Insurance Cover??

[Ayez beera]

Sorry if this is in the wrong section.

Just thinking, what does your insurance actually need to cover?

For example could I not set up an insurance company Insure any young driver on any car for £1000 per year but stick like a £10mil excess?

Obviously it is irresponsible to do this but is it actually possible?

Thoughts?

[Slinky]

Obviously you would need to be a regulated entity, and jump through many hoops, but other than the fact that you wouldn't sell any policies, there's nothing to stop you.. Other than many regulatory hoops!

[Chiswickboy]

You would need enough capital to underwrite the risks so unless you win tonight's euromillions or have really rich friends then it won't fly.

If it was such a great idea for making money then the insurance companies would already be doing it.

[Raize]

Ayez beera said:

For example could I not set up an insurance company Insure any young driver on any car for £1000 per year but stick like a £10mil excess?

And what happens when they can't afford to pay the excess?

Stupid idea. Plus insurers would make less money doing this, so doubly stupid idea.