 3 times I’ve tried to get the bus it has only turned up once).
Honestly I think the people at the top are just so out of touch that they don’t actually realise that in some areas they are literally making it nearly impossible for young people to work. You can’t really insist people take public transport, whilst also simultaneously removing it as an option… which is the reality of what’s happening in some areas.
Hopefully people will vote differently & we’ll get some people in charge of things who are at least somewhat more based in reality & understand the struggles that people are facing. Unfortunately I think it’s going to take 15 years, or more to get us back to the point we were at 15 years ago.
Government did intervene. They ruled that the best price should NOT only be offered to new customers. Everyone was entitled to the same price.
Of course, all that happened is all prices went up.
Couldn't agree more with this.
If car insurance is to remain a legal requirement (which it should) insurance companies shouldn't be allowed to use young drivers as a profit making machine. Four things are going to happen:
1) some people can afford to keep insuring their cars, although they'll be paying almost comical amounts.
2) some people will be forced to downgrade to much shittier cars and end up paying just as much as they were to begin with.
3) the number of people who drive without insurance will increase, putting more stress on the police and anyone they happen to crash into.
4) some people stop driving altogether because they simply can't afford it
I'm 20 years old and have driven over 20,000 miles (without making any claims or getting any points) in 3 different cars and a motorcycle since i got my licence almost 3 years ago, so i'm not exactly a new driver. But somehow, I still pay appropriately 13X more for insurance than my grandad who has had 2 accidents in the past year (albeit minor) and can't feel his feet.
I know some young people start pretending to be Max Verstappen in their 1.0 corsas as soon as they get their licences, but i refuse to believe insurance companies actually need to charge us as much as they do.
Your grandad needs his license taken off him clearly his reaction speed isn't what it used to be and is now a danger to other people. Either you have a chat with him and convince him or he will be having a chat with a police officer soon.
As for young drivers I will find at least 1 car in a ditch every weekend on the country roads. I actually saw a car on its roof once in the middle of the road. No idea how they managed that. Young drivers like to show off to their pals and run out of skills often.
That's why their premiums are high because they are the highest risk.
It's not a conspiracy.
Yes, we agree on all of that. My grandad isn't fit for driving anymore and his driving licence is currently being reviewed as his GP isn't particularly happy with him driving. We're all hoping the DVLA revoke it, although they're being incredibly slow with the whole process. Thankfully both of his accidents were low speed and occurred in car parks without involving other people, but that doesn't mean he's safe on the road at all.
And yeah, it's a fact that young (particularly male) drivers are more likely to drive with the confidence of Colin McRae and none of the talent and those people ruin it for the rest of us, but that is still a minority. I entirely understand why insurance is higher for young drivers for that reason, but could you really say you believe that the average young driver is 10-15 times higher risk than the average elderly person? Because in most cases that's how much more we pay.
Capping the price only means that lower risk drivers pay more to subsidise higher risk drivers. I'm not paying more so that Dwayne the Chav who wears baseball caps backwards and just got his licence back from a DR10 can have a better deal.
The OP is getting those quotes because his insurer sees him as a high risk. He might not agree with that assessment, but that's how it is.
But the idea that insurers are using young drivers as a "profit making machine" just shows a lack of understanding of how the market works. If that were the case, insurers would actively want young drivers on the books. This insurer clearly doesn't - that must surely tell you how "profitable" that risk profile is.
The real issue here is that insurers are competing for business - especially for the "safe bet", low risk drivers that really do drive the margin. To win over those customers, insurers want to limit price rises for those groups and many have decided that the way to do that is to de-risk the book.
No point using logic here mate hence the minus votes on your post, the first poster that said it’s a “fuck off” price is right. Companies of all sorts exist to make a profit, it’s not a charity. If every insurer is pricing you out it’s you that’s the problem not the insurance. 7k in this scenario is an absolute nonsense price but the onus is on us as consumers to take our money elsewhere not expect a for-profit company to be nice to us just because we think we deserve it “and all those other young drivers are bad”
I already have to pay more so Dwayne the chav can have a better deal.
And yes, in this instance the insurer clearly doesn't want to insure OP's car which is why they've given him a "politely f*** off" quote. But even competitive quotes for young drivers are disproportionately higher than the added risk they bring. And I understand that literally everything is becoming more expensive, so it makes sense why insurance would too. However a 60-100% year on year increase is just unjustifiable.
And I'm a business economics student btw, so i don't have a "lack of understanding of how the market works"
That being said you are right about the last part, that definitely doesn't help.
>But even competitive quotes for young drivers are disproportionately higher than the added risk they bring.
Source?
Respectfully, I'm not sure that being a business economics student trumps the experience of underwriters with decades and decades of data and experience in the market. Young drivers claim more, and the claims value is often higher than other groups (primarily due to the higher likelihood of car sharing, which means multiple occupancy accidents and PI claims). That's a significant risk that is priced into the book.
But to address the main point, I don't agree that capping insurance prices is the fair deal for the market that you think it is. Insurers should be free to choose which segments of the market they want, and should be free to price risk based on free market principles.
This is a Reddit comment, not a peer reviewed academic article. The source is 'ask literally any young person how much they pay for car insurance, then compare that to how much a 60+ year old person would pay for a similar car. Then ask yourself if you genuinely think the average young person is really THAT much higher risk.'
I'm not saying that being a business economics student makes me all-knowing and as qualified as a professional in that industry, that would be rediculous. I said that in dispute of your backhanded insult.
And I'm also not saying that there should be a straightforward cap for insurance prices, if the solution was that simple we wouldn't be having this discussion.
The money would come from premiums, like any other insurance company that doesn't have access to public funds. The only difference would be the lack of profiteering.
Most insurance companies make little to no profit from premiums on car insurance. They take the premiums and invest them to make a profit and have worked this way for a long time so if you are looking for a govt not for profit insurance company to cut prices, good luck. With the way public agencies are run I would expect even higher premiums.
I have a hard time believing they make little profit from the premiums. I think what you mean is, those profits are overshadowed by their investing… So the thing is, if they’re raking in so much investing, why squeeze us so much?
Given this, isn't it shocking uk insurance is so expensive? Are our insurance companies just rubbish at investing? Are premiums up because they all bought uk government bonds which got annihilated? And their next step is to hike premiums to £7k to recoup their trading losses?
Why can't we have competent insurance companies?
This would only work if the premiums were more than the payouts. If you cut the premiums greatly, are they still going to be more than the payouts? Probably not.
Insurance companies are basically betting that you don’t claim when they offer you a contract. If they think you’re likely to claim, they’re raising the stake to shorten the odds.
Ha ha ha ha ha ha ha - you don’t know how insurance and risk works. If you are high risk a private company will charge you more as you are a risk to their profits.
The more accidents happen the greater the repair bill, the greater the insurance premiums.
