Why did my insurance go up?

I have held fully comprehensive motorcycle insurance for many years. Unfortunately, I had an accident in September when a post office van pulled out across my path. I was fortunate not to be badly injured, but my bike sustained serious damage. The third party driver and Royal Mail admitted it was their fault and they paid to repair my bike and for a hire bike while mine was being fixed. I came to renew my insurance recently and obviously told my insurer about the accident. They want to charge 30% more for the premium than for last year because of the accident even though it was not my fault. How can this be right?

Mark Hill, by e-mail

Answer

Insurance premiums often increase after a non-fault accident.  Statistically, someone who has had one accident is more likely to have a second accident, even if they were not to blame for the first.  On that basis, because you were involved in the accident your insurer has priced in that they are more likely to have to pay out on your policy in the future.

Each insurer uses different risk assessment models and some insurers will not penalise you for a non-fault accident (or at least, not to the same extent). It is therefore a good idea when looking around for bike insurance to compare quotes from multiple insurers to ensure that you are getting the best deal.