The vast majority of policyholders across the industry are now seeing price increases when they renew. Some policies are up to 40% more expensive than last year, which can cause confusion and frustration - understandably. Here’s why it’s happening.
- Inflation has increased repair costs by 33%: Like everyone, the car industry is struggling with inflation. Rising energy bills combined with the higher cost of paint and materials have made repairing cars more expensive. This has a knock-on effect on car insurance policy prices.
- Increased fraud cases: More people are exaggerating claims or providing false information when applying for insurance. This pushes up the cost of insurance for everyone else.
- More claims: Two years ago, the number of claims being made was lower than normal because fewer people were driving during the pandemic. Now that people are back to their usual routines, the number of claims is on the rise again. That means premiums are going up, too.
- Other factors: Things like your age, where you live and your gender all play a part in your premium cost. Changing your details mid-policy and/or making a claim also affect your policy price.
When you renew, you will always be priced as if you were a brand new customer - sometimes even better.
We don’t charge returning customers any more than we do new ones. Not only do we appreciate and value your loyalty, there’s also actual regulation that tells us we’re not allowed to.
The Financial Conduct Authority (FCA) has clear guidance to protect all renewing insurance customers.
