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Insurance premium rises target older drivers?

Postby Alan Rennie » 01 Nov 2017 19:56

The news item on the V8 Website - "Have you seen some large insurance renewal premium increases" - posted on 2nd October mentioned an item seen on a motoring website which questioned whether insurers are making greater premium increases for older drivers as a form of unfair opportunism, in effect taking advantage of a group with previously lower premiums, or whether insurers are justified in raising premiums for older drivers if they are simply more of a danger on our roads. A second item mentioned an article by Rebecca Rutt on the thismoney.co.uk website noting "insurance costs have accelerated 14.6% in a year with older drivers seeing the biggest increases". I wondered at the time whether this was simply speculative journalism to grab a headline, but today I received a surprise from my insurance broker. I had updated the statement of facts attached to a renewal notice for the motor insurance for our daily car - I had mentioned that I was no longer working and the statement should be amended to state I was "retired" (although heaven knows there are so many things I am involved in these days it hardly feels like retirement). Today the broker came back to say the insurer, on learning of this change, had increased the renewal premium! So there is a clear example of a disclosed changed status of an older driver resulting in a premium increase! Not rumour or speculation but fact. Has any other member seen a similar unwelcome change?
http://www.v8register.net/sub2/news1709 ... newals.htm
http://www.v8register.net/sub2/news171020insurance.htm
Alan Rennie
 
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Re: Insurance premium rises target older drivers?

Postby Pat Boghossian » 07 Nov 2017 04:53

Hi Alan, I assume you're referring to your every day car insurance, I can advise my premium jumped 33% (initially) then after a phone call and a heated discussion "reduced" to 25% increase. For info, I'm 55 so old (?) with absolutely no change in personal circumstances or vehicle details from last year with max no claims.
The reason given by the insurance company was that "we've carried out a risk assessment and adjusted premiums accordingly". However, their employee could not provide any more details other than what she had been given to read out to customers as a futile justification for such an unreasonable hike in premium. However, I renewed with them as every other insurance company on Confused.com (which I explore every year) came back with an even higher premium than my own ? So, not sure what's going on.
For info, I did not see the same hike in premium on my 2 classics which only increased by £10-£15 this year.
Pat Boghossian
 
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Re: Insurance premium rises target older drivers?

Postby Keith Belcher » 07 Nov 2017 11:27

Pat.
When renewing both our normal cars this year, both with the same insurer, they came back with big increases. I tried confused.com and had similar results to you. I suspected something was wrong and they are not as independent as they claim. Their statement on trustpilot "It's true that Confused.com is part of the Admiral Group, which owns a number of well-known insurance companies such as Admiral, Elephant.co.uk and Diamond."
On trying just 2 other insurers, both times the premium reduced to similar to last year.
I think the lesson is not to believe the headlines. Look behind your so called, comparison site and check who owns it. Then try direct with another insurer, it works for me.
Keith[1949]
Keith Belcher
 
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Re: Insurance premium rises target older drivers?

Postby Bob Owen » 07 Nov 2017 14:35

An interesting point re "confused.com". My wife Carolyn handles our car insurances and noted some time ago that the range of insurers on confused was limited - now we know why. And perhaps where confused's evidently considerable advertising budget comes from... Carolyn uses "moneysupermarket.com" as it gives a wider range and better rates.

Alan, you only mention that you are retired, not your age. Many people retire before the state retirement age (and many later) and one would expect mileage to typically go down in retirement since cars would not be the daily work transport, so logically giving a reduced premium (but unlikely!). But age 70 is regarded by the DVLA as a competence watershed so it would be logical for insurers to do likewise. As I reach this 3 score and 10 I have already received a request from DLVA to renew my licence and await with interest my next insurance renewals.
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Re: Insurance premium rises target older drivers?

Postby Pat Boghossian » 08 Nov 2017 03:34

Ironically, in my experience I've always found 'moneysupermarket' to be more expensive than confused.com, whether it's for car insurance, house insurance, utilities or anything else I've tried ! Consequently, I stopped using it. I've also tried independent companies that don't appear on comparison websites (on recommendation) and found that they can't come anywhere near premiums quoted on confused.com. So, after almost 40 years of insuring bikes & cars I still don't know what criteria they use.....not sure if they do ?
Pat Boghossian
 
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Re: Insurance premium rises target older drivers?

Postby Mike Howlett » 08 Nov 2017 09:13

Our normal car has been insured with John Lewis for a few years - very good policy but not the cheapest. This year there was a big price hike. I tried the comparison sites but didn't like the sorts of companies that were cheapest. Went direct to NFU Mutual, which gets excellent ratings from the Consumers Association, and saved loads of money over the JL quote for an identical policy. They are worth a call. We are both in our late sixties and the car is insured in my wife's name.
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Re: Insurance premium rises target older drivers?

Postby Stuart McGuigan » 08 Nov 2017 20:40

I too have not found the so-called on-line best-buy finders very useful. The only answer seems to be to shop around oneself if faced with a big price hike, which is a pain. I, as a 70 year old who some insurers clearly believe has lost his marbles, have found Lancaster good for classics and Liverpool Victoria reasonable for modern vehicles. Others may or may not do so, of course.
Last edited by Stuart McGuigan on 21 Nov 2017 08:54, edited 1 time in total.
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Re: Insurance premium rises target older drivers?

Postby Victor Smith » 09 Nov 2017 12:42

One thing I plan to do when I am at the Classic Motor Show at the NEC on Friday is to visit three or four of the leading classic car insurance brokers and get their views on:
• why have renewal premiums for daily cars have gone up so much recently?
• whether we will see that type of increase with classic car policies.
• whether older drivers are being targeted by insurers for higher premiums than most customers and
• whether declaring you are no longer in fulltime employment or self employment and are "retired" leads to a premium increase.

BTW, our V8 Secretary Debbie Brading has volunteered to be on the MG Car Club stand in Hall 3 stand 470 for the three days, joining the Club staff there along with Club Chairman Ian Quarrington. I have heard Nic Houslip and Clive Wheatley will be there on Friday so with the doors opening at 10am we will meet up on the Club stand at around 11am. Hope to see fellow V8 members there.
Victor Smith
 
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Re: Insurance premium rises target older drivers?

Postby Angus Munro » 20 Nov 2017 11:13

Excellent Victor.
An excellent idea. I look forward to learning about your findings and conclusions.
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Re: Insurance premium rises target older drivers?

Postby Victor Smith » 20 Nov 2017 21:46

Angus,
I did visit a leading broker's stand and discussed with one of their staff the concern many members have over the large renewal premium increases seen for "daily cars" in recent months. The predictable response was "the increases are driven by several IPT increases introduced in recent the Budget announcements, the larger payouts to injured parties from the changes in how those sums are calculated (the Ogden table/discount rate), the greater repair costs for modern cars and the effects of the claims culture (some fraudulent) effect". That I expected would be the response but when I mentioned there seemed to be signs that older drivers were targets for higher renewal premiums and loyal customers seemed to be considered stuffees, the unspoken response was everyone shops around these days and negotiates their renewal these days, that's life. I came away from those discussions somewhat saddened but felt sure many fellow members would say "get over it and do what we do, shop around and haggle". I think Mike Howlett's contribution to the thread where he highlighted a good quality insurer offering competitive premiums for a good scope of cover was most useful. But shopping around you need not only to get a premium quote but you also need to check the quality and scope of the policy - that second feature of the cover is not so easy to check when getting a quote as you really need to see the policy documents and check the first loss amounts the insurer has based the quote on.
Victor Smith
 
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