Do you think car insurance is expensive for young people?

takman

Joe_Horner wrote: »

Not at all.

It may well be a genuine and effective inquiry but, when most of those giving evidence are from a group (insurers) who logically may have a vested interest in justifying current prices, a certain level of scepticism is healthy. Anything less would suggest a potential Trump supporter.

But on a serious note I think it's quite difficult to choose a group of people who have indepth knowledge of the subject in a professional capacity but don't have any kind of vested interest.

Marmalade and Wheels 2 Work are not insurance underwriters and the cheaper they can get insurance for younger drivers the cheaper they can offer their services to them. So they wouldn't have any interest in wanting to maintain current prices.

Car_54

takman wrote: »

Marmalade and Wheels 2 Work are not insurance underwriters and the cheaper they can get insurance for younger drivers the cheaper they can offer their services to them. So they wouldn't have any interest in wanting to maintain current prices.

Their income is a percentage of the premiums, so they certainly have an stromg interest in maintaing or raising prices.

Whether any loss of income would be offset by an increase in numbers is a gamble for them.

AdrianC

Car_54 wrote: »

Their income is a percentage of the premiums, so they certainly have an stromg interest in maintaing or raising prices.

Really?

In a market which is price-prohibitive, 10% of £0 from customers who can't afford to buy is nothing.
In a market which is healthy, higher margins may be possible.

The same percentage (or, even, a higher percentage) of more but smaller sales may easily be more profitable than a percentage of few, higher sales.

Car_54

AdrianC wrote: »

Really?

In a market which is price-prohibitive, 10% of £0 from customers who can't afford to buy is nothing.
In a market which is healthy, higher margins may be possible.

The same percentage (or, even, a higher percentage) of more but smaller sales may easily be more profitable than a percentage of few, higher sales.

Exactly. It's a gamble. (Or, if you prefer, an informed business decision.)

However, the point was that it's certailnly not true to say they have no interest in mainitaining prices.

takman

Car_54 wrote: »

Their income is a percentage of the premiums, so they certainly have an stromg interest in maintaing or raising prices.

Whether any loss of income would be offset by an increase in numbers is a gamble for them.

Wheels 2 Work is a non for profit social organisation that allow young people to rent mopeds to get to work and training. So I don't see any reason why they would want to maintain or increase prices when the entire organisations goal is to offer a cheap way for young people to get to work and training.

Your statement may apply to Marmalade but they also provide supply cars so their income isn't fully related to insurance. Although I think them being able to offer cheaper insurance will definetly boost their business.

UKParliament

The Petitions Committee and Transport Committee are holding a joint evidence session on the cost of car insurance for young people at 2.20pm today and you can watch this live on Parliament TV.

Thank you for all of your contributions, they were used to inform the questions that will be asked during this evidence session.

rudekid48

UKParliament wrote: »

The Petitions Committee and Transport Committee are holding a joint evidence session on the cost of car insurance for young people at 2.20pm today and you can watch this live on Parliament TV.

Thank you for all of your contributions, they were used to inform the questions that will be asked during this evidence session.

Is the question of IPT on the agenda?

Antaressq01

I don't know if this thread is still active or read but for the reference:
I own a £1600 motorcycle and I got quoted £3500 a year for insurance, let's assume it halves the next year I would be at around £5000. You can see how ridiculous this is? This is for purely Third Party cover. I could wreck my bike into a car total both of them and most likely still come out better by paying from the pocket than to take this insurance... I'm not driving my bike at the moment until i can get this sorted out but it's next to impossible... Apparently just changing my area from East London to some random city in Devon took my quote down to about £1000 which is still stupid high. Mind you this is with an year and half old AM license an 8 month old A1 license with an Advanced MSF class, in a relatively suburban part of London with excellent security devices on my bike and a completely clean background all supported with a stable part time job easily sustaining all costs on the bike. Funnily enough even just lying about my age to see what quote i would get took it down to 3300 ish and changing the bike to something extremely low risk to 3100 ish so i doubt those are the issue...

Aylesbury_Duck

Antaressq01 wrote: »

I don't know if this thread is still active or read but for the reference:
I own a £1600 motorcycle and I got quoted £3500 a year for insurance, let's assume it halves the next year I would be at around £5000. You can see how ridiculous this is? This is for purely Third Party cover. I could wreck my bike into a car total both of them and most likely still come out better by paying from the pocket than to take this insurance... I'm not driving my bike at the moment until i can get this sorted out but it's next to impossible... Apparently just changing my area from East London to some random city in Devon took my quote down to about £1000 which is still stupid high. Mind you this is with an year and half old AM license an 8 month old A1 license with an Advanced MSF class, in a relatively suburban part of London with excellent security devices on my bike and a completely clean background all supported with a stable part time job easily sustaining all costs on the bike. Funnily enough even just lying about my age to see what quote i would get took it down to 3300 ish and changing the bike to something extremely low risk to 3100 ish so i doubt those are the issue...

What might it cost your insurer in the event f serious personal injury?

AdrianC

Antaressq01 wrote: »

I own a £1600 motorcycle and I got quoted £3500 a year for insurance, let's assume it halves the next year I would be at around £5000. You can see how ridiculous this is? This is for purely Third Party cover. I could wreck my bike into a car total both of them and most likely still come out better by paying from the pocket than to take this insurance... I'm not driving my bike at the moment until i can get this sorted out but it's next to impossible... Apparently just changing my area from East London to some random city in Devon took my quote down to about £1000 which is still stupid high. Mind you this is with an year and half old AM license an 8 month old A1 license with an Advanced MSF class, in a relatively suburban part of London with excellent security devices on my bike and a completely clean background all supported with a stable part time job easily sustaining all costs on the bike. Funnily enough even just lying about my age to see what quote i would get took it down to 3300 ish and changing the bike to something extremely low risk to 3100 ish so i doubt those are the issue...

Just pause and think for a moment.

Is the property damage - your bike, the car you hit - the ONLY exposure the insurer carries? No, it's not, is it? It's the personal injury claims that may arise, too.

The very fact that your insurance is £3,500 in East London and £1,000 in Devon tells you what they think is the risk of the environment you ride in.