My car insurance raised by 70%

romiadam

Hi all,
I have mazda6 S 2003. My cheapest car insurance 2 years ago was €290. Last year €350. This year (today) I can not get cheaper quote as €600, what is 70% increase regarding to last year.

Does this happened to anybody else, or only to me?
What happened to insurance companies? I have tried mazda 6 2009, but it is still dear €510 (so the car age is not the main issue).

peteb2

They lost a **** load of money and hiked up prices. And that is the holy all of it.

Without knowing any of your circumstances, adverse of otherwise, that price is about average.

romiadam

This is a big joke.
Few years ago BANKs lost money, because they do not care about their investments -> we pay the lost.
Now, insurance companies did some wrong investment (or whatever happened) and lost "my" (all of us) money, I have pay it again.... It is not my business, that they lost money.
This banking and insurance system is going nowhere....it must end. If all insurance companies will ask €1000 for a car, will we pay it, because it is a law?

Nervous Wreck

romiadam wrote: »

This is a big joke.
Few years ago BANKs lost money, because they do not care about their investments -> we pay the lost.
Now, insurance companies did some wrong investment (or whatever happened) and lost "my" (all of us) money, I have pay it again.... It is not my business, that they lost money.
This banking and insurance system is going nowhere....it must end. If all insurance companies will ask €1000 for a car, will we pay it, because it is a law?

Yep.

Liam McPoyle

romiadam wrote: »

Hi all,
I have mazda6 S 2003. My cheapest car insurance 2 years ago was €290. Last year €350. This year (today) I can not get cheaper quote as €600, what is 70% increase regarding to last year.

Does this happened to anybody else, or only to me?
What happened to insurance companies? I have tried mazda 6 2009, but it is still dear €510 (so the car age is not the main issue).

The prices you paid over the last couple of years are way below what you should have been paying.

Insurers got into a price war reducing rates to unsustainable levels in an effort to gain market share and are now having to put them back up to what is a safe and fair level.

€290 is a laughably low price for insurance for anyone never mind for a larger saloon type car.

Even though insurance on average has increased by 20% in the last 12 months, today its still approx 27% cheaper (on average) than it was in 2002. That basically means that 2 years ago insurance was nearly 50% cheaper than it was ten years previous to that.

Ultimately you got it cheap over the last couple of years and are now getting quoted what is the actual level it should always have been at.

Best advise is to shop around, both with brokers and with direct insurers and see if you can do any better.

romiadam

Business Cat wrote: »

Best advise is to shop around, both with brokers and with direct insurers and see if you can do any better.

I did, but all quotes are arround €600-700.

I would not say anything if the price increase would be +20-30%. But 70%???
Yes I agree the €280 and €350 was a good price. But my point is 70% raise from €350 for driving 20year without accident. The highest price in the past I have paid for mazda was €450. That is why I am not hapy.

On 123.ie comprehensive car insurance advertisement price is €249.

When I typed in the same data in to quotation as stated on the advertisement, the both TPFT and comprehensive was for €249 (it is advertised). When I changed only the address area to Balinteer or Knocklyon, what is neighborhood area the price changed as follow:
D16,Ballyboden - Com-€249, TPFT-€249
D16,Balinteer - Com-€445, TPFT-€572
D16,Knocklyon - Com-€445, TPFT-€572

So what is it about. Why the price raised and Comp, TPFT are not equal? The price €249 is a big bull...t. We all have to live in D16 Ballyboden and have VW golf 1,4L :-) Why 123.ie don't put on advertisement fair statement "Price from €445" ???

The insurance companies are doing what they wish to do. We are only a puppets and government/regulator just quietly watching to it. I think if the insurance companies should first clan a mess in their system (cut off bonuses, expences, overemployment,...etc).

Thanks to all for information about the price raise of car insurance.

peteb2

Insurance companies aren't a state run enterprise, they aren't the public sector, and there isn't and shouldn't be a need for control by the government. So they can employ as many people as they want. And give as much bonuses as they want.

The only insurance you are obliged to have is motor insurance. And if the lower courts continue to give huge settlements and people are just back to claiming for every little thing this is the way the prices have to go.

Some people s

peteb2

Some people seem to think that insurance companies are not-for-profit organisations! As you see from most companies annual result at this point they may as well be. But they're not their just to give you a low price because you aren't happy with how it work.

Liam McPoyle

romiadam wrote: »

I did, but all quotes are arround €600-700.

I would not say anything if the price increase would be +20-30%. But 70%???
Yes I agree the €280 and €350 was a good price. But my point is 70% raise from €350 for driving 20year without accident. The highest price in the past I have paid for mazda was €450. That is why I am not hapy.

