Classic premiums rising
Following our NEWS item on 2nd October 2017 on the report from that motor insurance premium rises target older drivers and a report from a fellow V8 Register member of a 55% increase in the renewal premium for his daily car, the lead article in this week's issue of Classic Car Buyer sets out concerns over increases for classic car owners.

Posted: 171020
The lead article in this week's issue of Classic Car Buyer says "car insurance premiums are expected to reach the highest on record during 2018" according to a report on a study by the price comparison website. They add insurance prices have "climbed since 2015 and risen by an average of 14% in the last year". The "recent upward trend was caused by increasing numbers of personal injury claims and changes in the way these are calculated (the "Ogden discount rate") and a hike in Insurance Premium Tax three times in two years..
Does loyalty by motor insurance policyholders count for anything now?
Many classic car enthusiasts have been loyal customers of individual specialist brokers providing limited mileage agreed value motor insurance cover for their classic car. Often they have renewed each year without making comparison checks believing that as loyal customers the broker offers them competitive premium renewals. In 2017 the UK Government introduced a new requirement that brokers and insurers have to disclose the premium for the previous year alongside the renewal premium so the comparison is clear. In our NEWS item on 2nd October 2017 details of an astonishing £194 or 55% increase in the renewal premium for a daily car were set out there. As the driver record and car had not changed, the stunned policyholder queried the premium with the broker. The less than convincing explanation provided by the broker was set out in full in the NEWS item together with a premium reduction of over £100 but still the renewal premium was still 32% higher than the previous year! See our earlier NEWS item

A further report from the member is the renewal premium received from the same broker for his wife's daily car has increased by 18.5% from £243 to £288 - again with no change to the driver record or car.

It seems believing loyalty is valued by brokers and motor insurers through their offering competitive renewal premiums has gone as part of their business approach. Now policyholder churning seems to be a major part of the business and to get the best cover in terms of both price and quality of the scope of cover you have to shop around and then haggle for a reduction or go elsewhere. For many older motorists the prospect of embarking on a shopping around exercise is not welcome at all but the reality seems to be that if you simply pay up the renewal premium and do not shop around and haggle you will be seen as a passive profitable customer - a "loyal stuffee"!