Car Insurance, is it a ripoff - ?

[simongt]

Probably a silly question, but I had a wee bump in July when I clipped the car in front.
Very low speed, no injuries, both car still perfectly driveable afterwards.
I've been with the same insurance coy. for 25 years dutifully paying my premiums, but the renewal quote went up by 250%.
I'm arguing the point with them and they have reduced it, but why do insurance coys. happily take your money for all those years and then pillory you for one minor accident.
I know 'it's the way the world works' but why - ?

 

[Drago]

Yes.

Google "propensity to spend." Insurers get very uncomfortable when a customer demosntrates kmlwledge of that.

Premiums are based as much on a punters perceived willingness/ability to pay as they are on "risk". Indeed, the risk indeces used are often at odds with proven data from other sources, such as government, police, etc. I got a lot of this from a person, who will remain un named for obvious reasons, who is moderately senior at a major underwriter.

The bottom line is they are in business to maximise shareholder return, and the methods by which they claim to measure risk often bear little actual scrutiny.

 

[Pblakeney]

Probably a silly question, but I had a wee bump in July when I clipped the car in front.
Very low speed, no injuries, both car still perfectly driveable afterwards.
I've been with the same insurance coy. for 25 years dutifully paying my premiums, but the renewal quote went up by 250%.
I'm arguing the point with them and they have reduced it, but why do insurance coys. happily take your money for all those years and then pillory you for one minor accident.
I know 'it's the way the world works' but why - ?

Yes, to your question. I've made your main mistake in bold.
When my brother worked in insurance he told me to always shop around. Loyalty is a one way street.

 

[Dogtrousers]

When my brother worked in insurance he told me to always shop around. Loyalty is a one way street.

I know this is true, but I hate shopping around.

At the risk of getting this thread NACA'd I reckon that inside me lives someone who would have been quite a happy soviet comrade. Only one choice for anything, and it's utterly crap, but at least no need to choose.

House insurance due soon. And they are the worst for me so shopping around it is. Grrr.

 

[Cletus Van Damme]

I can't stand car insurance companies. I've just been fleeced recently by AGEAS. It's my fault but all the same they are full of complete sh1te and want to rip you off given any opportunity. I used them through a comparison site I hadn't used for ages. The purchase date of my car was the purchase date of my last car and I missed it. Some comparison sites ask for this and some don't. After a week or so after taking the policy out with AGES a received an email stating that they didn't think that the purchase sate of the car was correct. I checked it, it wasn't and sent them proof of the actual purchase date. I got a reply stating that they required a admin fee of £35 or something and the purchase date being different made my premium go up by an extra £70. I phoned them up complaining and asking for a cancellation value, which worked out more than the fee listed.

So all in all, it's my fault. But these companies will fleece you in any shape or form. So don't be a dummy like me, check everything. I've learned the hard way. Is what it is though.