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Insurance renewal - interesting findings
dddan
Posts: 1 Newbie
Hi,
I just got my insurance renewal, and it is a 100 more than what I paid last year. No accidents, fines, 4 years NCB. I'm with Admiral.
So, I decided to do some research on their sister company's website, and I found that without my partner on the insurance, I would have paid £10 less, with her, it would be around £100 less than the renewal quote. But my crave for information doesn't stop here.
I decided as always to test out their system to the max. Currently, I park my car in an underground garage, because it feels secure. More than the option (which I can exercise, and I think I will) to park overground in a residential parking area. Now: listen to that, it appears that I would have paid approx. £130 less if I wasn't parking in a garage. In fact, garage is the most expensive option for keeping the car. I'm better of keeping my car on a street (by £100). That defies logic!
Read this further: I just thought: what would have happened if I suddenly became unemployed? Well, apparently I become more of a risk at a cost of extra approx. £310!!!! Surely, when I'm unemployed I turn into a dangerous driver, given the fact that economically thinking - I'd be less capable of affording to drive in the first place (no job -> no money -> no fuel).
What the heck is going on with the car insurance industry!!!!???? Please, can someone explain these ridiculous findings.
Btw. I am quite a bit of a statistician, so I decided to see how their insuring model varies with regards to the pricing of my car. Apparently, my thinking was always to put the lowest realistic price on the insurance, thinking that it would reduce the premium as the cost of repairing such a vehicle is lower then. Wrong! I tried putting it at a higher end of the price range for my car, and the insurance becomes lower by circa £30. Again: where is the logic in that!!!??? But that's not where my statistical skills are useful. When you have a model, the points at which prices should become different should be set by the model. Now, it doesn't seems so in this case. I put the car value at £9999 and at £1 more (i.e. £10k). The price went down. This suggests that the underlying assumptions for the model are not data-driven, but human-assumptions driven. (to be extra clear, if this was really data-driven the price would change at some awkward car value, like e.g. £9837).
Thanks,
Hopefully someone will help me understand this. I also hope that some regulators of the insurance market read this, as it's absolutely unbelievable!
Best wishes!
I just got my insurance renewal, and it is a 100 more than what I paid last year. No accidents, fines, 4 years NCB. I'm with Admiral.
So, I decided to do some research on their sister company's website, and I found that without my partner on the insurance, I would have paid £10 less, with her, it would be around £100 less than the renewal quote. But my crave for information doesn't stop here.
I decided as always to test out their system to the max. Currently, I park my car in an underground garage, because it feels secure. More than the option (which I can exercise, and I think I will) to park overground in a residential parking area. Now: listen to that, it appears that I would have paid approx. £130 less if I wasn't parking in a garage. In fact, garage is the most expensive option for keeping the car. I'm better of keeping my car on a street (by £100). That defies logic!
Read this further: I just thought: what would have happened if I suddenly became unemployed? Well, apparently I become more of a risk at a cost of extra approx. £310!!!! Surely, when I'm unemployed I turn into a dangerous driver, given the fact that economically thinking - I'd be less capable of affording to drive in the first place (no job -> no money -> no fuel).
What the heck is going on with the car insurance industry!!!!???? Please, can someone explain these ridiculous findings.
Btw. I am quite a bit of a statistician, so I decided to see how their insuring model varies with regards to the pricing of my car. Apparently, my thinking was always to put the lowest realistic price on the insurance, thinking that it would reduce the premium as the cost of repairing such a vehicle is lower then. Wrong! I tried putting it at a higher end of the price range for my car, and the insurance becomes lower by circa £30. Again: where is the logic in that!!!??? But that's not where my statistical skills are useful. When you have a model, the points at which prices should become different should be set by the model. Now, it doesn't seems so in this case. I put the car value at £9999 and at £1 more (i.e. £10k). The price went down. This suggests that the underlying assumptions for the model are not data-driven, but human-assumptions driven. (to be extra clear, if this was really data-driven the price would change at some awkward car value, like e.g. £9837).
Thanks,
Hopefully someone will help me understand this. I also hope that some regulators of the insurance market read this, as it's absolutely unbelievable!
Best wishes!
0
Comments
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Insurers apply different rating factors into their systems to generate the rates. They don't always get them right and the issue with the premium for where the car is parked, may just be an error. It would be safer in a secure garage, than on the street.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0
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......the issue with the premium for where the car is parked, may just be an error. It would be safer in a secure garage, than on the street.
These days on street often works out cheaper than any other option!
(There is no chance your other half will scrape the car on the garage doors! A garage provides cover for thieves to break in to the car etc)0 -
These days on street often works out cheaper than any other option!
(There is no chance your other half will scrape the car on the garage doors! A garage provides cover for thieves to break in to the car etc)
How times change ! Always was more expensive on the street, for theft and damage reasons. But as you say, there are also risk issues for garaging.The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.0 -
Depends on the garage! A communal (shared) garage is a greater risk than a private one. I get a 20% reduction because of it, but if I do not use it overnight, my excess triples!
Shared garages are not supervised and anyone who goes in can break in or steal in relative seclusion, out in the street, suspicious behaviour is more easily spotted (in comparison).0 -
As others have pointed out, garages would allow people to carry out criminal acts with less likelyhood of being seen. Plus, most cars nowadays are a very tight fit in most garages (domestic & public), so maybe people that do park in garages, are more likely to scrape the extremities.In fact, garage is the most expensive option for keeping the car. I'm better of keeping my car on a street (by £100). That defies logic!
That's well established, it's going to be data driven. If you have a fixed daily driving routine (i.e. to work), you're probably less likely to have accidents than somone who doesn't.what would have happened if I suddenly became unemployed? Well, apparently I become more of a risk at a cost of extra approx. £310!!!!
I would venture, perhaps not a great one.Btw. I am quite a bit of a statistician...
None of that's going to reduce the payout when you right off someones brand new Bentley or the medical costs when you run a little kid over. Conversely, perhaps people with cars worth a bit more crash less often than people with cheaper cars.my thinking was always to put the lowest realistic price on the insurance, thinking that it would reduce the premium as the cost of repairing such a vehicle is lower then....I put the car value at £9999 and at £1 more (i.e. £10k). The price went down.0 -
I did something similar a few years ago - my OH got his second speeding ticket, and it was time to renew the insurance, so I got to wondering how much this was all costing us. We were insured with Tesco, so I went onto their website, and put in all our details, including the 2 speeding tickets. I then did it again, but without the speeding tickets - it came out more expensive!! I called Tesco, to suggest that maybe my OH should be trying to get a third ticket... There was some scurrying, I can tell you.No longer a spouse, or trailing, but MSE won't allow me to change my username...0
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trailingspouse wrote: »I did something similar a few years ago - my OH got his second speeding ticket, and it was time to renew the insurance, so I got to wondering how much this was all costing us. We were insured with Tesco, so I went onto their website, and put in all our details, including the 2 speeding tickets. I then did it again, but without the speeding tickets - it came out more expensive!! I called Tesco, to suggest that maybe my OH should be trying to get a third ticket... There was some scurrying, I can tell you.
If you play with your profile online do it anonymously!
You say you have told the truth when you ask for a quote, and if you submit multiple profiles you are likely to be spotted by the software as trying to massage the truth and be flagged as a fraudster.0
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