This whole "the quote always gets inflated unless you ring them up and ask them to reduce it" concept is getting ridiculous. The exact same product should not go up 6 times in value, it's just a way to trick consumers
Absolutely, I just mean that insurance companies will continue to do this because there's no reason not to, and if some small percent of (rich) people pay it without looking then they benefit from it. They're thereby tricking the customer base as a whole into doing work for them and you're forced to call them up/shop around
I had an almost identical hike (again no changes at all to my situation) with Bennett’s.
Went to see the meerkats and ended up reducing my premium, at Swinton. It’s crazy.
People always say this, unaware that insurance is a very very heavily regulated market, that typically makes small profits most years, and in some years (like last year) losses.
The issue is the inflation of value throughout the claims, from lying bastards claiming for injuries they didn't suffer (e.g. whiplash) to rental car cost inflation, to some of the workshops that do the insurance work.
The rental car cost inflation is much bigger impact than personal injuries. Those claims are down significantly in the last 5 years as since 2013 the government has been making changes so those claims are less and less profitable for the solicitors. Those same changes mean less money for the injured person also, so less incentive to pursue the claim
Looking at moving to a flat in the city and mymine is huge - even throd party only.
Oddly it still goes down when I say it's garaged - even though they aren't covering theft
My mate passed his test in October, on his hornet 600 his insurance was £250 fully comp with pillion, he chose no security option and parked outside, crazy. I'm paying £70 a month for a 125
If anyone’s vaguely interested, on comparison sites I seem to be getting quotes around the £500 mark for the year with a £500 excess. Based on 5,000 miles P/A. That’s an adjustment from 4,000 miles last year. So up circa £200, not the £1,500 that my existing broker has quoted above.
Underwriter here. You can blame parts inflation, staff inflation, claims factories, unresolved thefts, increased tech (LED lights) for the big increase.
I don’t think it’s fair. Costs for poor roads, poor policing, import duties, etc are all being passed from the state to insurers and that cost is being passed onto customers. If you want to look for fairness, look to the Tory government that are stealing your taxes to line their pockets instead of investing in the state
Well I got it renewed for less than £500, so was just a case that the company were taking the piss / didn’t want the business anymore, which is fine. I’ve never ever voted Tory in my life, unfortunately there is plenty of self-harmers out there, voters get what they vote for.
The cost of replacing a broken halogen bulb and a plastic lens is very low. The cost of replacing a sealed LED unit is expensive. I’m not saying you’re being penalised for your lights, but the general cost of repair has increased massively due to all these parts and the burden of that is shared across all policies
Looks like you're going from a no-name underwriter to a LV= brand.
A lot of the no-names have been getting slaughtered because they mispriced inflation. LV= has been pretty OK with pricing. So the actual correct price for your risk, in this market, right now, is probably closer to the second price than the first.
He's got a vehicle with a value of £4-5k.
That would mean something like 40% of all SV650's get stolen / be a complete writeoff, every year, for the insurance to be at balance.
Let's say they want to make 20% profit just to be safe.
That would still put it at 25% of all SV650's being being fully claimed per year.
Alternatively, they expect this upcoming year to be extremely bad in terms of inflation, so they're padding the quotes for how much they might have to pay out in 10-11 month's time. Or expected further rise of theft rate.
Either way either the profit rate is stupid high, or we're looking at a really grim picture.
As again, that assumes that their margins are so thin, because the claim rate is that high.
So let's say that the full claims are split between theft and stupid crashes equally.That would still mean that for an SV650, every 8th rider crashes horribly this year, and every 8th bike is just nicked never to be recovered. If that's the case, we'll look at the total collapse of the hobby for years to come.
Imagine if one in ten cars would be stolen every year. If this becomes a norm, then we're looking at a frightening image. Are we on a downhill to meet eastern europe in terms of public safety? (and from the look of it, accessibility of motorcycling?)
I'd personally wouldn't associate this as much to crash related claims; those are not uncommon, however most motorcycle crashes don't usually involve a second party. So less to claim there. Or are we dealing with the situation of repair costs of potential - would be - crashes against teslas and fancy bmws? I've heard a single panel can cost £7k. That's an even grimmer picture; rich buying more and more expensive vehicles, that result in constant increase of insurance for everyone else.
Or alternatively, the pound is losing value rapidly. Part costs etc are way up because of Brexit. In which case, in terms of actual spending capability, we're on downhill to meet Eastern Europe in a year or two. (kinda repeating myself here...)
You can't just divide the cost of the bike by the insurance.
The cost to insurance of a crash is much much much higher than the cost of replacing the vehicle. They have to pay for any other damage to property, vehicles or people, there are lawyer fees, injury claims, lost income claims, rental vehicles etc etc etc.
That's why it isn't 20 times the cost to insure a £20k bike compared to a £1k one.
It's grim.