On 123.ie comprehensive car insurance advertisement price is €249.

When I typed in the same data in to quotation as stated on the advertisement, the both TPFT and comprehensive was for €249 (it is advertised). When I changed only the address area to Balinteer or Knocklyon, what is neighborhood area the price changed as follow:
D16,Ballyboden - Com-€249, TPFT-€249
D16,Balinteer - Com-€445, TPFT-€572
D16,Knocklyon - Com-€445, TPFT-€572

So what is it about. Why the price raised and Comp, TPFT are not equal? The price €249 is a big bull...t. We all have to live in D16 Ballyboden and have VW golf 1,4L :-) Why 123.ie don't put on advertisement fair statement "Price from €445" ???

The insurance companies are doing what they wish to do. We are only a puppets and government/regulator just quietly watching to it. I think if the insurance companies should first clan a mess in their system (cut off bonuses, expences, overemployment,...etc).

Thanks to all for information about the price raise of car insurance.

If you read the fine print in 123's and all insurers ad's the lowest of the low prices are only for a very small section of drivers, its just used as a hook to get people to ring them or get quotes online.

123 is a massive reason why the insurance market is in trouble financially at the moment.

They were offering premiums far below what were safe levels (safe levels would be taking in enough money from premiums in order to have enough to cover their claims costs)

As a result of their strategy they had to get a £200,000,000 injection of cash from their parent company RSA because there was no money to cover their claims.

Setanta insurance had a similar strategy, taking business on at less than safe premiums as well as other factors, they went bankrupt leaving their customers high and dry and meaning because of a recent court ruling that the MIBI have to foot the bill for €90,000,000 worth of claims that are outstanding.

The fact of the matter is this, Irish people have gotten a free ride when it comes to insurance premiums over the last number of years. It has been way below what it should have been so the companies are left with no other options but to increase the premiums to ensure they dont meet the same fate as Setanta.

If you and everyone else were paying €500 a year for the last 5 years the industry would not be in trouble and such drastic price hikes would not be required.

The average premium in England is around £600 which is well above what you can get at €600.

romiadam

peteb2 wrote: »

Insurance companies aren't a state run enterprise, they aren't the public sector, and there isn't and shouldn't be a need for control by the government. So they can employ as many people as they want. And give as much bonuses as they want.

That how it works now, but I think insurance companies should be controlled by regulator, due to it is obligation to have car insurance. You cannot say, "Thank you I am not going to insure my car". Regulator should state the minimum price (e.g €400-500) oi keep the insurance industry in safe level.


Where is the fair to those who are driving 20 years without accident, and those who claims every little scratch on the car?

OK guys, thank for explanation. I get it.

Nervous Wreck

romiadam wrote: »

That how it works now, but I think insurance companies should be controlled by regulator, due to it is obligation to have car insurance.

They are regulated by the Central Bank of Ireland.

PaulM1977

Have you tried the AA website, they give you a discount if you take out insurance with them online. Found them to be competitive price-wise.

Thanks,

PaulM

newacc2015

romiadam wrote: »

That how it works now, but I think insurance companies should be controlled by regulator, due to it is obligation to have car insurance. You cannot say, "Thank you I am not going to insure my car". Regulator should state the minimum price (e.g €400-500) oi keep the insurance industry in safe level.


Where is the fair to those who are driving 20 years without accident, and those who claims every little scratch on the car?

OK guys, thank for explanation. I get it.

Eh? You fail to realise without making money they will go out of Business. You basically want them to continue selling insurance at a loss by setting their prices. Look at the mess that FBD is in. Their share price has nose dived and there is no indication of a return to profit.

You cant expect insurance companies to keep making losses

P_Cash

paid €337 Jan 2015,

premium in post for 2016 €560, thats +€223

this is a 06 xtrail, worth about 1,500/2000.

the tax on this vehicle is 1064 for the year,

i dont mind the tax, i settle for that 3 yrs ago, and was happy with it, but insurance is just nuts.

To Elland Back

P_Cash wrote: »

i dont mind the tax, i settle for that 3 yrs ago, and was happy with it, but insurance is just nuts.

With insurance, you're getting cover to pay any bills that may arise from your negligence on the road. This can, in theory, run in to millions. What are you getting in return for your road tax?

P_Cash

To Elland Back wrote: »

With insurance, you're getting cover to pay any bills that may arise from your negligence on the road. This can, in theory, run in to millions. What are you getting in return for your road tax?

as you say what insurance covers, what annoys me is the increase, and lack of information or notice of this increase.

