why pay every year

Clive_Woody

markanthony wrote: »

Can anyone tell me why i should pay my car insurance every year?
surely once i have bought a policy that is mine until i make a claim on it & i should not need another one a year later.To pay for something/nothing each year seems ludicrous i don't buy a freezer,washing machine,cooker etc.
We are just being ripped off by insurance companies & it should be stopped immediately.:mad:

I think I can sort you out with a policy that meets your needs. The premium will be £27,599 payable upfront in full. The policy has a £5,000 excess and does not come with a hire car, legal cover, protected NCD. This is based on a 1.2l Corsa Merit.

Let me know when you are ready to send me the money.

dacouch

vaio wrote: »

Nah, I’d say the contract is for a year, not for a claim. To suggest that the contract is fulfilled and ends if a claim is made is as nonsensical as the OP suggesting that it continues indefinitely until a claim is made.

A company called Guardian Royal Exchange used to allow pro rata refunds after a claim / total loss.

Even though their premiums were normally a fair amount more than the rest of the market. They continually posted losses of of upwards of £1.50 paid in claims for every £1.00 in premium they received.

They tended to attract a lot of the fraudulent claims (This was back in the 80's and 90's so it was mot failures being stolen or set fire to.

They did not help themselves by offering DOC to anyone of any age and unlimited stereo cover (Back when stereos were very expensive and very stealable which also meant most of their dodgy claimants also had very expensive stereos fitted...)

They were a wonderful company, great on claims, cover and service.

They were rescued by Axa

Annisele

At the risk of feeding the troll...

Imagine that all cars cost £10k to replace. Also imagine that every year, you've a 1 in 10 chance of suffering an accident that will write off your car.

So, without insurance, you've a 1 in 10 chance of losing £10k, and a 9 in 10 chance of losing £0.

Now lets say that insurance for a year costs £1k. For every 10 people, you'd expect one person to be better off because he has insurance (he spent £1k and got £10k back), and 9 people to be worse off (they spent £1k but got nothing).

If the £1k of insurance lasted until people had to make a claim, where would the insurer get the money from to pay for the second claim made?

I've obviously oversimplified that example horribly, but (I hope) it shows that insurance can't work the way the OP suggests.

dunstonh

ROFL - post of the day and the day is just 51 minutes old.

I know we read some daft things on here sometimes......

raskazz

vaio wrote: »

To suggest that the contract is fulfilled and ends if a claim is made is as nonsensical as the OP suggesting that it continues indefinitely until a claim is made.

In law, it is fulfiled if there is a total loss claim of the subject matter.

System

Sorry Op / Newbie... some people obviously have nothing better to do :rotfl:

jamespir

cause you would not be covered

thenudeone

markanthony wrote: »

Can anyone tell me why i should pay my car insurance every year?
surely once i have bought a policy that is mine until i make a claim on it & i should not need another one a year later.:

I'll certainly do that for you. Since you could hit a bus queue and kill or seriously injure 12 people, each worth £5m in compensation; your premium for your lifetime's car insurance will be £60m.

thenudeone

markanthony wrote: »

If i haven't claimed my policy should just run until i do.If you think its good to pay every year for something you haven't used you must be mad!!

:rotfl::rotfl::rotfl:

If you buy life insurance but live until after the end of the policy do you demand a refund because you haven't USED it and it hasn't paid out?

Oh... of course.... YOU would wouldn't you.

CAN1976

So you pay your yearly policy at say £400 and then when you have a claim costing £3200, the insurance company is well out of pocket, especially considering their running costs on top of claims.

The entire industry relies on the majority of insured parties not making a claim, this is what pays for those who do.

Out of interest what sort of profit margins do insurance companies make? I'm guessing it's not some huge scandalous amount.