Premiums in general are on the increase. Factors that might account - or partially account - for the increases;
- increased energy costs, which will impact the cost of running car body repair shops
- high inflation rates so cost of parts and paint used in vehicle repairs are likely to be costing more
- much of the tech in modern cars is at the front of the car, so susceptible to damage in a frontal impact, and expensive to replace. Associated costs (e.g. recalibration of sensors) can also be expensive
- increased complexity and cost in repairing certain types of vehicles (e.g. EV’s). Higher write-off frequency associated with EV’s which will add to insurance company overall claim costs
- recent parts shortages (e.g. semiconductors) are likely to have pushed up the cost of those items. I dare say the price of parts affected by shortages wouldn’t have reduced back to pre-increase levels when normal supplies were resumed
- insurance companies will have a financial objective of delivering a profit so they can pay a pay a dividend to their shareholders!
Always pays to shop around at renewal as the chances are you’ll be able to find comparable cover at a lower price, but don’t always go for the cheapest price as it might be the cheapest for a reason (e.g. poor claims service, poor customer service).
Other actions you can consider taking - e.g.;
- consider increasing the excess in return for a premium reduction
- are there any extra cost add-ons under the policy that needed that could be deleted?
- review the declared estimated annual mileage figure and reduce it if it’s higher than the annual mileage driven. However, always be honest and ensure the declared mileage is realistic as falsely declaring too low a figure would be insurance fraud (falsifying risk information to get a lower premium), and could result in the policy being voided or the insurance company declining a claim.
My premium increased by around 9-10% this year - less than I was expecting, but I’m old
, live in a low risk area and I’m a low mileage driver. From memory, my premium went up by around 15-16% the previous year.
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