Insurance price rises

C

Carol M

Lifer
Just got this off Martin Lewis' money saving website...

Urgent. WOMEN, beat huge car insurance hikes
European ruling means many, especially younger women, may see renewals hiked by £100s or £1,000s
By 21 Dec, insurers must comply with a European rule banning gender to set prices, so similar men and women will pay the same. Young men, renew after 21 Dec if poss - if not, include AA, Halifax & Lloyds who've already changed prices.

Why such huge hikes? On average, women pay £315/yr less than men, under-20s £2,000 less. So when prices are equalised, hikes could be huge, even if they meet half way. But different firms will play it differently for their competitive advantage.
Lock in ASAP to beat hikes. If renewal's due now, great, lock in at the cheapest current prices for a year. If there's a while to go, the younger you are, the more it's worth considering a cheap policy at today's price and cancelling your existing one. You'll get a pro-rata refund but factor in £25-£50 exit fees, while you won't earn no-claims for that year.
Trick - get today's price on 2013 renewal. With Churchill* and Direct Line* you can pay NOW to get policies starting in 90 days, with Aviva* 60 days. So IF it's cheap (we're not saying it will be) & you've the cash, bag a future renewal at current prices.
Speedily bag the cheapest deal. Full help in Cheap Car Insurance & Young Drivers Insurance. In summary: 1) Combine comparison sites MoneySup*, Confused*, & Tesco Compare, they don't all search the same. 2) Add those missed - Aviva*, Direct Line* and in 2+ vehicle homes Admiral MultiCar*. 3) Adding a safe 2nd driver can slash your risk and therefore, price. 4) Younger drivers, think about pay by the mile insurance.]
 
Yeh saw that this morning, you'd like to think they'd meet prices in the middle, but no doubt they'll just hike it up to the same price as ours.
 
It's not like it has been hidden though, as I've seen it plastered across the papers for most of the year.

However, maybe they are meeting in the middle, as mine renewal came in at 25% less than last year.
 
I was quite pleased that the renewal for my daughter (19) and son (18) on the Polo with my daughter being the main driver (obviously 8) ) was only £600.
 
Insurance is always a mucky busnis. Are women's premiums less because they have less accidents? So generally they would have better no clames bonus than the average bloke so still getting cheaper insurance on average? If not surly that's price fixing?

Not that i am saying insurance companies would ever do that!!!!!!!!!!
 
When someone went to the EU and complained that men's insurance was higher than women's, and it was sexist or unfair or whatever, it was obvious from the start that the insurance companies would only drive up the price of women's insurance - not drop the price of men's to match.

The thing is if the statistics fully proof the risk factor between men & women justify the difference, then surely it's the fairest way of doing it? The problem is there's no doubt a highly dodgy fiddle-factor built into how those risk factors affect the final premium...
 
Strikes me as bonkers this.

Women (generally) drive less miles, have less accidents per se and therefore cost the insurers less in payouts. Therefore why is it discriminatory to offer them cheaper premiums? It's like saying smokers pension annuities should be as low as non-smokers because otherwise it's discriminatory to non-smokers. Smokers annuities are lower because they'll die sooner and the pension company will have to pay out less. I can see this being the 'thin edge of the wedge' - what next? Elimination of price differences based on postcode?

The sooner we get that referendum on EU membership the better.
 
Well mine was due yesterday I got a quote two weeks ago of £750 down from £1060 which I was quite pleased about came to renew on saturday cheapest I could get was £802 £52 in two weeks...
 
my insurance is not due for renewal until october next year so im not worried about it

women have less accidents as they drive slower, do less miles and when they panic, they just stop their car in the middle of the road until they have calmed down...... must say something about them having their faces 2 inches away from the steering wheel too :lol:
 
original guvnor said:
Women (generally) drive less miles, have less accidents per se and therefore cost the insurers less in payouts. Therefore why is it discriminatory to offer them cheaper premiums? It's like saying smokers pension annuities should be as low as non-smokers because otherwise it's discriminatory to non-smokers. Smokers annuities are lower because they'll die sooner and the pension company will have to pay out less. I can see this being the 'thin edge of the wedge' - what next? Elimination of price differences based on postcode?
Click to expand...
The issue was that women were getting lower prices (or men were getting higher ones) for the same scenario/driver profile.

So a male driver doing less miles & having less accidents than the average male would get penalised just for being male.

For example:
A 21 year old, living in London, with a 5 year old Ford Fiesta, parked on the street, doing 10,000 miles a year, with 1 x £2000 fault accident 2 years ago, 1 SP30 and 2 years NCB, was producing 2 different premiums from the same insurer SOLELY on which option they ticked on the male/female box.

Those two drivers have exactly the same history with which to make a risk assessment, yet the male was penalised with a higher premium or the female was rewarded with a lower premium.

It's no different than penalising drivers who happen to be African/Asian/Canadian/Scouse, just because their social group happens to have more whiplash injury claims when there is an accident.
 
tomscott said:
Well mine was due yesterday I got a quote two weeks ago of £750 down from £1060 which I was quite pleased about came to renew on saturday cheapest I could get was £802 £52 in two weeks...
Click to expand...

Tom have you tried Classicline for the ///M? I've just renewed with them - 5k miles pa for £433. Based on 43 yr old, 10 years NCD, 2 speeding convictions and 1 fault claim in a medium risk area, car on driveway. I also got a £30 discount for BMWCCGB membership.
 
Reason for it being cheaper, is because women dont have as many crashes...

They just cause more....
:fuelfire:
 
mmm-five said:
original guvnor said:
Women (generally) drive less miles, have less accidents per se and therefore cost the insurers less in payouts. Therefore why is it discriminatory to offer them cheaper premiums? It's like saying smokers pension annuities should be as low as non-smokers because otherwise it's discriminatory to non-smokers. Smokers annuities are lower because they'll die sooner and the pension company will have to pay out less. I can see this being the 'thin edge of the wedge' - what next? Elimination of price differences based on postcode?
Click to expand...
The issue was that women were getting lower prices (or men were getting higher ones) for the same scenario/driver profile.

So a male driver doing less miles & having less accidents than the average male would get penalised just for being male.

For example:
A 21 year old, living in London, with a 5 year old Ford Fiesta, parked on the street, doing 10,000 miles a year, with 1 x £2000 fault accident 2 years ago, 1 SP30 and 2 years NCB, was producing 2 different premiums from the same insurer SOLELY on which option they ticked on the male/female box.

Those two drivers have exactly the same history with which to make a risk assessment, yet the male was penalised with a higher premium or the female was rewarded with a lower premium.

It's no different than penalising drivers who happen to be African/Asian/Canadian/Scouse, just because their social group happens to have more whiplash injury claims when there is an accident.
Click to expand...

I see your point mmm-five. I wonder though is it discriminatory or is that just statisitical weighting? You could argue that even with an identical past record the male would be more likely to have further causes to claim because he was a male,based on actuarial evaluations?
 
original guvnor said:
I see your point mmm-five. I wonder though is it discriminatory or is that just statisitical weighting? You could argue that even with an identical past record the male would be more likely to have further causes to claim because he was a male,based on actuarial evaluations?
Click to expand...
I completely agree that this is taking the pee as you've got to be able to use stats/trends to work out premiums properly, and was just pointing out how it came to pass.

Next they'll ban loading premiums for younger/older drivers because that will be ageist :P
 
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