Gibraltar car insurance - is it safe?

[uk_vette]

Hi all,

Has any one else noticed how many insurance company's are based in Gibraltar?

Is this a way of sliding out of certain responsibilities to UK motorists?

vette

[Toaster Pilot]

Isn't it just a tax dodge?

[marshalla]

Toaster Pilot said:

Isn't it just a tax dodge?

Almost certainly this, and bypassing a few UK regulations as well - Gibraltar is an EU member, so bound by their implementation of EU law, but not subject to UK regulatory regimes.

http://www.telegraph.co.uk/finance/2843209/Insurer...

[dacouch]

It's basically a tax dodge but more importantly it side steps the heavy regulation UK based Insurers are subject to and the solvency requirements they're obliged to carry in the UK.

So basically you can set up an Insurer in Gibraltar a lot quicker, with less regulation and you do not need to tie up anywhere near as much liquid money to cover your solvency as you would in the UK.

They're passported into the UK market and you receive the protection of the Ombudsman.

I work in Insurance and traditionally avoid Gibraltar based insurers as they tend to be at a certain end of the market.

Well spotted for noticing where your Insurer is based at as most people do not notice

[uk_vette]

Thanks all,

I am currently with ZENITH
A right pain to do any communication with,
Also not helpful in the least.
They were cheap, about 80% of the normal pricing quotes.
However having said that, I will rather pay more, come end of June when this policy expires.

Maybe time to back to NFU or LV.

vette

[crossy67]

We used to deal with a lot insures based in Gibraltar. They were fine for us, always paid a fare price and without any fuss.

Zenith on the other hand. They were tragic.