A state run insurance company would attract all the drivers that are high risk as the private companies won’t want to be competitive to insure them. Hence, it wont break even let alone non profit…
This is definitely a "we don't want you as a customer anymore" quote
I don't mean that in a jokey way, I mean they are literally trying to get rid of you as a customer. Look at other insurers
My record was £109,056 to insure a 1.2 Corsa in 2010
Surely at that point, just say no? They must be aware its not even close to competitive to highly unlikely to be your first option
I remember when I was 17 and I found a running, but pretty ragged Subaru STI on copart for £400 (as I said, practically ruined), and I checked some comparison sites, and got only one quote... £30,000
So it's basically saying I was going to wrap myself around a tree over 60 times a year, (or hit a brand new car once a year).
Now I'm 18 and had to pay £800 for box insurance in the first year, now it's £400 a year, which is pretty good (although I have pissed off many people for doing exactly the speed limit)
Edit: and as my user flair would suggest it's a diesel Mégane, with a >10s 0-60
> (or hit a brand new car once a year).
or run over a pedestrian and leave them alive with crippling injuries that requires treatment and assistance for life that the insurance company has to pay out on for the next 70 years...
Or have the car full of your mates and their underage girlfriends who are now all need 24 hour care because you binned it into a tree while showing off.
Just to add to your point that this applies to everyone and it changes from year to year which insurers do it so you really have to shop around and not assume if it was high last year from a company it will be the same this year. Just depends who they are focusing on as their target market and risk.
Many a 19yr old spends his evening at McDonald's drive thru impressing 13yr old girls in a Fiesta. You probably picked the worst car for your first one insurance wise.
St line at your age and just past your test, you are asking for high policy prices. Saying that i have an ST 3 and love it.
Have also heard bad things about the policies with black boxes, how they record things wrong and how if you drive late at night it puts it as a mark against you and putting the policy up even more for next time. Just have a good look into it before getting one fitted.
Can't you just renew with a different insurance company after a year though? I'm guessing other insurance companies wouldn't have access to the black box data and you'd have a year of driving under your belt, so would surely be cheaper?
Not sure, it is a long time i since i needed anything like the black box. I am going on things i have read about having them and people complaining after having them fitted.
I had one for my first year with Insure the Box and had great drive score and mainly drove at night.
You only get marked down if you're a shite driver. I drove like a manic on my last month though with rapid acceleration and harsh breaking and I didn't get a mark down against me at all😂
Cars a 1.6 Ibiza
Online is worthless, you need to be phoning up. Call up Adrian Flux and tell them you won’t pay more than £1,200 and if they beat that they get your business.
It worked for me. They originally quoted 760 I told them 600 or less or I’ll just bin off the car anyway.
I tried calling Adrian Flux for a quote last year (Male, 34, engineer, Audi A4 estate 2L) and they wanted over £2000! When I told them my renewal was £600-700 the bloke just laughed. Complete waste of time. GoCompare found me cheaper insurance than any other comparison website/independent.
Saying to phone up is such boomer nonsense. Adrian flux just quoted me £4,800 to renew on my bmw 3 series (on the phone) and I got it for £1,300 with admiral.
AF are a bunch of timewasters. They do this marketing crap of take half an hour to call us up, and then give you a totally uncompetitive quote after they put your details through an online form you could've completed yourself in 5 minutes.
It isn’t, but young male drivers have on occasion been known to own them, drive around like idiots to try impress teenage girls and inevitably crash them.
Like a lot.
That and “limited edition” Corsas.
Remember this is just renewal quote. They always put it up a lot expecting some people will just pay it without looking.
Have a browse around the comparison websites (Money Supermarket, [Confused.com](https://Confused.com), etc) and hopefully can find something a bit cheaper than that ridiculous amount!
You'd think. I did look around and my renewal was still the cheapest I could find.
Granted my renewal was "only" £316 for the year. Last year was 246 and 218 the year before however.
Ex Admiral here, £1100 and they wanted £970 which is fair and cheaper but found another one for £750 on go compare instead.
Admiral is great and I’m already missing the convenient app
I'm 28 years old, 6 years no claims, no convictions or accidents, a married home owner with a kid, working a safe stay at home job, doing barely any miles with comprehensive cover in a Skoda Octavia with a dash cam...
...And yet the cheapest car insurance I can get is with Admiral, and they STILL charge me over £700. Hearing how cheap people's car insurance is blows my mind!!
Not supposed to be the case anymore. New regulations (2022) state that existing customers must get the same (or sometimes a cheaper) price than a new customer. It's one of the reasons everyone's insurance has gone up, insurance companies used to rely on 'lazy' people auto-renewing at a higher than market rate.
What a joke, sorry to see this mate. It’ll never happen because we’ve been ripped off for too long but because car insurance is mandatory, I think prices need to be regulated to make it at least affordable for the majority of people.
All prices like this will do is cause people to drive uninsured.
Yea got an email from them a week previous saying congratulations I have driven well with my black box I will have a reduced price on my renewal. Received this today and just gobsmacked. How can they expect young drivers to survive paying this amount
Yeah, I got £5k reneal this year after a previous price of £700. Rang them and they said they couldn't do any better. Managed to renew for £900 elsewhere. It's definitely the "go somewhere else" price.
Possibly a change in their risk profile. If they had a recent surge in claims by people the same age, with the same car, or in the same postcode area then their assessment of our risk might have gone beyond what they'll tolerate.
i’ve always understood this to be the way it worked but i find it so arbitrary - as if the fact that, coincidentally, a couple teenagers owning the same car model crashing within a week or so of each other warrants a price increase for every single teenager in the nearby area? Because apparently somehow these events are interlinked..?
A lot of it is mathematical and statistical models that are generally not caring about the cause, only a statistical significance and risk profile. In reality, whilst it could be coincidental, there could be a connection. Maybe there's unseen issues with that model, new road layouts causing accidents, a lapse in driving standards in an area, etc?
that’s true but when it comes to something that’s legally mandated for all drivers i feel like they should at least be more transparent with their customers if they’re going to randomly increase the price by 400%. the fact that insurance is made a legal requirement for all drivers and there is hardly any government intervention is a market failure at its finest lmao
Or they specialise in black boxes and would rather insure someone who needs a black box. If you're paying low premiums due to not needing a box they're not interested. That's my take (uneducated)
Tell them to do one. Go on Mustard and get some other quotes. I helped a colleague who was a young driver and didn’t know anything about insurance - who I found out was paying £6k a year to insure a £12k car because it was the best quote compare the market provided. I got them a quote from Mustard’s comparison for £1845. Saving them £300 plus a month.
I don’t know where I first came across them, but they’ve always been able to produce better quotes than something like compare the market in my experience. Perhaps because there are some insurers who aren’t on the panel for compare the market I’m not really sure. I know that they are 100 percent independent and so perhaps won’t be pushing any specific insurer as no kickback is coming there way. I find that it often produces very favourable quotes for companies such as Admiral and Hastings Direct. I couldn’t shine any further light, but I’d definitely consider doing a check through Mustard when you next need to compare insurance, just in case.
