40% increase in car insurance premium???

gaius c

So got my renewal letter from 123 and it's over 40% higher than last year.

Did a quick shop around (FBD, Axa, Aviva) and 123 are actually the cheapest. What on earth is going on with the car insurance market?

Nody

It's normalizing it's prices again; ongoing discussion in Motor about it as well but the TLDR is insurance companies were selling at a loss to defend market shares when new companies came in on the market and undercut them. Now that those competitors have gone bankrupt they are returning them to their appropriate levels again (the insurance industry overall still makes a loss on car insurance in Ireland).

billyhead

gaius c wrote: »

So got my renewal letter from 123 and it's over 40% higher than last year.

Did a quick shop around (FBD, Axa, Aviva) and 123 are actually the cheapest. What on earth is going on with the car insurance market?

You could try Boxymo insurance as their the cheapest I found. I'm considering going with them but you have a gps device fitted in the car to track your mileage.

miketheDIYman

Listen to podcast on Sean O'Rourke show from 19th - Consumer Insurance Premiums
has lots of tips for reducing your car insurance costs

billyhead

miketheDIYman wrote: »

Listen to podcast on Sean O'Rourke show from 19th - Consumer Insurance Premiums
has lots of tips for reducing your car insurance costs

Mike ,

I cant find the link for this podcast. Would you know where I could locate it?

Zardoz

My renewal from Aviva has increased by over 100% .:mad:

cnocbui

Nody wrote: »

It's normalizing it's prices again; ongoing discussion in Motor about it as well but the TLDR is insurance companies were selling at a loss to defend market shares when new companies came in on the market and undercut them. Now that those competitors have gone bankrupt they are returning them to their appropriate levels again (the insurance industry overall still makes a loss on car insurance in Ireland).

Astonishing really how things have changed:

Meanwhile, the IIF has gone on the offensive, cherry picking from its own report to find facts and figures supporting its position, while at the same time skimming over some rather less useful findings.

One such figure is to be found on Page 32 of the Tillinghast report, which shows that since 1983 motor insurers operating in the Irish market have made after-tax profits totalling £342 million. This is more than 11 times the after-tax profits made by the UK motor insurance industry in the same period.

http://www.irishtimes.com/business/car-insurance-sector-coy-about-profitability-1.340284

kkontour

My renewal in December was up by 100%
My wife is on a career break as we have young kids, and she is a named driver on her car. They had her down as unemployed. When they changed it to 'Home Maker', the computer recalculated to about a 30% increase.
So just check that all you details are correct.
K

kkontour

My renewal in December was up by 100%
My wife is on a career break as we have young kids, and she is a named driver on her car. They had her down as unemployed. When they changed it to 'Home Maker', the computer recalculated to about a 30% increase.
So just check that all you details are correct.
K

listermint

Nody wrote: »

It's normalizing it's prices again; ongoing discussion in Motor about it as well but the TLDR is insurance companies were selling at a loss to defend market shares when new companies came in on the market and undercut them. Now that those competitors have gone bankrupt they are returning them to their appropriate levels again (the insurance industry overall still makes a loss on car insurance in Ireland).

Within the region of over 1.5 Billion collected in premiums alone per annum, I honestly dont think this is factual. They have always been 100% coy about their profits they may have the odd non profitable divisions but i dont for a second believe the sector is loss making. Thats total horse crap. They may not be making celtic tiger profits but with premium increases that is where they want to get to again.

dball

billyhead wrote: »

Mike ,

I cant find the link for this podcast. Would you know where I could locate it?

http://www.rte.ie/radio/radioplayer/rteradiowebpage.html#!type=radio&rii=9%3A20914646%3A15036%3A19%2D01%2D2016%3A

Nody

listermint wrote: »

Within the region of over 1.5 Billion collected in premiums alone per annum, I honestly dont think this is factual. They have always been 100% coy about their profits they may have the odd non profitable divisions but i dont for a second believe the sector is loss making. Thats total horse crap. They may not be making celtic tiger profits but with premium increases that is where they want to get to again.

How about we use actual facts and figures instead of pulling numbers of of thin air? The latest numbers are from 2014 in table 15 as 2015 numbers are not yet in.

Total income 1,078,110k or 1.078 billion of which 1.047 billion is car insurance premiums. Claims paid 1.014.532k (1.014 billion) leaving a whopping 64k to cover all other costs. Those costs were among others management and commission for 311k as a side note. Net result were -198k ; so yes they where losing money with the latest available numbers (I'm curious how 2015 with the premium increases will look). This is excluding the 2.2 billion outstanding but not yet approved to be paid that's on their books as liability (i.e. if they go belly up there's another 2.2 billion from the state funds to be paid as premium percentage fee ala Sentana).

listermint

Nody wrote: »

How about we use actual facts and figures instead of pulling numbers of of thin air? The latest numbers are from 2014 in table 15 as 2015 numbers are not yet in.

Total income 1,078,110k or 1.078 billion of which 1.047 billion is car insurance premiums. Claims paid 1.014.532k (1.014 billion) leaving a whopping 64k to cover all other costs. Those costs were among others management and commission for 311k as a side note. Net result were -198k ; so yes they where losing money with the latest available numbers (I'm curious how 2015 with the premium increases will look).

2.5 Million vehicles on the road so average premium of 431 Euro Per Annum. Increases across the board average premuims between 500 -600 Euro I think my figure of 1.5 Billion is fairly current.

To Elland Back

listermint wrote: »

2.5 Million vehicles on the road so average premium of 431 Euro Per Annum. Increases across the board average premuims between 500 -600 Euro I think my figure of 1.5 Billion is fairly current.

Doesn't work that way

What about uninsured vehicles, tractors and site vehicles which pay a low premium, artics and busses which pay a high premium, vehicles declared off the road, fleet operators who just pay a flat lump sum, self insured businesses etc. Too many variables