Ask Honest John

Honest John Ask Honest John » Why has my insurance premium with the NFU Mutual been increased by 50 per cent?

Why has my insurance premium with the NFU Mutual been increased by 50 per cent?

My car is insured with National Farmers Union Mutual. The renewal is due and the price is up by 50 per cent with no change at all in my circumstances. I have queried this and they say all insurers have put up prices. I can’t believe they have all put the prices up this much and neither can I believe NFU have put up everyone’s premium by as much. I have asked to know exactly why, as I feel another insurer could think I am a bad credit risk or am not telling the truth, as a hike like this is tantamount to refusing insurance. NFU wants £855 and I have a quote via Adrian Flux for £410. Can I demand to know why NFU have really put my premium up or am I wasting my time?

Asked on 15 December 2010 by KJ, via email

Answered by Honest John
They haven't all put up prices to that extent. A lot of the increase is due to allowing credit hire claims against them where accident management companies take over claims, extend the period of repair of the no fault driver's car and put him in an expensive hire car. It's very difficult for insurers to fight this, but it is a legal scam that is costing all of us a fortune and Parliament needs to stop it.

We give you the low down on how to save on insurance, little-known tricks and tips, what insurance groups mean and how to use insurance aggregators to beat insurers.

Insurance group finder and how to save on insurance
Similar questions
An article in the motoring section recently talked about the rising cost of insurance. It failed to mention some of the reasons for these increases. 1) The high, almost obscene charges made by solicitors...
Are there any drawbacks in changing your car insurer every year to get the cheapest quote?
Normal NCD goes: 30 per cent discount for your first claim-free year. 40 per cent for second year, 50 per cent for third and 60 per cent for your fourth year. But some companies have different scales....