Discussion
Sorry if this is a repost but it finally seems that some action is being taken.
Im sure nothing will come of mit but it might spark a bit more public interest which, in this democracy of ours, can only be a good thing...right?
http://www.bbc.co.uk/news/business-18268650
Im sure nothing will come of mit but it might spark a bit more public interest which, in this democracy of ours, can only be a good thing...right?
http://www.bbc.co.uk/news/business-18268650
.blue said:
About time indeed. If the government makes car insurance compulosry then it's their job to ensure that premiums are (more or less) actuarially fair.
Isnt it already compulsory? It is certainly legal but as with gas, electric and television it seems to be set up to allow private companies to make huge profits out of the public.If it were state controlled Im sure it would be cheaper but then we would be commies!
It’s such a competitive market then the prices are already as cheap as they can be.
The only thing that will make it better is a decrease in the cost of payouts.
I’d quite like to see an independent body assess each accident and decide on the fault and costs and then the insurers pay out based on that.
Having the insurers do it themselves seems somewhat self serving.
It’s always going to be in the best interests of insurer A to get as much costs as possible from insurer B.
I remember last year that the AA had almost their entire half year profit wiped out by one bad crash with a huge claim.
The only thing that will make it better is a decrease in the cost of payouts.
I’d quite like to see an independent body assess each accident and decide on the fault and costs and then the insurers pay out based on that.
Having the insurers do it themselves seems somewhat self serving.
It’s always going to be in the best interests of insurer A to get as much costs as possible from insurer B.
I remember last year that the AA had almost their entire half year profit wiped out by one bad crash with a huge claim.
Snowboy said:
How much more do they charge?
I can’t imagine it’s much more than a bank loan for the same amount would be?
Shopping round for my renewal the rates were anything from 12% with A-Plan if I'd paid monthly up to just over 30% with Admiral. 12% isn't an unreasonable level imo 30% is just taking the piss!I can’t imagine it’s much more than a bank loan for the same amount would be?
Snowboy said:
DanDC5 said:
The one thing they should clamp down on is insurance companies suddenly charging stupidly high interest rates if someone chooses to pay a policy monthly.
How much more do they charge?I can’t imagine it’s much more than a bank loan for the same amount would be?
[quote=Snowboy]It’s such a competitive market then the prices are already as cheap as they can be.
The only thing that will make it better is a decrease in the cost of payouts.
Having the insurers do it themselves seems somewhat self serving.
It’s always going to be in the best interests of insurer A to get as much costs as possible from insurer B.
quote]
It is a competitive market because they make it that way. It is a compulsory requirement to have insurance so they have a captive market. They will get away with charging as much as possible for the premium becuase we are willing to pay it. If there was regulation over cost of the premium or minimum charging then it would be far fairer for us, the consumer.
But then what choice do we have?
The only thing that will make it better is a decrease in the cost of payouts.
Having the insurers do it themselves seems somewhat self serving.
It’s always going to be in the best interests of insurer A to get as much costs as possible from insurer B.
quote]
It is a competitive market because they make it that way. It is a compulsory requirement to have insurance so they have a captive market. They will get away with charging as much as possible for the premium becuase we are willing to pay it. If there was regulation over cost of the premium or minimum charging then it would be far fairer for us, the consumer.
But then what choice do we have?
Snowboy said:
DanDC5 said:
The one thing they should clamp down on is insurance companies suddenly charging stupidly high interest rates if someone chooses to pay a policy monthly.
How much more do they charge?I can’t imagine it’s much more than a bank loan for the same amount would be?
Bisonhead said:
It is a competitive market because they make it that way. It is a compulsory requirement to have insurance so they have a captive market. They will get away with charging as much as possible for the premium becuase we are willing to pay it. If there was regulation over cost of the premium or minimum charging then it would be far fairer for us, the consumer.
But then what choice do we have?
I don’t see it myself.But then what choice do we have?
If it was possible to charge significantly less on the premiums but still make a profit then someone would have done it.
Compared to how much the companies pay out on even a small claim I’d actually say the premiums are reasonable.
Let’s say I pay 1k a year and crash into a new Golf totalling it.
That’s 30k payout once you get a new car, hire car, costs, fees etc.
Even if they double my premium to 2k the next year, that’s still 15 years of insurance premiums before they’ve broken even from insuring me.
Once something has been done to restrict the claims amounts then I think we’ll see premiums drop again.
Snowboy said:
Bisonhead said:
It is a competitive market because they make it that way. It is a compulsory requirement to have insurance so they have a captive market. They will get away with charging as much as possible for the premium becuase we are willing to pay it. If there was regulation over cost of the premium or minimum charging then it would be far fairer for us, the consumer.
But then what choice do we have?
I don’t see it myself.But then what choice do we have?
If it was possible to charge significantly less on the premiums but still make a profit then someone would have done it.
Compared to how much the companies pay out on even a small claim I’d actually say the premiums are reasonable.
Let’s say I pay 1k a year and crash into a new Golf totalling it.
That’s 30k payout once you get a new car, hire car, costs, fees etc.
Even if they double my premium to 2k the next year, that’s still 15 years of insurance premiums before they’ve broken even from insuring me.
Once something has been done to restrict the claims amounts then I think we’ll see premiums drop again.
The man maths for claims from and claims against is a bit more complicated and my poor brain cant get around them.
As for finding a way to reduce premiums and still make a profit...thats not how business works. You make as much money as possible as often as possible.
My renewal has come through for Direct line and yet again it's cheaper than anything I can find on any comparison site. That and there's no huge deposit to pay means I'll be sticking with them again this year. 4 years no-claims, GTI-6, I'm 37.
When my old Almera got written off I got asked if I had any pain or stiffness and it would have been so easy to say yes and a cheque would probably have arrived without my doing much else but I'm too honest!
When my old Almera got written off I got asked if I had any pain or stiffness and it would have been so easy to say yes and a cheque would probably have arrived without my doing much else but I'm too honest!
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