The Annual Car Insurance Rip off!

[Darlo]

Give admiral multi car policy a try, honestly couldn’t believe how much cheaper it worked out.

Both GTI & GTD insured for under £750 when done separate it’s was around the £1k mark. They start the policy separately but then bring the end date in line, we got an extra 1 years no claims for only 9 months running on my Mrs side of the policy.

Done a quote for new R and the GTI multicar policy and it’s still £200 cheaper than separate quotes.

Top tip, do the quote online then ring them and they work some magic to make it cheaper and consider cashback websites to sweeten the deal. Think we got £75 amazon vouchers which they emailed direct to us.

[I wanted a GTi]

Another thing I don't get is that if I insure my car on my own it is nearly twice the price of insuring it with my wife as a named driver.

That's all about the risk factor. With two drivers on the policy the risk is halved even if that person will never drive your car.

That's mad, who does their risk factors, a monkey?

[Margy]

+1 for Admiral multi-car. My GTi, her Fiat 500, £370ish IIRC.

[SRGTD]

Another thing I don't get is that if I insure my car on my own it is nearly twice the price of insuring it with my wife as a named driver.

That's all about the risk factor. With two drivers on the policy the risk is halved even if that person will never drive your car.

That's mad, who does their risk factors, a monkey?

Insurers will consider your lifestyle as part of their risk assessment. Who drives the car (is it only you driving or you and your spouse/partner driving?) is often an indicator of lifestyle, and different lifestyles represent different degrees of risk, especially when other factors such as your age and marital status are also taken into account;

A) if you’re young and single and the only driver; you’re more likely to be living a young person’s lifestyle; using your car regularly at unsociable hours in higher risk inner city areas and probably carrying similar aged passengers to you on a regular basis. If you have an accident and those young passengers are seriously injured, they are very expensive to compensate (e.g. especially if their injuries mean their future earning capacity and quality of life is impacted - lots of years potential earnings and quality of life affected if they’re young, so a potentially very expensive insurance claim). 

B) if you’re married or partnered and your other half is a named driver on your policy; you’re more likely to have a lower risk lifestyle compared to a young single person; less partying, not so likely to use your car at unsociable hours.

Ignoring other risk factors (e.g. type of car, postcode, previous accidents and claims), the majority of insurers would consider B) to represent a lower risk than A).

That’s why if you insure your car with you as the only driver, many insurers will charge you more than if your spouse / partner is on your policy as a named driver.

[dubber36]

My Dad is 83 and has my Mum who's 81 as a named driver on his policy to bring the premium down. Mum hasn't driven for over 40 years, but still has her licence. In fact I renewed it for her last month. I guess because she hasn't had a claim or any convictions probably ever, she is seen as a low risk. The reality is, she could legally drive the car, but the truth is, she doesn't even know how to anymore.

[Bengunn]

Wife and I are 'old gits' so our insurance, even for sporty cars, is usually in the £200 - £300 bracket.
Sold my Audi TTS to my son, age 26, when I bought my GTI in November 2018.
GTI quote for all 3 of us was £900 so decided just to insure the wife and I and it came to £260.

Phoned my insurance company yesterday to again check how much it would be to put son onto GTI policy and was told £61 until next November. Bit their hand off and took it. After closing transaction asked why the difference and was told 'that's just the way it is with insurance'.

Even although the original quote difference for my son to go onto GTI policy was £640, his annual fully comp insurance for the TTS is 'only' £350.

There appears to be no logic on insurance pricing.

 

[mcmaddy]

I've gone back onto the website for my insurer More Than as a new customer and got the insurance cheaper even with a loyalty discount. Seems once again a loyalty discount is not so good and a new customer gets treated better!

[SRGTD]

I've gone back onto the website for my insurer More Than as a new customer and got the insurance cheaper even with a loyalty discount. Seems once again a loyalty discount is not so good and a new customer gets treated better!

They know there are still customers who’ll let their insurance auto-renew and not bother to check whether or not their renewal price represents good value. These customers are cross subsidising the prices quoted to the new customers. Its not just the insurance industry who have different prices for new and existing customers and don’t reward customer loyalty appropriately - I’ve had experience of BT doing this where existing customers pay more than new ones.

[fredgroves]

Yeah they all do it (insurers, TV companies, internet, breakdown, energy, whatever)... jack the prices for existing customers (while telling them about the amazing customer loyalty discount they are getting) whilst discounting new business.

And yes, its the people who won't switch that are the cash cows.

Generally older people... who believe in old fashioned concepts like "loyalty is important" and "cash Is king".

Its annoying though without a doubt and makes me rage every time - even more so when after telling you that as an existing customer they are giving you "the best price", only to have them lower it when you phone them up.... and it still be more than a new customer.

I had a phone call with my old insurer that went like this

Me: "I've seen a cheaper quote, can you match it"

Insurer: "Sure, tell me which website you've seen it on and if its a legitimate quote, we will"

Me: "Its your own website when I ask for a new quote"

Insurer "Oh..."

[mattwilko92]

The insurance game is mad however i dont think £258 is a price to moan about!