Car Insurance

[Robbbbo]

We have 2 cars in the family. Both are aged diesel Peugeot 106's, Zest 2 models. (Both the same cc's ). We've had one for 7 years, insurance for 12 months, using Top Cashback, £80.85. The other, 2 years " newer ", bought August last year, slightly higher spec - electric windows, central locking, is £146.29.
From my perspective, they are one and same, albeit the differences mentioned.
Can anyone explain why there is a 40% ( ish ) difference in price ?

[bookbinder]

My guess: the newer car is more attractive to thieves, therefore it's more likely to be stolen, therefore it's a greater insurance risk.

[Robbbbo]

I should have said the cars are 18 and 16 years old respectively. I would say there is equal risk of theft for both of them.

[Arrods]

Are they exactly the same - i.e. same policyholder, same insured drivers, same NCD, same excesses?

[Buenchico]

If the newer car was insured several months after the other one was it's possible that the premium has simply risen anyway (and you'll be charged a similar figure for the older car when its own premium is renewed). Many insurers are now looking again at their cheaper policies and bringing what they charge up to more realistic levels. Average car insurance premiums have risen by 22.6% in the past year.

According to Confused.com, the average annual insurance premium paid in the second quarter of 2016 was £715, so the figures you're paying are remarkably cheap anyway.

Trying to make sense of insurance premiums is never easy though. Up until October I was driving a 15-year-old Ford Escort and paying £28 per month for my insurance (with business use and full RAC cover included). Then I changed to a 10-year-old Saab 9-3 and my premium shot up to £62 per month. I simply can't see why my insurer thinks that I'm more than twice as likely to have an accident in a Saab instead of a Ford!

[bhg481]

Why don't you try a comparison site, get a quote for both cars and see if there's a difference there?

[Cloverjo]

Buenchico, I'd guess that a Saab would be more expensive to replace or repair than a Ford, regardless of whether or not you caused an accident.

[Robbbbo]

bhg481, Top Cashback is a comparison site.

[bhg481]

Sorry Robbbbo, I didn't know that. Were your quotes got at the same time or are you renewing one policy now and comparing the cost with the last renewal cost for the other car? Also some companies give discount on a second car insured with them, so could that be the explanation?

[gingejbee]

Having seen Chris's comment that average car insurance premiums have risen by 22.6% in the last year....I was mightily relieved to receive my renewal notice this morning and find an increase of "only" 4.9% (with John Lewis Insurance). Lucky, or what?

[Berniecuddles2]

car insurance =legalised robbery had my renewal in nov went up nearly £100 when i rang up to not renew they asked why? idiots because i can go elsewhere for a £100 cheaper ..oohh from the other end of the phone...never renew look around!!

[Buenchico]

>>> Buenchico, I'd guess that a Saab would be more expensive to replace or repair than a Ford, regardless of whether or not you caused an accident

But that's not what car insurance really covers, Jo. I only paid £750 for the Saab (and, off the top of my head, I think that the excess on the policy is £300), so the insurer wouldn't have to pay out more than £450 if my car was stolen or written-off.

What you're really paying for with insurance cover (unless, say, you happen to own a Ferrari or Lamborghini) is the cost of paying for lifetime care for the people who're left severely disabled after an accident which you've caused.

So my insurer seems to be saying that I'm more than twice as likely to cause such an accident in a Saab rather than a Ford. I simply can't see the logic there!

[Robbbbo]

bhg481 ,the newer car as bought in August last year, as it was a bargain, having done just 88,000 miles, and I was thinking ahead for when and if the older car packs up. It has sat on the drive since ( uninsured and SORNED ).
The older car is in daily use, mileage to date is 175,000. With the insurance imminent, I got quotes for both, within minutes of each other. So you can see why I'm a little bemused.

[BAKERS DOZEN]

We have a Saab 95 estate and pay £28 per month for fully comp insurance but that is probably because we don't do a lot of mileage. Once we retired and the mileage went down so did the premium.

[woofgang]

Chris maybe Saabs in general are involved in more accidents per car than Fords?

[bhg481]

It's certainly puzzling Robbbbo. The only other thing to try is a different comparison site or try an insurance company directly. Any random company will do, just to see if they quote vastly different premiums for the two cars.

[BAKERS DOZEN]

Insurance due for renewal next month and will get reminder notice at the end of this month no doubt so will see what they ask for this year. When we got the recovery estimate from Green Flag last year I thougt it was a bit high at £176 so I went online onto their site, put all our deatils in and was quoted £110. When I rang to complain I was told that was the price for new customers only. I objected strongly as we have been customers for years and never called them out and the operative finally let me have it at £110 but made me feel like she was doing me a favour. I never take the renewal price without checking it out so wonder what it will be this year.

[Hopkirk]

Next time they are up for renewal give Aviva a ring and ask about a multi car policy.

They don't appear on comparison sites, but are surprisingly competitive.

[jno]

same for Direct Line: not on comparison websites but they do discounts for a second car.