The maths that goes into determining the price of insurance premiums can be pretty complex. Here at Bingle, we try to keep premiums as low as we can by doing most of our business online and avoiding costly overheads like call centres.
Premiums can still change from year to year – but identifying a single reason for that can be difficult. Your policy renewal price can be influenced by several factors.
30th November 2022
Thanks to the knock-on effects of COVID, repairs have become more expensive. Slowdowns in supply chains have made getting hold of the right parts harder, more time consuming, and more expensive. This has put pressure on insurance premiums – as the amount insurers pay out to repair cars affects overall costs.
This one is tied to the previous point. At Bingle, we cover your car for its market value. That is, the value the market would generally pay for the car. In past years, this value would go down over time as your car got older.
More recently, car values have been going the other way, and increasing instead of decreasing. This is due to those COVID-impacted supply chain issues, which means that cars and their parts are getting harder to source, and as such, more expensive.
Weather events have been growing more severe, while becoming less predictable. This includes things like bushfires, floods and storms. Insurers like Bingle are paying more to repair the damages caused by these extreme events, and are expecting to pay more in the coming years. The results of this may be evident in renewal premiums.
If you've recently shifted the way you use your vehicle from personal to business, your premiums will be affected. After all, if you're using a car for business reasons like ridesharing, you may be more likely to be in an incident due to:
Check your details at renewal time. Make sure you're paying for what you need, and nothing else.