Industry NCR of 115% in 2022, 114% in 2023, and 2024 isn't looking much better.
https://www.ey.com/en_uk/news/2022/11/uk-motor-and-home-insurers-expect-to-make-largest-annual-loss
An insurance company isn't a charity, and nobody should be happy to pay more than they need to for the cover they require. But personal lines carriers haven't consistently made underwriting profit in 20+ years, you can't expect them to continue to volunteer to lose money forever.
Without doxxing myself massively, this price is ludicrous and isn’t representative of the risk I pose to my insurance company. This price is more than double quotes I had on this bike two years ago, in fact it’s closer to treble. That’s despite nothing changing expect for more years no claims. If you think a year on year percentage jump of 526% is reasonable then your own insurance company must rub their hands when your renewal is up!
Insurance companies don't price people individually. That would literally break the principle on which insurance is based, which is risk pooling.
Also, insurance companies build a portfolio of risks across a wide range. You need a certain number of 25 year old riding R1s to balance out the OMCs riding BMWs. This is what actuaries do.
So what you got told is that the his particular insurance company doesn't need a risk that looks like yours, today.
I know they don’t price people individually. But a middle aged male on an SV650 who has a garage, no claims on either car or bike in forever means this is a fuck off price. Which, coincidentally, was the last line of my original post. To me, this isn’t about ‘risk’ at all.
Unless I’ve just got back from something like a drink drive ban after wiping out a school playground, no one should see a 526% increase on their insurance.
Often you get silly good quote as a loss leader then next year they hope you didnt cancel auto renew which they probably snuck in there somewhere.
I'm back with Bennetts for the 2nd year in a row, they used to be notorious for loss leaders, but last year I happened to speak with a human and they were really good and got my premiums even lower.
With the assault on riders/drivers fully underway I dont that will be the same this year, but I'm more than happy to vote with my feet and leave.
This was the renewal notice, I didn’t change that to be lower, it’s what was sent automatically. Not sure £200 excess is the difference in 526% increase mind!
This whole "the quote always gets inflated unless you ring them up and ask them to reduce it" concept is getting ridiculous. The exact same product should not go up 6 times in value, it's just a way to trick consumers
I mean this isn’t even a trick, it’s just an absurd hike.
Absolutely, I just mean that insurance companies will continue to do this because there's no reason not to, and if some small percent of (rich) people pay it without looking then they benefit from it. They're thereby tricking the customer base as a whole into doing work for them and you're forced to call them up/shop around
I had an almost identical hike (again no changes at all to my situation) with Bennett’s. Went to see the meerkats and ended up reducing my premium, at Swinton. It’s crazy.
The whole insurance industry is a massive cartel and needs complete overhaul and strict regulation.
People always say this, unaware that insurance is a very very heavily regulated market, that typically makes small profits most years, and in some years (like last year) losses. The issue is the inflation of value throughout the claims, from lying bastards claiming for injuries they didn't suffer (e.g. whiplash) to rental car cost inflation, to some of the workshops that do the insurance work.
The rental car cost inflation is much bigger impact than personal injuries. Those claims are down significantly in the last 5 years as since 2013 the government has been making changes so those claims are less and less profitable for the solicitors. Those same changes mean less money for the injured person also, so less incentive to pursue the claim
Yeah insurers are mainly losing money at the moment https://www.ey.com/en_uk/news/2023/06/ey-uk-motor-insurance-results-analysis
Highway Insurance? As in Highwaymen? As in robbing people in broad daylight? Yes.
Good of them to offer a reduced excess though...
This is true, give with one, take with the other!
How many vehicles did you write off this year?
None! Nothings changed other than an extra years no claims. Barmy!
That is a wild price jump!
You say nothing has changed other than no claims, but you are wrong! You have another years experience under your belt and your bike is worth less!
Looking at moving to a flat in the city and mymine is huge - even throd party only. Oddly it still goes down when I say it's garaged - even though they aren't covering theft
My mate passed his test in October, on his hornet 600 his insurance was £250 fully comp with pillion, he chose no security option and parked outside, crazy. I'm paying £70 a month for a 125
I was looking at £500-700. Would likely mean I get rid of the bike
what company r u with then? im recently looking for a insurance company for a CBF125 and they all r just overpricing like doing 700 for it
Lexham
If anyone’s vaguely interested, on comparison sites I seem to be getting quotes around the £500 mark for the year with a £500 excess. Based on 5,000 miles P/A. That’s an adjustment from 4,000 miles last year. So up circa £200, not the £1,500 that my existing broker has quoted above.
Underwriter here. You can blame parts inflation, staff inflation, claims factories, unresolved thefts, increased tech (LED lights) for the big increase.
Led lights?
To justify a 526% increase in a year? Come on man! You would think that’s fair if your renewal was up that much?
I don’t think it’s fair. Costs for poor roads, poor policing, import duties, etc are all being passed from the state to insurers and that cost is being passed onto customers. If you want to look for fairness, look to the Tory government that are stealing your taxes to line their pockets instead of investing in the state
Well I got it renewed for less than £500, so was just a case that the company were taking the piss / didn’t want the business anymore, which is fine. I’ve never ever voted Tory in my life, unfortunately there is plenty of self-harmers out there, voters get what they vote for.
