Lotus Elan

insurance renewal - defies (my) logic

PostPost by: martinbrowning » Tue Oct 09, 2018 9:11 am

Hi there, Just had my insurance renewal quote in from one of the major specialists in the classic field - a four figure sum but only up a few pounds from last year. Policy is:
- fully comp
- for three cars
- all on agreed values
- salvage clause
- unlimited mileage

Thought that I could reduce the premium by restricting mileage. (Did less than 200 miles last year in the Sprint). Happy to restrict it to less than 1000 miles across all three cars. Premium only reduced by 50 pounds so didn't change in the end.
The logic defies me - less mileage surely equates to lass risk of accident and premium reduction?

Martin B
Time flies like an arrow; fruit flies like a banana.
72 Europa Special, 72 Sprint, 72 Plus 2
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PostPost by: rgh0 » Tue Oct 09, 2018 10:33 am

Logical insurance cost, especially with your existing company at policy renewal time, is an oxymoron.

Just think about the case with a normal market value policy for your everyday car. each year the cost goes up a little but each year the car value and amount the insurance company will pay in event of a major accident decreases a lot.!! why is it so?

cheers
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PostPost by: deryck » Tue Oct 09, 2018 2:04 pm

Hi Martin

try charlie at Hagertys

01327810607

excellent
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PostPost by: RichC » Tue Oct 09, 2018 4:19 pm

folk who use their car really infrequently are statistically more likely to have an accident.... it's all evidence based apparently .... just a question of where these stats come from!
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PostPost by: Spyder fan » Tue Oct 09, 2018 4:49 pm

Mine is under £300 for 2 cars unlimited mileage, 3 named drivers, salvage clause without retention combined value £75k

RH Specialist insurance https://www.rhspecialistinsurance.co.uk/car-insurance
Kindest regards

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PostPost by: jonsered 11 » Tue Oct 09, 2018 9:33 pm

Hi Martin,

I have a multi car policy with Routen Chaplin, give them a try!

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PostPost by: Grizzly » Wed Oct 10, 2018 11:48 am

I have three Classic cars insured with Routen Chaplin and can't fault them tbh (but not had the misfortune of needing to make a claim though)

From past experience you get the min deal they can get away with if your already with that company, ideally you need to get a fresh set of quotes then approach your broker to get the best deal.
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PostPost by: denicholls2 » Wed Oct 10, 2018 1:42 pm

rgh0 wrote:Just think about the case with a normal market value policy for your everyday car. each year the cost goes up a little but each year the car value and amount the insurance company will pay in event of a major accident decreases a lot.!! why is it so?


The obvious answer is that politicians can easily be bought. :evil: I still haven't gotten over a decades-ago example where the insurance rates in the state of Massachusetts were raised dramatically, and RETROACTIVELY. So even though you had no claims and therefore needed no insurance that year, the coercive power of the state was brought to bear to force you to pay more than the already-high rates in effect for the policy duration.

In our case, the root problem is one-party government.
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PostPost by: McBiter » Mon Nov 05, 2018 10:49 am

Sadly I too have found some 'specialist' insurers seem to increase their premiums at rates that defy logic.

I transferred all my cars to NFU insurance. Not the cheapest but added to my daily cars, a nominal increase.

And they're good!

I hasten to add I have no affiliation whatever with them but have most of my policies with them. They do seem to reward loyalty - an old fashioned attribute.
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PostPost by: atthelimit » Sat Dec 01, 2018 2:16 pm

I have just returned to posting on here and as I see my company quoted so I thought I would try and answer some of the comments.

[i]"Logical insurance cost, especially with your existing company at policy renewal time, is an oxymoron. 

Just think about the case with a normal market value policy for your everyday car. each year the cost goes up a little but each year the car value and amount the insurance company will pay in event of a major accident decreases a lot.!! why is it so?"

