Why is comprehensive insurance often cheaper than TPFT ?

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  • @LandyAndy, that's quite the tautology!

    @Car54, interesting thought, maybe that's it, although I would have thought that the damages covered by a comprehensive insurance would typically not be recoverable from third parties, and therefore there would be less scope to involve claim management companies and other similar gentlemen?
  • LandyAndy
    LandyAndy Posts: 26,377
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    @LandyAndy, that's quite the tautology!

    How is 'insurers do what they believe is most profitable' a tautology?
  • Because the question was "why do they do it?" and you haven't answered it. They do it because they think it's more profitable, OK, but why do they think that? That's the question...
  • Car_54
    Car_54 Posts: 8,180
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    @LandyAndy, that's quite the tautology!

    @Car54, interesting thought, maybe that's it, although I would have thought that the damages covered by a comprehensive insurance would typically not be recoverable from third parties, and therefore there would be less scope to involve claim management companies and other similar gentlemen?

    The TP is probably at fault in 50% of cases.
  • stator
    stator Posts: 7,441
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    When I first got a car, I insured TP only or TPFT and I don't think I bothered checking comprehensive policies. Back then it was harder though, don't think comparison sites existed. I changed to comprehensive once I had a car worth insuring. The idea that comprehensive policies might be cheaper wouldn't have crossed my mind until I read it on here.

    Some people say that it's because the insurers think they can sell you addons on a comprehensive policy. NCB protection, Motor legal etc. So they're willing to discount the price more. If you buy TPFT you're a cheapskate so they don't bother.
    Changing the world, one sarcastic comment at a time.
  • stator wrote: »
    When I first got a car, I insured TP only or TPFT and I don't think I bothered checking comprehensive policies. Back then it was harder though, don't think comparison sites existed.
    That was one of my points: the harder it is to compare comprehensive vs TPFT, the more motorists can be divided into 2 separate groups based on that. This probably used to be true once, but not now.
    stator wrote: »
    Some people say that it's because the insurers think they can sell you addons on a comprehensive policy. NCB protection, Motor legal etc. So they're willing to discount the price more. If you buy TPFT you're a cheapskate so they don't bother.
    What addons can they sell to a comprehensive policy that they cannot sell to a TPFT? AFAIK NCB protection and legal cover (never worth it IMHO as you'll be assigned some cheap paralegal) can be sold to both.
  • stator
    stator Posts: 7,441
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    That was one of my points: the harder it is to compare comprehensive vs TPFT, the more motorists can be divided into 2 separate groups based on that. This probably used to be true once, but not now.

    What addons can they sell to a comprehensive policy that they cannot sell to a TPFT? AFAIK NCB protection and legal cover (never worth it IMHO as you'll be assigned some cheap paralegal) can be sold to both.
    It's not that they can't buy the add-ons, it's that they don't. People who are insuring TPFT are already scrimping, so take up of the add-ons is low.
    Also I bet most TPFT are renting and not home owning, so less opportunities to sell more policies like home insurance.
    So the insurers only have one chance to make a profit off TPFT, so they aren't willing to discount it.
    I don't know if it's true, but it's just a theory.
    Changing the world, one sarcastic comment at a time.
  • AndyMc.....
    AndyMc..... Posts: 3,248
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    stator wrote: »
    When I first got a car, I insured TP only or TPFT and I don't think I bothered checking comprehensive policies. Back then it was harder though, don't think comparison sites existed. I changed to comprehensive once I had a car worth insuring. The idea that comprehensive policies might be cheaper wouldn't have crossed my mind until I read it on here.

    Some people say that it's because the insurers think they can sell you addons on a comprehensive policy. NCB protection, Motor legal etc. So they're willing to discount the price more. If you buy TPFT you're a cheapskate so they don't bother.

    When did you pass your test? Given the World Wide Web was invented in 1991 it stand a very good chance there weren’t.
  • But this would only work when the difference is small. E.g. an insurer charges £150 for TPFT, £130 for comprehensive, but then manages to sell £50 of add-ons to the comprehensive.

    I clearly cannot be sure how representative my case is, but family members and I have always been quoted £120 to £300 more for TPFT: this is a difference which is very hard to compensate by selling a few addons.
  • Mercdriver
    Mercdriver Posts: 3,898
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    OP - is this yet another hypothetical question or a genuine query that affects you?
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