Can anyone explain the mad insurance prices?

Can anyone explain the mad insurance prices?

Author
Discussion

Esceptico

Original Poster:

7,334 posts

108 months

Thursday 26th May 2016
quotequote all
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?

LordGrover

33,531 posts

211 months

Thursday 26th May 2016
quotequote all
Motorbikes typically damage themselves and their rider; cars can do lots more damage. That's probably part of it.

Some Gump

12,671 posts

185 months

Thursday 26th May 2016
quotequote all
We have 3 cars. Rs4 boxster, st old vectra.
The vectra is the most expensive to insure y about a ton. I'm guessing the stats say the average payout per policy is highest on the vectra.

walm

10,609 posts

201 months

Thursday 26th May 2016
quotequote all
Commuting = peak time driving on congested roads vs. weekend blatting.
Can usually cause more damage to OTHER PEOPLE with a car.
Mileage?

Theophany

1,069 posts

129 months

Thursday 26th May 2016
quotequote all
Let me consult the tea leaves.

Valgar

850 posts

134 months

Thursday 26th May 2016
quotequote all
Bikes won't cause as much damage to their surroundings when you come off maybe?

trickywoo

11,701 posts

229 months

Thursday 26th May 2016
quotequote all
Whats the excess on the bike vs the car?

If they are the same then you do have strangeness.

I think cars are much more likely to be subject to a small claim than bikes (car park bumps / windscreen replacement etc).

veccy208

1,311 posts

100 months

Thursday 26th May 2016
quotequote all
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.

tejr

3,101 posts

163 months

Thursday 26th May 2016
quotequote all
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.


anothernameitist

1,500 posts

134 months

Thursday 26th May 2016
quotequote all
Why can't insurance be like it is in Bradford - optional

xRIEx

8,180 posts

147 months

Thursday 26th May 2016
quotequote all
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

190 posts

119 months

Thursday 26th May 2016
quotequote all
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.

anonymous-user

53 months

Thursday 26th May 2016
quotequote all
Currently own an Audi A4 convertable 1.8T and fancied getting a VW Up! to save some money. The insurance quote for the !Up was £20 a year less.

I think once you get to a certain age the actual car makes little difference to the quote.


walm

10,609 posts

201 months

Thursday 26th May 2016
quotequote all
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!

xRIEx

8,180 posts

147 months

Thursday 26th May 2016
quotequote all
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.

xjay1337

15,966 posts

117 months

Thursday 26th May 2016
quotequote all
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.

M3DGE

1,979 posts

163 months

Thursday 26th May 2016
quotequote all
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!
Correct. Especially in a low interest environment (so minimal investment income) motor insurance generates cash but minimal profits. Hence very few mainstream motor-only insurers, they write it as part of a wider book (home, travel etc). If you want to see premiums fall, campaign for more action on the ambulance chasers.

98elise

26,366 posts

160 months

Thursday 26th May 2016
quotequote all
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.

That seems like a bargain to me.



ED209

5,740 posts

243 months

Thursday 26th May 2016
quotequote all
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.

That seems like a bargain to me.
3 pints of beer? 3 pints? £15? thats anything between 6 and 8 pints where i usually drink.

caelite

4,273 posts

111 months

Thursday 26th May 2016
quotequote all
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.

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.