Rohan
[/i]

Insurance companies costs rise each year, staff costs, equipment, rent, rates, electricity, computer and phone systems to say nothing of the cost of complying with the ever increasing burden of regulation by the FCA. Like any business if your costs rise that is normally past onto the customer. But more than any of this, is the rising cost of car claims, a headlight for a Lotus current generation over £1500!, replacement screens that used to cost £300 are now costing in the order of £1700, they often have the sensors for the headlights, wipers and crucially the sensors for adaptive cruise control embedded in them, not only do you have to replace this technology laden screen but the you pay £3/400 to have that screen calibrated to the cars computer brain just to make it work. Bumpers now have cameras, parking sensors etc etc, it's all nice kit to have, but all very expensive to repair or replace. Fraud also takes its toll, crash for cash, inflating the cost of a claim, spray that bit in as well whilst you're at it mate, you know what I mean. Oh, nearly forgot, the government keep increasing their slice of the costs by increasing Insurance Premium Tax, (IPT) and you pay it on your household insurance, travel in fact all policies.


Folk who use their car really infrequently are statistically more likely to have an accident.... it's all evidence based apparently .... just a question of where these stats come from!"

Rich C


Not sure you are correct on this one, lower mileages do reduce premiums, its all about "exposure to risk" and stands to reason that if you only drive 3K miles a a year there is less likelihood of a claim than if you drive 15K miles a year.

"I have a multi car policy with Routen Chaplin, give them a try! 

Jonsered"


Great and thanks for your business!

"I have three Classic cars insured with Routen Chaplin and can't fault them tbh (but not had the misfortune of needing to make a claim though)

Chris"


Again thanks. We can also add modern cars to a policy, we give a multi car discount as you can't drive them all at once, the more you have the bigger the discount. Modern cars are more complicated to insure than the classics but if you have a multi car policy with us we are worth a try, it costs nothing for a quote!

"Sadly I too have found some 'specialist' insurers seem to increase their premiums at rates that defy logic.

I transferred all my cars to NFU insurance. Not the cheapest but added to my daily cars, a nominal increase."

McBiter


There are specialists and specialist, NFU, the clues in the name built their business on Farm products, and have diversified in recent years. Not an out and out classic/specialist car insurer as such. But if it works for you then great. Glad to see you don't just buy insurance on price. It's all about what happens when a claim arises and the service you get.

General
There is a lot more to insurance than you might realise and on "ordinary" cars, its extremely difficult for insurance companies to make a profit, not just for the reasons given above but if we have a snowy winter, claims shoot through the roof, you see on the news, areas of severe flooding with cars awash and they are nearly always write offs because of the electronic wizardry that has been drowned. Bad weather events over which none of us have control, have their part to play in insurance premiums.

On classic cars it's better news, risk is low, but comparatively speaking so are premiums, but it's still a fine line, if you paid £150 premium for your £40K Elan, if its stolen or burnt to a crisp, insurers need to insure the next 266 Elans just to break even, let alone pay their staff like me!

Kim
Routen Chaplin

Hope this was food for thought!
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PostPost by: Grizzly » Sat Dec 01, 2018 2:27 pm

Kim, Out of interest can you still have two or three names drivers on a multi car policy or would a multi car policy be usually per person?
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PostPost by: atthelimit » Sat Dec 01, 2018 3:23 pm

Chris,

You can have more drivers, the discount works on a matrix system between the ratio of cars and drivers. If there are 3 cars and 1 driver, only one car can be driven at once, if you have 3 cars and 3 drivers, they could in theory all be driven at the same time. It's not quite as simple as that but you get the idea.

The discount is bigger when the number of cars exceeds the number of drivers.

Kim
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PostPost by: Craven » Sat Dec 01, 2018 4:30 pm

Insurance companies are far more worried with the third party risk, shown by very little difference in the premium between fully comp and third party fire and theft. Not necessarily the value of the insured vehicle more the mayhem and carnage you may cause.
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PostPost by: nomad » Sat Dec 01, 2018 10:57 pm

In my state one can still self insure. That is if you are willing to post a non interest bearing bond with the state of some $30K to meet the minimum liability requirement. Why can't a personal liability policy of 1 million cover for that minimum liability. State says no.
Pretty obvious who makes the rules and it ain't the little guy!

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