Why’s my car insurance premium changed?

Car premium increases are one of those things that can be kinda annoying but are necessary too. There are lots of reasons you might end up needing to pay a bit extra, and your vehicle age, the type of vehicle you drive, your driving history and your location could all play a part.

Recently, a rise in the number of claims and their average cost has changed car insurance premiums too.

They’ve increased for a few reasons, including:

  • More frequent claims overall
  • A higher average claim cost
  • More vehicles on the road in general
  • New vehicle technology increasing car repair/replacement costs, for example rain sensors in windscreens, intelligent braking systems

Are you insured for Agreed Value or Market Value?

That depends on the cover you've chosen.

Agreed Value: means just that - we'll pay you the amount we agreed when you took out your policy. This is stated in your Policy Schedule. We may adjust the Agreed Value each year when your policy is renewed, based on our best estimation of the change in the market value of your vehicle. Your vehicle’s new Agreed Value will be stated in the Policy Schedule.

The Market Value: is what your vehicle would be worth if you sold it immediately before it was stolen or damaged beyond repair. Market values do change over time and can depend on your vehicle’s age, make, model, market conditions, as well as things that are specific to your vehicle like mileage, maintenance and modifications.

What is the Sum Insured?

The Sum Insured is the specified limit listed on your Policy Schedule. It is your responsibility to set the Sum Insured for your policy based on your vehicle’s actual Market Value when you first arrange your insurance and to keep it up to date each year after. This will help avoid overstating the value of your vehicle or underinsuring it.

In fact, regularly reviewing your Sum Insured every year is a great way to make sure what you’re paying matches the current value of your car - not just the amount you covered it for originally. It’s super helpful at claim time and could affect your premium too.

Need some help working out your vehicle’s Market Value?

Free options:

Paid services:

  • Ask a Registered Motor Vehicle Trader (RMVT). Unsure if a motor vehicle trader is registered? Visit to check.
  • Contact a professional valuer like:
If your Sum Insured seems too low or too high, give us a call on 0800 100 200 and we’ll adjust it. No stress, no fuss, just accurate pricing - because that’s fair enough!