Why is insurance such a con?
Discussion
I don't normally make ranting posts, but I've been looking at travel insurance and am rather disgruntled with the whole thing as it seems like a total con.
If my suitcase goes missing or is stolen, apparently I can't claim what the contents would cost to replace on insurance, only what they're worth secondhand. I called several companies to confirm this, and finally checked with a broker and it's true for all travel insurance so I'm told. That's a bit rubbish isn't it? Naturally, my clothes are all "secondhand", because I've worn them all before, but they're mine, which is a bit different from actually buying secondhand clothes to replace them! I called a broker for clarification, and apparently if my suitcase is stolen along with, say, £600 worth of clothes and shoes, I'll get a fraction of that back on the insurance. It's the same for my camera. It cost me £300, but if it gets stolen I'll only get £100 to replace it with.
Secondly, if I go on a snorkeling holiday, like I did last year; and, like last year, my case with all my snorkeling stuff in doesn't turn up till day 4 of the 7 day holiday, I can't claim any of my holiday cost back off the insurance! I was left stood there in my warm British clothes sweating like a pig in 35 degrees of heat for 4 days, not even able to go swimming in the sea, and I got nothing back. A largely wasted holiday basically, and apparently it's not possible to insure against that? I spoke to the "well known airline" that lost my stuff and they offered to re-emburse essential items such as deoderant or shower gel; nothing more. Even if my case had turned up on day 6 of a 7 day holiday it's the same story apparently - just the few pounds it costs for essential items - no re-embursement of the cost of the holiday.
The same is true of my car insurance. Apparently you don't get the value of your car back if it's stolen, just a fraction of the cost instead. I'm told that my Elise, which was £25k new and is now worth about £17k, would command only about £12k from the insurance company if it was stolen. Is that true?
If my suitcase goes missing or is stolen, apparently I can't claim what the contents would cost to replace on insurance, only what they're worth secondhand. I called several companies to confirm this, and finally checked with a broker and it's true for all travel insurance so I'm told. That's a bit rubbish isn't it? Naturally, my clothes are all "secondhand", because I've worn them all before, but they're mine, which is a bit different from actually buying secondhand clothes to replace them! I called a broker for clarification, and apparently if my suitcase is stolen along with, say, £600 worth of clothes and shoes, I'll get a fraction of that back on the insurance. It's the same for my camera. It cost me £300, but if it gets stolen I'll only get £100 to replace it with.
Secondly, if I go on a snorkeling holiday, like I did last year; and, like last year, my case with all my snorkeling stuff in doesn't turn up till day 4 of the 7 day holiday, I can't claim any of my holiday cost back off the insurance! I was left stood there in my warm British clothes sweating like a pig in 35 degrees of heat for 4 days, not even able to go swimming in the sea, and I got nothing back. A largely wasted holiday basically, and apparently it's not possible to insure against that? I spoke to the "well known airline" that lost my stuff and they offered to re-emburse essential items such as deoderant or shower gel; nothing more. Even if my case had turned up on day 6 of a 7 day holiday it's the same story apparently - just the few pounds it costs for essential items - no re-embursement of the cost of the holiday.
The same is true of my car insurance. Apparently you don't get the value of your car back if it's stolen, just a fraction of the cost instead. I'm told that my Elise, which was £25k new and is now worth about £17k, would command only about £12k from the insurance company if it was stolen. Is that true?
I don't know why they bother to ask for the value of something and give you a premium based on that replacement value, when they have no intention of paying you that amount if you claim.
Perhaps someone that actually knows about insurance can explain why because I don't know anything about it.
Perhaps someone that actually knows about insurance can explain why because I don't know anything about it.
I'm glad other people feel the same way. I'd happily pay decent money for proper insurance, but what I'm not happy about is when the half hearted limp wristed efforts that I've described in my post are the only thing available, which they appear to be.