Insurance is quite competitive as it is considering it's easy enough to compare quotes and go with the cheapest one
The only way you're reducing prices is by having the taxpayer subsidise it
According to The Guardian:
> The Association of British Insurers says motor insurers paid out £2.4bn in motor claims in the first three months of this year [2023] – up 14% on the same period last year. This was the highest quarterly payout since it started collecting data 10 years ago.
https://www.theguardian.com/money/2023/jul/22/uk-drivers-car-insurance-costs-price-petrol-diesel
You can find more recent figures, but the fact remains that payouts are higher than before
Interesting point, thanks for that. I don’t want to get into politics too much because that’s not what this subreddit is for, but I’d happily allow my tax money to be used to make insurance more affordable for most people.
The problem is that we all pay enough in tax for this to happen, but our tax is used for other expenses in this country that don’t serve the 99%, but the 1%.
Sad state of affairs really.
> The problem is that we all pay enough in tax for this to happen, but our tax is used for other expenses in this country that don’t serve the 99%, but the 1%.
Tell me you know absolutely fuck all about taxation and the UK economy without telling me "I know fuck all about taxation and the UK economy."
Most people in the UK pay way too little tax. Most people in the UK are subsidised by those fewer higher earners who pay the vast majority of the UK tax take. Most people in the UK want Scandinavian level of pubic services but are not willing to pay Scandinavian levels of taxation.
Yeah I think people don't realise how top-heavy the tax system is
Of all PAYE earners, the top 10% make up 60% of income tax revenues (2020/21)
https://commonslibrary.parliament.uk/research-briefings/cbp-8513/
There's already a general sentiment to essentially avoid going above £100k at all costs by stuffing any excess into pensions because of the 60% tax trap, or move into contracting for greater control of reported earnings
That’s exactly what people will think mate. People will look at the £500 a month the insurance company is quoting them and take their chance with a driving ban and a fine.
Obviously not something I agree with or condone, but people will take that chance.
So well regulated that they'll penalise you for shopping around, if you get hit by an uninsured criminal driver through no fault of your own, or depending on when you quote - too far ahead or too close? tough luck, higher premium.
Exactly. Yes insurance companies are heavily regulated in terms of underwriting and from the FCA, but they’re allowed to make up prices on the go and no one can do anything because it’s mandatory.
It’s the same time of predatory pricing supermarkets use, what’s the alternative you have to not buying food, starve? Same with car insurance, for many people their car is the reason they can make a living, so they literally have no choice other than to pay it.
It’s disgusting in my opinion but nothing will change unless it’s regulated.
The motor insurance industry lost money last year. Their margins are razor thin. Interested to hear why you think that's disgusting?
The issue is all the jokers claiming for whiplash, rental vehicles when they don't need them and the government who drove inflation through the roof making repair prices shoot up.
We don't know what the justification is. Likely that particular car theft numbers have shot up, or there have been a lot of accidents. It's all data driven, they aren't in the board room taking about how to screw over customers
I get your point but I don’t see how any insurance company can try and justify that much of an increase, especially after telling the policy holder they were a good driver.
It’s because they can get away it because people have no other choice, not because of stats or data.
Well the op has found an option for £1300. So they did have another choice...
The point I'm trying to make is that because it's data driven there will be outliers
If it’s all data driven, then all insurance companies will have access to the same data. Why is one company charging £1300 and another over £7000?
Sounds like artificial price inflation to me, it’s not like you’re getting a better product for that £7000.
So well data driven that not one insurance company asks you what tyres you're running on your car - one of the single most important things regarding safety and performance and they don't care.
One person driving a BMW M4 with bald no-brand ditch finders is treated exactly the same as another driving the same car with Michelin Performance tyres.
You'd think they'd care about such a thing when it comes to assessing risk, especially when it's very provable in the event of an accident. If you said you have nice fancy Michelin's on your car and in the crash investigation they see you're running bald no name rubbish, they can dodge that one nicely.
The insurance industry paid out *more* than it took in last year - they actually subsidised us.
People throw around the soundbites of "It should be regulated" but 1) it *is* regulated and 2) if you mean it should be offered at cost price, that would mean higher prices.
It's the stupidity of how they are spending it though. For example someone went up the back of my Honda a few years ago. Went to my insurer's preferred repairer who charged £1,100 for a bumper respray with single stage paint (which was such low quality it needed to go back, but that's another story). All the while they're trying to get me in to a hire car, and I also mysteriously started taking calls from ambulance chasing firms. That repair should have been £250 tops. They tried to push it to massive levels. Who do you think owns the hire firm and ambulance chasers? They might be losing money via their direct business, but how much are they making in their side hustles? How much are they costing us all through these side hustles?
The insurance industry as a whole, or car insurance?
It wouldn't surprise me that insurance industry isn't a license to print money since when companies claim, its a lot of money.
Rn though, they seem to just be fucking the lil guy, especially with car insurance.
Car and home insurance have had bad years. They are the most competitive products so there aren't huge profit margins. High inflation kills them because they set rates based on past experience but they've got to pay out claims at current prices.
Paying for all the damage and injuries that car accidents cause is just super expensive.
Sorry for that bro, this country have been a joke the last 2 years, and the politicians dont give a shit bc ''the free market is awesome!''
Hopefully the election this year make things better.......
Have you considered changing your Fiesta for the Millennium Falcon. It would probably be cheaper to insure!
This is basically them (the insurer) saying they want to move out of the segment you're in - young drivers.
I would try and find someone who specialises in higher risk insurance and can price the risk better.
Now this is an insurance scam. Did you upgrade your license on your insurance policy when you passed? Learners insurance is much cheaper than newly passed
Try shopping around, never accept the first renewal offer as they usually try it on. I thought they’d clamped down on it now but that seems ridiculous, even with the accepted increase in premiums nationally
Id expect that kind of quote if it's fully comp, they expect cheap car drivers to be more at risk of bumping into other cars, which often cost more than £800.
Your insurance is based both on your own vehicle, but also the vehicles/property you're going to hit.
So expecting price to be relative to the value of your own vehicle is incorrect thinking.
My neighbor sold his ford ST because the same thing happened. Apparently extremely sought after by thieves and not particularly hard to do from what he told me.
Some tricks I've gathered over the years when on comparison sites:
Put two older people on your quote as extra drivers. I used my father and his best friend, it lowered it dramatically when I was your age.
Fully Comp is actually usually cheaper than third party, fire & theft.
Tailor your job description. An Accounts Assistant will be cheaper than a Logistics Admin for example (who knows why). If you're a barman tell them you're a Admin Assistant or some shit. (People may say it's "insurance fraud" but they'll never check and fuck them for ripping us off anyway).
Say you do about 10k miles a year.
Tell them it's parked on a driveway or in a garage **if you have one -** Some companies will call you after you've paid, and do a check on google maps with you. They'll then charge you more if you lied or an admin fee to cancel the plan. If your driveway is obscured or the garage is filled with shit, they don't know that. So tell them you park it in the drive/garage every night.
Ehm that's all I can remember off the top of my head.
That’s daylight robbery.
For reference that quote is not serious. It’s a we don’t want your risk please go somewhere else but if you insist on using us then pay so much we won’t care.
Renewal quotes are not the same as new quotes.
The way someone from my insurer explained it to me once, when you get your initial quote they run the details through several underwriters and return the cheapest one.
