Why is iden­ti­cal cover £213 more ex­pen­sive?

Reader John de­mands ex­pla­na­tion as re­newal price rock­ets

Auto Express - - Watchdog - Hugo Grif­fiths

IT is not un­com­mon for car in­sur­ance to in­crease at re­newal time, but one Auto Ex­press reader was so shocked at the hike in his pre­mium that he con­tacted us to see if we could get an ex­pla­na­tion.

John Rous, from Brinkworth, Wilts, told us: “I in­sured my BMW M140i from new with BMW in­sur­ance and paid £335.28.”

Come re­newal, how­ever, John was quoted £548.85 for an­other year’s cover, even though none of his cir­cum­stances had changed.

John queried the ex­tra cost with BMW, but “the agent could give me no de­fin­i­tive rea­son”. He looked else­where, even­tu­ally get­ting his M140i in­sured for just un­der £300.

We con­tacted BMW, which told us its in­sur­ance was pro­vided by Allianz, and ex­plained: “In the first quar­ter of 2017, Allianz in­tro­duced a change to the way in which min­i­mum pre­mi­ums are ap­plied, adding a con­di­tion that it will be one per cent of the ve­hi­cle value. The car in ques­tion is val­ued at £40,000, in­creas­ing Mr Rous’s min­i­mum pre­mium to £400.

“His op­tional pol­icy ex­tras such as No Claims Pro­tec­tion plus In­sur­ance Pre­mium Tax ac­count for the re­main­der of the dif­fer­ence.”

John dis­puted Allianz’s val­u­a­tion of his car, adding that he was “dis­ap­pointed” with the ex­pla­na­tion. “It al­most seems,” he said, “that they are not in­ter­ested in my busi­ness any more.”

M140i cost £335 to in­sure, but re­newal pre­mium on iden­ti­cal pol­icy was £548

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