I'm off on holiday in a few weeks time for two weeks. If all of my possessions go missing in transit and I'm dumped at the other end without any of my stuff, I can't insure against that happening? That's pathetic! Even if I stomach the four figure cost of the wasted holiday, when I get home I'll be left with peanuts to go out and buy all my clothes again, my camera etc etc; not to mention the time that would all take. I reckon a lost suitcase would leave me around £600 out of pocket for the contents of the case, and to that you add the cost of the holiday, at around £1,000, because most holidays that I go on are a waste of time if you don't have your stuff with you. Surely travel insurance should be insurance against those sorts of costs. In that situation they'd pay out for essential items (tube of toothpaste, deoderant), and that's it. When the <well known airline> lost my case last year, there were about 6 of us on the flight without our cases, it's not as if it's a rare occurence!
I should mention that my musical instrument insurance (provided by Allianz Cornhill) is, in contrast, absolutely fantastic. My guitars (x2) and my 'cello have agreed values, and even if I fall down the stairs and break them myself, I get a brand new replacement immediately without any quibble. For that astonishing service I only pay about £60-£80 a year!
I'm off on holiday in a few weeks time for two weeks. If all of my possessions go missing in transit and I'm dumped at the other end without any of my stuff, I can't insure against that happening? That's pathetic! Even if I stomach the four figure cost of the wasted holiday, when I get home I'll be left with peanuts to go out and buy all my clothes again, my camera etc etc; not to mention the time that would all take. I reckon a lost suitcase would leave me around £600 out of pocket for the contents of the case, and to that you add the cost of the holiday, at around £1,000, because most holidays that I go on are a waste of time if you don't have your stuff with you. Surely travel insurance should be insurance against those sorts of costs. In that situation they'd pay out for essential items (tube of toothpaste, deoderant), and that's it. When the <well known airline> lost my case last year, there were about 6 of us on the flight without our cases, it's not as if it's a rare occurence!
I should mention that my musical instrument insurance (provided by Allianz Cornhill) is, in contrast, absolutely fantastic. My guitars (x2) and my 'cello have agreed values, and even if I fall down the stairs and break them myself, I get a brand new replacement immediately without any quibble. For that astonishing service I only pay about £60-£80 a year!
Edited by RobM77 on Tuesday 19th August 20:25
RobM77 said:
The same is true of my car insurance. Apparently you don't get the value of your car back if it's stolen, just a fraction of the cost instead. I'm told that my Elise, which was £25k new and is now worth about £17k, would command only about £12k from the insurance company if it was stolen. Is that true?
Don't think so - market value unless you have an agreed value in place.Why didnt you buy some trunks/flippers instead of standing around for 4 days? A few quid but worth it IMO.
You can have an 'agreed value' on your car - I have this on mine. If you think your car is worth more than 'the book price' then this is the way to go.
As to insurance companies generally - b
ds. I had to sue mine 10 years ago when we were burgled as clause 217 stated 'all items of a precious metal have to be kept in a strong-room'. So they refused to pay out on the stolen jewellery, despite it being itemised in the insurance certificate. An unworkable, impractical and unfair clause inserted after the policy was taken out. I proved it and won the case. It also proved what thieves the insurance company were.
Maxf said:
RobM77 said:
The same is true of my car insurance. Apparently you don't get the value of your car back if it's stolen, just a fraction of the cost instead. I'm told that my Elise, which was £25k new and is now worth about £17k, would command only about £12k from the insurance company if it was stolen. Is that true?
Don't think so - market value unless you have an agreed value in place.Why didnt you buy some trunks/flippers instead of standing around for 4 days? A few quid but worth it IMO.
NDA said:
As to insurance companies generally - bds. I had to sue mine 10 years ago when we were burgled as clause 217 stated 'all items of a precious metal have to be kept in a strong-room'. So they refused to pay out on the stolen jewellery, despite it being itemised in the insurance certificate.
An unworkable, impractical and unfair clause inserted after the policy was taken out. I proved it and won the case. It also proved what thieves the insurance company were.
I get the impression that about 75% of all profit generated by companies these days is acquired purely by cutting corners, delivering poor service and relying on customers not having the tenacity to fight for what they're entitled to. Pays for the bubbly at the shareholders' ball, you see. Pays for the shareholders' ball full stop!ds. I had to sue mine 10 years ago when we were burgled as clause 217 stated 'all items of a precious metal have to be kept in a strong-room'. So they refused to pay out on the stolen jewellery, despite it being itemised in the insurance certificate. An unworkable, impractical and unfair clause inserted after the policy was taken out. I proved it and won the case. It also proved what thieves the insurance company were.