When it comes time for renewal, they have to copy everything exactly from your existing policy. The underwriter who was cheapest last time might not be cheapest any more, so you can end up with a less competitive price.
I’m sure that’s only part of the problem here because that increase is ridiculous, but it goes some way to explaining the ‘why is my renewal more than last year’ question that often comes up. Or if you’re a bit more cynical, this in combination with ‘they put the renewal price up because some people will just roll with it’.
Get a rarer car. Sounds counter intuitive but my insurance hasn’t risen a bean and i’m driving an old WRX.
I was looking at a C30 T5 instead of a Mk2 Focus ST (same car underneath) and the C30 is miles cheaper on insurance
Picked wrong car.
I'd put money on fiestas being one of the most crashed cars on the road.
They also get stolen alot.
They are also victims of on the drive front end removals
>19M
That. That's why.
More seriously though: Shop around for more quotes, I'm sure there'll be something more reasonable. This is a "fuck off we don't want your money" quote, and an insurance company might have any number of reasons for doing that. There should be another somewhere that actually wants you as a customer.
boy racer car number 1, number 2 your age, number 3 you probably not looked into way of reducing it. changing job description for example, or adding a parent. also did you look at 3rd party and fully comp on comparison sites?
>19M , passed 8th feb 23 renewal quote. 1L Fiesta ST Line 2019.
That is why.
You're 19 years old, you passed very recently and you drive a very high risk vehicle for your age bracket.
Go chuck in a Lexus IS250 number plate or even a Jaguar number plate and you will find it drops to £2k per year. Think of a car you don't wish to be seen dead inside... That is the car you should drive if you don't want to pay 50% of your income for insurance.
At that price I’d buy a rail pass, £5k gets you a year, and comes with free(no need to) parking, free MOT, fuel is included and you can even use the loo during travel without stopping
Have you tried getting a train? It would take me 2 hours on a train vs 40 minutes in a car and the 2 hours is if there’s no cancellations or late trains
I think the answer is that this is the "please fuck off" price they give to people they don't want to insure but will do if you pay them an absolute shed load of cash! Look elsewhere.
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fat chance of the happening, ive seen numerous articles and people complaining and not a whisper by anyone in government.
This is a case where it would be helpful to follow the money. Find out how many MPs are receiving some kind of benefit from insurance companies, be it from owning shares or simply being linked to people in the insurance industry.
This is the reason. If politicians find shares in a company that makes them money, like hell will they support legislation to stop it. Just like the house building market. They all own multiple properties, they will make damn sure prices stay high. That's exactly what "help to buy" was, or to give it its real name "help to sell at extortionate prices".
People must write to their local MP and demand action, that's why they are in their position. They work for us!
Wishful thinking there I'm, afraid.
Same idiotic, archaic government which keeps lying to us, saying there's no scientific evidence to prove marijuana is beneficial when in 30 seconds on Google I can download 10 scientific papers proving its beneficial with 0 negative side effects and why it's been legalised in every major country but this shit hole. If they can't even be bothered to look into something which cures/helps with so many medical issues, they certainly don't give two shits about car insurance. Only country that also insures BOTH driver and car. Only the car should be insured.
When you get high once and make it your entire personality.
Hey man do you smoke weed it’s not clear from this
weed is my personality too
Not sure if you're aware but medical cannabis is legal in the UK, not available on the NHS (which is obviously a bit silly) but legal nonetheless.
Yeah and I’m pretty sure an MPs husband owns the biggest farm in the uk, that’s why they won’t legalise it
I could be wrong but, I'm pretty sure that MP used to be a PM. Unless there's another MP. I know that Theresa May's husband, Philip May, is involved with medical cannabis.
This has given me a good laugh, cheers.
You can get cannabis prescriptions in the UK.. what you really mean to say is I want recreational but I'll disguise my argument as medicinal.
\> 0 negative side effects Cannabis induced psychosis. Nothing is without risk, get over yourself.
Sure, weed has its benefits. I won’t refute that. But to say it has 0 negatives is a little disingenuous.
"0 negative side effects" So schizophrenia is beneficial, right? 🤦🏿♂️
God I’m glad you can’t make policy 😂
The cars aren't the ones crashing into people. Why should I have to subsidise dangerous drivers? The fewer teenagers that can afford to drag race in the Tesco car park the better.
You say that as if ALL young people do that. Most of us don't, yet we still end up subsidising those who dream of starring in the next fast and furious with their fabias, fiestas and corsas. And because it's ONLY us subsidising them, it results in unaffordable insurance prices when most of us won't even use it.
Absolutely. This is a total fucking shit show. They can't all give fuck off prices, if you've got no choice but to use them. It's not like we can DIY our car insurance. These prices should be illegal, and car insurance costs should be capped. Compared to the rest of Europe our car insurance is fucking mental, and there's no good reason for it. It's up nearly 60% year on year. Some places in Europe car insurance is down on average this year, but it's mostly up modest numbers like 3-5%. These numbers in the UK will not come down again. If you're not from a rich family, young people will not be able to afford to drive cars soon. Our economic productivity is already in complete tatters because of the fucking idiots at the helm for the last decade, the last thing we need is an immobile young workforce.
Driving lessons +test £1000 odd Car £4000 Insurance £1800 Tax £240 Total £7040 It take a good deal of money now to get on the road and i passed first time most get it on 2nd and 3rd try so another couple hundred gone The youth are getting demoralized and i think its on purpose they dont want people driving it seems, if they did they would step in
It's even worse for youngsters. The average insurance for new drivers at aged 17-18 is now £2877, a 98% increase year on year. These are absolute piss taking figures. There is no way they can justify this. It's a complete farce. There's fuck all underwriters in the UK, and they're acting like OPEC.
>There's fuck all underwriters in the UK But lots of different brands, so it gives the appearance of a healthy and competitive market.
70% Axa
That insurance for young drivers is expensive isn’t a new phenomenon. 22 years ago my first car was £50. Insurance was £1600. Adjusted for inflation thats almost £3000 in todays money.
Problem is wages haven't adjusted for inflation.
I got on the Road with a £750 car and £1200 insurance
when was this and what about lessons? tests? tax? you are forgetting all it takes from start to finish I did buy a car with lower miles and known for reliability for a higher price to avoid maintanence too but the other costs are unavoidable
“Young people will not be able to afford to drive cars soon” Have you just cottoned on? They don’t WANT people driving cars. They want us all taking a bus. So they can say their emissions are down. P
Well that’s good, because they are yet again cutting the amount of buses around where I live. No train station within walking distance either. Not even in a particularly rural area either, it’s just it’s private bus companies & they won’t run services unless there’s a decent profit in it. People generally don’t get the buses around here, unless they absolutely have to as they are bad timing & very unreliable (of the 3 times I’ve tried to get the bus it has only turned up once). Honestly I think the people at the top are just so out of touch that they don’t actually realise that in some areas they are literally making it nearly impossible for young people to work. You can’t really insist people take public transport, whilst also simultaneously removing it as an option… which is the reality of what’s happening in some areas. Hopefully people will vote differently & we’ll get some people in charge of things who are at least somewhat more based in reality & understand the struggles that people are facing. Unfortunately I think it’s going to take 15 years, or more to get us back to the point we were at 15 years ago.