I mean i can handle a couple of quid, but €223 increase.

if the tax was to jump around like this id have it off loaded.

its frustrating, I'm now worried what the car insurance will come in at in July

PolaroidPizza

The troika has been trying to get the government to reign in legal costs for a long time but the legal lobby groups are far too powerful. Legal costs increase year on year and there's no end in sight. Consequently insurance prices will inevitably increase.

kenmccarthy

So true.....legal fees have been criticised by troika for years.....It won't change....We also have to pay for quinn insurance ( a 2% levy). I also think the courts haven't reigned in the awards for motor insurance claims. My 2010 quasquai was €350 comp last year.....New quote is €507....... The car is a year older /less value but a 40% "hike" !!!!!!!!!!!!

JackHeuston

romiadam wrote: »

That how it works now, but I think insurance companies should be controlled by regulator [...]

That's how it works in many other countries for a simple third-party cover, the mandatory one to legally drive.

Drivers get affordable car insurance and are happy (and safe).
You don't hear insurance companies blaming anyone because they lost money for whatever reason (big claims, too many claims, bast investments, ...). Ever.

And everything works without issues for everyone.

But it seems people like to get scr!w3d and even want to defend insurance companies (for reasons I ignore) using those classic arguments like "nobody forces you to drive a car", or "it's the law to have car insurance, and if it costs 2000 € well you pay it or you just walk like everyone else!!11!". Other people's life might be way more complex than one thinks.

It's been proven that expensive insurance simply raise the number of uninsured drivers on the road.

There are ways to make drivers AND insurance companies happy. If someone can't get their head around them, at least they should stop opposing them just because they feel like doing it.

Nody

P_Cash wrote: »

paid €337 Jan 2015,

premium in post for 2016 €560, thats +€223

this is a 06 xtrail, worth about 1,500/2000.

And when you run into someone else and they claim whiplash and the insurance company is told to pay out 40k EUR for it; how does the value of your car come into the picture? The simple fact is the value of the cars involved is usually the smallest part of the claim; it's the personal injury claims (and everyone having pain in their back and neck, whiplash etc.) that's driving the cost for insurance.

Heisenberg1

For the past number of years my insurance has not decreased I had small increase last year and I'm with FBD. Previous years I was with AXA they were looking for €250 more than FBD for the same level of cover on my last renewal. It makes me laugh when they tell you the increase is down to increased claims etc etc... Then I read this.

http://www.axa.co.uk/newsroom/media-releases/2015/interim-results-2015-axa-uk-profits-rise-by-27-per-cent-amanda-blanc-appointed-ceo-of-axa-insurance/

kenmccarthy

Good post.........you gotta laugh????

Heisenberg1

Nody wrote: »

And when you run into someone else and they claim whiplash and the insurance company is told to pay out 40k EUR for it; how does the value of your car come into the picture? The simple fact is the value of the cars involved is usually the smallest part of the claim; it's the personal injury claims (and everyone having pain in their back and neck, whiplash etc.) that's driving the cost for insurance.

I always assumed that's why the personal Injurys board was established to limited claims of that type.

DMcL1971

In theory, if your vehicle and personal circumstances have not changed from year to year and you make no claims then your insurance should be reducing every year as you are proving yourself each year to be less of a risk for your insurer.

The reason that insurance premiums are going up is because the insurance companies want to either maintain or perhaps increase their profits. However they are finding that they are having to pay out more in claims. Therefore in order to maintain their profits they need to increases everyone's premium across the board.

This shows that they are not running their businesses very well, in that they have failed to take into account how much they will have to pay out each year. Which is strange seeing as their entire business is predicated on assessing what the chances of various eventualities will be in the future.

They claim that they can calculate the likely hood of a guy my age driving my type of car in my area with my history getting into an accident and how much that is likely to cost to fix. But they can't forsee that in an increasingly litigious country there are likely to be more claims and that every few years we get floods or snow and they will have to make extra payments.

If they run their business inefficiently then all they have to do is increase our premiums in order to make up the shortfall. This is pretty easy to do when everyone is required by law to have insurance. The only thing we can do is move between companies. But they all seem to be as bad as the other and by some amazing coincidence when your premium goes up with one company it also seems to go up with all the others. They don't even hide this. When you complain to a representative you will often be told that insurance costs have gone up across all the companies.

Nody

Heisenberg1 wrote: »

I always assumed that's why the personal Injurys board was established to limited claims of that type.

It was in theory set up exactly for that to reduce the legal cost and lawyers involved; now something like 95% of the claims to it comes from a solicitor...

Fred Swanson

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