When will we have insurance like the US?

[laissez-faire]

In the US, you phone up the insurance company and you tell them what car you have, and your drivers license number. Then THEY find out if you have had an accident and THEY find out if you have any tickets.

Here, we phone up our insurance company, they don't even ask for our licence details, just 'how long have you held a licence for'. All accidents are based on what you declare, any convictions are based on what you declare.

The fact is, because MANY people lie, insurance companies have to factor in the risk that you are telling fibs. Risk has a price, ergo all of us who are honest pay more than we otherwise should.

So why can't we make more information available to our insurers?

 

[Spamalot]

The fact is, because MANY people lie, insurance companies have to factor in the risk that you are telling fibs. Risk has a price, ergo all of us who are honest pay more than we otherwise should.

So why can't we make more information available to our insurers?

Its better for them because they don't have to pay out then (although I think they still have to cover 3rd party), its also better for the people who don't lie because you get your insurance a little cheaper because the liers are paying money for nothing.

 

[Tomsk]

The UK insurers are beginning to share data, but they will still ask your fo all your details when you get insurance.
They're probably hoping that you'll lie (forget) about something and then when you need to make a claim, they'll say that you didn't tell them everything so your insurance is null and void.

 

[laissez-faire]

Its better for them because they don't have to pay out then (although I think they still have to cover 3rd party), its also better for the people who don't lie because you get your insurance a little cheaper because the liers are paying money for nothing.

I don't think you have understood the moral hazard situation here - the insurance company don't KNOW in a pre-contractual situation if you are telling the truth. So they do assume the worst.

Why do you think insurance rates are so much lower in the US despite the fact they have so many more crashes and road deaths?

 

[antijoke]

Why do you think insurance rates are so much lower in the US despite the fact they have so many more crashes and road deaths?

Wow, would you like to back that up with some form of statistics?

 

[laissez-faire]

The UK insurers are beginning to share data, but they will still ask your fo all your details when you get insurance.
They're probably hoping that you'll lie (forget) about something and then when you need to make a claim, they'll say that you didn't tell them everything so your insurance is null and void.

In my experience of dealing with insurers (luckily never for a major crash) they have never once checked out the details.

My sister was hit by a man driving some old Seat, when the insurance forms came through it stated that it was a woman driving the car. Whilst we probably should have said something it really wasn't in our interests to do so as they were paying for the repair to our car, so we just kept our mouth shut and let them pay. He probably wasn't insured or was disqualified or something so claimed his wife was driving. Who knows.... the fact is in America that couldn't happen because every accident on the street gets documented by the police.

 

[chrisxuk]

And isn't your insurance cheaper in America if you get good grades at school?

 

[laissez-faire]

Wow, would you like to back that up with some form of statistics?

It's a widely known fact, do some googling. One of the first results:

http://www.driveandstayalive.com/info section/statistics/stats-multicountry-percapita-2004.htm

The statistic to look at:

Per capita in the UK: 5.34
Per capita in the US: 14.53

Adjusting it for km travelled the US is still higher, but that's not the statistic that we should be looking at because the US still has lower insurance rates despite the higher distances travelled.

With regards to the lower insurance, that's just based on personal experience - just phone up Geico and ask for a quote for a Range Rover aged 17 or something. You'll be surprised.

 

[merlin]

Death rates do not equal insurers claims costs, the two are not necessarily the same, especially when insurers claims costs are driven by the quality of cover provided.

UK premiums are loaded by less than 7% to accomodate contributions to the Motor Insurers Bureau.

UK and US motor policies are not comparable.

UK and US death rates are not indicative of insurers net claims costs outlay.

UK and US laws are different.

 

[merlin]

....and that fatality data is very old.

 

[laissez-faire]

And isn't your insurance cheaper in America if you get good grades at school?

I haven't heard that actual grades make a difference, but when I told them I had a masters degree my rates went down 40%. Makes perfect sense - they should definitely do that here. Educated people are far less likely to have accidents.

 

[Fireskull]

Educated people are far less likely to have accidents.

 

[InvaderGIR]

Educated people are far less likely to have accidents.

Lol, what?

 

[DampCat]

As an FYI, there are multiple databases holding claim information that are used to weed out liars and fraudsters. We use two here. I dont know how they work specifically so i can't give you exact details, but i know that we have a person employed in every department specifically to run and apply these database statistics for every person that is insured. They automatically match up surnames, registration numbers and dates of insurance with claims statistics to find patterns and correlations, and then the customer is contacted with the opportunity to tell the truth. If this is discovered during a claim, it's generally voided with no claim pay out.

 

[LSPIII]

As an FYI, there are multiple databases holding claim information that are used to weed out liars and fraudsters. We use two here. I dont know how they work specifically so i can't give you exact details, but i know that we have a person employed in every department specifically to run and apply these database statistics for every person that is insured. They automatically match up surnames, registration numbers and dates of insurance with claims statistics to find patterns and correlations, and then the customer is contacted with the opportunity to tell the truth. If this is discovered during a claim, it's generally voided with no claim pay out.

I always get picked up by these systems. I notified the insurance company about an accident when a drunk driver drove into 6 cars parked on our street (mine included), however due to the minor damage (a small scratch on a Vauxhall Astra. Big Woot) no claim was made. The "accident" still shows up though!

 

[G-MAN2004]

Educated people are far less likely to have accidents.

Haha, had to quote that.

 

[antijoke]

As an FYI, there are multiple databases holding claim information that are used to weed out liars and fraudsters. We use two here. I dont know how they work specifically so i can't give you exact details, but i know that we have a person employed in every department specifically to run and apply these database statistics for every person that is insured. They automatically match up surnames, registration numbers and dates of insurance with claims statistics to find patterns and correlations, and then the customer is contacted with the opportunity to tell the truth. If this is discovered during a claim, it's generally voided with no claim pay out.

I got a spanish inquistion when I took out my insurance as to why I didn't have a no claims discount equal to the amount of years I had been driving, they soon became nice as pie again when I informed them I was a company car driver, and I had accident 5+ years ago.