Chimaera insurance renewals
Discussion
Anyone wondering why your Chimaera insurance premiums are going up, ask a Tuscan driver!
Had an interesting discussion with my insurance brokers (Sunninghill) and I asked them why they no longer include breakdown cover, effectively increasing their premiums? Short answer, reason for an increase in the premiums - too many claims. Some interesting statistics came up in the conversation that followed, more than half the cars on their books are Chims. The rest of the cars on their books in the TVR scheme obviously being all other TVRs ever made.
Fact - Tuscan drivers have made more claims than all the Chim drivers and all other TVR drivers put together.
To Tuscan drivers
Ivan
Had an interesting discussion with my insurance brokers (Sunninghill) and I asked them why they no longer include breakdown cover, effectively increasing their premiums? Short answer, reason for an increase in the premiums - too many claims. Some interesting statistics came up in the conversation that followed, more than half the cars on their books are Chims. The rest of the cars on their books in the TVR scheme obviously being all other TVRs ever made.
Fact - Tuscan drivers have made more claims than all the Chim drivers and all other TVR drivers put together.
To Tuscan drivers
Ivan
Fact - Tuscan drivers have made more claims than all the Chim drivers and all other TVR drivers put together.
To Tuscan drivers
Ivan
Sorry Ivan, I'd love to join you in a drink, but I can't afford to owing to my insurance premium.
See
www.pistonheads.com/gassing/topic.asp?t=42135&f=5&h=0
(sorry ... I claimed recently ... large) whole thing is a bloody conspiracy ... the work done on my car after a relatively minor prang came to £9k which I thought was outrageous. Heard of similar amounts of work being done for private customers for about half that amount.
Then it struck me that insurance companies actually have a longterm interest in getting their repair work done expensively. Keep the number of customers fixed, but double the average claim while maintaing the same margin, and you've doubled your top line profit. Insurers can grow their business by raising the value of the average claim.
So long as you have a tacit agreement btwn the insurers not to undercut the repair bills, then you are all laughing. The repairers themselves will provide all the uppward pressure you need on the repair bills themselves. All you have to do is make sure your loss adjusters don't work too hard. Conspiracy? Sort of. Benign neglect of their own practices actually drives up insurers potential profits. Who gets fcuked? All the customers. Nothing we can do about it. The market is inefficient; it is as if there was a cartel in operation.
Then it struck me that insurance companies actually have a longterm interest in getting their repair work done expensively. Keep the number of customers fixed, but double the average claim while maintaing the same margin, and you've doubled your top line profit. Insurers can grow their business by raising the value of the average claim.
So long as you have a tacit agreement btwn the insurers not to undercut the repair bills, then you are all laughing. The repairers themselves will provide all the uppward pressure you need on the repair bills themselves. All you have to do is make sure your loss adjusters don't work too hard. Conspiracy? Sort of. Benign neglect of their own practices actually drives up insurers potential profits. Who gets fcuked? All the customers. Nothing we can do about it. The market is inefficient; it is as if there was a cartel in operation.
ATG said:Then it struck me that insurance companies actually have a longterm interest in getting their repair work done expensively. Keep the number of customers fixed, but double the average claim while maintaing the same margin, and you've doubled your top line profit. Insurers can grow their business by raising the value of the average claim.
So why don't they crack down on repairers, increase their margins and profitability, and keep their customers happier with lower premiums? The only people to lose out are the overcharging repairers...
ATG said: (sorry ... I claimed recently ... large)
£9k, peanuts to a Tuscan driver, they do more damage than that just filling up.
Seriously though, I know how the insurance/motor trade side of things works and it does not quite work as you imagine. Insurance companies do not have to justify why they charge what they do to anyone so it is not in their interest to allow the cost of repairs to escalate. When it gets to the point that the premiums get daft it kills the cars and then they have to drop the premiums again.
Ivan
NEvin said: Tuscan driving bstards
That will explain why my £14k Chim costs me £2k to insure. Although at this price Sunninghill were still the cheapest quote I had by a long way.
2K! What did you list as your occupation, "stunt driver, provides own car". It only cost £530 to insure my £42k TUSCAN.
Perhaps Sunninghill know the truth about you chim boys.
ATG said: well I may be falling into the conspiracy theory trap, but there must be some explanation why insurance companies seem happy to pay throught the nose for repairs. All I'm saying is that if they are all equally bad at controlling this cost, then it doesn't do them any harm.
I am no great fan of insurance companies, I think they are all crooks. However, let me assure you they are no mugs when it comes to parting with their money. The way some insurance assessors act you would think the money is coming out of their pockets.
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