Honda Car Insurance

[CB72]

Carinsurance prices hit record high
New figures show premiums
have risen by 21%, reports
Dean Sobers
Drivers are paying 21% more
for insurance than the
same time last year, an
industry body has said.
Insurers
The Association of British
(ABI) says that premiums for April to
June this year are the highest since it
started tracking prices in 2012. It says
the average cost is now £511. But
other groups have found the increases
to be even higher.
Price comparison site Confused.com
says it has seen a 40% increase in
prices over the same annual period.
It says prices are the highest they 've
been since its index began in 2006.
It publishes average figures reflecting
quotes offered through its website.
The steep increases come despite
inflation overall being under 10% and
starting to fall.
The industry suggests that most of
the blame is due to 'claims inflation'
- the bundle of costs associated with
settling claims. These include costs of
replacement parts, second-hand cars,
year from
energy and 1abour. In the
Jan-March 2022, vehicle repair costs
reportedly leapt by 33%.
Premiums had been at record lows
in 2021, largely due to reduced traffc
levels during the pandemic, >>
OCTOBER 2023 WHICH? MAGAZINE

[Expatman]

I wonder how much the increases are due to the growth in number of electric vehicles. If one is involved in an accident which could even possibly compromise the battery then the car is often written off because the battery cost is often over 1/3 of the new car price. That gets very expensive very quickly for Insurance Companies who will inevitably spread the cost rather than load it onto electric cars and incur the wrath of those seeking to get us all into EV’s very quickly.

[guest334]

I know of Tesla in a bump with older model Fiesta - now repaired. The insurance company wrote the Tesla off unable to tow it away because of fire risk it's in a massive compound with other electric vehicles........engine area still warm after 4 months storage.

[Kremmen]

And they reckon EV's are the future

If the £40k+ initial cost doesn't put you off then the looming insurance will.

[Westy36]

I know of Tesla in a bump with older model Fiesta - now repaired. The insurance company wrote the Tesla off unable to tow it away because of fire risk it's in a massive compound with other electric vehicles........engine area still warm after 4 months storage.

That's scary stuff. EV's are selling in record numbers, yet this info is not out there. Do vosa/mira have research on this?

So EV's on ferries, channel tunnel, multi story car parks, residential car parks under block of flats? Are they safe if hit whilst parked?

 

[Jazzik]

I know of Tesla in a bump with older model Fiesta - now repaired. The insurance company wrote the Tesla off unable to tow it away because of fire risk it's in a massive compound with other electric vehicles........engine area still warm after 4 months storage.

Is this verified information or is this hearsay? Maybe somewhere to check? Link?

[Expatman]

It was reported today in the Telegraph that John Lewis have stopped insuring Electric vehicle due to the escalating repair costs of even minor accidents.  According to Thatcham Research, the motor industry’s research centre, electric cars can be particularly expensive to repair, costing around a quarter more to fix on average, compared to a petrol or diesel vehicle. Minor damage to battery casings can result in car being written off.
The price of car insurance costs has  zoomed up over the last year and it now seems that one major reason has been the increasing cost of claims for EV’s. I suspect that Insurers have been amortising the increased costs across all cars including regular petrol and diesel motors but that is becoming untenable. Interesting to see if other insurers follow suit, if so it is likely to make EV insurance costs prohibitive for private motorists.

Another unforeseen outcome from the dash to EV’s before the full implications are understood?

[ColinB]

It was reported today in the Telegraph that John Lewis have stopped insuring Electric vehicle due to the escalating repair costs of even minor accidents … Interesting to see if other insurers follow suit, …

That might work in the short term, but it’s not really a sustainable long-term business model. JL (and any others) are effectively shutting themselves out of the fast-growing EV ownership sector, so what’ll they do when EVs are in the majority on the roads?

I suspect that Insurers have been amortising the increased costs across all cars including regular petrol and diesel motors

Of course they are doing that … that’s how insurance works! You have a large number of people paying relatively small premiums to create a pool of money which covers the costs of the small number of people who need to make a claim. The bigger the pool, the better, because any individual’s share of the costs will be smaller. It’s not really clear that restricting the size of the pool by deciding not to accept a whole sector of vehicles would result in lower premiums for the people in that smaller pool because their share of the repair costs will be greater.

[Kremmen]

Even if you have a petrol / diesel, you could still hit a EV, for which your insurance has to cover if deemed your fault so we all get hit with higher premiums.

[Karoq]

My 21 reg eNiro 4+ (top of the range) bought s/hand 3 months ago. is £26  a year CHEAPER (At £328 p.a. comp) to insure than my CR-V e:HEV which, at group 24, was MORE expensive to insure than my e:HEV HR-V at group 31. All three with AVIVA
No logic.
I think Ins Co's make it up as they go along. Perhaps premiums go up if it's raing or there is wrong type of snow, or wet leaves. Then decreases when the sun shines.
They are all barking mad!

[5thcivic]

John Lewis have their own financial problems, so the insurance arm could just be putting out spin to explain poor peformance. Plus the right wing papers here seem to have a very anti electric car slant nowadays with mulitple stories of how bad they are in one way or another. If this is supposed to bolster the new attack on the supposed "war against motorists" I haven't seen much effort against the huge rise in insurance costs or any effort at all on repairing of the dismal state of our roads.

[embee]

Careful of not drifting too far into politics (so keeping comments general rather than party specific), but I think we are just starting the wind up for the next General Election. Most of the press announcements will be aimed at getting voters attention and support, which is most likely going to be some sort of "bribe" or other, promises to cut the costs for the consumer.

Notice the number of times they say they are not afraid to change plans to give the best value etc, which is another way of saying the previous plans were in fact bad for value.

I've commented before about insurance costs, but worth repeating. The Govt has a vested interest in keeping insurance premiums high, they get Insurance Premium Tax. It is something of a hidden tax, unlike Income Tax or even National Insurance, many people probably don't even realise there is such a thing as IPT.
There are 2 rates, car/home/pet insurance gets 12% IPT applied, travel/appliance/insurance sold with car purchases etc are taxed at 20%. I wonder if they are considering upping car insurance IPT from 12 to 20%, wouldn't surprise me.

This is not an inconsiderable revenue for the Govt, the take for the year 2022/23 was £7.3Bn (billion).
https://www.gov.uk/government/statistics/insurance-premium-tax-ipt-bulletin/insurance-premium-tax-ipt-commentary-january-2023
Why would they have any interest in keeping premiums low?

[embee]

https://www.msn.com/en-gb/cars/news/electric-car-owners-may-face-shocking-1000-rise-in-insurance-premiums-during-crisis/ar-AA1hv4gD?ocid=msedgdhp&pc=U531&cvid=df2d409fcc74463e9693a09d8893d0e1&ei=21

[5thcivic]

https://www.theguardian.com/money/2023/sep/30/the-quotes-were-5000-or-more-electric-vehicle-owners-face-soaring-insurance-costs

[Hebden]

Well shocked at the recent increase on renewal from LV.  So far all the alternatives and car comparison quotes have been even more expensive. Anyone found a good comprehensive policy quote at a reasonable cost recently?