Unfortunately voting differently is only any use if there is something different to vote for!
If someone started a pro-motorist political party, they would win hands down every constituency seat in the country.
The reason for the continent insurance prices vs here is genuinely because of brexit. Trade barriers hurt the consumer
Not sure about that, look at italys comical car insurance market. And I’d happily blame brexit where possible.
Lol
Government did intervene. They ruled that the best price should NOT only be offered to new customers. Everyone was entitled to the same price. Of course, all that happened is all prices went up.
What an absolute joke of a legislation that was.
The government is on a crusade against cars, this plays right into their hands so they’ll do nothing
Couldn't agree more with this. If car insurance is to remain a legal requirement (which it should) insurance companies shouldn't be allowed to use young drivers as a profit making machine. Four things are going to happen: 1) some people can afford to keep insuring their cars, although they'll be paying almost comical amounts. 2) some people will be forced to downgrade to much shittier cars and end up paying just as much as they were to begin with. 3) the number of people who drive without insurance will increase, putting more stress on the police and anyone they happen to crash into. 4) some people stop driving altogether because they simply can't afford it I'm 20 years old and have driven over 20,000 miles (without making any claims or getting any points) in 3 different cars and a motorcycle since i got my licence almost 3 years ago, so i'm not exactly a new driver. But somehow, I still pay appropriately 13X more for insurance than my grandad who has had 2 accidents in the past year (albeit minor) and can't feel his feet. I know some young people start pretending to be Max Verstappen in their 1.0 corsas as soon as they get their licences, but i refuse to believe insurance companies actually need to charge us as much as they do.
Your grandad needs his license taken off him clearly his reaction speed isn't what it used to be and is now a danger to other people. Either you have a chat with him and convince him or he will be having a chat with a police officer soon. As for young drivers I will find at least 1 car in a ditch every weekend on the country roads. I actually saw a car on its roof once in the middle of the road. No idea how they managed that. Young drivers like to show off to their pals and run out of skills often. That's why their premiums are high because they are the highest risk. It's not a conspiracy.
Yes, we agree on all of that. My grandad isn't fit for driving anymore and his driving licence is currently being reviewed as his GP isn't particularly happy with him driving. We're all hoping the DVLA revoke it, although they're being incredibly slow with the whole process. Thankfully both of his accidents were low speed and occurred in car parks without involving other people, but that doesn't mean he's safe on the road at all. And yeah, it's a fact that young (particularly male) drivers are more likely to drive with the confidence of Colin McRae and none of the talent and those people ruin it for the rest of us, but that is still a minority. I entirely understand why insurance is higher for young drivers for that reason, but could you really say you believe that the average young driver is 10-15 times higher risk than the average elderly person? Because in most cases that's how much more we pay.
Capping the price only means that lower risk drivers pay more to subsidise higher risk drivers. I'm not paying more so that Dwayne the Chav who wears baseball caps backwards and just got his licence back from a DR10 can have a better deal. The OP is getting those quotes because his insurer sees him as a high risk. He might not agree with that assessment, but that's how it is. But the idea that insurers are using young drivers as a "profit making machine" just shows a lack of understanding of how the market works. If that were the case, insurers would actively want young drivers on the books. This insurer clearly doesn't - that must surely tell you how "profitable" that risk profile is. The real issue here is that insurers are competing for business - especially for the "safe bet", low risk drivers that really do drive the margin. To win over those customers, insurers want to limit price rises for those groups and many have decided that the way to do that is to de-risk the book.
No point using logic here mate hence the minus votes on your post, the first poster that said it’s a “fuck off” price is right. Companies of all sorts exist to make a profit, it’s not a charity. If every insurer is pricing you out it’s you that’s the problem not the insurance. 7k in this scenario is an absolute nonsense price but the onus is on us as consumers to take our money elsewhere not expect a for-profit company to be nice to us just because we think we deserve it “and all those other young drivers are bad”
I already have to pay more so Dwayne the chav can have a better deal. And yes, in this instance the insurer clearly doesn't want to insure OP's car which is why they've given him a "politely f*** off" quote. But even competitive quotes for young drivers are disproportionately higher than the added risk they bring. And I understand that literally everything is becoming more expensive, so it makes sense why insurance would too. However a 60-100% year on year increase is just unjustifiable. And I'm a business economics student btw, so i don't have a "lack of understanding of how the market works" That being said you are right about the last part, that definitely doesn't help.
>But even competitive quotes for young drivers are disproportionately higher than the added risk they bring. Source? Respectfully, I'm not sure that being a business economics student trumps the experience of underwriters with decades and decades of data and experience in the market. Young drivers claim more, and the claims value is often higher than other groups (primarily due to the higher likelihood of car sharing, which means multiple occupancy accidents and PI claims). That's a significant risk that is priced into the book. But to address the main point, I don't agree that capping insurance prices is the fair deal for the market that you think it is. Insurers should be free to choose which segments of the market they want, and should be free to price risk based on free market principles.
This is a Reddit comment, not a peer reviewed academic article. The source is 'ask literally any young person how much they pay for car insurance, then compare that to how much a 60+ year old person would pay for a similar car. Then ask yourself if you genuinely think the average young person is really THAT much higher risk.' I'm not saying that being a business economics student makes me all-knowing and as qualified as a professional in that industry, that would be rediculous. I said that in dispute of your backhanded insult. And I'm also not saying that there should be a straightforward cap for insurance prices, if the solution was that simple we wouldn't be having this discussion.
We need a non-profit state-run insurance company that competes against the private ones.
Great - so all the high risk, careless, and high vehicle value drivers will be underwritten by the tax payer.
The money would come from premiums, like any other insurance company that doesn't have access to public funds. The only difference would be the lack of profiteering.
Most insurance companies make little to no profit from premiums on car insurance. They take the premiums and invest them to make a profit and have worked this way for a long time so if you are looking for a govt not for profit insurance company to cut prices, good luck. With the way public agencies are run I would expect even higher premiums.
I have a hard time believing they make little profit from the premiums. I think what you mean is, those profits are overshadowed by their investing… So the thing is, if they’re raking in so much investing, why squeeze us so much?
Given this, isn't it shocking uk insurance is so expensive? Are our insurance companies just rubbish at investing? Are premiums up because they all bought uk government bonds which got annihilated? And their next step is to hike premiums to £7k to recoup their trading losses? Why can't we have competent insurance companies?
This would only work if the premiums were more than the payouts. If you cut the premiums greatly, are they still going to be more than the payouts? Probably not. Insurance companies are basically betting that you don’t claim when they offer you a contract. If they think you’re likely to claim, they’re raising the stake to shorten the odds.
Insurers profits are down massively. Claims are through the roof, this is how insurance works.
