Practically Classics Forum

Insurers apply "worst case scenario" logic to all their premiums and then add a bit more! I went on confused.com to see how much it would cost me to insure the XJ on a classic car, limited mileage policy as it meets the age requirements and I only use it for shows and little pleasure outings, never commuting or suchlike. The range of quotes was incredible: from £160 all the way up to £2k and beyond. The other downside of that site is that once you enter your personal details (as you have to for the thing to work) you get bombarded with phone calls and spam emails. I didn't cheat by putting a false number as I thought it could complicate things, but I'm never going to use a comparison site again if that's what happens.

Seems like giving existing customers an inflated price to renew any policy is common practice in all insurance companies. I have just renewed my house and contents insurance. I was insured with Direct Line and they upped the price from £160 to £210, changed to Privilege for £130.
Price of insurance for new drivers is a constant theme of conversation. Pupils of mine are being quoted anything between £2000 - £8000 for a small hatchback. Youngsters are not learning to drive because they know they cannot afford to insure a car after passing their test. This is killing the driver training industry. A local driving examiner told me today that there not enough candidates coming forward for a full programme of tests across most of the country.
We all know where this is going to end up, even more unlicenced ( and therefore uninsured ) drivers creating havoc. The insurance companies are then going to say they have to increase premiums for everyone to pay for the damage done by these uninsured drivers.
With this blanket hike in prices they are not targeting the hooligans but penalising everyone. Why can't they ask new drivers for a £1000 bond which if they drive sensibly for three years is refunded.First claim results in loss of bond, second claim will have to renew the bond before insurance is renewed. This fear of loss would concentrate the minds of most drivers.
Rant over!
Dave

In my opinion, insurance companies are not doing enough to reduce the costs of claims. They are happy to feed the parasites that live off the insurance industry, the accident management companies, the hire car companies, the ambulance-chasing lawyers, the over-priced repairers, and to pass the costs on to the customers. The result is that insurance is becoming prohibitively expensive, particularly for those in a high risk category and as a side-effect, a lot of repairable cars are being written off. How green is that?

I agree with all you say Pete. All of that does need to be addressed.

But would any of that actually lower premiums, especially for the young?

I firmly believe not. It would simply increase profits even further.

I have to agree with Dave about Direct Line home insurance. We were insured with them for many years and it was on "automatic renewal" as Mother found it easier to leave them to get on with it! However, since I took over the financial duties, her bank manager asked if they could quote when renewal time came around. The quote was less than half Direct Line's quote and, apparently, the cover is far better too!

The garage where we used to live always asked if a body repair was through insurance or not. Many repairs were simply a case of panel beating, a little welding and fillers - but the insurance companies insisted on new panels every time. When father had a bump with his Mini, he got two new wings fitted (it was the other driver's insurance that paid). The car should have been written off - it was scrap within a year as the sills and floor had rotted through. If they'd offered £50 to write it off, he'd have accepted it!

However, I paid £83 to insure my six year old Wolseley Hornet in 1971. My wage was about £10 per week, so it took two months' wages to pay for the cover - or. the next year, all of my student grant! I don't know how much the average school leaver gets paid (if they can get work), but I suspect it would probably not take too much longer to pay the bill - for a much more powerful car on busier roads.

In the five years I was working in a local school, there was at least one fatal car accident a year (and several minor ones). One teacher reckoned that, of his last class (of thirty pupils) who had left a couple of years before, five had been killed in car accidents - and I can think of at least two more fatalities. I only remember one pupil being in a fatal car accident when I was at school. Driving has become much more "high risk" and agressive than it used to be; perhaps because the cars are inherently safer, handle better and are a lot more powerful (but feel much quieter - so seem slower than they are at speed) and people are less patient than they were.

Remember that the value of your car only has a small effect on premiums - the biggest risk to the insurer is the damage you could do to someone else's car or property. Given that a lot of modern cars have expensive electronic devices in the bumpers and nearby, and the bodywork can be more complex to work on, the cost of repairing them is much higher than it used to be, irrespective of the car that you drive yourself - you can't predict the type/cost/complexity of the car you hit in an accident!

Young Farmer wrote:Youngsters are not learning to drive because they know they cannot afford to insure a car after passing their test. This is killing the driver training industry. A local driving examiner told me today that there not enough candidates coming forward for a full programme of tests across most of the country.

Interesting. A friend has recently been taken on as an examiner around here where there's a backlog of tests due to too much demand and too few examiners.

The garage where we used to live always asked if a body repair was through insurance or not. Many repairs were simply a case of panel beating, a little welding and fillers - but the insurance companies insisted on new panels every time.

But how many of us would accept a cheapo insurance repair of a handful of lob and a rattle can? I'd insist on a new panel and a well matched paint repair if it wasn't my fault, who wouldn't? Everyone wants a courtesy car while their motor is in for repair, and why not? If someone's pranged into your car and it's in a repair shop for a week you still need to get to work. The costs all mount up.

It isn't however the repairs which are forcing up insurance, it's the injury claims. Personally, if I was running an insurance company, I would fight every single whiplash claim as a matter of course- if you're in a modern car with a properly adjusted head restraint you shouldn't be getting whiplash injuries.

mr rusty wrote:Everyone wants a courtesy car while their motor is in for repair, and why not? If someone's pranged into your car and it's in a repair shop for a week you still need to get to work.

I've heard of cases where the cost of a hire car has been the deciding factor in writing a low value car with minor damage off. If you've got a low value car in good condition you probably won't want that as the payout won't buy you an equivalent. I've deleted the hire car option, in return for a lower premium. Ok, I'm retired and I've got a bus pass, so this may not be for everyone, but it's worth considering if you've got alternative transport.

Luxobarge wrote:Remember that the value of your car only has a small effect on premiums - the biggest risk to the insurer is the damage you could do to someone else's car or property. Given that a lot of modern cars have expensive electronic devices in the bumpers and nearby, and the bodywork can be more complex to work on, the cost of repairing them is much higher than it used to be, irrespective of the car that you drive yourself - you can't predict the type/cost/complexity of the car you hit in an accident!

Well when TPFT in a Turbocharged Land Rover with 7 seats is cheaper than a KA to insure you have to take the sensible choice and go 4WD, roll on next year when I hit the magic 21, 2.5years of driving experience and a years NCB