MSE News: Car insurance industry faces competition probe

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"The Office of Fair Trading has referred the car insurance industry to the Competition Commission to investigate ..."
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  • dunstonh
    dunstonh Posts: 116,597 Forumite
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    Many of the issues cannot be resolved by one insurance company (or a small number) taking a stand because they will be hit commercially by those that do not take any action. So, it needs a regulator (FSA gone missing again) or the OFT to force changes that have to happen to ALL companies.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Make it really difficult to have serious accidents.

    Put location sensitive (GPS) speed limiters on cars and make impact detectors and autobraking compulsory. Cameras, GPS tracker and blackbox recorders to reduce arguments.

    Recruit and train
    older unemployed people to drive electric mini-people movers to provide low cost local Dial-a-Ride facilities.

    Prepare jail cells with non-stop traffic accident TV footage.:D
  • InsideInsurance
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    And are you personally going to fund the billions required to fit the tech into the 35 million or so vehicles on the road? :D
  • Parking_Trouble
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    dunstonh wrote: »
    Many of the issues cannot be resolved by one insurance company (or a small number) taking a stand because they will be hit commercially by those that do not take any action. So, it needs a regulator (FSA gone missing again) or the OFT to force changes that have to happen to ALL companies.

    Agreed. It need proper regulation and possibly a change in the law, or the way compulsory insurance is sold by commercial organisations. Perhaps their profits should come from attracting customers for their excellent handling of claims and value added services above and beyond compliance with RTA requirements.

    I am looking forward to a mis-selling outcome and getting all my premiums back :rotfl:
    Mr Straw described whiplash as "not so much an injury, more a profitable invention of the human imagination—undiagnosable except by third-rate doctors in the pay of the claims management companies or personal injury lawyers"

  • Arg
    Arg Posts: 931 Forumite
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    Scrap mandatory insurance altogether and let them face a proper free market.
  • Ectophile
    Ectophile Posts: 7,377 Forumite
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    Arg wrote: »
    Scrap mandatory insurance altogether and let them face a proper free market.

    If you did that then millions of people wouldn't have insurance. Would you like to be left pursuing someone with no money and no insurance who has just wrecked your new car, or worse, left you severely disabled?
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • mjbutcher
    mjbutcher Posts: 39 Forumite
    edited 29 September 2012 at 8:11AM
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    This is a disgusting practice which, like personal injury claims, is pushing up the cost of motor insurance for all of us. It is up to the government to force all insurance companies to stop this. We all pay enough in various taxes to expect those in charge to protect us from legalised robbery.
  • 111KAB
    111KAB Posts: 3,645 Forumite
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    Daughter's car was run into whilst she was stationary. Driver of other vehicle admitted liability etc however said he had no money to pay for estimated repairs of £640 (bumper re-spray and dent in rear wing) and wanted to put it through his insurance. Contacted daughter's insurance company with all the details and told to arrange a quote and then take the car to said garage where it could be inspected by one of their engineers who would authorise the repairs and then they would claim from third party. Informed the car may be at the bodyshop for up to 4 days before engineer could inspect - thereafter the garage concerned have said they will need the car for another 4 days to do the repairs. I then asked what my daughter was entitled to during the time her car was off the road - "go to Enterprise and sort out a car and they will agree price with us and bill us and we will bill third parties insurers accordingly". Not that I am really bothered but it now appears the third party insurers will have a bill well in excess of £640 which I think is stupid and pushing all our premiums up. So as I have a spare car at home (insured with same firm) I asked how much extra it would cost to put my daughter on this insurance - zero. I then asked if the engineer could visit us at home (car obviously still able to be driven) - not possible I was told. So it appears the third party insurers are going to get clobbered with extra costs which could be avoided BUT daughter's car insured with Aviva and third party vehicle insured with Aviva!
  • Norman_Castle
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    I then asked what my daughter was entitled to during the time her car was off the road - "go to Enterprise and sort out a car and they will agree price with us and bill us and we will bill third parties insurers accordingly".
    If drivers who were offered a hire car had the option to reject it and have a cash payment of 20% of the hire charges instead, saving 80% of the cost, this would reduce overall accident costs. How many hire cars are taken simply because they are offered?.
  • Parking_Trouble
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    mjbutcher wrote: »
    This is a disgusting practice which, like personal injury claims, is pushing up the cost of motor insurance for all of us. It is up to the government to force all insurance companies to stop this. We all pay enough in various taxes to expect those in charge to protect us from legalised robbery.

    Symptomatic of a service based economy. Too many people making money out of charging for a "service" instead of making something useful that generates true wealth for the country.
    Mr Straw described whiplash as "not so much an injury, more a profitable invention of the human imagination—undiagnosable except by third-rate doctors in the pay of the claims management companies or personal injury lawyers"

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