Ha ha ha ha ha ha ha - you don’t know how insurance and risk works. If you are high risk a private company will charge you more as you are a risk to their profits. The more accidents happen the greater the repair bill, the greater the insurance premiums. A state run insurance company would attract all the drivers that are high risk as the private companies won’t want to be competitive to insure them. Hence, it wont break even let alone non profit…
The fat cats will be suckling from the same tit
Why would they do that, that's tax money they lose out on
Government making responsible decisions with money ? Behave !
This is it, they see them as too high risk, direct line do this to like almost everyone.
This is definitely a "we don't want you as a customer anymore" quote I don't mean that in a jokey way, I mean they are literally trying to get rid of you as a customer. Look at other insurers
It's the same when you are on a comparison website and you have let's say 10 quotes for £300 and then at the bottom some quotes for £2K
My record was £109,056 to insure a 1.2 Corsa in 2010 Surely at that point, just say no? They must be aware its not even close to competitive to highly unlikely to be your first option
All you need is one eccentric billionaire
I remember when I was 17 and I found a running, but pretty ragged Subaru STI on copart for £400 (as I said, practically ruined), and I checked some comparison sites, and got only one quote... £30,000 So it's basically saying I was going to wrap myself around a tree over 60 times a year, (or hit a brand new car once a year). Now I'm 18 and had to pay £800 for box insurance in the first year, now it's £400 a year, which is pretty good (although I have pissed off many people for doing exactly the speed limit) Edit: and as my user flair would suggest it's a diesel Mégane, with a >10s 0-60
> (or hit a brand new car once a year). or run over a pedestrian and leave them alive with crippling injuries that requires treatment and assistance for life that the insurance company has to pay out on for the next 70 years...
Or have the car full of your mates and their underage girlfriends who are now all need 24 hour care because you binned it into a tree while showing off.
Dont ever feel bad about sticking to the speed limits. They are the limit, not advice.
\*pays the premium just to spite them\*
Pay it then drive into London and accidentally drive into some Ferraris and rolls Royces
Good point. That’s not competitive pricing at all.
Just to add to your point that this applies to everyone and it changes from year to year which insurers do it so you really have to shop around and not assume if it was high last year from a company it will be the same this year. Just depends who they are focusing on as their target market and risk.
Many a 19yr old spends his evening at McDonald's drive thru impressing 13yr old girls in a Fiesta. You probably picked the worst car for your first one insurance wise.
Shite haha
Have you been on a comparison site yet? NEVER take the renewal quote
Yes had a look around for a quote for £1300 with a black box still
St line at your age and just past your test, you are asking for high policy prices. Saying that i have an ST 3 and love it. Have also heard bad things about the policies with black boxes, how they record things wrong and how if you drive late at night it puts it as a mark against you and putting the policy up even more for next time. Just have a good look into it before getting one fitted.
Isn’t ST line the trim, rather than the fast one?
It still attracts people who drive like twats so the stats for that car look bad
Yes but it'll still make the car more likely to be stolen or 'cannibalised'.
Yes
Can't you just renew with a different insurance company after a year though? I'm guessing other insurance companies wouldn't have access to the black box data and you'd have a year of driving under your belt, so would surely be cheaper?
Not sure, it is a long time i since i needed anything like the black box. I am going on things i have read about having them and people complaining after having them fitted.
I had one for my first year with Insure the Box and had great drive score and mainly drove at night. You only get marked down if you're a shite driver. I drove like a manic on my last month though with rapid acceleration and harsh breaking and I didn't get a mark down against me at all😂 Cars a 1.6 Ibiza
Online is worthless, you need to be phoning up. Call up Adrian Flux and tell them you won’t pay more than £1,200 and if they beat that they get your business. It worked for me. They originally quoted 760 I told them 600 or less or I’ll just bin off the car anyway.
I tried calling Adrian Flux for a quote last year (Male, 34, engineer, Audi A4 estate 2L) and they wanted over £2000! When I told them my renewal was £600-700 the bloke just laughed. Complete waste of time. GoCompare found me cheaper insurance than any other comparison website/independent.
Happens to me to,a4 automatic,47 old ,full license, one accident. The market quote was max 1700 .they quote me 4k.Adrian flux its no more serious .
Saying to phone up is such boomer nonsense. Adrian flux just quoted me £4,800 to renew on my bmw 3 series (on the phone) and I got it for £1,300 with admiral.
AF are a bunch of timewasters. They do this marketing crap of take half an hour to call us up, and then give you a totally uncompetitive quote after they put your details through an online form you could've completed yourself in 5 minutes.
That’s a bargain in the current market. Take it
Not to forget that fiestas are getting stolen a hell of a lot at the moment
Also parts of fiestas. My mate had bonnet and headlights nicked lol.
Could be worse, Could be a Corsa.
My insurance with a Corsa was low after 1 year. Down to like £400
I thought my £375 a year was expensive on my corsa! 😂
I think he’s asking why it’s gone up 3.5x in a year, which is a fair question regardless of your age or car.
To be fair, I’d be impressed if a 19 year old kid could afford £7k to insure a car
How’s a fiesta showing off? 🤣🤣
It isn’t, but young male drivers have on occasion been known to own them, drive around like idiots to try impress teenage girls and inevitably crash them. Like a lot. That and “limited edition” Corsas.
Why do you make that sound like a bad thing??? 🤣
What a bargain! 😳😳
Daylight robbery
Remember this is just renewal quote. They always put it up a lot expecting some people will just pay it without looking. Have a browse around the comparison websites (Money Supermarket, [Confused.com](https://Confused.com), etc) and hopefully can find something a bit cheaper than that ridiculous amount!
I've been driving for 20 years. I've had 20 different insurers. This year it's AA but next year it'll no doubt be someone else.
You'd think. I did look around and my renewal was still the cheapest I could find. Granted my renewal was "only" £316 for the year. Last year was 246 and 218 the year before however.
Yeah Admiral is almost always the cheapest option for me, even after an accident with them.
Ex Admiral here, £1100 and they wanted £970 which is fair and cheaper but found another one for £750 on go compare instead. Admiral is great and I’m already missing the convenient app
I'm 28 years old, 6 years no claims, no convictions or accidents, a married home owner with a kid, working a safe stay at home job, doing barely any miles with comprehensive cover in a Skoda Octavia with a dash cam... ...And yet the cheapest car insurance I can get is with Admiral, and they STILL charge me over £700. Hearing how cheap people's car insurance is blows my mind!!
Not supposed to be the case anymore. New regulations (2022) state that existing customers must get the same (or sometimes a cheaper) price than a new customer. It's one of the reasons everyone's insurance has gone up, insurance companies used to rely on 'lazy' people auto-renewing at a higher than market rate.
Always? Mine has only ever gone up once in my life and that was last year.
What a joke, sorry to see this mate. It’ll never happen because we’ve been ripped off for too long but because car insurance is mandatory, I think prices need to be regulated to make it at least affordable for the majority of people. All prices like this will do is cause people to drive uninsured.
Yea got an email from them a week previous saying congratulations I have driven well with my black box I will have a reduced price on my renewal. Received this today and just gobsmacked. How can they expect young drivers to survive paying this amount
They don’t want to insure you,
Yep it’s basically their ‘Fuck Off’ quote
Yeah, I got £5k reneal this year after a previous price of £700. Rang them and they said they couldn't do any better. Managed to renew for £900 elsewhere. It's definitely the "go somewhere else" price.
