Car insurance extortion

DullGreyGuy

Emmia said:

DullGreyGuy said:

Car_54 said:

LessThanSte 

I saw a comment elsewhere that the insurance market feels inherently unfair. It's a legal obligation to have car insurance yet there seems very little consumer protection/championing to keep prices at a sensible level. Of course the insurance companies will say that there are 1) more claims, 2) more accidents through bad driving, 3) more uninsured drivers, 4) higher cost of repairs, etc. (which I have some sympathy with), but the current approach which bungs all that cost/risk on to the individual customer seems wrong somehow...

If not the customer, who do think should pay? 

The taxpayer? The tooth fairy?

Other countries have fundamentally different methods, if you look at NZ there is no compulsory insurance on cars. Insurance you do buy covers property damage not bodily injury. Bodily Injury for everyone, irrespective of blame is covered by the ACC and covers things like treatment and loss of earnings but no basic PSLA for injuries you'll recover from... you simply get nothing for whiplash etc from anyone. 

As I'm not from New Zealand, I don't know what either the ACC or PSLA is... 

PSLA is not a NZ term, its pain, suffering and loss of amenities... it's the head of claim for an injury itself. So in the UK if you had a 1 year whiplash you'd get £1,320 for PSLA, in NZ you'd get nothing. 

ACC is a NZ term, not from NZ either but still know its the Accident Compensation Corporation. They are the ones that compensate everyone for injuries but only in as far as medical costs, 80% of loss of earnings after the 1st week and certain costs if you are permanently disabled by the accident. 

One way of making insurance cheaper, ban all claims for PSLA. Then it's not the customer, tax payer or tooth fairy funding it. 

annetheman

400ixl said:

Dannydee333 said:

How does an "insurance policy" that sits in a file on a hard drive doing absolutely nothing suddenly cost so much more than before?

Definitely looks like greed and extortion from where I'm sitting.

There isn't any extortion, cartels, greed or profiteering going on in General Insurance.

This comment must be limited to car insurers, since that is your chosen industry - right? If not, a rather bold claim while the FCA investigates (under instruction of the govt) the ABI members who have increased premiums for cladded apartment blocks by 1000s%! 

But I digress, apologies. OP, I have had a very similar increase (£465 in 2022 to quotes now at £750) although using MSE's car insurance tool, I am hoping it is to do with timing of my search. I will re-search in the 20-26 day prior to expiry window and see if it's any better - maybe try that!

Car_54

annetheman said:

400ixl said:

Dannydee333 said:

How does an "insurance policy" that sits in a file on a hard drive doing absolutely nothing suddenly cost so much more than before?

Definitely looks like greed and extortion from where I'm sitting.

There isn't any extortion, cartels, greed or profiteering going on in General Insurance.

This comment must be limited to car insurers, since that is your chosen industry - right? If not, a rather bold claim while the FCA investigates (under instruction of the govt) the ABI members who have increased premiums for cladded apartment blocks by 100

You’re making a big leap from ‘investigation’ to ‘guilt’.

Jenni_D

To get back on track 😉 ... I think I must have had my renewal at the right time (end of May / June 1st). The renewal (with Admiral) was a massive increase (£365 to £590) in percentage terms (61.6%) but I managed via Meerkat to get insurance via another company (Aviva Zero) at the same £365 as last year.

DullGreyGuy

annetheman said:

400ixl said:

Dannydee333 said:

How does an "insurance policy" that sits in a file on a hard drive doing absolutely nothing suddenly cost so much more than before?

Definitely looks like greed and extortion from where I'm sitting.

There isn't any extortion, cartels, greed or profiteering going on in General Insurance.

This comment must be limited to car insurers, since that is your chosen industry - right? If not, a rather bold claim while the FCA investigates (under instruction of the govt) the ABI members who have increased premiums for cladded apartment blocks by 1000s%! 

A shared experience will result in a shared result, it doesn't mean there is a cabal or anti-competitive behaviour. 

Look at the impact of Covid, shipping costs went up, availability of shipping went down further increasing costs and so many imported goods went up in prices. That doesn't imply that Tesco's was in cahoots with RicherSounds and Superdrug to agree a 5% increase in prices but everyones importation costs increased and so naturally consumer prices increased. 

super1_2

Car_54 said:

Dannydee333 said:

I'm currently trying to get a mortgage at the minute, too, and all I can see right now is the ugliness of greed at every turn.

As an insurance company shareholder, I'd be grateful if you could point me towards a company that's making excessive profits.

In fact, most haven't made an underwriting profit at all on motor insurance in recent years.

Just like to point out Admiral insurance profits doubled and hastings increased 50% from 2022 to 2023

Car_54

super1_2 said:

Car_54 said:

Dannydee333 said:

I'm currently trying to get a mortgage at the minute, too, and all I can see right now is the ugliness of greed at every turn.

As an insurance company shareholder, I'd be grateful if you could point me towards a company that's making excessive profits.

In fact, most haven't made an underwriting profit at all on motor insurance in recent years.

Just like to point out Admiral insurance profits doubled and hastings increased 50% from 2022 to 2023

Fair point, but last time I looked Admiral group were still the only UK insurer making an underwriting profit from motor.