The Great Hastings Direct Rip Off!

dunstonh

GingerBob wrote: »

And you are clearly one of them.

I run a successful business and employ people.

You are the one that think staff magically appear at no cost to do work that they shouldnt be paid for.

dacouch

TSx wrote: »

If there was no administration, they could probably half their staff - their core business is selling insurance (as a broker) - every customer service person they hire to deal with admin is a drain on resources. They either have a low premium but charge their customers who want to use the call centre, or they have a higher premium and don't charge. Guess which model they're going to use to appear higher on comparison sites?

The company I work for is primarily broker-led business, but we do have some direct business, we don't charge for cancellations or amendments - however you'll find that most of those policyholders are paying double the premium that they would on a comparison site.

One of my old employers was a traditional broker, the motor department had 85% of the staff to the household and commercial departments which actually generated larger profits.

Motor Insurance requires so much additional administration with customers changing vehicles, addresses, adding drivers etc. Being based in the town centre nearish to the Post Office we always had the classic at the end of the month of large amounts of customers who had "never received their certificates" which in the vast vast vast majority of cases was that they had come into town to tax their cars and brought the wrong documents or forgotten the certificate.

Motor Insurance was and to a certain extent still is incredibly labour intensive with relatively small returns for Insurers and brokers compared to more profitable and less labour intensive businesses such as property and business.

I told my ex boss in 2006 he should sell the motor section off whilst companies were still offering decent money to buy books of motor business as the internet would kill motor. He could then concentrate on the parts that were profitable. He felt it was not a good idea as they had been in business for seventy years.

Up until about 15 years ago they needed to employ three staff just to issue continuation covernotes whilst waiting for new business policies or following adjustments.

Motor customers generally are just interested in the cheapest possible deal without worrying about cover or admin costs. Commercial business is so much better as customers tend to buy on cover, customer service and price in that order

twincamms

[QUOTE=dacouch;6538813Motor_Insurance_was_and_to_a_certain_extent_still_is_incredibly_labour_intensive_with_relatively_small_returns_for_Insurers_and_brokers_compared_to_more_profitable_and_less_labour_intensive_businesses_such_as_property_and_business[/QUOTE]

Now that's the worst statement I've seen to date.

I'm at an age where myself and my peer group have children coming up to or arrived at driving age.

I have just paid £1800 to insure my 20 year old daughter third party fire and theft for a year and £2600 to insure my 17 year old son third party fire and theft for ten months.

I paid £1000 for my daughters car and £950 for my sons. I'd rather have spent the money on a modern, more reliable, safer car for them rather than buying them old jalopies and spending most of their budget on insurance, go figure.

Many of my friends and family are being ripped off in the same way!

I pay these thieves enough without being charged for admin...........

Small returns for insurers and brokers? What planet are you on?

CoffeeandStitches

twincamms wrote: »

Small returns for insurers and brokers? What planet are you on?

I think (s)he, and some other posters, are on the planet inhabited with people that have worked in, and understand extensively, the Insurance industry from both PL and commercial, from top to bottom.

Motor and travel a notoriously hard work for very little return. Fact.

GingerBob_3

CoffeeandStitches wrote: »

I think (s)he, and some other posters, are on the planet inhabited with people that have worked in, and understand extensively, the Insurance industry from both PL and commercial, from top to bottom.

Motor and travel a notoriously hard work for very little return. Fact.

Fact? Well maybe not:

http://www.thompsons.law.co.uk/personal-injury/car-insurance-companies-huge-profits.htm

Daniel54

twincamms wrote: »

I have just paid £1800 to insure my 20 year old daughter third party fire and theft for a year and £2600 to insure my 17 year old son third party fire and theft for ten months.

I paid £1000 for my daughters car and £950 for my sons. I'd rather have spent the money on a modern, more reliable, safer car for them rather than buying them old jalopies and spending most of their budget on insurance, go figure.

The high cost of insurance for young drivers has nothing to do with the value of their jalopies and everything to do with the cost of third party liability,particulalarly for bodily injury,and the statistical fact that young drivers are much more likely to cause accidents involving injuries to others

God forbid that either of your two children should be involved in any such accident,but the sums involved can easily run into six or seven figures.The largest ever claim in the UK on a single car policy is in the region of £50 million ! although not a young driver,as it happens)

I don't disagree that the premiums are eye watering ,but your conclusion that you are being ripped off is incorrect.Sadly the premiums are justified and insurers make little if any money on this end of their business

GingerBob_3

Daniel54 wrote: »

...Sadly the premiums are justified and insurers make little if any money on this end of their business

But the premiums aren't justified! See this (a couple of years old now, but you'll get the drift):

http://www.thisismoney.co.uk/money/cars/article-2034356/Hidden-fees-boost-insurers-profits-drivers-face-record-premiums.html

dacouch

twincamms wrote: »

Now that's the worst statement I've seen to date.

I'm at an age where myself and my peer group have children coming up to or arrived at driving age.

I have just paid £1800 to insure my 20 year old daughter third party fire and theft for a year and £2600 to insure my 17 year old son third party fire and theft for ten months.

I paid £1000 for my daughters car and £950 for my sons. I'd rather have spent the money on a modern, more reliable, safer car for them rather than buying them old jalopies and spending most of their budget on insurance, go figure.

Many of my friends and family are being ripped off in the same way!

I pay these thieves enough without being charged for admin...........

Small returns for insurers and brokers? What planet are you on?

You have no idea what the return on car insurance is for an Insurer or a broker.

A broker would typically receive a commission of about 9% of your premium. For that they have to pay their staff, pay for the software licencing for their computers (Expensive), pay their fees to the regulator which run into tens of thousands just for a small broker and their insurance to cover any mistakes will be upwards of £10k. They will then have all the normal costs a business has eg rent, utilities etc.

An Insurer will typically make circa 5% of your premium as profit, this tends to be subsidised by the Insurer investing the premiums and making money from the investments

twincamms

You guys standing up for the insurance industry crack me up.

These prices are extortionate and do not reflect the true value of what you get for your buck.

Both my kids have had to have telematics boxes as I wouldn't be able to afford their insurance without them and the boxes and conditions are far too restrictive, measuring braking (what happens if you need to brake hard for a road crossing child) cornering Gs, acceleration (again what happens if you need to accelerate of overtake your way out of danger), speed limitations and this is the killer, a curfew, they aren't allowed to drive between 11pm and 5am, difficult for my son who works part time in a 24 hour supermarket!

If they break the above conditions they are fined or penalised on their renewals.

Please, someone tell me this isn't extortion?

CoffeeandStitches

So the ONLY insurance they could get was with boxes? Or did you chose to take out those policies for them? I certainly hope that given the nature of this topic you checked the MTA fees before you took out their policies! Or did you not bother, because you'll just argue it and moan later if you're forced to pay it.

Insurance isn't a god given right. You want it? You pay it. You don't like it? Go elsewhere.