Can anyone explain the mad insurance prices?
Discussion
I really don't understand insurance prices in the UK.
I recently got insurance for my S1000R motorbike. It is a pretty extreme machine: 160 bhp, 160 mph, quarter mile in around 10 seconds and just loves spending time on the rear wheel if you are at all enthusiastic with the throttle. It is a beast. And being a motorbike very easy to steal and also pretty easy to crash.
I just bought a Toyota Aygo for commuting. The complete opposite of my bike. I couldn't have bought something more boring nor slower. It would only get to a hundred if you pushed it off a cliff! It is worth less than my bike.
Yet - same details, same mileage per year, both policies with 1 years NCB,
same broker.....and the bike is marginally cheaper.
WTF?
I recently got insurance for my S1000R motorbike. It is a pretty extreme machine: 160 bhp, 160 mph, quarter mile in around 10 seconds and just loves spending time on the rear wheel if you are at all enthusiastic with the throttle. It is a beast. And being a motorbike very easy to steal and also pretty easy to crash.
I just bought a Toyota Aygo for commuting. The complete opposite of my bike. I couldn't have bought something more boring nor slower. It would only get to a hundred if you pushed it off a cliff! It is worth less than my bike.
Yet - same details, same mileage per year, both policies with 1 years NCB,
same broker.....and the bike is marginally cheaper.
WTF?
They bizarrely factor in the average claim for that car so because the aygo is probably a young driver mobile, there are probably a greater percentage of claims on it so somehow they think this makes you more likely to crash. Stupid but true. I suppose the difference with a bike is that there will be no chance of passenger claims too.
A very vague rule of thumb imo = The more like the car is to be cherished, the lower the premium.
Ie. You are less likely to drive your pride and joy recklessly into a Roll Royce phantom that you probably only drive on Sunday mornings, creating less/lower claims for that type of car.
Ie. You are less likely to drive your pride and joy recklessly into a Roll Royce phantom that you probably only drive on Sunday mornings, creating less/lower claims for that type of car.
Esceptico said:
I really don't understand insurance prices in the UK.
If total premiums > total claims, insurer makes money.If total premiums < total claims, insurer loses money.
Insurer estimates (based on what's happened in the past and market competitiveness) at what point they will make or lose money, and calculates premiums accordingly.
NooBish AbbZ said:
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
Actually the volume benefits of forcing everyone to buy it make it cheaper.Most insurance companies lose money on auto.
But don't let actual economics get in the way of a good rant!
NooBish AbbZ said:
i agree with the bike and car insurance, car last year was over £1000 although no NCB, bike this year £200, but 4NCB. Car has only 19 bhp more than the car..
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
Facepalmed so hard I now have a bruise on the back of my head, cheers.Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
I bought a ZX7R lately. Bit of a hooligans machine.
I haven't ridden a bike on the road in nearly 5 years.
To insure fully comp cost me £305 with legal cover. (£279 without).
My Scirocco with all it's mods declared is a shade over £700... !!
That being said when I was 23 I built myself a Mk5 GTI with air ride, RS4 seats, big audio build, fancy merc split rims, Remap and intake and exhaust mods etc. Only cost me £600 to insure..
Sometimes I swear they pull the prices out of the air lol.
I haven't ridden a bike on the road in nearly 5 years.
To insure fully comp cost me £305 with legal cover. (£279 without).
My Scirocco with all it's mods declared is a shade over £700... !!
That being said when I was 23 I built myself a Mk5 GTI with air ride, RS4 seats, big audio build, fancy merc split rims, Remap and intake and exhaust mods etc. Only cost me £600 to insure..
Sometimes I swear they pull the prices out of the air lol.
walm said:
NooBish AbbZ said:
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
Actually the volume benefits of forcing everyone to buy it make it cheaper.Most insurance companies lose money on auto.
But don't let actual economics get in the way of a good rant!
NooBish AbbZ said:
i agree with the bike and car insurance, car last year was over £1000 although no NCB, bike this year £200, but 4NCB. Car has only 19 bhp more than the car..
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
Insurance on my car is £160 per year, so less than £15 per month. For the price of 3 pints of beer a company will indemnify me (and another driver) from anything I do in a 2 ton vehicle, and any costs I may incur no matter how expensive.Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
That seems like a bargain to me.
98elise said:
NooBish AbbZ said:
i agree with the bike and car insurance, car last year was over £1000 although no NCB, bike this year £200, but 4NCB. Car has only 19 bhp more than the car..
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
Insurance on my car is £160 per year, so less than £15 per month. For the price of 3 pints of beer a company will indemnify me (and another driver) from anything I do in a 2 ton vehicle, and any costs I may incur no matter how expensive.Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
That seems like a bargain to me.
NooBish AbbZ said:
i agree with the bike and car insurance, car last year was over £1000 although no NCB, bike this year £200, but 4NCB. Car has only 19 bhp more than the car..
Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
I would say its much more to do with the no win no fee litigation culture we have in the UK now. There is no such thing as a 'cheap' claim anymore. Low speed collision is no longer a case of a £300 bumper and £600 door, someones going to have 'whiplash' and someones going to have some minor scrape that prevents them for working as a hand model for 6 months and someone is going to be 'scared to leave the house/drive to work, after there 10mph shunt.Why is insurance for too expensive in general though? Simple. Legal requirement. Pricks.
If the industry standard insurance profit margin line is to be believed (thats another argument btw) then its the InjuryLawyer4U vultures that are to blame.
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