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Why is comprehensive insurance often cheaper than TPFT ?
Comments
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Why?
Anyway, I have answered this already.
And I am certainly not the only one who gets quoted much lower prices for comprehensive than for TPFT.0 -
You appear to be confusing sale price and profit margin, and well as risk profile.
If you sell something for £130 and make £2 profit is that better than selling something for £50 to only 10% of people and making £30 profit on the single sale?
If you want an academic debate pop back to your threads on discussion time, or maybe ask the insurance companies themselves and see what marketing gooblygook they come up with.Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0 -
Have you even read what my question was? It seems not!
I have explained very clearly why I fail to understand how the two categories (those applying for comprehensive and those for TPFT) can be thought of as two separate risk profiles when all it takes is one click of the mouse. If you could shed some light, it would be most helpful. Otherwise please don't waste your time and mine.
Profit margin? Those who get TPFT claim more? But we go back to the previous point: applying for one or the other is not an intrinsic characteristic I cannot (easily) change, like age or living in London vs Nowhereshire.
But asking the insurance companies is a brilliant idea, thanks for the suggestion; I am sure that Janine and Bob from the call centre will know all the details about pricing and commercial strategy. Or maybe I could track down actuaries working for insurers on Linkedin and ask them - I am sure they will be delighted to share their employers' secrets with total strangers. Once again, thank you so much for the suggestion!0 -
Your question was answered by LandyAndy . .Insurers do it that way because their statistics tell them that it is the most profitable way to go.
Pricing is based on STATISTICS, they have large departments churning the data.
Prices are based on what the data analysis shows.
Some won't even quote, simply because for example, you live in wrong postcode, you're the wrong age, they don't like your car etc etc . . .0 -
SouthLondonUser wrote: »Have you even read what my question was? It seems not!
I have explained very clearly why I fail to understand how the two categories (those applying for comprehensive and those for TPFT) can be thought of as two separate risk profiles when all it takes is one click of the mouse. If you could shed some light, it would be most helpful. Otherwise please don't waste your time and mine.
Profit margin? Those who get TPFT claim more? But we go back to the previous point: applying for one or the other is not an intrinsic characteristic I cannot (easily) change, like age or living in London vs Nowhereshire.
But asking the insurance companies is a brilliant idea, thanks for the suggestion; I am sure that Janine and Bob from the call centre will know all the details about pricing and commercial strategy. Or maybe I could track down actuaries working for insurers on Linkedin and ask them - I am sure they will be delighted to share their employers' secrets with total strangers. Once again, thank you so much for the suggestion!
I can only guess at the reason that YOU do not understand given all the helpful replies you've had. YOU are conflating "clicking" with "risk" profiles. Like your other inane threads, you seem to be the cause of your own problems.Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0 -
Thank you, I am most grateful for a very insightful answer, which, as is your usual, thoroughly clarifies all the points I have raised.0
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SouthLondonUser wrote: »Thank you, I am most grateful for a very insightful answer, which, as is your usual, thoroughly clarifies all the points I have raised.
It's what happens when you open so many general threads. You seem to be only wanting a debate not really an answer, because you seem to have decided what the answer is for you. At least be honest and say that's what you want.0 -
societys_child wrote: »Your question was answered by LandyAndy . .
Pricing is based on STATISTICS, they have large departments churning the data.
Prices are based on what the data analysis shows.
Some won't even quote, simply because for example, you live in wrong postcode, you're the wrong age, they don't like your car etc etc . . .
It's all speculation and assumption though. No-one really knows the answer.Changing the world, one sarcastic comment at a time.0 -
It's all speculation and assumption though. No-one really knows the answer.
Well, the insurance companies know, but he doesn't want to ask them like he's been advised to.
There seems to be a common theme, if only someone could understand what it is.
Yett, apparently the people that own the black box do not understand it either but they expect strangers on the internet to explain it to them so they can understand Hey ho.Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0 -
I don!!!8217;t want to ask the insurers!!!8230; Do you even listen to yourself?
Who do you think I would be able to speak to if I called the insurers? The head actuary, or some clueless person in a call centre? And what could they possibly ever tell me?
Last year my insurance quoted me about £400 to renew my bike policy; on the website of the same insurer, the price came to ca. £240. Unfair, but understandable !!!8211; the !!!8216;lazy tax!!!8217;. This year it was the other way round: the insurer sent me a renewal quote for £180, but their website quoted £600 (the day after I received the renewal quote in the post). I rang up to ask if there wasn!!!8217;t some kind of error, and the call centre lady said there wasn!!!8217;t: the website price was more than 3x higher than the renewal price. Why? Because the computer said so.
And, by the way, if you had any knowledge of how some of these statistical algorithms work, you!!!8217;d appreciate that more often than not even the insurers !!!8220;don!!!8217;t know!!!8221;, in the sense that most of these algorithms are a non-transparent black box, with which it can be almost impossible to isolate and assess the impact of a single factor.0
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