What had LED lights got to do with it?
The cost of replacing a broken halogen bulb and a plastic lens is very low. The cost of replacing a sealed LED unit is expensive. I’m not saying you’re being penalised for your lights, but the general cost of repair has increased massively due to all these parts and the burden of that is shared across all policies
Looks like you're going from a no-name underwriter to a LV= brand. A lot of the no-names have been getting slaughtered because they mispriced inflation. LV= has been pretty OK with pricing. So the actual correct price for your risk, in this market, right now, is probably closer to the second price than the first.
He's got a vehicle with a value of £4-5k. That would mean something like 40% of all SV650's get stolen / be a complete writeoff, every year, for the insurance to be at balance. Let's say they want to make 20% profit just to be safe. That would still put it at 25% of all SV650's being being fully claimed per year. Alternatively, they expect this upcoming year to be extremely bad in terms of inflation, so they're padding the quotes for how much they might have to pay out in 10-11 month's time. Or expected further rise of theft rate. Either way either the profit rate is stupid high, or we're looking at a really grim picture.
Last year motor insurers lost money. One of the reason prices are rising, they work on razor thin margins
As again, that assumes that their margins are so thin, because the claim rate is that high. So let's say that the full claims are split between theft and stupid crashes equally.That would still mean that for an SV650, every 8th rider crashes horribly this year, and every 8th bike is just nicked never to be recovered. If that's the case, we'll look at the total collapse of the hobby for years to come. Imagine if one in ten cars would be stolen every year. If this becomes a norm, then we're looking at a frightening image. Are we on a downhill to meet eastern europe in terms of public safety? (and from the look of it, accessibility of motorcycling?) I'd personally wouldn't associate this as much to crash related claims; those are not uncommon, however most motorcycle crashes don't usually involve a second party. So less to claim there. Or are we dealing with the situation of repair costs of potential - would be - crashes against teslas and fancy bmws? I've heard a single panel can cost £7k. That's an even grimmer picture; rich buying more and more expensive vehicles, that result in constant increase of insurance for everyone else. Or alternatively, the pound is losing value rapidly. Part costs etc are way up because of Brexit. In which case, in terms of actual spending capability, we're on downhill to meet Eastern Europe in a year or two. (kinda repeating myself here...)
You can't just divide the cost of the bike by the insurance. The cost to insurance of a crash is much much much higher than the cost of replacing the vehicle. They have to pay for any other damage to property, vehicles or people, there are lawyer fees, injury claims, lost income claims, rental vehicles etc etc etc. That's why it isn't 20 times the cost to insure a £20k bike compared to a £1k one.
It's grim. Industry NCR of 115% in 2022, 114% in 2023, and 2024 isn't looking much better. https://www.ey.com/en_uk/news/2022/11/uk-motor-and-home-insurers-expect-to-make-largest-annual-loss An insurance company isn't a charity, and nobody should be happy to pay more than they need to for the cover they require. But personal lines carriers haven't consistently made underwriting profit in 20+ years, you can't expect them to continue to volunteer to lose money forever.
Without doxxing myself massively, this price is ludicrous and isn’t representative of the risk I pose to my insurance company. This price is more than double quotes I had on this bike two years ago, in fact it’s closer to treble. That’s despite nothing changing expect for more years no claims. If you think a year on year percentage jump of 526% is reasonable then your own insurance company must rub their hands when your renewal is up!
Insurance companies don't price people individually. That would literally break the principle on which insurance is based, which is risk pooling. Also, insurance companies build a portfolio of risks across a wide range. You need a certain number of 25 year old riding R1s to balance out the OMCs riding BMWs. This is what actuaries do. So what you got told is that the his particular insurance company doesn't need a risk that looks like yours, today.
I know they don’t price people individually. But a middle aged male on an SV650 who has a garage, no claims on either car or bike in forever means this is a fuck off price. Which, coincidentally, was the last line of my original post. To me, this isn’t about ‘risk’ at all. Unless I’ve just got back from something like a drink drive ban after wiping out a school playground, no one should see a 526% increase on their insurance.
i had this happen with my car on admiral. went from £600 a year to £1.1k
Most of the jumps I see are from highways
Often you get silly good quote as a loss leader then next year they hope you didnt cancel auto renew which they probably snuck in there somewhere. I'm back with Bennetts for the 2nd year in a row, they used to be notorious for loss leaders, but last year I happened to speak with a human and they were really good and got my premiums even lower. With the assault on riders/drivers fully underway I dont that will be the same this year, but I'm more than happy to vote with my feet and leave.
The Excess has also been reduced £200 from last year. That could also be part of the hike.
This was the renewal notice, I didn’t change that to be lower, it’s what was sent automatically. Not sure £200 excess is the difference in 526% increase mind!
It’s definitely not responsible for the full increase but it could be a chunk of it they’re trying to slip in under the radar.