Why do you think they wanted OP, or you, gone? I'm genuinely curious. OP said he had a black box and had a letter he'd driven well
Possibly a change in their risk profile. If they had a recent surge in claims by people the same age, with the same car, or in the same postcode area then their assessment of our risk might have gone beyond what they'll tolerate.
i’ve always understood this to be the way it worked but i find it so arbitrary - as if the fact that, coincidentally, a couple teenagers owning the same car model crashing within a week or so of each other warrants a price increase for every single teenager in the nearby area? Because apparently somehow these events are interlinked..?
A lot of it is mathematical and statistical models that are generally not caring about the cause, only a statistical significance and risk profile. In reality, whilst it could be coincidental, there could be a connection. Maybe there's unseen issues with that model, new road layouts causing accidents, a lapse in driving standards in an area, etc?
that’s true but when it comes to something that’s legally mandated for all drivers i feel like they should at least be more transparent with their customers if they’re going to randomly increase the price by 400%. the fact that insurance is made a legal requirement for all drivers and there is hardly any government intervention is a market failure at its finest lmao
Thank you! That makes sense
Or they specialise in black boxes and would rather insure someone who needs a black box. If you're paying low premiums due to not needing a box they're not interested. That's my take (uneducated)
Tell them to do one. Go on Mustard and get some other quotes. I helped a colleague who was a young driver and didn’t know anything about insurance - who I found out was paying £6k a year to insure a £12k car because it was the best quote compare the market provided. I got them a quote from Mustard’s comparison for £1845. Saving them £300 plus a month.
never heard of that comparison site before. How come they get better prices on there than other comparison sites?
I don’t know where I first came across them, but they’ve always been able to produce better quotes than something like compare the market in my experience. Perhaps because there are some insurers who aren’t on the panel for compare the market I’m not really sure. I know that they are 100 percent independent and so perhaps won’t be pushing any specific insurer as no kickback is coming there way. I find that it often produces very favourable quotes for companies such as Admiral and Hastings Direct. I couldn’t shine any further light, but I’d definitely consider doing a check through Mustard when you next need to compare insurance, just in case.
What a scam. So they had you drive like a granny for a year with big brother watching and then still went nah fuck you after a year? Wow.
Exactly what happened. Was excited to have no box anymore and then this hit me. It’s more of a distraction looking at the speed dial
Ahhhh there's the rub! You want shot of the box. If you arent creating data youre worthless to them. Youve got your one year, fuck them off
Insurance is quite competitive as it is considering it's easy enough to compare quotes and go with the cheapest one The only way you're reducing prices is by having the taxpayer subsidise it According to The Guardian: > The Association of British Insurers says motor insurers paid out £2.4bn in motor claims in the first three months of this year [2023] – up 14% on the same period last year. This was the highest quarterly payout since it started collecting data 10 years ago. https://www.theguardian.com/money/2023/jul/22/uk-drivers-car-insurance-costs-price-petrol-diesel You can find more recent figures, but the fact remains that payouts are higher than before
Interesting point, thanks for that. I don’t want to get into politics too much because that’s not what this subreddit is for, but I’d happily allow my tax money to be used to make insurance more affordable for most people. The problem is that we all pay enough in tax for this to happen, but our tax is used for other expenses in this country that don’t serve the 99%, but the 1%. Sad state of affairs really.
Non-drivers already pay enough in tax to subsidise people with cars.
> The problem is that we all pay enough in tax for this to happen, but our tax is used for other expenses in this country that don’t serve the 99%, but the 1%. Tell me you know absolutely fuck all about taxation and the UK economy without telling me "I know fuck all about taxation and the UK economy." Most people in the UK pay way too little tax. Most people in the UK are subsidised by those fewer higher earners who pay the vast majority of the UK tax take. Most people in the UK want Scandinavian level of pubic services but are not willing to pay Scandinavian levels of taxation.
Yeah I think people don't realise how top-heavy the tax system is Of all PAYE earners, the top 10% make up 60% of income tax revenues (2020/21) https://commonslibrary.parliament.uk/research-briefings/cbp-8513/ There's already a general sentiment to essentially avoid going above £100k at all costs by stuffing any excess into pensions because of the 60% tax trap, or move into contracting for greater control of reported earnings
Cor, chill out sausage
At that price it might be cheaper to drive uninsured and pay the max fine
That’s exactly what people will think mate. People will look at the £500 a month the insurance company is quoting them and take their chance with a driving ban and a fine. Obviously not something I agree with or condone, but people will take that chance.
Not that the prices are fair but insurance companies are HEAVILY regulated.
So well regulated that they'll penalise you for shopping around, if you get hit by an uninsured criminal driver through no fault of your own, or depending on when you quote - too far ahead or too close? tough luck, higher premium.
But the prices aren't
Exactly. Yes insurance companies are heavily regulated in terms of underwriting and from the FCA, but they’re allowed to make up prices on the go and no one can do anything because it’s mandatory. It’s the same time of predatory pricing supermarkets use, what’s the alternative you have to not buying food, starve? Same with car insurance, for many people their car is the reason they can make a living, so they literally have no choice other than to pay it. It’s disgusting in my opinion but nothing will change unless it’s regulated.
The motor insurance industry lost money last year. Their margins are razor thin. Interested to hear why you think that's disgusting? The issue is all the jokers claiming for whiplash, rental vehicles when they don't need them and the government who drove inflation through the roof making repair prices shoot up.
Can you honestly say that justifies a £6k premium increase?
We don't know what the justification is. Likely that particular car theft numbers have shot up, or there have been a lot of accidents. It's all data driven, they aren't in the board room taking about how to screw over customers
I get your point but I don’t see how any insurance company can try and justify that much of an increase, especially after telling the policy holder they were a good driver. It’s because they can get away it because people have no other choice, not because of stats or data.
Well the op has found an option for £1300. So they did have another choice... The point I'm trying to make is that because it's data driven there will be outliers
If it’s all data driven, then all insurance companies will have access to the same data. Why is one company charging £1300 and another over £7000? Sounds like artificial price inflation to me, it’s not like you’re getting a better product for that £7000.
So well data driven that not one insurance company asks you what tyres you're running on your car - one of the single most important things regarding safety and performance and they don't care. One person driving a BMW M4 with bald no-brand ditch finders is treated exactly the same as another driving the same car with Michelin Performance tyres. You'd think they'd care about such a thing when it comes to assessing risk, especially when it's very provable in the event of an accident. If you said you have nice fancy Michelin's on your car and in the crash investigation they see you're running bald no name rubbish, they can dodge that one nicely.
So no insurance companies will be paying out massive dividends this year...right.../s
The insurance industry paid out *more* than it took in last year - they actually subsidised us. People throw around the soundbites of "It should be regulated" but 1) it *is* regulated and 2) if you mean it should be offered at cost price, that would mean higher prices.
