Why are British insurance companies so much more expensive than elsewhere?

mikey72

dunstonh wrote: »

Almost certainly. However, look at the "massive" difference in liability between the UK and US.

Anecdotally, the premiums in the UK are very low unless you live in a pocket of criminality or are a high risk driver.

But the underwriters have decided most people fall into either, or possibly both of those categories.

I did a quote for a young driver in france, much cheaper than the uk.
Most people I know who have been to the USA (admittedly in their early twenties) had no problem being added to relatives trucks and suv's. Not the same the other way round.

dunstonh

But the underwriters have decided most people fall into either, or possibly both of those categories.

That is not the case. However, significant numbers do live in city locations which are high risk. However, significant numbers live in locations which are dirt cheap.

mikey72

dunstonh wrote: »

That is not the case. However, significant numbers do live in city locations which are high risk. However, significant numbers live in locations which are dirt cheap.

That'll be all the high risk drivers then.;)

InsideInsurance

mikey72 wrote: »

Most people I know who have been to the USA (admittedly in their early twenties) had no problem being added to relatives trucks and suv's. Not the same the other way round.

But as said, that because the u/writer is only considering a maximum loss of £30,000 or even less in some states! In many cases that will include both defence and claimant legal fees

The problem with the UK cover is that it must cover for unlimited bodily injury claims and legal fees for either side don't count towards the £20,000,000 property cover provided.

If insurers here could limit cover to £3,000 of TP claims (as my policy in the states did) then of cause prices would be massively cheaper. It is the TP element of insurance that pushes prices up.

mikey72

InsideInsurance wrote: »

But as said, that because the u/writer is only considering a maximum loss of £30,000 or even less in some states! In many cases that will include both defence and claimant legal fees

The problem with the UK cover is that it must cover for unlimited bodily injury claims and legal fees for either side don't count towards the £20,000,000 property cover provided.

If insurers here could limit cover to £3,000 of TP claims (as my policy in the states did) then of cause prices would be massively cheaper. It is the TP element of insurance that pushes prices up.

French TP liabilty?

InsideInsurance

I don't know the detail of the French legal requirements other than something similar to TPO is required even for laid up vehicles and you need a display of your insurance and carrying an accident form. If their TPO is unlimited cover or €1,000 I dont know.

Spiderham

InsideInsurance wrote: »

I don't know the detail of the French legal requirements other than something similar to TPO is required even for laid up vehicles and you need a display of your insurance and carrying an accident form. If their TPO is unlimited cover or €1,000 I dont know.

All EU insurance levels are pretty similar, not sure if it's £10,000,000 or unlimited, either way very similar cost wise. EU levels of insurance are pretty much harmonised by by EU Motor Insurance directives, there is however different legal systems, propensity to claim and claims costs associated with things like PI which will account for majority of difference. I am also unsure about how many satellite companies are involved there (e.g. Credit Hire, Claims Management etc.)

Arg

lisyloo wrote: »

I am shocked that people have such a sense of entitlement that they think they can do whatever they like with no regard for others simply to have to what they want.

Obviously that's our insurance industry your talking about.

vaio

http://www.telegraph.co.uk/finance/yourbusiness/8955539/Car-premiums-artificially-high-admits-insurer.html

mikey72

vaio wrote: »

http://www.telegraph.co.uk/finance/yourbusiness/8955539/Car-premiums-artificially-high-admits-insurer.html

"We simply raised our prices in line with the market and made more profit. "

Increase the profits?

Lies surely, car insurance hasn't made a profit since they stopped walking in front with the flag have they?