Car Insurance

iStock_000012927006MediumCar Insurance – Questions and Answers

Question – Why has my car insurance premium gone up so much?  

Answer – The Office for National Statistics report that over the last year premiums have increased by 43.1% – compared to the Consumer Prices Index at – just – 8.7%.

This is the result of:

  • An increase in claims after lower claims during lockdown
  • Insurers passing-on the increase in repair costs including parts, paint, energy costs and wages
  • An increase in a less well-known cost: the provision of second-hand courtesy cars. Autotrader report the average price of these has increased by 30% over the last three years, due to the disruption of the car supply chain during and after the pandemic

And remember, premiums also start to creep up at 70 as this age group become, statistically, a higher risk of a claim.

Question – What can I do to keep my premium as low as possible?

Answer – Ten suggestions are:

  1. Create a diary reminder one month before the insurance is due to expire to allow time to work through the renewal process. Insurance premium quotes increase the closer to the renewal date
  2. If you have more than one car, consider a multi-car policy
  3. Get prepared to go to the market to get comparative quotes. Ask family and friends for recommendations, and use comparison websites
  4. Advise your current provider that you will be getting comparative quotes so they understand they are competing for your business
  5. Ensure you have accurate information about your annual mileage. The lower your mileage, normally the lower your premium
  6. Think of ways you can increase the security of your car, such as fitting a steering wheel lock, and include this with your vehicle information (dashcams do not reduce premiums, but are useful during insurance claims)
  7. Consider having a higher voluntary claim excess
  8. Make sure the policy does not have any add-ons, such as breakdown cover, that you may not require
  9. Ask about a telematics policy. This involves fitting a black box device to your car that monitors driving behaviour
  10. If you can, offer to pay the premium annually to avoid interest charges

If you are finding it difficult to find suitable cover, contact the British Insurance Broker Association (BIBA) who will put you in touch with a specialist broker. Tel: 0370 950 1790. Email: membership@biba.org.uk