Why is identical cover £213 more expensive?

Reader John demands explanation as renewal price rockets

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.”