Why has CAR INSURANCE become so EXPENSIVE?

Why Has CAR INSURANCE Become so EXPENSIVE?

Why is Car Insurance so expensive now?
We look at the reasons why car insurance has gone up so much in the last 12 months in the UK (48% according to the ABI). Has your insurance renewal gone through the roof? does your insurance quote stop you buying the car you want?

This video is not meant to be a defense of the insurance industry (there are one or two being greedy here) but to explain some of the factors making car insurance prices increase so much. Some of these you will be completely unaware of and one will probably be a bit of a shocker.

#carinsurance

🚗🚗 𝙈𝙔 𝙇𝙄𝙉𝙆𝙎 🚗🚗

❤️ 𝘾𝙃𝘼𝙉𝙉𝙀𝙇 𝙎𝙋𝙊𝙉𝙎𝙊𝙍𝙎 ❤️

🔥🔥 𝘼𝙁𝙁𝙄𝙇𝙄𝘼𝙏𝙀 𝙇𝙄𝙉𝙆𝙎 🔥🔥

Important : This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.

All music used in this video is written, recorded, and produced by me.

𝙋𝙡𝙚𝙖𝙨𝙚 𝙡𝙞𝙠𝙚 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚! ;)

[chevellechui]

Changed my car earlier this year. Went from £795 for a 2008 A3 to £3000 for a 2021 A3 and just got a renewal quote today for £4964. Absolute madness. The powers that be simply don’t want us to drive.

[barrydoherty]

The problem is once the price goes up, it rarely comes down.
It will ultimately lead to more uninsured drivers, people won’t do without their car.

[CyGMotion]

It really is an absolute pisstake. I’m 20 and been driving 2 years, and to insure my 1.0L 05 car they want £1900 where as I was paying almost half that last year it’s a joke. They’re not making it easy for people my age. Can’t get insured, can’t get a house even the prices of food lol. This country has gone to shit

[richardp]

It doesn't help that the insurance industry also waste so much money. I had a claim (the other party accepted fault) and my car had to go in for repair for about two weeks. My insurance company use an accident management company to deal with everything and of course I was entitled to a courtesy car while mine was off the road. My car was at the time a 7 year old Mercedes E Class and the Courtesy car I was therefore offered was a brand new E Class or BMW 5 Series that the other parties insurance would cover. On the paperwork I noticed that the "Hire price" was over £300 per day.

Even though I was not having to pay I contacted the company and said that I could hire a similar car locally for a third of that and that I didn't need a similar car anyway and that something like a Ford Focus or a Peugoet 208 which would only be about £60 a day would be fine. I was told that I had to use their cars and that I also had to have a car of a similar spec to my own as that was what the policy covered. So the other parties insurer had to pay out for 12 days at £325 per day (£3900) when I would have been happy with a Ford Focus at £60 per day (£720) thereby costing an extra £3680 on the claim that was unnecessary.

No wonder premiums are so high

[VintageLynx]

So true Jim. Sadly knowing costs of motoring is spiralling up has changed my mind and I'm not going to replace my 2005 car anytime soon. Look after what I have. Shame as I'd love to. Just not the right time with all this craziness.

[GhostWriter_Music]

I was thinking about getting knocked down by a car because I have this back problem which doctors shrug off, and I thought maybe this would encourage them to look see what is wrong. Thing which stops me is it affects someone else. So I have to live with it and keep fighting with my employer going off on sick to get that needed rest then going back until it happens again.

[Richard_Barnes]

In my renewal pack was info about how the personal injury claims multiplier has gone up and so the payouts have gone up massively, so our costs have to go up too. Mine only went up £40 this year but will be different next year I bet. It was interesting info though.

[stanthesteelguitarman]

Very informative and helpful for the poor old motorists, who are seemingly being hit in every direction imaginable these days. Perhaps it has become too complicated to be properly manageable any more?

[andrewjones]

Thanks Jim, really interesting vid. Thank god I'm not 21 paying those ridiculous prices

[tombartram]

And these monster insurance hikes have come along in an era of abs brakes and "safety" cameras every 50 yards.
My first motor bike insurance was £22 in 1986. Now it'd be £750. Yeah, so obviously CBT worked at reducing accidents..

[MrSunnyBhoy]

Good video, what i find really unfair is when you get hit by someone that isn’t your fault and your premiums stll go up. In general, if ppl were more careful, less road rage, scams and considerate driving, our premiums would be much lower

[NM-hjwc]

Thanks for another informative video...do you know why there seems to have been a specific problem with Tesla's and in particular the Model Y...some insurers won't touch them anymore...but there are plenty of more expensive and faster EV's than the Model Y, so why is there such a problem with this specific brand?

[ibrahimoussifi]

Hello, nice video as usual.
What do you think of suzuki swift 2010-2017 1.2 l petrol with 4 speed automatic gearbox ?
Are they reliable ? Is there any known issues ?
Could you please make a review on one of them ?

[marcjudge]

I am 55yr old no points my Mercedes E350 2017 has gone from £675 now £1300 in one year absolutely shocking. We are going to have more uninsured drivers now. As for EV they are being written off due to the age of the battery/car .

[andycotton]

I've been looking today for cover on a 2018 Renault Zoe, as a runabout, for me, my wife and daughter, doing 2000mls or less a year locally. If the car was in an accident we wouldn't need a courtesy car, as we have another 2 cars between us, yet all the insurers include a courtesy car within the premium. It used to be an add on. So we have to pay for cover for something we don't want or need?

[clewis]

Thanks Jim, on a rare positive note I just got £21 cheque from AVIVA for an NCD refund as they ‘identified an error’ when I renewed in April! Even factored in compensatory 8% interest/ inflation!

[henrylynch]

17, just passed today. Insuring a 2015 Mazda 2, 1.5L 70-80hp. (Well, trying to) My cheapest quote was £4750 and the second cheapest £9000. The bloody cars barely worth £5000. And half the companies won’t even insure me 😅

[emma-kpvz]

Im 51 and have been driving for 30 plus years, no points or no claims made. My insurance for a 08 lexus 250 has just gone up from 850 to 1600 this year. Last years insurance wont cover it for this year and searching the comparison sites, the best i could get was the above price. My partner, a HGV driver, the best she could get was just under 2k. Hate to see what its going to be next year. Sadly she also needs a vehicle as she starts work at 3am and works in a remote area where with the early start time and the area she works, has not even the luxury of using public transport, so even if it doubles again next year, she still needs a car.

[hhtftbq]

My car insurance went up by £70 this year so decided to find a new insurer and was given a quote of £189 which was £25 cheaper than last years. Phoned my insurer and they kept me on the phone for 25-minutes to try and keep me with them, as soon as I said I had a new quote for £189 they said they would be able to match it from their £274.00. They told me that the amount I was sent by email wasn't the amount due? So I replied, no thank you, too late, if I had remained with you and paid £274 you would've accepted it, instead on my cancellation you dropped the amount to match the one I had been quoted. Advice, look for a cheaper option and before accepting, cancel your renewal over the phone and see your current insurer will match it. Good luck.

[AntCooke]

Excellent (and slightly depressing) video. Cheers Jim!