Car insurance is weird
Discussion
Ken_Code said:
Sometimes the numbers being quoted make no sense to me. That's possibly why I don't work in insurance I suppose.
Anyway, I called up today to add a new car to my policy, a Ferrari Portofino.
It'll cost £40 to add fully comprehensive for the eight months remaining on my policy.
Weird.
Was it add or swap?Anyway, I called up today to add a new car to my policy, a Ferrari Portofino.
It'll cost £40 to add fully comprehensive for the eight months remaining on my policy.
Weird.
LosingGrip said:
skilly1 said:
Phoned up the insurance company last week to tell them I’d fitted a private plate. Got a refund of £55!
Same here about £60...doesn't make any sense. Could it be cars with private plates are stolen less often, or recovered quicker, because they are easier to spot by a copper who's been alerted to the theft. Keep an eye out for ABC 25 is easier to remember than keep an eye out for LM67 GLX.
Whatever the reason, if an insurance co find that cars with personalised plates produce lower claims costs than cars without, they will give a discount to attract more of them.
It doesn't make sense to me any more, probably because insurers don't have any sense these days!
Last month renewal was due on my daily. I called to tell them I'd had a non-fault claim in 2023 that was settled by the other insurer. So they added £20 to the premium and £50 to the excess. How does that make sense?
My fun car is heading towards renewal so I visited a comparison website and got quotes ranging from £485.31 to £2,708.63, which doesn't seem to make much sense either!
They're supposed to take into account all sorts of factors like car, location, driver, use, etc. so how do they come up with such random numbers?
Last month renewal was due on my daily. I called to tell them I'd had a non-fault claim in 2023 that was settled by the other insurer. So they added £20 to the premium and £50 to the excess. How does that make sense?
My fun car is heading towards renewal so I visited a comparison website and got quotes ranging from £485.31 to £2,708.63, which doesn't seem to make much sense either!
They're supposed to take into account all sorts of factors like car, location, driver, use, etc. so how do they come up with such random numbers?
Ken_Code said:
Dingu said:
More likely they employ smarter people these days.
Given the contribution on here from those in the industry that’s not a tenable claim.
TwigtheWonderkid said:
LosingGrip said:
skilly1 said:
Phoned up the insurance company last week to tell them I’d fitted a private plate. Got a refund of £55!
Same here about £60...doesn't make any sense. Could it be cars with private plates are stolen less often, or recovered quicker, because they are easier to spot by a copper who's been alerted to the theft. Keep an eye out for ABC 25 is easier to remember than keep an eye out for LM67 GLX.
Whatever the reason, if an insurance co find that cars with personalised plates produce lower claims costs than cars without, they will give a discount to attract more of them.
Mr Tidy said:
Ken_Code said:
Dingu said:
More likely they employ smarter people these days.
Given the contribution on here from those in the industry that’s not a tenable claim.'I'm a good driver,' (who isn't, right?) doesn't cut it. Nor do many single aspects of your profile, which you think would have a reasonable bearing on the cost, aren't considered alone.
Further to that, the risk profile they are looking to insure changes year on year, depending on what type of drivers they already have, and those they want to attract going forward.
As consumers it would be good to be able to tell which companies want your risk profile on the books, year on year, then you get already get a bargain.
I suppose comparison sites should do that naturally.
Insurance companies are businesses.
I don't understand why tin mushy peas is cheaper than a bottle of water, but then I don't understand the market. Morons? No, market forces I imagine. Frustrating, but that's the world we live in.
Edited by 3GGy on Wednesday 22 May 07:16
Ken_Code said:
Add, just to check howmuch extra if I decided not to sell anything.
I'll be getting rid of my Emira though, so didn't take this one up yet.
In which case you are absolutely correct - £60 annualised for a Ferrari as an additional car to your policy is indeed weird. I'll be getting rid of my Emira though, so didn't take this one up yet.
Even if you had a very limited mileage and high excess , there is no way that any Insurer could ever “make money “on that policy.
Pound for value and car I reckon you’ve just got the best value Insurance policy quote in the UK !
Acuity30 said:
Why is it that Esure quote £420, Direct Line quote £1250 and Aviva quote £1000 for the exact same policy, same car etc.
Chancers I guess. Unless you have a heavily modified or unusual car may as well go with the cheapest you can find and call it a day.
It’s a good question but they are all completely different companies with different underwriting strategies ,expense ratios , actuaries and rate matrices. Chancers I guess. Unless you have a heavily modified or unusual car may as well go with the cheapest you can find and call it a day.
They also have different market share strategies.
You’re right in that going for the cheapest might make sense up front but no guarantees that the level of claims service ,should the unfortunate happen ,will match the cheapest price obviously.
No Insurance policy for anything is ever considered good value until the need to claim.
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