Why is car insurance so ridiculously expensive in the UK compared to other countries?

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esc0bar
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#1
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Why is car insurance so ridiculously expensive in the UK compared to other countries?

I'm foreign myself and thought of buying a car here but the absolutely ridiculous insurance quotes put me off and I bought a car from my home country instead and registered and insured in there. I can legally drive it here due to my circumstances, as I'm not a permanent resident.

The car I have is a BMW 330i (3 liter engine) so I do realise it is going to be expensive to insure for a young man as it's pretty powerful. But the cheapest insurance quotes here would have started from £7000?? I mean WTF? that's slightly over the price of the car itself.

I do realise it's not a very insurance friendly car, but in my home country (Belgium) I could have got it insured for £2000 per year in my own name, but I got it insured in my dad's name and it only costs £250 per year. I'm an assigned driver so legally allowed to drive it.

For a "student car", some little one with a 1 liter engine I could've had the insurance for about £300 in my own name. I've seen that even for these kind of cars it's ridiculously expensive in the UK. I didn't want a car like this as I travel long distance journeys many times a month and also use the German autobahns.


Why is it like this? Do young people drive specifically bad just in the UK? I've seen in other countries too it's a lot cheaper. Why just UK?
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esc0bar
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(Original post by arson_fire)
Basically because young guys in the UK have a nasty habit of causing accidents. If they stop driving like ***** insurance will come down.

Heres what one of the large insurers have to say about it:
http://www.admiral.com/press-release...vers-revealed/
I see the point but it's difficult to imagine that it isn't the same in every country. I know all European countries have their boyracer teams and idiot drivers, but why would the UK have so many more?

Chav culture perhaps? Lack of law enforcement? Too high speed limits? (imo. 60 on single and 70 on double carriage ways seems very high to me sometimes, while 70 on a four lane M-road seems ridiculously low)
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carrotstar
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I suppose it also discourages the use of cars where they're not really needed, because we are a pretty small country, so there's not as much space on the roads, or space for people to park. Motorways are mayhem at rush hour as it is...what on Earth will they be like as the population grows further?

There's no doubt that the UK has a high population to land ratio, and a high car to land ratio would be a concern as well. An increase in the number of cars around would be a concern for the environment, and have an impact on welfare, happiness as journeys bexome longer, and traffic in cities, which is bad as it is!

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esc0bar
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(Original post by carrotstar)
I suppose it also discourages the use of cars where they're not really needed, because we are a pretty small country, so there's not as much space on the roads, or space for people to park. Motorways are mayhem at rush hour as it is...what on Earth will they be like as the population grows further?

There's no doubt that the UK has a high population to land ratio, and a high car to land ratio would be a concern as well. An increase in the number of cars around would be a concern for the environment, and have an impact on welfare, happiness as journeys bexome longer, and traffic in cities, which is bad as it is!

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That's a good point there and perhaps applies to places with a good public transport system like London.. but what about all those 18-22 year olds who live in smaller villages and need to commute to work. They often have no option.

For me for instance, I'm currently working in Milton Keynes and while I only live 4 miles away from work, there is no way I could get there, to the gym and back with public transport. This town though, is certainly designed for cars.
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esc0bar
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(Original post by arson_fire)
Don`t think we have any more than anywhere else, but the claim amounts are large. Insurers take a massive financial risk insuring young drivers. Young men are 20x more likely to cause a fatal accident than be a victim of one. They`re also twice as likely to be drunk when they do it. Cripple someone in a car accident and the insurance company can be looking at millions - at least three claims have crossed the £10 million mark with IIRC the largest being £23 million.
Yeah it all makes completely good sense, but this should be the case in every country as far as I know. However the prices in the UK seem to be many times higher.
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Hyrulian
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I wouldn't necessarily say that it was that expensive - you just need to have a good hunt about for the cheapest deals.

I got my car insurance from http://www.hootcarinsurance.co.uk last year and they were really cheap, when I have to renew I'll probably stay with them.

