Car insurance - is it a scam?

[DappaDonDave]

Too much competition. That's the problem. If there was 2-4 insurers they'd be less competitive they'd have more customers and their crash to no crash ratio would be better. But...as there are a million companies your crash o non crash ratio is ****ed and therefore you will lose! Or need to put up prices, which means next door will b cheaper o you lose that income!

FFS it's imple business!

Plus if you have. Massive market share, charge what you want, we all need insurance.

</rant>

 

[full_throttle]

Is it a scam?

most probably, but it's a legal requirement so drivers are held to ransom.

As posted a couple of posts above, due to Personal Injury claims and non insured drivers the law abidding drivers are having to pay higher premiums to subsidise these payouts.

 

[USER1999]

My understanding is the insurance companies make a loss on the insurance, but a profit on investments made with the money you pay in.

Weird?

My pet hate is someone runs into the back of you, not your fault, and you lose ncb and they load your premiums.

I pay about £450 for a 3 litre diesel hearse, 15 years ncb, with 5k business miles. But then I live in the great metropolis of Watford, work in the wild west (cricklewood), where one in four cars has no insurance, tax, or mot.

 

[CliveW]

What angers me is the fact that if you have a vehicle that is taxed it MUST be insured even if it is not on the road. You could have it laid up for most of the year, locked away in a secure garage and it still needs third party insurance! The insurance database is now linked to the DVLA one so penalties can be issued without the car being near a road or seen.

 

[MegaSteve]

Many of the motor insurers are owned by the same parent company... Many of the 'ambulance chasing' businesses are owned by the SAME parent company... Thats the SCAM!

 

[RGDave]

Is it a scam?

most probably, but it's a legal requirement so drivers are held to ransom.

Ok, so here's a thought. If you own/drive and car, why not have a set fee of £99 per year to "register" your car with a central body and then it's up to you if you want to insure yourself against a 3rd party claim. If you don't, and you write off your car, that's too bad. If you crash into a £400 banger, you owe £400, if you hit a £20k Audi, you have to stump up for the repairs. I'd take my chances.

My missus crunched the back of a banger that had been parked at the end of our drive...it was our neighbour's and they were fairly understanding as they had covered some of our driveway.

You'd have though hurricane bloomin Katrina had come to our road. Loss adjusters, law department folk contacting both parties, hire cars, insurance/repair quotes. I could have written them a cheque for £250 for their 14 year old Vauxhall Astra, and we could gave all got on with our lives. But NO, literally tens of man hours wasted on the whole stupid business. I mean, why are the companies paying utter idiots £25k p.a. to turn a molehill into a flipping mountain.

With so many uninsured drivers, wouldn't it make sense to set up a police-based task force (creating jobs and income from fines) with an ad campaign to put an end to this nonsense.

 

[MegaSteve]

Ok, so here's a thought. If you own/drive and car, why not have a set fee of £99 per year to "register" your car with a central body and then it's up to you if you want to insure yourself against a 3rd party claim. If you don't, and you write off your car, that's too bad. If you crash into a £400 banger, you owe £400, if you hit a £20k Audi, you have to stump up for the repairs. I'd take my chances.

So what do you propose for when you injure someone?

 

[Imurg]

Or write off a 40k car - I couldn't afford to re-imburse that sort of cash.........

 

[RGDave]

So what do you propose for when you injure someone?

Good point. I hadn't thought about that

 

[RGDave]

Or write off a 40k car - I couldn't afford to re-imburse that sort of cash.........

Yes, obviously.... I'm just thinking out loud really. It's just so frustrating that there isn't a sort of "basic" insurance.

 

[MegaSteve]

With so many uninsured drivers, wouldn't it make sense to set up a police-based task force (creating jobs and income from fines) with an ad campaign to put an end to this nonsense.

This is already being done to some extent... But the penalties being applied are so low I believe they are not a sufficient deterrent...

 

[RGDave]

This is already being done to some extent... But the penalties being applied are so low I believe they are not a sufficient deterrent...

Pity.

 

[CliveW]

Include the cost of a basic third party insurance into the price of fuel, rather like basic National Insurance. That way if you buy fuel you are insured. If you want a more comprehensive policy you take out a private insurance rather like private medical insurance. The same could apply to road fund duty, include it in the price of fuel. The thirstier your car or the futher you drive the more you pay. That way there will be no more untaxed or uninsured cars on the road which will leave the police free to chase real criminals. Only problem is the large number of Civil Servants working for DVLA with their index linked final salary pensions who will loose their jobs will never allow it to happen.

 

[wrighty1874]

Legalised crime!!!

20yrs driving, no claims, no prangs, £500 for a 2.0 Zaphira!!



Discuss................

 

[teetime72]

£1500 a year for a 1.6 TDI Leon and thats cheap for someone my age .

Grow up

 

[Ethan]

Audi A6 3.0Tdi Quattro, 08 plate, Comp protected with Audi Insurance, no points and loads of NCB, £540.

 

[RGDave]

Include the cost of a basic third party insurance into the price of fuel, rather like basic National Insurance. That way if you buy fuel you are insured. If you want a more comprehensive policy you take out a private insurance rather like private medical insurance. The same could apply to road fund duty, include it in the price of fuel. The thirstier your car or the futher you drive the more you pay. That way there will be no more untaxed or uninsured cars on the road which will leave the police free to chase real criminals.

Awesome.

I seems kind of odd to me. If I park at Heathrow, or drive down the motorway too fast and get a camera excited I get ANPR'd. I agree to leave the police to get on with their job, so why don't we have more use of modern technology to sort stuff out?

 

[Big_Rick78]

I dont drive yet, but got a lesson booked for next week, anyway, I was looking at quotes for potential cars I'll be able to buy. Got one quote for a 3 year old ford focus, and it came through at £4500 for a year. As I was on the site, I decided to see how much it would be for a brand new Bentley Continental GT Coupe (Dream Car!!) and was surpised it was only £1500 more than the Focus!! Just wish I had a spare £130,000 lying around!!!