How can Saga nearly double my car insurance premium?

theguardian.com:

Last year my Saga over-50s car insurance policy cost £1,155, so you can imagine the shock when the renewal came through for this year and it was £2,044 – nearly double the price of last year .

I phoned customer service to find out why it had gone up so much, and was advised that “prices have gone up”. I was given no other information.

My understanding is that the cost of my premium is based on risk, and the likelihood of me making a claim.

But nothing has changed. I am a female IT consultant in my 50s who has been driving for 20 years. My no-claims bonus is for 10 years, and I have never had an accident (touch wood).

So if Saga has fairly calculated my premium by assessing my risk, then, to my mind, it should have gone down, not up.

I think Saga, along with many other companies, is simply taking advantage of the current financial crisis to increase its profit margins. I love my car but would rather sell it than pay this rip-off renewal price. MB, by email

The 77% increase quoted is out of kilter with a market where prices are up. The average price paid for motor insurance in the first three months of 2023 was £478, which is 16% higher than in 2022, according to the Association of British Insurers (ABI) motor insurance premium tracker.

The trade body says higher bills reflected the “above-inflation cost pressures” facing motor insurers, and pointed to a 30% increase in secondhand car prices and a 16% increase for paint and material costs. Still … 77%!

Saga says: “We are experiencing high levels of claims inflation which, in turn, has meant that premium and renewal prices have unfortunately had to rise, too.

“Material shortages have caused spare parts, such as microchips and semiconductors, to become more expensive because