Insurance going up?

[Aceman]

So I\'m moving to a much nicer area of Milton Keynes where my car will now be garaged and the premium has increased - go figure??  :xconfused  :2Rolleyes

My missus MX5 has rocketed this year, despite her turning 30!

Quite literally around an extra £200 which is a lot on a £300 last year car insurance! Struggling to find anything lower than £460 now, and that\'s using all my contacts in the industry!

My car was the same, £330 in August when I got a quote for the Volvo when I bought it, £580 now. Shopping around has pulled mine back down to £305 where it should be, but not sure what\'s gone on in the market these last couple of months since I no longer work in the background for it!!

[BlitzBoy]

As I work in the Insurance industry (abit the IT side), a lot of underwriters have lost a lot of money due to offering heavy discounted premiums for far too long over the last 3 years.

A few of the big insurance companies have had their fingers burned, some are getting out of insuring sports cars all together, a few small underwriters have gone to the wall, hence less choice less competition and hence premuims going up from insurers staying in the sports car market and clawing back the losses through increased remewal premiums.

The only company making money from insurance deals but dont actually offer the actual insurance policy is price comparison sites like Go Compare, they made a massive profit.

[BlitzBoy]

Another bit of info, Insurance companies dont actually make that much profit from the premiums, eg from one major insurance company , I wont name names , for every £100 they take in premuims they actually spend £98 servicing the policy in costs (Combined Ratio COR) which it quite good £2 profit, the actual real money (profit) made is by re investing the premuims into the financial markets.

There are numerous polices which are in fact technically loss leaders eg premuims is £100 but costs £110 to service the policy, the companies trying to get as much premuim cash as possible to reinvest. The way they get burned if one year there have been a high level of claims or the investment market goes down the pan eg the last 3 years where both situations happened lol

[Big Al]

That\'s a really interesting insight into how the insurance world functions............thanks:Thumbs-up