Insurance Companies - how are they allowed to get away with it?

[marinyork]

When myself and Mrs P were on holiday in September, a bus clipped her car outside of our house. The driver left the details so no problem. When we got home the damage was so minimal that it was not worth claiming. Several weeks later MrsP got a phone call from Direct Line, our insurer about the claim. She told the insurance that she didn't want to claim as there was only one small scratch on the bumper. This is still going down as a no fault claim, even though she hasn't claimed. Because the bus companies insurer has logged the incident it shows up on the database, and they seem to expect you to claim, even when you don't want to.

Slightly different with them. Bus drivers have to log stuff otherwise it can go wildly out of control with complaints - you'll lose your job if you're not careful (I know people on a cycling forum don't believe that but it is the case).

 

[4F]

Insurance has gone up massively. Mine has doubled in the last 3 years despite low miles.

Mine hasn't, it is up for renewal and it is no more for the coming year than the last year

 

[Beebo]

Believe it or not, most motor insurers' book of business only just breaks even, and in some years don't even make a profit at all. If Insurers were making huge profits on their motor book I would agree with you, but they aren't.

It's an exteremneky cut throat market with costs the only market differentiator that the public understand. The simple fact is that claims costs keep going up at 10% per annum and this is passed on to the customer.

 

[Dan B]

It's an exteremneky cut throat market with costs the only market differentiator that the public understand.

Perhaps that's related to the point that cost is the only market differentiator that the insurance companies will tell us about. Where is the company that markets "plain English" or "no weaselling" policies? Where is the company that publishes time targets for settling claims and promises compensation if the claim takes longer than expected? Where is the company that promises it won't double your premium on renewal just to see if you're awake? None of those angles are going to net many 17 year olds, but they might well pull in a few Waitrose patrons who value their own time as well as their money

 

[MissTillyFlop]

We shopped around and managed to get it down to £550 (so still not great)

 

[Glover Fan]

You can blame the ambulance chasing good for nothing solicitors for car insurance woes. Like someone else mentioned, there is little profit to be made in motor insurance.

 

[fossyant]

Insurance has gone up massively. Mine has doubled in the last 3 years despite low miles.

I got to £250 a year when I was back cycling to work about 4 years ago. It's now £500 plus for a car that sits on the drive - and it's a 1.8 car, mid sized saloon that is 9 years old and I am 41 ? No fault accidents in years and years !

So any little sh1t that says to me about car tax and insurance... will get an ear full, £700 for the car to sit on the drive before I put fuel in it... I pay MORE tax per mile than they do.

 

[Smokin Joe]

Insurance companies take into account how accident prone someone is. You may have been rear ended three times in a year for instance, none of which you can be legally held liable for, but the insurance company would wonder what it is about your driving style that attracts that sort of accident.

 

[col]

My car insurance is due for renewal soon so visited the usual comparison web sites.
Earlier in the year I'd needed to make a claim when someone backed into my car in a hosptial car park. Fortunately, they'd left me their name and number so I was able to fully claim on their insurance.

If I ask for quotes saying "no accident" my insurance is £390. If I mention the accident, even though it cost my comanpn nothing and the accident blatently wasn't my fault, the quotes go up to £460. Why are insurance companies allowed to get away with this and where's the incentive for me/anyone to actually tell the truth if they're going to rip you off anyway!!!

Its a big difference isnt it. I had 16 years no claims with the same company, after a carpark incident they added 150 onto my next renewal, unbelievable. I didnt realise I could have had no claims protection either.

 

[roadrash]

a few years ago ,i got a quote from swinton £500,.. i also got a quote from a company called budget insurance £385... same car ,same details etc, only to find out that budget is owned by swinton ..HOW DOES THAT WORK

 

[fatblokish]

If I ever suffer a no-fault incident (i.e. one in which I am not at fault, e.g. my car is smacked whilst parked) I make sure that I also claim for the expected increase in the next years premium; I just ask my insurer how it would change my premium were I to renew with them and tack this onto the claim, including, of course, recurring years increases.

 

[ASC1951]

Annoying isn't it!!
I'll just shop around for the lowest common denominator insurance every year knowing damn well that all insurance companies are deceitful weasels that will try to wriggle out of not paying should I ever need to make a claim!!!

Smart thinking there - pick the company with the lowest premium, so that you will have the most restrictive cover and the worst service!

The real reason why premiums are so high are the deceitful weasels on the road. It's not just the fraudulent claims and uninsured drivers, it's all the exaggerated claims - 'yes, of course I have whiplash', 'no, I really do need another week off work.'

 

[srw]

Believe it or not, most motor insurers' book of business only just breaks even, and in some years don't even make a profit at all. If Insurers were making huge profits on their motor book I would agree with you, but they aren't.

It's an exteremneky cut throat market with costs the only market differentiator that the public understand. The simple fact is that claims costs keep going up at 10% per annum and this is passed on to the customer.

The set of statistics I've seen suggests that the UK private motor insurance market has made money in about 4 of the last 30 years. A couple of years the market combined ratio was somewhere in the order of 120% - for every £100 of premium income, insurers paid out £120 in claims and expenses.

 

[srw]

The real reason why premiums are so high are the deceitful weasels on the road. It's not just the fraudulent claims and uninsured drivers, it's all the exaggerated claims - 'yes, of course I have whiplash', 'no, I really do need another week off work.'

You forgot the credit hire merchants ("Here, have this Mercedes while your car is being repaired. Yes, I know it's is a 10-year-old Fiesta, but don't worry, the insurance company will pay for it"), and the referral fees.

 

[Manonabike]

Believe it or not, most motor insurers' book of business only just breaks even, and in some years don't even make a profit at all. If Insurers were making huge profits on their motor book I would agree with you, but they aren't.

It's an exteremneky cut throat market with costs the only market differentiator that the public understand. The simple fact is that claims costs keep going up at 10% per annum and this is passed on to the customer.

I find that very hard to believe, I'm sure these companies find a way to present these figures so they can get away with unjustified price increases...... the same way energy companies do.

Maybe small companies might find it difficult to make a profit but I bet they attract just a small percentage of the business. Having said that, I would not be surprised if larger companies use those figures to try to project an image as if the industry as a whole is struggling to make a profit.