Car insurance, are they the biggest fraudsters

bob_a_builder

That insurance companies inflate the cost of a claim against themselves??

Effectively yes

in case of a no fault claim with company 1 , the claims management and credit hire company charge the at fault insurance company 2 with their high fees
(I think one car I had was being charged at £150 plus per day)

And another time the claim is the other way round compay 2 is now stiffing company 1 with the high charges

Leading to a spiralling escalation of costs all round

boatman

motorguy wrote: »

That insurance companies inflate the cost of a claim against themselves??

If the insurance company pays out, but then get a series of back handers, it may well mean that it cost them less, and gives them more profit, payed for by us in higher premiums.

force_ten

motorguy wrote: »

That insurance companies inflate the cost of a claim against themselves??

that sounds like a great business plan, not sure why more companies don't follow this excellent business plan

force_ten

boatman

you seem to have a beef about insurance companies but you have no proof of anything that you have posted here other than speculation and a few articles printed in the press

if your insurance company managed your no fault claim in house and dealt with the at fault insurance company on your behalf chances are the cost of the claim would be just as expensive, and their staff would be tied up dealing with not at fault claims that they pass off at present

Car_54

boatman wrote: »

If the insurance company pays out, but then get a series of back handers, it may well mean that it cost them less, and gives them more profit, payed for by us in higher premiums.

This is economic nonsense.

Don't take that personally: many other posters are in the same boat.

boatman

motorguy wrote: »

Exactly. And your point being?
If its uneconomical to repair they write it off.
Simples.
Why would they lay out £2,000 repairs on a car worth £1200?
Would you?

No, I wouldn't, but the insurance company were quite happy to do it!!
You have to wonder why?

boatman

force_ten wrote: »

boatman

you seem to have a beef about insurance companies but you have no proof of anything that you have posted here other than speculation and a few articles printed in the press

Those article show how the system runs. Inflate the price, charge us more.
How do you think Aviva have profits of £2.6billion?
I find it strange that people are perhaps not able to contemplate the thought that insurance companies are increasing profits at our expense. Its not uncommon for a company to make profit, its way that is achieved I have an issue with.

maddogb

if the claims handlers were not referred clients by insurers they would soon cease to exist with their extortionate charges for their own work and subcontracted services such as car hire.
Insurers have only themselves to blame for this situation but hey they can pass the extra charges on to us, it's all jobs for the boys...

force_ten

boatman wrote: »

Those article show how the system runs. Inflate the price, charge us more.
How do you think Aviva have profits of £2.6billion?
I find it strange that people are perhaps not able to contemplate the thought that insurance companies are increasing profits at our expense. Its not uncommon for a company to make profit, its way that is achieved I have an issue with.

what people have been trying to tell you is that insurance companies do not make money by increasing the amount that pay out in claims that is not a good business model

premiums are set by assessing risk and if you make multiple claims then you are perceived to be a bad risk so your premiums go up, we all know that insurance companies are not whiter than white

they are not deliberately inflating claims just so they can charge you a higher premium

Car_54

boatman wrote: »

Those article show how the system runs. Inflate the price, charge us more.
How do you think Aviva have profits of £2.6billion?
I find it strange that people are perhaps not able to contemplate the thought that insurance companies are increasing profits at our expense. Its not uncommon for a company to make profit, its way that is achieved I have an issue with.

It's not surprising that Aviva makes a large profit - they're the biggest insurer in the UK and the 5th biggest in the world.

UK motor insurance is a small part of their business. In 2015 the profit before tax on all their UK general insurance (including motor) was £140 million, or 3% of premium income, and was actually DOWN from £406 million the previous year.

Would you say 3% was excessive?