Admiral now penalize drivers on speeding awareness courses.

[400bhp]

I think it's around 20% property damage/80% liability, but srw will know.

If (and it's a big if) the telematrics stuff took off then car insurance may become a little more like catastrophe insurance. Much smaller chance of an accident but a much greater average payout (cost of fixing cars much much more expensive).

We digress...

 

[Paul99]

I'm very surprised by that assertion. When has the "regulator" top-limited premiums? They seem to be able to charge quite high premiums, or decline to quote, for inexperienced drivers. Not that it necessarily unjust, but I don't recall any curb on the underwriters activities in setting whatever the market will bear, or indeed not offering cover.​

They haven't, and I didn't assert that they had. They would though if suddenly the insurance market started charging ridiculous and unfair premium to all drivers for motor third party insurance which is the legal minimum.

The fact that they haven't yet, and likely will never need to, rather proves my point that the premiums charged and they way they are calculated are generally fair.​

 

[Deleted member 26715]

​

​

They haven't, and I didn't assert that they had. They would though if suddenly the insurance market started charging ridiculous and unfair premium to all drivers for motor third party insurance which is the legal minimum.​

​

The fact that they haven't yet, and likely will never need to, rather proves my point that the premiums charged and they way they are calculated are generally fair.​

But they have, at one point 3rd party could/would be approximately 50-60% of 'Fully Comprehensive' now there is little difference in fact my son was quoted more for 3rd party than FC which even the chicken on the phone couldn't work out.

Alan...

 

[doug]

But they have, at one point 3rd party could/would be approximately 50-60% of 'Fully Comprehensive' now there is little difference in fact my son was quoted more for 3rd party than FC which even the chicken on the phone couldn't work out.

Alan...

I think their statistical models may show that drivers who take out 3rd party are generally higher risk drivers than those that take out FC, so although they are insuring for less contingencies the risk is higher and so the premium may not be reduced as much as you may think - or in your son's case increased instead of reduced!

 

[Paul99]

But they have, at one point 3rd party could/would be approximately 50-60% of 'Fully Comprehensive' now there is little difference in fact my son was quoted more for 3rd party than FC which even the chicken on the phone couldn't work out.

Alan...

They haven't intervened. At one point 3rd party was about half the cost of FC. Then the personal injury claims went through the roof and as such there was no real difference between the amount being paid in claims for 3rd party and comp so the premiums have achieved near parity.

 

[Deleted member 26715]

Paul,

I understand your point, but if that were the case, then it should not make any difference in the premium no matter what car I drive, the premium should be the same for a Toyota Yaris/BMW Mini Cooper/Ford Mundeo, if you are hedging against injury claims then as the Insurance company is not going to repair my vehicle what does it matter to them.

Alan...

 

[Paul99]

Alan,

Cost wise it really doesn't matter what car you are driving for the cost of repair or replacement (obviously there are extremes Bentley, Ferrari etc) but the statistics will probably show that drivers of say a Nissan Skyline (did you see what I did there) are far more likely to be involved in an accident e.g 1 in 10 than a Nissan Micra e.g. 1 in 100 so the liklihood is increased, so is the premium. That can be purely down to the number on the road but there has to be a standard way of working it out. Like I said earlier it's unfair on some, fairer on others but generally fair.

Younger drivers, especially younger male drivers are smashed to bits on their insurance premium because of the 3rd party element. They are far more likely to be involved in an accident and an accident that will involve injury to 3rd parties e.g the friends in the car.

A claim where there are a couple of people receiving life changing injuries can potentially run into the millions.

Just in case anyone was wondering I don't work in motor insurance, I don't want anyone thinking i'm one of them.

 

[campbellab]

Alan,

Cost wise it really doesn't matter what car you are driving for the cost of repair or replacement (obviously there are extremes Bentley, Ferrari etc) but the statistics will probably show that drivers of say a Nissan Skyline (did you see what I did there) are far more likely to be involved in an accident e.g 1 in 10 than a Nissan Micra e.g. 1 in 100 so the liklihood is increased, so is the premium. That can be purely down to the number on the road but there has to be a standard way of working it out. Like I said earlier it's unfair on some, fairer on others but generally fair.

Younger drivers, especially younger male drivers are smashed to bits on their insurance premium because of the 3rd party element. They are far more likely to be involved in an accident and an accident that will involve injury to 3rd parties e.g the friends in the car.

A claim where there are a couple of people receiving life changing injuries can potentially run into the millions.

Just in case anyone was wondering I don't work in motor insurance, I don't want anyone thinking i'm one of them.

Smaller engine, less likely to be driven fast, less likely to cause injuries, probably some statistical anomalies around Boy Racer type Corsas etc

 

[400bhp]

Smaller engine, less likely to be driven fast, less likely to cause injuries, probably some statistical anomalies around Boy Racer type Corsas etc

You heard of the accident hump?

 

[Paul99]

Smaller engine, less likely to be driven fast, less likely to cause injuries, probably some statistical anomalies around Boy Racer type Corsas etc

Which is why the premium pricing is not purely based on the car. Boy Racer types tend to be young males. Do keep up.

 

[400bhp]

Just in case anyone was wondering I don't work in motor insurance, I don't want anyone thinking i'm one of them.

What do you work in?

 

[campbellab]

You heard of the accident hump?

I have now

 

[campbellab]

Which is why the premium pricing is not purely based on the car. Boy Racer types tend to be young males. Do keep up.

I know that ( I was agreeing with your post), but Corsas in the same engine range as Micras are probably going to be higher risk because they are considered 'cooler*/sportier' across all demographics and driven faster.

*not my opinion!

 

[Paul99]

What do you work in?

I work for a Lloyds Underwriter and have worked for both brokers and underwriters in the London Market for the last 24 years.

 

[Deleted member 26715]

Smaller engine, less likely to be driven fast, less likely to cause injuries, probably some statistical anomalies around Boy Racer type Corsas etc

I'm afraid I disagree with that also, for the past 10 years my wife's cars have always had over 250BHP (pub numbers) I don't drive them any differently on the road to my diesel Megane that I go to work in, I still obey the speed limits, drive with due care & attention, I may occasionally do an overtake that I wouldn't in the Megane but that is because they are able to .

But this brings me onto another one of my pet hates about Auto Insurers (see what I did there Paul ) it is me they are insuring really not the car. I should be able to decide what level of vehicle I want to be able to drive, pay the premium for that level & then be able to drive any car no matter who it belongs to. If I want to own 5 cars, each one should not have to be insured, I should be able to choose which car I want to drive & be covered by MY insurance, if I'm the risk what's the problem.

Alan...