I had been reading about the rising cost of car insurance but I was still shocked when our renewal quote for this year arrived from Aviva, which had shot up from £893 to £2,531. An increase of more than 180%.
I can’t understand why. We have four years’ no-claims discount and do 6,000 miles a year (we only really use the car to visit the grandparents with our children).
My partner and I are NHS doctors and earn good salaries but our children are in full-time childcare, which costs £3,000 a month. We were not expecting an additional £1,600 bill.
What is going on?
JM, by email
I have written about the soaring cost of car insurance but the hike in your premium is a shocker. Nothing has changed in terms of your driving record but it turns out the problem is your choice of car: a 2017 Range Rover Evoque.
According to the DVLA, Range Rovers were the second most stolen cars in 2022, with more than 5,200 taken. Earlier this year, an Autocar investigation found that owners were being denied insurance because the risk of theft had become so great.
Aviva says: “According to the Association of British Insurers, premiums have risen in recent months due to inflation and rising claims costs.
“Unfortunately, there has also been an increase in thefts of high-end vehicles, particularly in urban areas, and this has impacted JM’s premium. Many are being stolen to resell the vehicle, or its parts, in the UK, or overseas.
“JM’s premium is fully compliant with Financial Conduct Authority rules and appears in line with prices received from other insurers.”
You have shopped around and the Aviva quote was comparable with the cheapest you could find elsewhere. Other quotes were much higher at £3,000-£4,000.
You don’t drive much, so is it time to reconsider your choice of car? You concede it would probably be cheaper to get taxis but in the end you decided to pay up.
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