Motor Motor Insurance hikes

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horusd

Registered User
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We've all heard the horror stories re rate increases but it gets personal whe a bill comes through the door with a rate hike of nearly 40%. I used to work in the business but can't get my head around what's causing these massive increases. I've been shopping around and got a quote about 100 cheaper, but it's a bit of a slog. Anyone find any good comparison websites for motor insurance or is it a question of just ringing around & doing online quotes?
 
For me it took ringing around. Last year I was so annoyed at the increase AXA (through AIB as Broker) wanted that I reduced my cover from comp to TPFT costing me 371 pa. This year they wanted 500 for TPFT but a phone-call got it down to 457. Prompted by my sister I gave BoI insurance a ring and out popped 505 for comp, which is pretty good I think. An Post and a couple more still to give quotes.
 
Yep, I've tried An Post and chill. An Post was 515 for comp with step -back NCD, but chill were over 700 WITHOUT windscreen cover or any NCD protection. I'm currently with AXA thru the AA and their quote is 525 with protected NCD. Given that I've full NCD, very low mileage and no penalty points I find this excessive still. I'll keep looking!
 
My insurance renewal went from €345 to €805 for the same risk.
I got insured with Bank of Ireland for €460
 
I went with Blue Insurance this time and I think, uniquely for Ireland, they offer a two-year policy which is underwritten by Zenith. My renewal quote for one year was c. €550 and I took out the two-year policy with Blue Insurance for €730 i.e €365 p.a.

All with the (considerable) added bonus of not having to carry out the tedious search this time next year...
 
tallpaul said:
I went with Blue Insurance this time and I think, uniquely for Ireland, they offer a two-year policy which is underwritten by Zenith. My renewal quote for one year was c. €550 and I took out the two-year policy with Blue Insurance for €730 i.e €365 p.a.

All with the (considerable) added bonus of not having to carry out the tedious search this time next year...
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They don't quote for cars over 10 years old. I really hate that - it looks like I need to ditch my perfectly fine 2003 car next year as insurers either don't quote for older cars, or the premium is just getting absolutely ridiculous. :mad:
 
tallpaul said:
I went with Blue Insurance this time and I think, uniquely for Ireland, they offer a two-year policy which is underwritten by Zenith. My renewal quote for one year was c. €550 and I took out the two-year policy with Blue Insurance for €730 i.e €365 p.a.

Wow, thats good value @ €1/day. There must be something about informing them before the start of next years policy of any penalty points accrued within the first year?

Its also gas where we find a realistic quotes as above good value these days, after having the ridiculous price increases imposed on us, albit due to the fact the courts believe in Ireland we suffer more painful injuries than any other nation.
Its truly no wonder the courts have their fair amount of chancers every day hobbling in and then miraculously cured and skip out.
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Wow, thats good value @ €1/day. There must be something about informing them before the start of next years policy of any penalty points accrued within the first year?

Its also gas where we find a realistic quotes as above good value these days, after having the ridiculous price increases imposed on us, albit due to the fact the courts believe in Ireland we suffer more painful injuries than any other nation.
Its truly no wonder the courts have their fair amount of chancers every day hobbling in and then miraculously cured and skip out.[/QUOTE]
 
LS400 said:
Wow, thats good value @ €1/day. There must be something about informing them before the start of next years policy of any penalty points accrued within the first year?
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Most policies state you must inform them straight away if you or any named driver gets points. Failure to do so could result in them refusing a claim.
 
Renewal in this week. Increase of 75% (no claims max, reduction in value, same penalty pts as last year etc). Chill quoted more. Aviva reduced it by €100 on a call. 25plus.ie about €80 cheaper but wary of using them due to this and other threads on here. Blue about €25 cheaper and BoI to ring me back.
 
Insurance is mad! As above in my OP AIB/AXA originally wanted 500 for TPFT, reduced by 10% with a phone call. We have now agreed to 495 for COMP with all the bells and whistles. It's still €9.52/week and an increase on 2 years ago, but I think I can live with it. No additional finance charges for paying by monthly DD, and automatic follow on unless I cancel.
 
I was covered third party on an 05 almera with 123.ie with max ncd for about 350 back in February. I bought a 2014 seat toledo last week with 6 months left on my policy. I upgraded to comprehensive on the toledo for no extra charge for the remaining 6 months. They were going to refund money if I stayed on third party. However out of interest, I checked the price for the 05 almera and it had increased about 300, I am guessing because it is an 11 year old car now.
 
horusd said:
SNIP... I used to work in the business but can't get my head around what's causing these massive increases.
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I suspect two factors at play.

1. Adverse claims experience. Just look at the awards being handed down.

2. Underwriters invest our premiums in stocks/shares/equities/deposits. They use the return from investments to bridge the usually adverse gap between premiums paid in and claims paid out and to turn a profit. I suspect that the returns on investments are now quite poor and so they look to the customer to fill that gap. Also, remember that the insurers have shareholders who are looking for returns on their investments with those insurers themselves.

Which ever way you reason it the adverse trading conditions will always trickle down to the customer. What makes it so difficult for customers is that motor insurance is mandatory so there is very little consumer flexibility in terms of getting around the problem.

I also find the unpreparedness to quote for vehicles > 10 years a touch irrational.
 
[Su]rely there are liquidity rules that specify there must be cash on hand to meet claims? Why are they allowed to gamble customers' premiums with potential adverse consequences for liquidity and possibly leaving customers and their vehicles uninsured?
 
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mathepac said:
rely there are liquidity rules that specify there must be cash on hand to meet claims? Why are they allowed to gamble customers' premiums with potential adverse consequences for liquidity and possibly leaving customers and their vehicles uninsured?
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If they did not invest the premiums to secure a return they would probably make underwriting losses of even greater proportions than some of them do already.

The capital raised from their own shareholders would probably not be adequate either to fund operations.

They do gamble policyholders' premiums through the investments they make in the hope of a return. However, the better managed companies usually adopt a careful approach and will operate blends of investment types to minimise exposure to adverse returns. It is all about risk in every sense.
 
Forgive me pointing out the obvious, but is it not the case that insurance companies are trading companies that sell a product to consumers and generate profits from the differences between the price of what they sell, the cost of what they buy the commodity at plus their operating costs. If they have to gamble policy-holders premiums to generate sufficient profits to stay in business, then they should find another business for themselves.
 
What would make sense is a mandatory basic cover which is funded by a charge on the car fuel. The more you drive, the more you are likely to have an accident. There's no avoiding it, so no uninsured drivers driving up legal driver costs.
 
mathepac said:
Forgive me pointing out the obvious, but is it not the case that insurance companies are trading companies that sell a product to consumers and generate profits from the differences between the price of what they sell, the cost of what they buy the commodity at plus their operating costs. If they have to gamble policy-holders premiums to generate sufficient profits to stay in business, then they should find another business for themselves.
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They mainly invest in the bond market. There is little or no yield in the bond market at present so they are increasing premiums to maintain profitability.

Insurance companies are regulated entities and must be able to show that they are able to meet their claims. That's how Quinn Direct collapsed, they weren't able to show that.

Steven
www.bluewaterfp.ie
 
I got quoted €690 for 3rd party fire and theft up 72% from €401 last year.
I tried around a bit and still looking at €640.
Blue and Bank of Ireland wouldn't cover me as my car is too old.
Best quote is €540 for third party without fire and theft.
 
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