Car insurance: anyone else seeing a reduction?

Leo

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The largest costs of insurance relate to accidents not theft. COVID19 restrictions meant we drove very little for considerable periods of time.
I remember looking at it (and I think even posting here on it during last summer), traffic volumes in March / April last year dropped to something like 30% of their pre-covid levels, but during the summer they climbed back to 80%. You can look at detailed analysis here.

We'd need to see accident stats too, often with less traffic, accident numbers rise as people are travelling more quickly.
 

AlbacoreA

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One of mine went up slightly the other down.
I've never seen any pattern to how car insurance works. Its seems they charge what the market will bear.
This is borne out in how the prices quoted fluctuate wildly, often between phone calls.
 

jpd

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That's the essence of capitalism - charge what the market will bear.

If you can divide your customers up into different segments (for example new customers, moaning customers, sheep) and charge each segment a different price - even better. Why do you think coffee shops have a wide range of coffees on sale ?

It is not possible to do this with goods on a supermarket shelf as everyone can see the price, but in the insurance market, most customers do not know the price offered by an insurance company except the one offered to them
 

AlbacoreA

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That's the essence of capitalism - charge what the market will bear.

If you can divide your customers up into different segments (for example new customers, moaning customers, sheep) and charge each segment a different price - even better. Why do you think coffee shops have a wide range of coffees on sale ?

It is not possible to do this with goods on a supermarket shelf as everyone can see the price, but in the insurance market, most customers do not know the price offered by an insurance company except the one offered to them

The difference is you're legally obliged to have insurance. You're not legally obliged to get a coffee.

Also in the UK, you have car insurance groups, so you have idea what things might cost. In Ireland we don't.
In Ireland you might find out a small coffee is 3 times the cost a large, because.. well we don't know why.
They want you know the license plate of the car being quoted so they don't by accident give a cheaper quote if you ring back anonymously.

They are price gouging and dual-pricing, their claims of high costs do not stand up to scrutiny.

So not the same as buying a coffee.
 

jpd

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How is it not the same as buying coffee - you are buying insurance cover (yes, it is obligatory) but there are numerous suppliers looking for your business and they all charge different prices .

I would not trust the State to get involved and run the insurance market - it does not a good track record in this area since as long as I can remember - think back of all the insurance failures we have paid for and are still paying for

I agree that the market is dysfunctional but more transparency would sort that out pretty quickly
 

AlbacoreA

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How is it not the same as buying coffee - you are buying insurance cover (yes, it is obligatory) but there are numerous suppliers looking for your business and they all charge different prices .

Ahem...


Its a captive market. They are shooting ducks in a barrel.

There's lots of stuff going on.

If you have an outstanding claim, you can't switch insurers, so they can charge whatever.
You stop your insurance for 2yrs, you lose your 10yr NCB. Even if you've a clean license for 20yrs, they put you right back at the start again.
So if you downsize to one car, you have play daft games of switching the main driver.
They charge you extra is its old car, or a new car. Or if you are young or if you are old. Etc etc.

Its like the local shop or always overcharge you by "accident" but never under charge you by accident. Ummmm. :)
 

Itchy

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I would not trust the State to get involved and run the insurance market - it does not a good track record in this area since as long as I can remember - think back of all the insurance failures we have paid for and are still paying for

I agree that the market is dysfunctional but more transparency would sort that out pretty quickly

That's a bit rich going for the "State", those insurance failures were firstly the responsibility of the Directors of those companies, all private sector. We are subsidising private sector failure here. Insurance is a risk business, insurance sector regulation is not about preventing failure, its about minimising its impact. Insurance Ireland could address some of those market dynamics in the morning, why don't they?
Its a captive market. They are shooting ducks in a barrel.

There's lots of stuff going on.

