Just been running some figures through as I'm planning to get an old banger for use as a second car, and need insurance to be as cheap as possible.
Now I always thought the primary consideration was insurance group. Seems I was wrong. Entering in an old-shape Nissan Micra 1.0 (group 4) results in an insurance premium of £400 or thereabouts. Entering in an old Vauxhall Astra 1.4 (also group 4) results in a quote of £550. A Citroen ZX 1.4 (same group) is over £600!
How are these figures worked out? Is it engine size? BHP? 0-60? Repair bills (and if so how come a Nova is slightly more expensive than a Micra when I'd have thought parts were dearer on the Micra)?
Can't work this one out!!!
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Insofar as the car is concerned, it is related to their claims experience of that car.
1) Maybe more likely to be stolen
2) Fashionable and more likely to be driven by a "boy racer"
3) Likelihood of being repairablee rather than a write-off
4) Conversely likely to attract the older driver, not an attractive theft, etc. etc......
etc. etc.
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1) Maybe more likely to be stolen 2) Fashionable and more likely to be driven by a "boy racer" 3) Likelihood of being repairablee rather than a write-off 4) Conversely likely to attract the older driver, not an attractive theft, etc. etc......
Which makes no sense to my Diesel Corolla being in group 10. It's higher than an Astra 1.8 Sport and a Saxo VTR.
Nobody is going to steal it and it isn't more likely to be driven by a boy racer (i am an exception). It doesn't look nice and it's slow. It makes no sense.
The only thing i can think of is parts availability.
Insurance for me by myself would be around £2500!
Is it because it's got a 2.0 badge on the back?
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Theft risk (not just desirability to thieves - but ease of taking). Repair costs. Occupation, age and record of driver.
Some of the factors are rolled into the post code etc.
Insurers use the statistical information as a guide but then depending on their own underwriting philosophy they may have their own idea of the true cost of the risks.
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Toyotas are superb cars, but parts especially body parts are expensive.
I can't remember the exact cost, but I remember a replacement electric wing mirror was into the hundreds.
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I have been running an old Volvo 340 1.7 (group 8?) for 2 years (as a 4th car) (...2 tidyish cars, Golf GTI and Fiesta 1.25 each with full NCD on fully comp and a classic, as the other cars).
For the Volvo 3rd party only the first year premium in Dec 2000 was about £110, 2nd year in 2001 £130. I was going to scrap it, (you cant sell them!) and temporarily replace it with a 1997 1.25 Fiesta on the 3rd party cover (group5?). However the insurer wanted an extra £250! Plan abandoned. I even shopped around and this was the best deal I could do, Fully comp would have cost exactly the same.
I fail to see why a modern car with decent brakes and handling represents a greater risk than an old tub that handles like a boat, altho it does stop reasonably well and there is still a lot of metal between me and the outside.
pmh (was peter)
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Not a sensible reply by any means, but it seems to me that they take the highest figure they think they can get away with, add the price of a couple of bottles of decent wine, double it and then laugh as you have no choice but to get insured somewhere.
Grrrrrr.
Lee.
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The price of anything is as much as can be got. There once was an insurer which rated the driver rather than the car, and was doing rather well until all the rest ganged up on it and put it out of business through some machination with the authorities (it was not bust), for spoiling the racket.
I can't remember all the details but I clearly remember my bill nearly doubled.
Tomo
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Just a reminder guys that it does pay to shop around, the internet is not always cheaper than the local broker, and it is vital to fill the form in very accurately
Some, like Tesco, appear cheaper for young drivers
Swopped my 1.8 Cavalier (fuel injected) for a 1.9 nonturbo diesel 3 years ago and the insurance from my original company went up £200! The Cav must have been twice as powerful as the 309!
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>>I can't remember all the details but I clearly remember my bill nearly doubled.
It caused the demise of an insurer, the rise of the BIA and the creation of the knock for knock agreement.
They bought it down by refusing to pay any claims to them, but pursuing them in court for their own. Since they were larger and correspondingly so were their cash reserves, it didn't take long.
Virtually every approach to rating and insurance that they were using, was later adopted by all the larger insurers who had reviled it in the first place.
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There's nothing like spoiling a good myth with a few facts, but sadly:
Motor insurance makes money about one year in four.
Brokers, those who sell insurance rather than take the actual risk, often do rather better.
The cycle goes something like:-
cheap rates -
claims too high - losses start
some companies stop writing it-
rates go up to a sustainable level -
more companies come in -
cheap rates
and round it goes again!
So why do companies do motor? Largely to cross sell other products to those motor customers and maintain favourable relations with the brokers who give them access to customers for the insurance products that DO make money.
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Insurance is a funny thing.
I run an old Saab 9000, 1987, 199000 miles on the clock, worth about £200 (when it has been washed & polished). My insurance renewal has recently come up for £281 inc IPT. This is only TPFT, 3 yrs NCD. When I rang the Institute of Advanced Motorists insurance broker, they quoted £363 for a similar policy, but only £257 for comprehensive (with Norwich Union)! When I asked why the anomaly, they explained that few companies are interested in TPF&T these days. The downside is the £150 excess. However I took it up, as not only did the comprehensive include windscreen but was £24 cheaper, plus 90 days continental use.
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I wouldn't have thought 150 excess was a problem. Personally I'd up it to reduce the premium as isn't the perceived wisdom that it's not worth claiming for anything less than a grand due to loss of NCB and/or increased premium (for all policies if you have multiple cars/bikes).
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