WHEN George Icke received his car insurance renewal quote he was gobsmacked.
His fully-comp policy on his Hyundai jumped from £489.94 to £738.98 – a hike of £249 a year despite no change in circumstances or claims.
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“It’s staggering,” the 20-year-old told The Sun
“I’ve not been involved in a claim against me, I’ve not made a claim.
“What’s the justification for it when nothing has changed in terms of the vehicle and nothing has changed in terms of the claim?”
George, a student at Salford University, first took out the policy with Bell, part of Admiral Group, in February 2021.
Last year, his premium fell by almost £100, which is not unusual for younger drivers as they become more experienced, making the hike an extra blow.
“It was two years in February I had been driving,” he said.
“You assume by that point you are going to be on a downwards trajectory if you’ve not made any claims.”
He added: “The renewal price is so ridiculous.
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George is not the only one to be hit with a huge car insurance price hike in recent months.
Drivers are paying up to £302 more now compared to 12 months ago, research from Compare the Market found, a 20% increase.
Providers have blamed the rises on an uplift in the value of second-hand cars and higher vehicle repair costs including materials, wages and energy.
An Admiral Group spokesperson justified George’s increased premium by saying it would stay at the new amount for the term of the policy.
They also said drivers with similar policies to George showed to be higher risk last year compared to the year before, based on its claims statistics.
“We, along with many other insurers, have increased our prices, due to the impact of inflation on claim costs, for example rising repair costs,” they said.
“Whilst we aim to be as competitive as possible for the customer, we must also ensure our prices are reflective of the risk they present.
“In Mr Icke’s case, there aren’t major causes of the overall increase, but a cumulative effect of several smaller increases.
“We’re genuinely sorry we couldn’t be competitive for him this year, we don’t like to lose a customer.”
George, originally from Nottingham, has tried to call Bell to haggle for a cheaper deal but couldn’t get through on the phone.
He’s since been on comparison sites and found a deal that’s £181 cheaper, adding that he doesn’t “feel any sense of loyalty” to the insurer.
What are your rights if your premium goes up?
It’s important to know your rights when it comes to car insurance, so The Sun spoke to Ryan Fulthorpe, car insurance expert at price comparison website Go Compare.
He said insurers can increase your policy, even if you’ve not made any claims and your circumstances haven’t changed in the previous 12 months.
If you have had an accident, regardless of whether it was your fault or not, it will most likely result in your policy price increasing though.
But you don’t have to stick with your current provider when the policy ends and you can switch.
Ryan added: “All insurers quote differently for different risks, so where one might increase your premium by £100 following a claim, another might not factor this in in the same way.
“So it’s always worth shopping around at renewal to see if you can save.”
The best way to do this is on price comparison sites such as Compare the Market, Confused.com, GoCompare and MoneySuperMarket.
Not all insurers are on these sites so it’s also worth getting quotes directly from those that don’t.
You’ll need a number of details to hand if you do go on a comparison sites, including your:
- car registration number
- driving licence
- driving and claims history
- an idea of what you’ll use the car for (such as work, commuting or personal use only)
- annual mileage (you might be able to estimate this based on your MOT certificate)
If you’re worried about losing your no claims bonus when switching providers, in most cases you can transfer it across.
But, Ryan said, the new insurer might need proof of your existing no claims bonus, which you can get from your current insurer.
If you are thinking about leaving before your policy ends, beware of the risks.
If you are locked in, you may have to pay a cancellation fee to leave early.
Plus, you might not get all of your money back if you’ve paid for the 12 months up front.
For example, if you terminated the contract after 10 months you’re unlikely to be reimbursed for the two months you’ve not used.
It’s also worth noting if you have just recently bought your car insurance policy and you want to cancel it, you do have what’s known as a “cooling-off” period.
By law, you have a minimum 14-day period when you can cancel a policy for any reason and you should get a refund on any money you’ve paid.
Your insurer may take off a small amount to cover days when the policy was in force though and you may be charged a small fee.
In some cases, you might get longer than 14 days to cancel – you should check with your provider directly and the terms and conditions.
But in any case, make sure you’re not left without cover in between policies as it’s illegal to drive without insurance and you can be fined.
What can impact my car insurance premium?
Remember, a number of variables can impact what you pay for your car insurance.
Ryan said this includes your driving habits, mileage, car make and model, who else is driving the car and any modifications you might have made.
If you have to drive a lot for work, you will often pay more as you are more likely to have an accident as well.
Meanwhile, your age is a key factor – drivers under 25 are statistically more likely to be involved in an accident than older drivers so they are often charged higher premiums.
That said, older drivers can also be classed as higher risk too because of their age.
How can I save money on my car insurance?
Beyond switching to a new deal, you can cut costs further too.
In most cases, your insurance policy will automatically renew and you could end up being charged more.
But by checking out your premium and shopping around for a better deal, you could save yourself £100s.
It can be worth putting your excess up too – this is the amount you have to pay yourself if you make a claim.
By upping it, your premium should go down.
It might be worth getting a black box fitted in your vehicle as well.
They are usually given to younger drivers, who are seen as more of a risk on the roads.
The devices track your driving, including breaking, your speeds and more to see how safe you are.
The advantage to them is that if you are deemed to be a competent driver, your premium will drop.
According to Compare the Market, if you’ve been driving for at least a year, you can end up with a reduction up to as much as 60% on your policy by having one installed, although of course this varies from person to person.
The disadvantage to black boxes is that if you are bad driver, your premium will go up, plus some policies restrict how much you can actually drive.
A less expensive car will see your premium decrease as well, and it might seem obvious, but driving less will see your premium go down as well, as there’s less chance you will be involved in an accident.
Meanwhile, paying up front for 12 months of insurance will most likely be cheaper than paying monthly.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
