Skip advert
Advertisement

'High Insurance premiums are forcing owners to scrap their cars'

Mike Rutherford is stunned that car insurance premiums have risen by an average 61 per cent in the past 12 months

Opinion - scrap

The insurance industry urgently needs to take out a new policy – against itself. The reason? Just as the Volkswagen Group and a few other offending car manufacturers lost customers (some of them forever) who were cheated when purchasing diesel vehicles, a growing number of heinously greedy insurers are now losing motorists unable or unwilling to pay the absurdly high prices they’re being charged for their motor policies in 2023.

Advertisement - Article continues below

No doubt about it: countless drivers are now saying of the great insurance rip-off, enough is enough. But it’s not what they say, it’s what they do that matters.

Some are being forced to scrap cars on the grounds that the cost to insure them per year is not far off the value of the actual vehicles. And that’s madness.

Other motorists are slapping Statutory Off Road Notification (SORN) restrictions on their much-loved cars, locking them away uninsured in secure, private, alarmed garages and perhaps hoping to wheel them out again when the UK’s £20billion-per-year insurance business is forced by politicians or market forces (or both) to charge more reasonable prices.

Those who I consider to be the smartest real-world motorists are downgrading to more modestly priced and powered cars that sit in lower insurance groups.

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Sadly, others are having to admit their motoring days are over because they can no longer pay the prices charged by insurers. How is that ‘progress’?

Another worrying by-product of the situation is the small but scary band of can’t-pay/won’t-pay drivers taking the illegal route of driving on public roads uninsured.

The above examples and other factors prove we’re in a rotten, car insurance industry-inspired mess. It’s motivated by sheer greed and designed to squeeze consumers until the pips squeak. Textbook stuff: an insurance sector pricing motorists out of the market and therefore reducing the size of its customer base. Firms are allowing once-loyal, lucrative clients to walk away and possibly never return. How dumb is that?

And how ironic that the unfit-for-purpose insurance industry now needs to seriously consider insuring itself – against the inevitable loss of countless customers, a reduction in the number of policies sold and, in turn, possible lost profits of millions of pounds.

Think I’m exaggerating? In a period of just 12 inflation-shattering months, quoted motor insurance premiums have risen by an average 61 per cent, with drivers in London paying 69.5 per cent more, those in the West Midlands suffering a 64.4 per cent hike, and South Easterners enduring a 64.2 per cent leap. At the same time wage rises – for the lucky ones that got them – were nearer six per cent! You do the maths.

Meanwhile, one of Britain’s best-known and most-respected national broadsheets reports that some Range Rovers have become “virtually impossible” to insure in certain parts of London. The paper reckons a typical 35-year-old female resident with six years’ driving experience is now being asked to pay £22,515 for annual cover. Worst value for money in modern motoring history? Probably.

Is car insurance too expensive? Let us know your thoughts in the comments section....

Skip advert
Advertisement
Chief columnist

Mike was one of the founding fathers of Auto Express in 1988. He's been motoring editor on four tabloid newspapers - London Evening News, The Sun, News of the World & Daily Mirror. He was also a weekly columnist on the Daily Telegraph, The Independent and The Sunday Times. 

Skip advert
Advertisement

Recommended

Cheapest cars to insure in the UK 2024
Cheapest cars to insure - header image

Cheapest cars to insure in the UK 2024

Looking for a car that’s cheap to insure? We’ve listed the cars with the cheapest insurance group ratings on sale in the UK today
Best cars & vans
2 Oct 2024
UK car insurance groups explained: what do they mean for you and your car?
Car insurance explainer

UK car insurance groups explained: what do they mean for you and your car?

The Association of British Insurers decides your car’s insurance group, from 1 to 50. Here’s what it means for you…
Tips & advice
27 Sep 2024
EVs are less likely to be written off than petrols or diesels

EVs are less likely to be written off than petrols or diesels

New data shows ICE cars have been written off at twice the rate of electric cars since 2015
News
18 Sep 2024
Is your job title adding £££s to your car insurance?
Car insurance

Is your job title adding £££s to your car insurance?

New data shows warehouse workers, healthcare assistants and chefs are hit hardest with the highest car insurance quotes
News
10 Sep 2024

Most Popular

New Skoda Octavia vRS 2024 review: a fantastic and fast family car
Skoda Octavia vRS estate - front tracking

New Skoda Octavia vRS 2024 review: a fantastic and fast family car

Skoda unleashes its most powerful and fastest Octavia vRS yet – and it’s a cracking high-performance all-rounder
Road tests
14 Nov 2024
Car Deal of the Day: Nissan Leaf is an EV bargain at under £140 a month
Nissan Leaf - front cornering

Car Deal of the Day: Nissan Leaf is an EV bargain at under £140 a month

At this price, the all-electric hatch is a no-brainer for our Deal of the Day for 15 November
News
15 Nov 2024
A £10k electric car with a 100-mile range would surely be a sales success
Opinion - cheap EV

A £10k electric car with a 100-mile range would surely be a sales success

Mike Rutherford thinks there would be demand for an electric car with a modest 100-mile range if it only cost £10k
Opinion
17 Nov 2024