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[Deleted User]

How?
Switch from TPFT to Comprehensive.
Yes, that is what I mean!
The world's gone crackers:

TPFT: £203.39
Comp: £147.93

When I queried it, they said that they're paying out more on TPFT policies than Comp because TPFT is what all the boy racers go for when they're trying to run a car on the cheap.
When you put it like that it almost sounds sensible!
.....and then when all the boy racers have switched over, you not only end up with the heavy claimers on the lightest premiums, but also have to pay for the policyholders losses as well as the third party losses. Brilliant!

mattymoo

Insurers are not that daft.

When you call for a quote and answer all the questions they fire at you, they are building up your risk profile. This will be based on age, job, type of car, past claims / convictions, postcode and so on.

Now, supposing as an insurer I want to attract 50-60 yr drivers with middle of the road cars (Rover, Ford etc), I would set a premium level for someone meeting a certain risk profile and discount / load premium for factors that do not match the target profile.

My call centre people then give out the quotes and lets say for every 100 quotes for people that meet the profile (or near too) I only sell 5 policies then my premium is a little bit high perhaps.

On the flip side, if I am selling 70 policies to every 100 quotes for the boy racer brigade then perhaps I am a bit too cheap for that market segment.

I can get this data in realtime from the call centre computers and change premiums by the day or even by the hour in order to try and achieve more sales in my target risk market and put off the boy racers.

In your case, the insurer has decided that TPFT = high probability of boy racer brigade so we will price it higher. The cover is just one of the risk factors though so the boy racer would not be offered a cheaper premium for comp cover.