Insurance premiums to increase in 2011
- Thread starter moawan
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Soldato
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This old chestnut just cracks me up. Competitors use an IPT increase as an excuse to justify higher premiums to their customers & its remained at 5% since I began working in motor insurance in 2000!
Listening to Money Box the other day a guy was on there from the ABI (Association of British Insurors), when quizzed about hefty increase in the past year he replied it was due mainly to people setting up their own policies online & omitting information to get cheap premiums, these people who would have otherwise have been priced off the road (due to claims/convictions etc.) were then driving round & having accidents. When these claims were being processed these omissions became apparent, the Insurors who were misled were (quite rightly) declining to honour the claim & the other party was forced to accept liabilty, thus pushing up premiums for everyone else.
Although the guy was representing the industry & of course would blame everyone but the Insurors themselves, I think there is some truth in this. When dealing with customers who have notched up convictions/fault claims over the past policy year & compared the meerkat etc they often claim to have prices way lower than the panel of 20+ Insurors on our books, however when I remove the claim/conviction from the quote it frequently becomes very similar. It's understandable they will have a look online just to see how much extra they are being charged for their mishaps, then when faced with paying either £400 or £1000 I guess the temptation becomes too great, especially as they are just clicking their way along, creating a policy online rather than openly lying on a recorded call.
Some individuals may not have had large increases but I've noticed premiums in general have jumped up a fair bit this year, my own theory is that Insurors are backed by financial institutions, the banks are the organisations who hold the reserves which allow the Insurors to underwrite policies. Motor insurance is a compulsory purchase & they are clawing back lost profits by fleecing us motorists - because they can.
Can you explain that bit? I dont really understand how as a whole this pushes up prices? Some one is *always* going to have to pay out be it A,B or C, how does this justify a market wide increase?
this means.. more uninsured drivers.. which means.. even more increase in insurance.. which means.. the next year the insurance will increase even more.. WHEN will it get controlled properly.. by the looks of it the insurance companies do what ever the hell they want with the prices!
Soldato
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You are right Crow, someone always has to pay, but its not going to be the company that the false policy was with as that policy didn't exist, its going to be the company covering the law-abiding motorist.
Exactly what has inflation got to do with the cost of insurance? Do claims rise at the rate of inflation?
My renewal is due on the 23rd. I got a letter through from Direct Line asking me for £1380 to renew with them. That's an increase of £270 on last year, despite me now being 25 and having a year's NCB and extra experience.
As well as that, they wanted to impose a £1000 excess on me, and a £1350 excess on my girlfriend, who would be a named driver.
So I popped over to Admiral and asked them. £870, with a £350 excess for the two of us. Much better. I honestly don't know what Direct Line were thinking - they were very competitive last year, but the quote now smacks of "please don't insure with us".
As well as that, they wanted to impose a £1000 excess on me, and a £1350 excess on my girlfriend, who would be a named driver.
So I popped over to Admiral and asked them. £870, with a £350 excess for the two of us. Much better. I honestly don't know what Direct Line were thinking - they were very competitive last year, but the quote now smacks of "please don't insure with us".
Associate
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All these lucky people... Ive been business insured on a van and now a car since 17... originally 2800!!! on a 54 plate caddy... Now thankfully my car alone is 1300 at 20. Might be because there not keen on modifications... WOW, my alloys are gonna make me a more dangerous driver!!!
One day i'll be 25...
One day i'll be 25...
No they don't, they rise much faster while insurance companies publish ever increasing profits.
... while complaining of ever increasing payouts. Then publishing even bigger profits.
Are these profits from premiums or investments made by the money from the premiums? Most of the insurance companies still have an obligation to their shareholders to be profitable and give them a good return on their shares. I don't really want to believe that my premium increase was to fund the xmas party or buy the MD a new Aston but hey.
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It's backwards logic I swear, surely by not crashing I have shown that I know how to drive in these conditions and thus my premium should go down due to me being a lower risk
It's shocking isn't it!!!! Its all a government conspiracy!!!!1
How can they possibly justify imcreasing the cost of car insurance, they never pay out anyway. It's not like other goods amd services have gone up in price.... Food, fuel, utilities, taxes. Wait, no... Hang on
Stop whinging.
How can they possibly justify imcreasing the cost of car insurance, they never pay out anyway. It's not like other goods amd services have gone up in price.... Food, fuel, utilities, taxes. Wait, no... Hang on
Stop whinging.
Soldato
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My renewal is due next month and from what I can gather getting quotes etc its going up by around £100, not good at this time of year seeing as though i've just got my 5th year no claims, i'm nearly 30 and I like to pay it off in one go
Do you make it a habit of allowing any and all B.S that is fed to you?
People are "whinging" people the increase in insurance prices are not really proportionate to the increase of prices in other sectors.
If you're not prepared to ask questions yourself and are happy swallowing whatever rubbish you are told then that is fine, but don't try to act like anyone who does question it is a fully fledged member of the tinfoil hat brigade.
Or you could have taken the bus and not driven. Also you 'learning' to drive in the snow doesn't stop someone else ploughing into you or you still having an accident.
When someone else crashes into to me it does not cost MY insurance company anything, as the other party pays out ...