Car Insurance Article Discussion

makoto

I have read some of the posts above and want to add a few things. For the past few years the insurance cartel has been ripping people off and apparently there is no serious regulatory body over insurance companies. Provides appear like mushrooms out of nowhere and you have never heard of them before.

No insurer ever reveals their calculation system, because simply it is fraud, it is not based on the facts but rules laid out to make money.

Look at the no claims system. They basically expect you to pay insurance and claim nothing so that they just keep raising their capital assets, if this is not utter money-making-only business and fraud then what is it.

With 1 yr no claims they tell you it's nothing, then over 2yrs no claims...it is still nothing, suddenly they tell you that without 5 yrs no claims you are nothing. So every year my premium stays the same or goes even higher, without any claims or history of any accident whatsoever and all they tell you is the tax has gone up. They don't even pay normal tax, most companies are based outside the UK.

As for a comment above, bear in mind there was an article a while ago that members of the police pass on details to insurance companies from accidents...for a >little premium<...

Motorists have to act as individuals every time they try to renew, because unfortunately there is no form of large public reaction against this fraud, so they keep carrying on with that.

rainmac

My car insurance renewal came yesterday (£350) and I've just managed to save £120 using Quidco and Aviva. My policy is £50 cheaper (like for like cover) and getting £70 cashback through Quidco. Thank you everyone at MSE, I love you x

:money:

Quentin

rainmac wrote: »

Thank you everyone at MSE, I love you ...

Have you read what people on MSE (and others across the net) have to say about aviva's "service".

There's a reason why they are so cheap!

kelbag_2

Quentin wrote: »

Have you read what people on MSE (and others across the net) have to say about aviva's "service".

There's a reason why they are so cheap!

To be honest, I don't care if they're awful with their service.

2009 I paid £575 fully comp insurance with 7 years no claims

2010 It was £685 with 8 yrs, my previous insurer declined to quote as they said they wouldn't insure the area anymore and no I don't live in Kandahar.

This year I'm getting quotes ranging from £985 (current insurer) and £2,500.
It's a Peugeot 308 1.6 diesel !!!!!! with a cat 1 alarm I had fitted to try and cut insurance costs plus an excess of £500.
I'm 36 and have been driving for 16 years with not so much as a bump or speeding fine in all that time.

Aviva are coming in at £811 which is a huge difference to me, I really don't care if they're the worse firm ever.

If I go with my current firm or others it's a choice between eating or insuring the car.

I would love to know why my insurance has increased by 40% when my circumstances haven't changed, I haven't claimed and my area is exactly the same as it was 12 months ago if not better.

makoto

blimey and I thought I'm being ripped off...

charlieheard

Insurance companies are in the business to make money for their shareholders or owners. Due to the increase in fraudulent claims and the increase in inflated clams from a whole raft of companies providing services such as personal injury claims or hire cars, the insurance companies are losing money. What is their revenue stream? From insurance premiums. So they either keep renewal premiums the same and go out of business, or they raise premiums. It's simple economics. If you don't want to pay, lose the car.

To calculate premiums, they assess vast numbers of factors, based on annual mileage, car risk, repair costs for the car, usage, age, sex (though not for much longer) and your postcode. Each do it differently, and each has a target for the number of policies they want to sell. They then calculate the premium based on how much they want your custom and what their costs are. Lower costs (often via fewer or cheaper customer-facing staff) or better profits or their desire for more customers means they can lower their prices. Some firms are cheaper than others for a reason. All the ones recommended by Which cost 50% more than the cheapest - you pay more for better service or you take a gamble, pay less and hope you don't have an accident. Again, its simple economics.

Insurance costs are a small part of the price you have to pay for car ownership: depreciation and especially fuel cost much more - just work out your annual fuel costs and how much less your vehicle is worth than when you bought it and the results will bring tears to your eyes...

Water

10_66 wrote: »

Are you still employed by the company who insured you as a driver? If you aren't can you not get a letter from them stating how many claim free years you've been driving with them? When my OH was made redundant, (having had a company car, now needed to get own), the employer's insurance company provided a letter stating how many claim free years had been earned, and then got maximum no claims bonus with the Co-operative.

Thanks 10_66. I haven't found a company yet which will take my letter. I will try the Co-op. Thanks again.

mikey72

charlieheard wrote: »

Insurance costs are a small part of the price you have to pay for car ownership: depreciation and especially fuel cost much more - just work out your annual fuel costs and how much less your vehicle is worth than when you bought it and the results will bring tears to your eyes...

True, my £500 car depreciates by about £10 a year.
Oh, wait a minute, insurance can be 100 times that..........
Fuel, that can be £1000, in the small diesel, so still going with insurance being a major cost here.

dacouch

Water wrote: »

Thanks 10_66. I haven't found a company yet which will take my letter. I will try the Co-op. Thanks again.

Try a local broker, they will know lots of Insurers who will accept company car driving with a satisfactory letter from the employer for no claims bonus.

I would avoid Swintons

10_66

Water wrote: »

Thanks 10_66. I haven't found a company yet which will take my letter. I will try the Co-op. Thanks again.

You're welcome. Good luck, I hope they'll accept it for you.