Car coverage rates are up over 60% in only 3 years, the quantity of uninsured drivers on Irish roads increased through 33,000 ultimate year, and the number of younger drivers maintains to fall as the fee of driving skyrockets. So with the chances stacked in opposition to him, this writer is going on a mission to see if it’s still viable to conquer his renewal letter and get inexpensive automobile insurance.
Like heaps of Irish drivers, my annual automobile insurance ordeal commenced this yr with the appearance of my renewal letter.
My policy is managed via Chill Insurance and in their letter, they confident me that they’d get me the “quality policy at the right rate”.
The letter didn’t explicit any of the usual “satisfaction” that I’ve come to expect from Chill after years as a customer, however the next few lines explained why:
“Unfortunately your current insurers are chickening out this product from the marketplace and therefore will now not be presenting renewal phrases for the coming yr.”
And then they stated:
“We want to affirm, that after talking with the Leading Insurers we've recognized a fee of: €1370.20 with AXA Insurance Ltd”
And there it became. €1,370 to insure my car this 12 months.
Car coverage increase of 185% in only two years
My coverage top class changed into €917 final 12 months, and €480 the 12 months before. And now I’m being advised by Chill Insurance that the “quality coverage on the right fee” would fee €1,370, that is a stunning €890 more that I paid for the same level of insurance on the equal automobile simply two years in the past.
In the last two years, I have not had any accidents and I have no longer made any claims. I do no longer have any points on my license and I have a near-most no-claims cut price. I could don't forget that my level of risk has reduced and yet the cost of insuring my car has gone up by means of a exquisite 185%.
Refusal to offer automobile insurance
I was so disenchanted by way of this renewal letter that I right away despatched an electronic mail to my dealer Chill Insurance, and my existing insurer, KennCo Insurance. In it I stated that I considered the renewal letter contained a refusal to provide insurance, I desired to know the motive for this (as KennCo genuinely regarded to be still trading), and I did now not be given “chickening out this product” as a valid purpose.
Chill replied with an electronic mail explaining that Zenith, who were the underwriters of my KennCo policy, had withdrawn from the Irish marketplace, and so the product became now not available.
KennCo has different products, stated the Chill rep, but in this example AXA became cheaper. He turned into additionally very clear to state that neither KennCo nor Chill were refusing me renewal phrases.
Well if KennCo have been not refusing to resume, I want to realize what their terms were. So I emailed Chill returned and stated: “I had been a KennCo customer for the ultimate five years and have been commonly glad with their service, so please endorse of KennCo's renewal terms.”
In his response, the Chill rep stated, “Unfortunately in this case KennCo’s recognition standards doesn’t cater for automobiles of that age.”
Well, my vehicle is vintage and I know that this is a motive that myself and heaps of different drivers are being penalised by means of the insurance enterprise, but there it turned into, confirmed in writing via Chill.
So, after announcing that KennCo become now not refusing me renewal terms, Chill changed into now announcing that KennCo became, in fact, refusing me renewal terms. And with that, the Chill rep directed me to the AXA coverage costing €1,370 once more.
Finding less expensive vehicle coverage
Well, I wasn’t going to simply accept this ludicrous premium hike mendacity down, so I put in a few spade work to peer if I should dig up a few financial savings.
First forestall changed into AXA because they had been the company Chill turned into directing me to, and I wanted to look if I may want to beat the Chill quote by way of going direct. Their online quote machine took a ton of touchy records from me and got here again with “We’re sorry… but we're not able to complete your quote on line.” Ugh… now not a terrific begin.
But if AXA had been prepared to quote me thru Chill, in reality they could do it immediately too? So I known as them and were given a pleasant chap on the telephone who quoted me €990 for absolutely comp. That’s a whopping €380 cheaper than Chill quoted and I couldn't figure any principal distinction inside the cover. So superb result in any case.
Next become 123.Ie. Their on line quote engine also took a massive quantity of touchy records too, and got here back with “We're sorry, we are not able to offer you with an internet quotation. The automobile is outdoor popularity criteria.”
