Car insurance punches my purse

Ever since the end of last year, I had been noticing reports and comments on the rapidly-rising cost of car insurance. There were cases of drivers paying twice what they had before - drivers who had not been making claims. It seemed to me that we were all being softened up and prepared for a heart-stopping hike in this year's premium. The insurance companies were maintaining that it was difficult to make a good (and predictable) profit nowadays from car insurance, such were the risks to them of big payouts for expensive car crunches, and all kinds of personal injury claims. Some companies had stopped offering car insurance altogether. Those that were left felt forced to charge high premiums to ensure profitability.

So I was braced for what my own insurer might want. I'm with Liverpool Victoria (LV). My existing car insurance policy with them will run out on 23rd May. I never automatically renew. I want them to treat me as a customer who might well go elsewhere. Yesterday I received their quote for the coming year beginning on 24th May. It was £1,041 for a comprehensive policy on Sophie, my Volvo XC60. Last year it was £474 on my previous Volvo XC60, Fiona. 

Same maker, same model; but not quite a level comparison. Sophie has a higher spec, and is altogether a sportier proposition. So I knew that the premium would be higher regardless. In fact LV told me in their quote that if last year's premium had been for Sophie rather than Fiona, I would have paid £796 instead of £474. The premium for the coming year was therefore 'only' 30% more than £796. But I still call that a swingeing increase. 

I had estimated the coming premium to be £800 - how wrong can you be? - so there was another £241 to find. If, that is, I accepted LV's quote. Of course, I looked at a couple of other online quotes, to get a feel for what might be out there. 

Saga was an obvious first call. But they wanted a whopping £1,391 for similar cover. They are known for offering very good holidays and insurance products, designed specifically for the needs of older persons. But generally at a Rolls Royce price. Too much for me.

What about NFU Mutual? They didn't want to know! They are clearly very picky about who they take on, and perhaps I am just too old, or in some way I don't fit their model of a customer they can be happy with. So they wouldn't give me a quote. 

What about Direct Line? Dear me! Even more expensive than Saga. They wanted £1,898 for similar cover. Gulp.

I could have tried Volvo itself, but when doing so on previous occasions I hadn't found their car insurance quotes at all tempting. They might be all right for new-car cover, but not for a used car. 

Ah, what about the Caravan and Motorhome Club? But they wanted £1,414. Much the same as Saga.

I felt inclined to take LV's quote after all. It seemed almost cheap compared with Saga, the CAMC and Direct Line. One background reason would be my decades-old and ongoing membership of the Civil Service Motoring Association, who trade as Boundless (a silly name) and get special rates from LV. I think that years ago LV absorbed Norman Frizzell, who were once the CSMA's pet insurer, and that same relationship has continued with the successor company. Such tie-ups abound. It's very often worth sticking with an insurer who is prepared to offer advantageous terms to a club or union member. Mind you, it has sometimes crossed my mind in recent years that LV's terms for Boundless members are no longer quite as generous as I would expect; but the evidence of this year's Saga, CAMC and Direct Line quotes suggests that LV are still worth my patronage. So I've paid the £1,041 and Sophie is now comprehensively insured until 23rd May 2025. 

But I still feel financially bruised.