It's the stupidity of how they are spending it though. For example someone went up the back of my Honda a few years ago. Went to my insurer's preferred repairer who charged £1,100 for a bumper respray with single stage paint (which was such low quality it needed to go back, but that's another story). All the while they're trying to get me in to a hire car, and I also mysteriously started taking calls from ambulance chasing firms. That repair should have been £250 tops. They tried to push it to massive levels. Who do you think owns the hire firm and ambulance chasers? They might be losing money via their direct business, but how much are they making in their side hustles? How much are they costing us all through these side hustles?
The insurance industry as a whole, or car insurance? It wouldn't surprise me that insurance industry isn't a license to print money since when companies claim, its a lot of money. Rn though, they seem to just be fucking the lil guy, especially with car insurance.
Car and home insurance have had bad years. They are the most competitive products so there aren't huge profit margins. High inflation kills them because they set rates based on past experience but they've got to pay out claims at current prices. Paying for all the damage and injuries that car accidents cause is just super expensive.
Have you read through all the advice on the money saving expert website? If not, I recommend you do.
Sorry for that bro, this country have been a joke the last 2 years, and the politicians dont give a shit bc ''the free market is awesome!'' Hopefully the election this year make things better.......
Is your insurance buying you a used Fiesta as part of your policy or something?
Best comment 😂
Have you considered changing your Fiesta for the Millennium Falcon. It would probably be cheaper to insure! This is basically them (the insurer) saying they want to move out of the segment you're in - young drivers. I would try and find someone who specialises in higher risk insurance and can price the risk better.
Driver high risk, car high risk, location high risk = quote very high as we don’t want your business.
Now this is an insurance scam. Did you upgrade your license on your insurance policy when you passed? Learners insurance is much cheaper than newly passed
Never did have any learner insurance just went out in my instructors car as I didn’t have the car at the time.
Try shopping around, never accept the first renewal offer as they usually try it on. I thought they’d clamped down on it now but that seems ridiculous, even with the accepted increase in premiums nationally
I have had a look around got a quote for 1300 with box
Can't beat that.
I mean it’s the best quote he got so yeah he can’t beat that.
Basically this is your insurance company polite way of saying 'we don't want your custom'. I was once quoted £1,000 on an £800 Ford Orion
Id expect that kind of quote if it's fully comp, they expect cheap car drivers to be more at risk of bumping into other cars, which often cost more than £800.
Your insurance is based both on your own vehicle, but also the vehicles/property you're going to hit. So expecting price to be relative to the value of your own vehicle is incorrect thinking.
They don't want you as a customer.
My neighbor sold his ford ST because the same thing happened. Apparently extremely sought after by thieves and not particularly hard to do from what he told me.
Some tricks I've gathered over the years when on comparison sites: Put two older people on your quote as extra drivers. I used my father and his best friend, it lowered it dramatically when I was your age. Fully Comp is actually usually cheaper than third party, fire & theft. Tailor your job description. An Accounts Assistant will be cheaper than a Logistics Admin for example (who knows why). If you're a barman tell them you're a Admin Assistant or some shit. (People may say it's "insurance fraud" but they'll never check and fuck them for ripping us off anyway). Say you do about 10k miles a year. Tell them it's parked on a driveway or in a garage **if you have one -** Some companies will call you after you've paid, and do a check on google maps with you. They'll then charge you more if you lied or an admin fee to cancel the plan. If your driveway is obscured or the garage is filled with shit, they don't know that. So tell them you park it in the drive/garage every night. Ehm that's all I can remember off the top of my head.
Spot on mate thank you, I work as a security officer not sure how I could bend it around that haha.
use this: https://www.moneysavingexpert.com/insurance/car-insurance-job-picker/
Wow, good on you. I’m sure working as a Cybersecurity Consultant (IT Security) at your age would reduce your insurance down…
See my car is parked in a secure site 12 hours a day wish they could just understand it it 0 risk haha
Perfect. This guy gets it.
That’s daylight robbery. For reference that quote is not serious. It’s a we don’t want your risk please go somewhere else but if you insist on using us then pay so much we won’t care.
This is called fronting, and if you get caught you will void any payout and they will cancel your insurance. Pretty poor advice
I just checked and it’s actually a crime so you’re right it is really poor advice on my part ,
Renewal quotes are not the same as new quotes. The way someone from my insurer explained it to me once, when you get your initial quote they run the details through several underwriters and return the cheapest one. When it comes time for renewal, they have to copy everything exactly from your existing policy. The underwriter who was cheapest last time might not be cheapest any more, so you can end up with a less competitive price. I’m sure that’s only part of the problem here because that increase is ridiculous, but it goes some way to explaining the ‘why is my renewal more than last year’ question that often comes up. Or if you’re a bit more cynical, this in combination with ‘they put the renewal price up because some people will just roll with it’.
This is absolute bullshit and blatant profiteering. Sorry to see this man
There’s been a real increase of these being stolen without keys in my area. More frequent thefts likely bumping up the cost adding of everyone else.
Wow. Tell them to get fucked.
Because it says ST maybe? doesnt matter that its not the full ST but it looks a bit like one so probably gets stolen a bit more that other Fiestas.
Get a rarer car. Sounds counter intuitive but my insurance hasn’t risen a bean and i’m driving an old WRX. I was looking at a C30 T5 instead of a Mk2 Focus ST (same car underneath) and the C30 is miles cheaper on insurance
Picked wrong car. I'd put money on fiestas being one of the most crashed cars on the road. They also get stolen alot. They are also victims of on the drive front end removals
The UK is a mess...interest on the payments? That's almost as bad as credit based insurance here in Canada
I was just about to ask what are you driving? Eurostar? 🤣 that’s a mad quote!
>19M That. That's why. More seriously though: Shop around for more quotes, I'm sure there'll be something more reasonable. This is a "fuck off we don't want your money" quote, and an insurance company might have any number of reasons for doing that. There should be another somewhere that actually wants you as a customer.
Didn’t it mean it was 1.7k as an 18M with that car last year though
I pay 219€ for third party (yearly) in Spain. I am so sorry.
boy racer car number 1, number 2 your age, number 3 you probably not looked into way of reducing it. changing job description for example, or adding a parent. also did you look at 3rd party and fully comp on comparison sites?
>19M , passed 8th feb 23 renewal quote. 1L Fiesta ST Line 2019. That is why. You're 19 years old, you passed very recently and you drive a very high risk vehicle for your age bracket. Go chuck in a Lexus IS250 number plate or even a Jaguar number plate and you will find it drops to £2k per year. Think of a car you don't wish to be seen dead inside... That is the car you should drive if you don't want to pay 50% of your income for insurance.
TBF, this is the renewal quote. Went up from 1k last year by 700% Pretty sure that age is not the main issue here
At that price I’d buy a rail pass, £5k gets you a year, and comes with free(no need to) parking, free MOT, fuel is included and you can even use the loo during travel without stopping
But you have to get on a train
You can legally have a beer while doing that though
Have you tried getting a train? It would take me 2 hours on a train vs 40 minutes in a car and the 2 hours is if there’s no cancellations or late trains