I have just had to claim on holiday insurance, holiday cancelled due to severe illness of our child.
Can't complain too much, £2700 back for a £18 outlay!, but..
On the cancellation due to illness smallprint it says there is £100 excess per policy. Pretty clear I thought..
On the whole policy smallprint it says there is £100 excess per person affected.
So the barstewards take £400 off the settlement, £100 per person. Its there, in black and white (however microscopic), I'll look very carefully next time I sign up!
Can't complain too much, £2700 back for a £18 outlay!, but..
On the cancellation due to illness smallprint it says there is £100 excess per policy. Pretty clear I thought..
On the whole policy smallprint it says there is £100 excess per person affected.
So the barstewards take £400 off the settlement, £100 per person. Its there, in black and white (however microscopic), I'll look very carefully next time I sign up!
RobM77 said:
The worst thing was being stuck in my jeans. My legs are as hairy as a woolly mammoth's, and I really did feel quite faint in jeans for four days in the hot climate!
You have my empathy there mate! It always takes twice as long to apply sun-tan lotion as well, doesn't it???Travel insurance - if you haven't already sorted it, try Insure&Go - we've been with them for a few years now (annual multi-trip policy) and the cover is actually pretty good. Yes the small print isn't perfect, but the service has been very good and they seem more honest about things than the big names.
Camera - you'll need dedicated photographic insurance for anything bigger than a compact.
Theft - as with anything, if you can prove how much a like-for-like replacement would cost, then they have to pay you that amount, regardless of how paltry their initial offer is. Think of it as Olympic-class haggling!
Missing luggage - agree 100% on that one, it's an absolute joke...and always our biggest worry when on holiday.
Jimboka said:
I'll look very carefully next time I sign up!
Read the policy, if its not what you require get something that does what you want it to. What your saying is you went to buy a sports car and without opening the bonnet you handed over your cash only to find it had a 1.1l engine.
People s
g off insurance after they find they purchased the cheapest option that does not fit their needs. Small example, my motor insurance policy has a clause that says I retain the salvage in the event the car is written off. I wanted that and asked for it to be written onto the policy.
shouldbworking said:
This is the the top of my list of gripes with insurance:
"And the value of the vehicle to be insured?"
Specify above average here and you will be raped on your premium, but this will not be reflected when it comes to payout time in the event of bad things.
Motor insurance does not work on new for old basis. Bit difficult if you own a car out of production. If you want what you perceve as the value of the car should it be stolen or written off, get an agreed value from a reputable source, like an independent expert and get your insurance company to agree to that or walk away."And the value of the vehicle to be insured?"
Specify above average here and you will be raped on your premium, but this will not be reflected when it comes to payout time in the event of bad things.
Have you done this? Have you provided a valuation from a reutable source? and agreed this value with your insurance company/broker. If not why not?
Cotty said:
If you want what you perceve as the value of the car should it be stolen or written off, get an agreed value from a reputable source, like an independent expert and get your insurance company to agree to that or walk away.
But they'll charge you for this - I enquired this year about agreed value but was told I'd have to stump-up £75 for the process AND provide all the evidence myself.Whereas (and to give the broker's their dues they suggested this) if I gather all the evidence and keep it up-to-date and only present it in the event of theft/total loss, then I've a good case for getting ~ what would have been the 'agreed value'.
havoc said:
Cotty said:
If you want what you perceve as the value of the car should it be stolen or written off, get an agreed value from a reputable source, like an independent expert and get your insurance company to agree to that or walk away.
But they'll charge you for this - I enquired this year about agreed value but was told I'd have to stump-up £75 for the process AND provide all the evidence myself.havoc said:
Whereas (and to give the broker's their dues they suggested this) if I gather all the evidence and keep it up-to-date and only present it in the event of theft/total loss, then I've a good case for getting ~ what would have been the 'agreed value'.
Yes that is a valid argument to put to your insurance company. Never accept the first offer, provide evidence of other cars advertised and use that as a barganing tool.Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff