Why is my insurance premium so expensive?

Prices are going up so quickly it can feel hard to keep up, but why is the cost of insurance in particular increasing by so much?

If your home insurance renewed in January, you’ll have noticed that prices have rocketed by up to 9 per cent, while motor insurance premiums have increased by almost 5 per cent.

Price hikes appear to be across the board, but another unwelcome development is the withdrawal of policy benefits. Mobility scooter users have reported that while while their premium might have stayed the same price, elements of the policy have been removed.

While it’s true that inflation is playing its part, insurance premium increases over recent months may stem from attempts by the financial services watchdog to crack down on a culture of ‘ripoff insurance’ that folk had complained about for years.

The Financial Conduct Authority (FCA) has recently taken action to stop insurers from penalising loyal customers. Insurers have to now offer the same prices to renewing customers as they would for a new customer. Industry experts predict the new FCA regulations will result in insurance prices increasing by up to 15 per cent as insurers seeks to make up shortfalls.

Here at the ETA, we have always rewarded loyal customers. Our prices are staying the same and we haven’t reduced the level of cover.

When you choose the ETA, you benefit from £3,500 theft and accidental damage cover on any mobility scooter you’re using, £2m third party cover, £100 lost or damaged key cover and breakdown recovery (including from home). And we still charge only £65 per year for our mobility scooter insurance.