Yes, this is what I would say if I was more articulate.
Insurance premiums to increase in 2011
- Thread starter moawan
- Start date
Yes, this is what I would say if I was more articulate.
The bus service which is likely to be cancelled because of the conditions? Yeah, good plan
Of course it is, given the increase in cost of supply - eg the increase in cost of claims
Mines not rising anyway, so I couldn't care less
I can't believe the 'just pay and shut up' attitude from some people.
Having read into the industry it is of my opinion that it needs to be reformed, what is not of opinion but fact is that it is completely and utterly abused by the legal system, hence the rising costs.
The economics of car insurance is extremely complicated but prices have to be capped, if they continue to rise then there will be incentive problems - namely more people will simply not take out insurance or 'lie' to reduce premiums.
I also don't understand the ridiculous quotes people are mentioning. Shop around. I'm 22 and can get insured on a 335i for about £900 (12 month).
Having read into the industry it is of my opinion that it needs to be reformed, what is not of opinion but fact is that it is completely and utterly abused by the legal system, hence the rising costs.
The economics of car insurance is extremely complicated but prices have to be capped, if they continue to rise then there will be incentive problems - namely more people will simply not take out insurance or 'lie' to reduce premiums.
I also don't understand the ridiculous quotes people are mentioning. Shop around. I'm 22 and can get insured on a 335i for about £900 (12 month).
Last edited:
Soldato
- Joined
- 18 May 2010
- Posts
- 12,824
This is OCUK motors, everybody is rich beyond there wildest dreams!
I can't believe that so many people just don't understand the fact that the insurance industry is a competitive market like any other.
Insurance prices arent rising for any artificial reason, they are rising because the cost of providing it is rising.
If you don't like it, get the bus. Or write to your mp. Or go on strike - whatever keeps you happy, just stop making a thread on here complaining about it, it's getting tiring
Insurance prices arent rising for any artificial reason, they are rising because the cost of providing it is rising.
If you don't like it, get the bus. Or write to your mp. Or go on strike - whatever keeps you happy, just stop making a thread on here complaining about it, it's getting tiring
The cost of providing is rising primarily because of rising legal costs. The industry is highly inefficient and people have a right to voice their frustration and demand this be rectified.
Also it is a competitive market which is providing a service which is required by law and demanded involuntarily by many. As such it should be carefully regulated and controlled. Car insurance also has no substitute which somewhat erases downward pressure on prices.
Last edited:
Yet their profits are increasing, explain how that happens if what you say is true...
Source?
The bus service which is likely to be cancelled because of the conditions? Yeah, good plan
Buses are rarely taken out of service in the snow, mainly because they clear a path and use roads that are usually gritted. Unless you live in the middle of nowhere, then tough.
Anyway, you do get a bonus for not crashing in the snow, it's called no claims bonus.
RBS Motor Insurance (Churchill, Direct Line, etc) last year made staggering losses. Their combined ratio was 120%. They lost 380million.
Taken for a mug? Lol yeah, down with the system!!!
Being taken for a mug implies there's something you can do about it, what would you suggest that would be? I think its already been suggested several times, get the bus.
I'd also like to know how paying sub 300 quid for insurance is being taken for a mug?
Being taken for a mug implies there's something you can do about it, what would you suggest that would be? I think its already been suggested several times, get the bus.
I'd also like to know how paying sub 300 quid for insurance is being taken for a mug?
Do you pay for car insurance? If so, you are a mug too...? What else can you be other than a mug in this situation? Drive around with no insurance shouting **** THE SYSTEM!?
I would like an article showing that a company is making a killing on vehicle insurance please.
Combined ratio does not account for investments at all. It's literally a measure of money taken in for policies vs money paid out. Any proft/loss on investment is totally seperate. They have paid out 120% of what they took from policies. They made a loss before even touching the stockmarket.
The Admiral group indeed is having rising profits, but only due to a vast increase in custom; it's profit margins are actually decreasing. H1 2008 it's CR was 85%, H1 2009 it's CR was 89%, and H1 2010 it's CR was 89.3%. Their margin is decreasing.
Last edited:
I missed the CR part
Well then, my argument will be that they undervalued the risk posed by idiots in snow last few years, hence the issues.
But as someone who didn't crash in the snow for the last few years I've clearly shown I know how to drive in the snow
Well then, my argument will be that they undervalued the risk posed by idiots in snow last few years, hence the issues.
But as someone who didn't crash in the snow for the last few years I've clearly shown I know how to drive in the snow
Relentless, unquestionable, uncompromising logic there. That's the sort of thing insurance companies should think about, rather than silly things like statistical probabilities. There's absolutely no flaw in that logic whatsoever.... Except that a lot of people will have left the car at home in the snow. Other than that, perfect.
So now you're saying that insurance companies didn't charge enough... just in case loads of claims came in?
I'm a bit confused here. Rypt, you are making my face hurt again.