MSE News: EU ruling could throw insurance pricing into chaos

lisyloo

They could put high premiums on "boy racer" cars.
At the moment if they don't want certain business then they just put a very high premium on it rather than refuse.

mikey72

lisyloo wrote: »

They could put high premiums on "boy racer" cars.
At the moment if they don't want certain business then they just put a very high premium on it rather than refuse.

They'll just have to do the same for girl racers with the same car in the future.

RichBen

My understanding is that this will not happen. Insurers already have an exepmtion that they can discriminate on sex grounds as long as they have the actuarial evidence to support this. I expect this situation to continue or it is open season on all insurance fundamentals. "Why should I pay a higher flood premium just because I live in a flood zone?" - "Because you are statistically a worse wisk to the insurers". Same for men drivers. The statistics back it up.

Percy1983

I am not against pricing out the young for powerful cars, if anything I think it should be illegal to drive anything about a 1.2 N/A engine for the first 2 years of driving as that would solve a lot of problems.

KevinG

Percy1983 wrote: »

My point is the older you get the closer to death you get... FACT.

Where as the younger you are the worse driver you are, yes there is a pattern that some young drivers are hazard but I wouldn't class it a strictly a fact.

Sorry, still does not compute - as far as insurance risk is concerned, one is no more a "fact" than the other. Age is a factor in how close to death you are likely to be (note: not how close you are) and arguably the most significant, but it's by no means the only one.

lisyloo

They'll just have to do the same for girl racers with the same car in the future.

Oh exactly.
That's exactly what I meant when I said

"boy racer" cars

The loading is on the type of car e.g. Peugeot 106 or whatever, not the person.
I believe this already happens, but they can (if they want to) price someone out of the market if they don't want their business and they already do that to a degree.

mikey72

lisyloo wrote: »

Oh exactly.
That's exactly what I meant when I said



The loading is on the type of car e.g. Peugeot 106 or whatever, not the person.
I believe this already happens, but they can (if they want to) price someone out of the market if they don't want their business and they already do that to a degree.

Any driver under 21 normally.

Arg

If insurance companies want to be free to do what they want with regards to premiums then the british public should be free not to choose insurance in the first place.

Percy1983

Arg wrote: »

If insurance companies want to be free to do what they want with regards to premiums then the british public should be free not to choose insurance in the first place.

Very true, the reason they can get away with it is the have a captive audience, I remember my first year paying £1400 to insure a car worth £900 (1.1 fiesta), if I could have just said no thanks I will just take the risk I would be £1400 + interest richer today.

Just drop the who is to blame and just insure it like any other item, if I don't have insurance and my car gets damaged its my problem.

It isn't like if I get burgled I have to go off the burglers home insure to replace my TV is it.

Eco_Miser

Percy1983 wrote: »

Very true, the reason they can get away with it is the have a captive audience, I remember my first year paying £1400 to insure a car worth £900 (1.1 fiesta), if I could have just said no thanks I will just take the risk I would be £1400 + interest richer today.

It's not the £900 for your car you're insuring against, it's the £2,000,000 damage you do when you you crash into a petrol tanker, or a bus queue.