Heyguevara

Greg0986 · 14 Nov 2015 at 00:25

Has anyone heard about this? It seems interesting and the lowest insurance price I can get so far.

Basically, pay into a pool with other people., that pool covers claims and then 25% is for the admin stuff. If you have a pool of people and no one claims, all the pool has to do is pay back the 25%.

Akagi · 14 Nov 2015 at 00:41

Sounds incredibly dodgy, overcomplicated, and riddled with potential issues and ways to get screwed.

[TW]Fox · 14 Nov 2015 at 00:44

Greg0986 said:
Has anyone heard about this? It seems interesting and the lowest insurance price I can get so far.

Basically, pay into a pool with other people., that pool covers claims and then 25% is for the admin stuff. If you have a pool of people and no one claims, all the pool has to do is pay back the 25%.

Thats how insurance works. Only you need a huge amount of people to pay into the pool otherwise you are stuffed when somebody crashes into a car transporter full of Veyrons.

Russinating · 14 Nov 2015 at 00:51

[TW]Fox;28814462 said:
Thats how insurance works. Only you need a huge amount of people to pay into the pool otherwise you are stuffed when somebody crashes into a car transporter full of Veyrons.

opstrat · 14 Nov 2015 at 10:04

Acme said:
Sounds incredibly dodgy, overcomplicated, and riddled with potential issues and ways to get screwed.

is that not what normal car insurance is like.

Marvin · 14 Nov 2015 at 11:07

The thing about pools like this is the critical mass element. Personal motor insurance is generally unprofitable so for a non-backed pool to work the premiums would need to be higher.

Skillmister · 14 Nov 2015 at 14:52

Why not set up your own insurance "company" and a kickstarter to fund any accident you might have?

MacRS4 · 14 Nov 2015 at 15:05

Greg0986 said:
Has anyone heard about this? It seems interesting and the lowest insurance price I can get so far.

Basically, pay into a pool with other people., that pool covers claims and then 25% is for the admin stuff. If you have a pool of people and no one claims, all the pool has to do is pay back the 25%.

This is like normal insurance, without the element of risk mitigation through re-insurance. This is bonkers. You're automatically assuming the potential payout from the pool is always going to be less than the funds available in the pool.

My guess is the contract terms would mean they could come after you for shortfalls in the pool funding.

Good luck with that then.

rodenal · 14 Nov 2015 at 17:21

The big insurance companies will also be investing any funds to provide a bigger buffer when inevitably everyone starts hitting expensive stuff - who decides what gets invested in with this scheme and what happens when that goes **** up too?

PMKeates · 15 Nov 2015 at 11:55

There is a standard insurance for claims beyond the pool of funds from the premiums. Effectively what you have is a giant pooled excess from the 'premiums' each member pays, and the cost of the regular insurance portion is quite small because of the rarity of huge claims.

rodenal said:
The big insurance companies will also be investing any funds to provide a bigger buffer when inevitably everyone starts hitting expensive stuff - who decides what gets invested in with this scheme and what happens when that goes **** up too?

Big insurance companies are also hugely expensive to operate. Flash headquarters, expensive staff etc. The principle behind this is a light operation, where the cost of administration is lower by enough that it's cheaper than having small losses (i.e. those within the pool limit) insured by the big companies.

There are also benefits from having self-selecting groups i.e. you don't let your friend who drives like a nutter join.