I observed this infuriating. Not due to the refusal, but because 123.Ie requested for the car’s registration wide variety on the start of the online system and have been able to become aware of the car’s make and version proper away. So they may without problems have stated that the car was out of doors their acceptance standards on the begin, however they didn’t. Instead, they took touchy non-public details and did no longer even go back a quote.
Liberty were next. I decided not to bother with their on line form because of the preceding two, so I known as them alternatively, and after a chunk of horse-buying and selling I changed into offered a quote of €1,000, again for fully comp, and again drastically cheaper than my renewal letter.
Beating that renewal quote
And then a funny factor passed off. I were given an electronic mail from KennCo, and they instructed me that that they had in reality offered renewal phrases to Chill. Which turned into very thrilling indeed because Chill had definitely said that they had no longer.
So I got lower back on to Chill and talked about that KennCo changed into contradicting their renewal letter and their emails, and I requested them for an evidence.
I got an answer from the Chill rep that said: “I even have referred this onto KennCo now to peer if I can clear up the difficulty.”
And that changed into it. No in addition correspondence from Chill Insurance*.
So, after days of silence from Chill, KennCo provided to method the policy immediately. They quoted me €715 for comprehensive coverage, and even though it has a better extra than my old policy, it's far nonetheless a marvelous €655 less expensive than my renewal letter. And amazingly, it's a great deal cheaper than closing 12 months too.
Your renewal quote is the highest price you may pay for vehicle insurance - you could do higher!
So, sure, it's miles nonetheless feasible to get less expensive car coverage. I reduced mine from a watch-watering €1,370 to a pretty reasonable €715. It changed into a bit of problem, but properly worth it. The key isn't always to deal with your renewal letter like a invoice that desires to be paid, however rather it need to be dealt with like a charge manual or a line within the sand. It’s the very best price you’ll pay on your automobile coverage this year, and it’s up to you to peer if you can beat that quote and pay much less.
*Before posting this newsletter these days, I sent a duplicate to Chill Insurance to look if they would really like to comment. I obtained a reaction from their Head of Compliance and in her email she targeted the steps that caused my renewal offer with AXA, showed that Zenith (the underwriter of my KennCo coverage) turned into no longer imparting insurance in Ireland, and said:
"KennCo were no longer in a position to issue renewal phrases to your coverage on the 1st February whilst your renewal become reviewed. I can verify we haven't any report of receiving renewal terms from KennCo for your coverage, in spite of their electronic mail to you in February 2017. I apologise for the lack of follow through from Chill Insurance when it comes to your renewal, we ought to had been back in touch with you as promised in our emails in February."
Since posting this piece we have received a big wide variety of queries asking whether we plan to offer a vehicle insurance contrast service for Ireland...
The answer is that we are operating on one. The time is right. Insurance customers are bored with escalating renewal prices and having to fight each year to get a honest rate. They want right transparent vehicle coverage assessment services.
Car coverage contrast offerings could mean that drivers might no longer ought to go even though the lengthy and exhausting manner of ringing round, travelling websites and speakme to brokers in an attempt to beat ridiculous renewal rates every year. An Irish automobile coverage comparison carrier could encourage competition and offer transparency in a marketplace that purchasers find worrying, opaque and hard to navigate. It might assist purchasers without difficulty discover the cheapest automobile insurance for the kind of cowl that they want. It might also help customers to look smaller coverage businesses that have precise costs but don't have large advertising and marketing budgets. But there aren't any UK-fashion vehicle insurance assessment offerings in Ireland... Yet.
They will come even though. There's big demand. We realize becuase we get asked approximately it all of the time. That's why we are working on it and absolutely look ahead to bringing it to the Irish marketplace. But there may be resistance from the insurance industry. They simply don't seem to be as enthusiastic about a marketplace where customers have get entry to to clear and transparent automobile coverage comparison offerings as we're...