Insurance for a 17 year old, just passed his test. £4,000+
Discussion
scarble said:
redgriff500 said:
How would you like to insure the OP (or my daughter) against anything / one they hit, which could cost you millions for £900 ?
I wouldn't do it for £10k - and that's the problem.
no silly, it's like slot machines, the casino rakes it in because the odds on winning are so small. We all pay say £900 but there are what.. 70 million cars currently insured in the UK? Who can spirit up the number for "fatal or life-changing" RTCs?I wouldn't do it for £10k - and that's the problem.
and IIRC the amount the insurers charge is less than what they pay out.
They make their money by investing the premiums.
Hence if they charge £4k then you'd need to charge MORE than £4k to walk away with a profit (on average)
Building on that if payout for a fatality is 10m, serious is 5m and minor is 1m that means in 2005 the total payouts were 325068mil, way ... oh.. uh.. above.
Ok uh.. sh**
Need stats not for RTAs but for actual pay-outs.. now where would I find them?
ETA:
Well this t
er isn't helping
http://www.bbc.co.uk/news/uk-england-manchester-19...
Ok uh.. sh**
Need stats not for RTAs but for actual pay-outs.. now where would I find them?
ETA:
Well this t
er isn't helpinghttp://www.bbc.co.uk/news/uk-england-manchester-19...
Edited by scarble on Thursday 2nd August 16:41
Copying and pasting a post I made on another forum to those saying insurance is a total rip off.
'me' said:
Also, to all those claiming that insurers are blatantly profiteering, look up their combined ratios.
The Admrial group, who I believe rather a significant proportion of people on here utilize, and are considered to be by far and away one of the best insurers for young drivers (me included), report a combined ratio for the 2011 financial year of 87%, down from 91% the year before. That means 87% of the money taken in for premiums was paid out in claims last year, and 91% the year before! There's less than a 15% margin on the insurance premiums themselves.
It's also important to note that Admiral are by far one of the best performing insurers, in 2010, the UK averaged combined ratio was 119% - yep. Insurers were LOSING money on the premiums they took in. The year before it was even greater. Of course this is mitigated and often reversed by the fact that insurers invest the money you put into them, but it does put to rest that they are ripping you off on the cost of your premium.
This also sort of suggests that maybe, just perhaps, insurers know what they are doing when they are setting premiums, however illogical it may seem to the consumer at times.
Like I said, if you think there is a better way of judging insurance premiums, go propose it to someone and get backing; if there's money to be made by the way you want to do it, you'll make an awful lot of it.
(source: Admiral Group 2011 FY reports)
The Admrial group, who I believe rather a significant proportion of people on here utilize, and are considered to be by far and away one of the best insurers for young drivers (me included), report a combined ratio for the 2011 financial year of 87%, down from 91% the year before. That means 87% of the money taken in for premiums was paid out in claims last year, and 91% the year before! There's less than a 15% margin on the insurance premiums themselves.
It's also important to note that Admiral are by far one of the best performing insurers, in 2010, the UK averaged combined ratio was 119% - yep. Insurers were LOSING money on the premiums they took in. The year before it was even greater. Of course this is mitigated and often reversed by the fact that insurers invest the money you put into them, but it does put to rest that they are ripping you off on the cost of your premium.
This also sort of suggests that maybe, just perhaps, insurers know what they are doing when they are setting premiums, however illogical it may seem to the consumer at times.
Like I said, if you think there is a better way of judging insurance premiums, go propose it to someone and get backing; if there's money to be made by the way you want to do it, you'll make an awful lot of it.
(source: Admiral Group 2011 FY reports)
Some numbers here, though they are not up to date and they do not include all claims.
http://www.telegraph.co.uk/news/9240363/Whiplash-c...
http://www.telegraph.co.uk/news/9240363/Whiplash-c...
article said:
Prime Minister David Cameron has vowed to take on the ''compensation culture'', including the £2 billion-a-year costs associated with whiplash that are forcing up insurance costs for all motorists.
While the number of road accidents involving personal injuries reported to the police is falling, claims for compensation are increasing, figures show.
The number of motor vehicle accidents where personal injury was reported to the police fell by 23% from 199,000 in 2005, to 154,000 in 2010, Department for Transport (DfT) figures showed.
