My car premium went up 18% and my cover didn't change. Why?
Most renewal increases come from the insurer's portfolio, not from you: repair costs, claims across your postcode, and the end of an introductory discount. Comparing this year’s schedule to last year’s shows what actually moved.
A renewal notice arrives with one number changed and no explanation attached. That is legal in most European markets: the insurer has to tell you the new price and when you can leave, not why it changed.
Why insurers raise a renewal
Repair inflation is the largest cause. Parts and labour for a modern car with sensors in the bumper cost more than the same repair five years ago. Claims experience in your area can also move your premium, even with a clean record. Finally, an introductory discount may simply have ended.
A percentage taken off your premium for each year you don't claim. It reduces the price; it does not cap it.
Where the increase is written down
The renewal letter states the new premium and the date you must cancel by. The wording usually does two things at once.
Unless notice of cancellation is received in writing no later than one calendar month before the Renewal Date, the Policy shall be renewed automatically at the premium notified.
One month before renewal, in writing. Miss it and you’re in for another twelve months at the new price.
“Tariff in force” means the insurer’s current price list. It permits a rise without a change to cover.
Point your camera at the letter and IDA returns your cancellation date and the clause it came from.
What you can check yourself
Put last year's schedule next to this year’s. Five lines account for nearly every increase.
- Base premium before discounts — the number that actually moved
- Excess per claim — an increase here is a price rise in disguise
- Introductory or loyalty discount lines that disappeared
- Optional extras added by default
- Your cancellation deadline, and today's date
This article explains typical policy wording for education. Your own policy decides what applies to you.