Worth a look, hope this helps!

Hyrulian.
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rockrunride
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Because everyone and their dog claims ten months' whiplash after they've had a 10mph rear end shunt.

They don't on the continent, as their lawyers would laugh at them with anything less than a broken arm.
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cole-slaw
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(Original post by rockrunride)
Because everyone and their dog claims ten months' whiplash after they've had a 10mph rear end shunt.

They don't on the continent, as their lawyers would laugh at them with anything less than a broken arm.
This, sadly.

We're actually one of the safest countries in the world for road traffic accidents. However we tend to award ridiculous settlements for spurious claims, hence the necessity of massive premiums to cover these costs.

Also some economically illiterate bull**** about the environment.
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Greenlaner
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#9
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(Original post by esc0bar)
The car I have is a BMW 330i (3 liter engine) so I do realise it is going to be expensive to insure for a young man as it's pretty powerful. But the cheapest insurance quotes here would have started from £7000?? I mean WTF? that's slightly over the price of the car itself.
Here is a tip, don't use comparison websites, you will never find a decent price. Ring around different insurers and get the benefit of speaking to an actual person and not some dodgy algorithms. You will find they generally give you far cheaper quotes and you can often talk them into lowering the cost.
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Green Marble
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#10
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Good we don't need more ****ing drivers on the road. Get a bicycle
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Kingt4h1r
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#11
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that is a very dumb response. what about those who have work like 5-10 miles away.its very tough cycling that far, and it takes a long time u know.
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TheTTruth
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**** off nonce
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PTMalewski
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#13
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(Original post by esc0bar)

Why is it like this? Do young people drive specifically bad just in the UK? I've seen in other countries too it's a lot cheaper. Why just UK?
Because everythig in UK has sky-high prices, so costs of repairs and treatment must be high as well, and from what I hear, UK insurers do pay damages, while in some other countries you will never get your money unless you go to a court.
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Andrew97
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(Original post by Green Marble)
Good we don't need more ****ing drivers on the road. Get a bicycle
If you have to commute into a city everyday and there is no train station near you, cycling isn’t a viable option.
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Cyclist8er
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#15
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Green Marble we certainly don't need more ****ing cyclists on the road, contributing nothing yet slowing us drivers down who pay tax, fuel, sky high insurance, thousands for our car, all the local authority fines you can name under the sun so some bell end on a bike called Green Marble can claim he's helping the ****ing environment. In case you haven't noticed, I don't believe in / give a sh*t about global frigging warming.
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Just my opinion
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#16
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Look up " crash for cash" and the lowlifes that do it. . Funny enough it is far more prevalent in certain parts of the country.
I read a report that this one crime adds £50 to the average premium.
I don't know if they have similar lowlifes in other countries pushing up their premiums.
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Rickravenrumney
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#17
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Yes they do. Ambulance chasing Lawyers.
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kramer12
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#18
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There already is, its called the congestion charge, and it exists in London and other large cities. Increasing the cost of insurance to discourage car use is an unfair penalty for those that need a car because they live in remote areas, are disabled or have other special needs.
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ByEeek
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#19
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(Original post by esc0bar)
I mean WTF? that's slightly over the price of the car itself.
But you aren't insuring just your car. You are also insuring the car / cars that you destroy during your crash and the injuries that causes. Statistically young men are rather accident prone (I had two accidents in my 20s) and so what the insurer is basically saying is "we don't want to insure you, but if you insist, we are going to charge the earth for it). Your choice.
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ByEeek
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(Original post by rockrunride)
Because everyone and their dog claims ten months' whiplash after they've had a 10mph rear end shunt.

They don't on the continent, as their lawyers would laugh at them with anything less than a broken arm.
This is no longer permitted. Whiplash is no longer an compensation you can claim. As a result insurance premiums fell.
https://www.theguardian.com/money/20...hiplash-claims
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