But the number of personal injury claims following road traffic accidents which were reported to the Department for Work and Pensions Compensation Recovery Unit rose by 70% from 466,000 in 2005-06 to 790,999 in 2010-11.
While the number of road accidents involving personal injuries reported to the police is falling, claims for compensation are increasing, figures show.
The number of motor vehicle accidents where personal injury was reported to the police fell by 23% from 199,000 in 2005, to 154,000 in 2010, Department for Transport (DfT) figures showed.
But the number of personal injury claims following road traffic accidents which were reported to the Department for Work and Pensions Compensation Recovery Unit rose by 70% from 466,000 in 2005-06 to 790,999 in 2010-11.
Grodecki said:
That means 87% of the money taken in for premiums was paid out in claims last year, and 91% the year before! There's less than a 15% margin on the insurance premiums themselves.
scarble said:
Yes but the money taken from premiums is only one source of income, I don't know the intricacies but we know they pass on details to ambulance chasers and inflate the costs of courtesy cars and repairs. How they make a profit from this idk, maybe they get free golf club membership.
That was totally unrelated to my point! My point was that the premiums they take in are reasonable comapred to what they pay out. They make extra money on the side by the ambulance chasers but should they reduce the price of insurance, and thus their profits to account for it? Not when their margins arn't all that big (or completely non existant, as per most insurers) to start with.Remember insurance companies are just that; companies. They want to make money, and they don't make all that much of it without investing your premiums, or extras like the referrals.
Grodecki said:
That was totally unrelated to my point! My point was that the premiums they take in are reasonable comapred to what they pay out. They make extra money on the side by the ambulance chasers but should they reduce the price of insurance, and thus their profits to account for it? Not when their margins arn't all that big (or completely non existant, as per most insurers) to start with.
Remember insurance companies are just that; companies. They want to make money, and they don't make all that much of it without investing your premiums, or extras like the referrals.
The relation is they inflate the cost of claims meaning they all pay each other more meaning we pay more. If they didn't encourage lawsuits and pay over the odds for repairs then their outgoings would be lower and their incomings could be accordingly lower and we, the consumer, the source of that income, would not be left feeling like we'd been romanced by 'Bubba'. By increasing turn-over they also have more delicious monnneeeeys to invest and on account of having big turnover the top bods probably feel justified in giving themselves bigger bonuses.Remember insurance companies are just that; companies. They want to make money, and they don't make all that much of it without investing your premiums, or extras like the referrals.
1) learn to connect the dots.
2) get an in-browser spell check.
Thank you, you've been a brilliant audience, I'm here all week.
Grodecki said:
Insurance is defintely NOT the same when you are 18 as when you are 17!
At 17 I was insured under a classic policy on a classic Mini Cooper, costing £650 TPFT. As such I gained no NCB. I also crashed. With mainstream insurers the quote was upwards of £1200.
At 18 I moved to Bell, who quoted me £650 on a Mini sprite fully comp, with the accident declared. The year holding my licence made far, far more difference than having NCB. If I still had the cooper it would've been £700 or so, but the sprite was quicker due to declared modifications.
My prices are a few years old, and I am also seemingly the luckiest person in the entire world when it comes to car insurance.
Don't listen to Flux.
Yeah this is how I got mine down. I had my license a year, without driving, and it went down considerably when I got my first car.At 17 I was insured under a classic policy on a classic Mini Cooper, costing £650 TPFT. As such I gained no NCB. I also crashed. With mainstream insurers the quote was upwards of £1200.
At 18 I moved to Bell, who quoted me £650 on a Mini sprite fully comp, with the accident declared. The year holding my licence made far, far more difference than having NCB. If I still had the cooper it would've been £700 or so, but the sprite was quicker due to declared modifications.
My prices are a few years old, and I am also seemingly the luckiest person in the entire world when it comes to car insurance.
Don't listen to Flux.
_Nathan_ said:
I'm 26, live in a good area, held a licence for 2.5 years although no NCD and I can just about insure a Fiesta/Focus for £1000 with my mother as a named driver.
Where am I going wrong ?
Lack of experience and NCD. My mate, 25, pays double for his 3.0 Z4 than I do at 24 on a Z4 M 'cause no NCB (but no accidents).Where am I going wrong ?
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