Classic
premiums rising
Following our NEWS
item on 2nd October 2017 on the report from petrolprices.com that motor insurance
premium rises target older drivers and a report from a fellow V8 Register member
of a 55% increase in the renewal premium for his daily car, the lead article in
this week's issue of Classic Car Buyer sets out concerns over increases for classic
car owners.
Posted:
171020 |  | The
lead article in this week's issue of Classic Car Buyer says "car insurance
premiums are expected to reach the highest on record during 2018" according
to a report on a study by confused.com the price comparison website. They add
insurance prices have "climbed since 2015 and risen by an average of 14%
in the last year". The "recent upward trend was caused by increasing
numbers of personal injury claims and changes in the way these are calculated
(the "Ogden discount rate") and a hike in Insurance Premium Tax three
times in two years.. | Does
loyalty by motor insurance policyholders count for anything now?
Many
classic car enthusiasts have been loyal customers of individual specialist brokers
providing limited mileage agreed value motor insurance cover for their classic
car. Often they have renewed each year without making comparison checks believing
that as loyal customers the broker offers them competitive premium renewals. In
2017 the UK Government introduced a new requirement that brokers and insurers
have to disclose the premium for the previous year alongside the renewal premium
so the comparison is clear. In our NEWS item on 2nd October 2017 details of an
astonishing £194 or 55% increase in the renewal premium for a daily
car were set out there. As the driver record and car had not changed, the stunned
policyholder queried the premium with the broker. The less than convincing explanation
provided by the broker was set out in full in the NEWS item together with a premium
reduction of over £100 but still the renewal premium was still 32% higher
than the previous year! See our earlier NEWS
item
A further report from the member is the renewal premium received from
the same broker for his wife's daily car has increased by 18.5% from £243
to £288 - again with no change to the driver record or car.
It
seems believing loyalty is valued by brokers and motor insurers through their
offering competitive renewal premiums has gone as part of their business approach.
Now policyholder churning seems to be a major part of the business and to get
the best cover in terms of both price and quality of the scope of cover you have
to shop around and then haggle for a reduction or go elsewhere. For many older
motorists the prospect of embarking on a shopping around exercise is not welcome
at all but the reality seems to be that if you simply pay up the renewal premium
and do not shop around and haggle you will be seen as a passive profitable customer
- a "loyal stuffee"! |
|
