Second Hike - Civinfo
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post #1 of 18 (permalink) Old 27th February 2017, 14:41 Thread Starter
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Second Hike

Car insurance is set to rise again in another hike announcement like the other Insuranve Premium Tax one a few weeks ago.

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In case you've not seen today's news, the Lord Chancellor has announced that the personal injury discount rate will be reduced from 2.5% to minus 0.75% from 20 March.
This is not a fair outcome for policyholders. Nor is it the right outcome for claimants who depend on the payments. In a period of economic uncertainty, with low confidence in our industry and many people's finances already at a stretch, the pressure on customers will only increase.
The ABI said this morning "To make such a significant change to the rate using a broken formula is reckless in the extreme, and shows an utter disregard for the impact this will have on consumers, businesses and the wider operation of the insurance market."
Ageas is fully committed to ensuring that seriously injured people receive the compensation they need and deserve. That is only right and proper. But we believe this decision will see inflated financial payments for the few that everyone will have to pay for.
We will be assessing the impact that the change will have on our business and pricing in the next few days.
With the other recent rise announcement you could be adding significantly over last years quote.
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post #2 of 18 (permalink) Old 27th February 2017, 15:18
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Aghh hope mine doesn't go up much upon renewal. Its very cheap for the car that I have so fingers crossed lol
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post #3 of 18 (permalink) Old 27th February 2017, 17:42 Thread Starter
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If the media are to be believed then if you are under 22 then add 1,000 to your next renewal and if over 65 add 300.
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post #4 of 18 (permalink) Old 28th February 2017, 12:59
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This seems to be a fairly balanced take on the potential impact of this change:

Car insurance price hikes predicted for millions | This is Money
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post #5 of 18 (permalink) Old 28th February 2017, 13:46 Thread Starter
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See what happens but:

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The Association of British Insurers (ABI) has revealed that 15 insurer CEOs will meet the Chancellor of the Exchequer today (28 February) and call on him to intervene and stop the decision to cut the discount rate to -0.75%.

The announcement yesterday by Secretary of State for Justice Liz Truss that the discount rate, also known as the Ogden rate, would be cut from 2.5% to -0.75% in March triggered predictions from insurance experts that premiums for young drivers could rise by up to 1,000 a year.

Top level representatives from the insurance industry are heading to see Chancellor Phillip Hammond, and will call for a swift change in the law through the Prison and Courts Bill to stop the change hitting motorists, businesses and taxpayers.

ABI director general Huw Evans said: "The Chancellor will today hear just how concerned insurers are about the way this change will hit their customers.

"It makes no sense to do something that will cost motorists, businesses and taxpayers so much at such a difficult time based on a broken formula.

"It is not too late for the government to deliver a fairer deal for consumers and claimants and it should commit to urgent reform of the law before this crazy decision becomes a reality."
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post #6 of 18 (permalink) Old 1st March 2017, 09:57
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The NHS will be affected too as the decrease in the discount rate (Ogden rate) also affects medical negligence claims.

At least insurers are trying to fight the consumers' corner: Car insurance: Chancellor moves to ease insurers' fears - BBC News
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post #7 of 18 (permalink) Old 1st March 2017, 10:49 Thread Starter
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My DL renewal letter/quote is due in about 2 weeks so that will be interesting.
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post #8 of 18 (permalink) Old 3rd March 2017, 10:43
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Originally Posted by Kremmen View Post
If the media are to be believed then if you are under 22 then add 1,000 to your next renewal and if over 65 add 300.
Wait, did you say ADD 1000, as in one grand, a bag of sand?? Crikey, I didn't even pay half that when I was under 22.
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post #9 of 18 (permalink) Old 3rd March 2017, 13:05 Thread Starter
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I've been looking around online and the current quotes are about 35% more than last year so looks like the new rates have been applied.

Best provisional quote so far is Chris Knott.
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post #10 of 18 (permalink) Old 3rd March 2017, 14:41
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Originally Posted by Kremmen View Post
I've been looking around online and the current quotes are about 35% more than last year so looks like the new rates have been applied.

Best provisional quote so far is Chris Knott.


You're right. Last year 4 years NCD was 473 for me, this year it's 912, I'm 23. That's unbelievable


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post #11 of 18 (permalink) Old 3rd March 2017, 15:59
 
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If a 3.25% increase in payouts lead to an increase in premiums of 35-100%, then what level of profit are insurance companies making on each policy? My maths is not great but would that be 0.35-0.01% profit per policy (excluding the hike in insurance tax 2.5%),. doesn't look right to me. Maybe the cynics among us might suggest that the Insurance companies are using this as an excuse to have us over again, we have after all had pretty reasonable premiums for a while.
I may of course be wrong.
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post #12 of 18 (permalink) Old 6th March 2017, 09:21
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You'll find that the insurers are fighting against the rate change. They're working for the consumer on this one.
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post #13 of 18 (permalink) Old 6th March 2017, 09:47
 
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Good to hear.
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post #14 of 18 (permalink) Old 6th March 2017, 10:02 Thread Starter
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My renewal is due in 4 weeks so probably too early for any subsequent reduction.
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post #15 of 18 (permalink) Old 26th April 2017, 16:58
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How did you get on? Mine has gone up a fair bit with DL, LV are looking favourite at the moment on the comparison sites but it's still a bit steep with the add-ons
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post #16 of 18 (permalink) Old 26th April 2017, 17:10 Thread Starter
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Last year 384, this year 438.

I did some pre homework and the best I could get was 450 with CK. The online quotes ranged from 460 (Aviva) to 560 (M&S) so the DL 'auto renewal letter' was a bit unexpected. Especially as their website quoted me 505. I had to double check the details, just for peace of mind, and all was OK.

Another year down but if they price hike next year I will have no issue going straight to CK.
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post #17 of 18 (permalink) Old 26th April 2017, 17:29
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Similar figures to me, 430 this year after 352 last year. 380 with a haggle.

That's with full (9 year+) no claims, protected NCD, breakdown, legal, courtesy car.

LV is looking about 230, 300 with the add-ons. Am waiting on a quote from CK.
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post #18 of 18 (permalink) Old 26th April 2017, 17:46
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Mines a real pita 170 for the year.Must be loading the crap drivers cos ive not been hit on either car.

Good old Hastings
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