Including consumer behaviour. In the CBI's review of differential pricing, they looked at consumer responses in response to an increase in premium:
  • Decrease in premium - No action
  • Same premium - No action. Consumers feel that their insurance providers are treating them fairly with regards to price and this typically reinforces inertia.
  • Moderate increase - Limited action (if any). Consumers frequently seek to negotiate the price down. If unsuccessful there is readiness to accept a general price rise as normal.
  • Large increase - A large increase prompts some action although for many consumers this means minimal effort. For example, reviewing a comparison site, checking two or three other insurance provider websites or alternatively, phoning them directly. Critically, most consumers return to their own insurance provider with a cheaper quote they have received elsewhere, seeking to stay with their current insurance provider, as this is viewed as easier, and there is less chance that mistakes will be made. In addition, where there was a significant premium paid in the past, there tends to be more comfort with a larger increase.
Across the research, there was a clear preference for staying with an existing insurance provider. In fact, the purpose of comparing prices with other insurance providers is largely to help negotiate a better price with their current provider, rather than switch.
 

AlbacoreA

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Many of these are global companies. They might make a loss in some specific areas, some sectors, but globally they are often making vast profits while claiming they are making a loss in one area..
 

Leo

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Many of these are global companies. They might make a loss in some specific areas, some sectors, but globally they are often making vast profits while claiming they are making a loss in one area..
If they were making vast profits elsewhere, surely they'd just cut and run. We all know they're not in business here for the benefit of anyone but themselves.
 
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FANTANA

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After a few years of rises I have my first reduction. €750 last year €328 this year. I did put a bit of effort in this year shopping around though.

Aviva €328
Zurich €338
AXA €436
AIB €489
123 €504
Chill €512
FBD €593
Liberty €566 3rd party only quoted
Allianz no quote
AIG €917

All online quotes, no interest in calling multiple companies.
 

mathepac

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Is your Avensis pre 2008 when you say the motor tax is high?
And could the rusted suspension component be replaced cheaply?
2007 AVENSIS, €137 to replace suspension component & bushes, and to do tracking & alignment. €28 for re-test which was a nice clean PASS. The car now has a 12-month NCT.

Swap-over next weekend.
 

Pinoy adventure

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After a few years of rises I have my first reduction. €750 last year €328 this year. I did put a bit of effort in this year shopping around though.

Aviva €328
Zurich €338
AXA €436
AIB €489
123 €504
Chill €512
FBD €593
Liberty €566 3rd party only quoted
Allianz no quote
AIG €917

All online quotes, no interest in calling multiple companies.

That's a massive drop in price.
 

lff12

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560
Yes - I work for an insurer and get a 50% discount, but my final price was still 50 euros less than last year.
 

lff12

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AIG in my renewal quote is €386. Applying for a quote as a new customer is €355. I guess they may have a new customer if they can't be beaten by anyone else.

Edit: After doing a large trawl of insurance companies over lunch, the above is the cheapest. Next step is to argue the toss over the phone of renewal vs new customer.

As an aside, it is clear from their website quotation engines, that Its4women.ie and Getsetgo.ie are AIG in disguise. Interestingly these sites were the next cheapest for me (within a few euro of €355) which would reinforce this supposition.

I wonder why AIG bother? Surely there is an additional cost on branding and website maintenance - at the very least- in operating these brands?
Its a broker only pricing and they charge you for every little extra thing or change.
 

lff12

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This practice of ringing your current provider to give them 'the chance' to be competitive is enabling the dysfunctional market. All its doing is getting the consumer closer to their point of inertia. 'Its not worth the hassle to send on the documents to the new crowd for a saving of €x'

They should be encouraged to offer the best price, first time. From the insurance company's point of view, in say 50% of renewals, the customer will call them back and say 'this is price that at which I will allow you to maximise your economic surplus'. How does that get you a competitive quote? At best it gets you into a position where you avoid the hassle of emailing your NCB to another company but you haven't, in fact, avoided the hassle at all, with all the phone calls back and forth!

When I switched energy provider, from Energia, they called to say 'Oh we have a better deal for switchers, its not on the website'. They didn't ring me to offer the great deal when my contract expired, they rang me after I initiated the switch. At least some of the mortgage suppliers tell you how much they will screw you after the fixed rate deal expires!
Same thing as your utility provider - my understanding is that this is exactly what they want to ban. But it still is hard to understand why people have such loyalty when the provider isn't acting in your interest (as is same for utilities, banks etc). I work for a foreign business unit of an insurer here, and my boss told me that their customers there also stick with them because their mother and father bought from the same insurer and their parents before them....
 
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