My new car is 14 insurance groups lower than the previous one - so why has my premium gone up?

My wife recently changed her car from a Land Rover Freelander, worth £2000 and insurance group 23, to a Renault Clio, worth £2000 and insurance group 9. When I changed the vehicle on our Admiral insurance policy it increased by £2 a year. I questioned how this could be true when the car is 14 groups lower on insurance and was told that claims are more likely after changing a vehicle. Having not claimed in 20 years, and driven numerous cars, I pointed out that this was a ridiculous argument. This just seems to rip off of a loyal customer. How can this possibly be fair?

Asked on 17 August 2017 by Robert Phillips

Answered by Honest John
It isn't fair and it typifies the opaque nature in which insurers work. Even though the cars have different group ratings, the data that goes through underwriting algorithms also looks at past data for that type of car. Clio are generally driven by younger, less experienced people, so there are a lot more Clio on the road than Freelander. As such they are more likely to be involved in an accident. More risk equals higher premium. The earlier ones were also very prone to being stolen, again more risk higher premium. Insurance premium tax has increased and the Ogden Rate has changed as well. This has led to premiums increasing to cover them. You're much better served finding a policy that suits your needs at a competitive price.
Similar questions
I contacted my insurers to inquire about getting some vandalism repaired on my Range Rover, but it turned out the excess on my policy (which also has protected NCB) was more than the cost of repairs so...
I recently leased a second car and own a 2010 Hyundai i30 outright. I would like to give the i30 to my wife, but she only has a provisional licence. Should I retain both cars and simply add her to the...
I saw you mention to someone else that it may be possible to claim for future increases in premiums due to another driver's error. Its been my intention to keep all potentially insurable events a secret...
Related models
Bigger than original Freelander. 2.2-litre belt cam diesel. Incredibly good off-road. Robust interior. More fuel efficient 2WD model from 2011 with no rear diff to fail.
Bigger and better looking Clio an improvement on previous model, both 90 TCe petrol and 90 dCi diesel under 100g/km CO2.

Value my car

Save £75 on Warranty using code HJ75

with MotorEasy

Get a warranty quote

Save 12% on GAP Insurance

Use HJ21 to save on an ALA policy

See offer