You may have noticed that the cost of your insurance has increased compared to your previous years premium. Unfortunately, this isn’t just GoSkippy and is common across the industry. According to the trade body, Association of British Insurers (ABI), the average car insurance premium rose to £627 at the end of 2023, up 34% from a year ago and at its highest level since they started recording data in 2012 (ABI).

You may have also noticed your insurance premium isn’t the only bill going up in price, with bills for groceries, electricity and even streaming services all creeping up. While as a business we cannot directly relate to the cost of living struggles you may be facing , insurance companies across the country are feeling the pressures of rising costs, mainly due to higher claims costs and rising inflation.

Why are claims costs rising?

Repair costs: When submitting an insurance claim, repairs are frequently necessary. Whether it’s for car or home insurance, the expenses associated with parts and labour have surged due to supply chain issues, inflation, and labour shortages.  In Q3 of 2023, the cost of vehicle repairs jumped 32% reflecting rising costs, energy inflation and more expensive repairs (ABI).

Vehicle theft: Up 35% in Q3 of 2023, leading to an increased number of claims (ABI).

Inflation: Higher costs are primarily attributed to inflation (the rate at which prices are rising). Consequently, it’s becoming more expensive for insurers to carry out repairs on your vehicle or property.

Payout amounts rising: In cases where your vehicle is deemed a total loss, we as insurers compensate you based on its current market value. With inflation affecting the value of vehicles, the payout amounts are also rising, placing further strain on insurers.

How does this impact my home insurance price?

Rising claims costs: Just as with car insurance the rising cost of materials and labour also has an impact on your home insurance.

Increase in the number of claims: In recent years the UK has seen an increase in more severe weather, from rain, storms and flooding to hotter summers. This has led to an increase in the number of claims.

With this and the average cost of claims rising we’re having to adjust our pricing accordingly for all customers even if you have not made a claim.

What can I do to reduce my car insurance premium?

Firstly, you should always be honest in your answers. Purposefully leaving important information out is known as misrepresentation or lack of disclosure which can not only be fraudulent but can also lead to serious issues in the event of a claim, in the most serious cases policies can be voided and no payout made.

1. Timing your renewal:  Drivers in urgent need of coverage and seeking quick insurance are prone to facing higher premiums. Give yourself time to secure the best rates.
2. Pay Annually: Though paying annually involves a greater upfront cost, it can actually save you money long term. By paying monthly you are taking out a credit agreement that includes interest making your annual premium more expensive.
3. Add a named driver: Depending on the added driver’s driving experience and history, adding a named driver could save you money on your premiums. However, it’s crucial to be honest about who will primarily drive the vehicle. Dishonestly designating the main driver to obtain cheaper insurance, known as ‘fronting’, is illegal and constitutes insurance fraud.
4. Don’t modify your car: Modifying your vehicle might invalidate your current coverage if these modifications aren’t covered by your current insurer. They can also increase future insurance costs. Before making any changes, be sure to contact your insurer and assess whether the price is worth the modifications.
5. Avoid unnecessary extras:  While optional add ons can be beneficial for some, they may not suit everyone. Assess which add ons you may not need to help lower your premium.
6. Occupation:  Inform your insurer if you’ve transitioned to a remote or hybrid role. Reduced driving in these roles can lower your premiums. Always be honest about your occupation, failing to do so is insurance fraud and you may not be covered for any accident you’re involved in.

Renewing your policy:

Here at GoSkippy we offer different levels of car cover which come at different prices, this means that you only pay for the cover you need. These include:

• GoSkippy Essentials – Our basic fully comprehensive 3* Defaqto rated product. This is a stripped back level of car insurance which gets you on the road.
• GoSkippy Standard – Our fully comprehensive, 5* Defaqto rated product which includes benefit like Windscreen cover, Uninsured Driver Promise, Personal Belongings cover, and much more.
• GoSkippy EV Cover – Powered by Zoom. Our specialist 5* Defaqto rated EV product which includes all the benefits of our standard product, plus things like Battery cover, and Public Charging discounts.
• GoSkippy Roadside – Our 5* Defaqto rated standard product, with an additional benefit of RAC Breakdown cover.
• GoSkippy Premier – Our 5* Defaqto rated standard product, with the additional benefit of cover for Legal expenses as well as RAC Breakdown cover.

So if you’re looking to reduce your premium at renewal, look at the cover you need and consider what level is best for your needs.

While our essentials cover may seem like the cheapest option, our other tiers may offer you more cover for not much more money. This can potentially save you money in the long run.

You can find out more on our available products here.

Please check the policy wording before renewing with a new product to ensure you’re fully aware of the limits of the product you’re purchasing.