Insurance!

[Howard LewisParticipant @howardlewis46836]

Once, I thought that insurance premiums were calculated, based on the quantifieable risks.

Nowadays it seems to be horse trading.

The renewal premium for my wife’s car had increased by over 60%, mine by 15+%

A phone call to the company resulted in my wife’s increase, without any changes, becoming 37%, and mine just under 4%.

This is not the first time, that the risk of losing the business to a competitor has resulted in a reduction.

You can see why we don’t automatically renew!

Howard

[bernard towersParticipant @bernardtowers37738]

worst thing you can do is to tick auto renewal

[Grindstone CowboyParticipant @grindstonecowboy]

Oddly, my wife’s premium this year dropped by about 8%, despite claiming for a new windscreen last year. Happy, but apprehensive that karma will catch up…

Rob

[HowiParticipant @howi]

if you tick the auto renew box, they still have to give you notice of what the new price is so you have the opportunity to cancel (or haggle!).

Only if you do nothing will auto renew kick in.

[NealebParticipant @nealeb]

I gave up trying to find logic in insurance premiums when I found that my wife’s minor accident in my car put up my motorcycle premium.

It does seem true, though, that some companies prefer some kinds of business to others, even to the extent of discouraging the ones that they do not like by weighting premiums. I am trying to insure a car at the moment; my current company will insure it – an almost identical car to the one it is replacing – but for an additional premium and fitting a tracker. Direct Line want about 2.5 times as much, while Admiral roughly match my current company – but no tracker needed.

The moral is that if you don’t like a quote, see if you can find another one! Loyalty is not rewarded…

[jimmy bParticipant @jimmyb]

I can’t figure it out either.

House insurance went up about 10%, thought I’d do some searches for a better price.

Cheapest for like for like cover was double!

And that was with a company I’d never heard of, so I stuck with my “well known” company.

 

Jimb

[Nealeb]

On Nealeb Said:

I gave up trying to find logic in insurance premiums when I found that my wife’s minor accident in my car put up my motorcycle premium.

Very likely, and the net is much wider than that.  But there is logic in it, it’s due to the way the insurance system stays afloat financially.

No insurance company in the world specialises in motor insurance.   They all cover a basket of other risks, so any claim on the company can affect the premiums of any of their policies. Also, insurance companies spread the risk of that they might be faced by huge payouts after a major incident by reinsuring with other companies. And if the re-insurers have to pay out, then the cost is recovered from their customers, including motorists!  More! When a major accident or weather event results in a multi-billion claim that can’t be covered with the resources available, the insurance companies have a group share arrangement, again widening the number of customers who contribute to paying the bill.

Bottom line, insurance customers always end up paying for Costa Concordia, MV Dali, and damage due to climate change, and it’s not obvious.   Hardly compatible with this complexity, are the television adverts featuring cuddly Russian Meerkats who claim that insurance is simples!  In the real world, Meerkats are rather vicious animals, none of them are Russian, and insurance isn’t simple.

It does seem true, though, that some companies prefer some kinds of business to others, even to the extent of discouraging the ones that they do not like by weighting premiums…

Yes.   Insurance companies constantly manage the risks represented by their basket as a whole, which can lead them to take on new risks and to discourage old ones.

The moral is that if you don’t like a quote, see if you can find another one! Loyalty is not rewarded…

Absolutely.   There is no loyalty,  insurance is a business relationship.   The insurer exists to make a profit, and allowing premiums to creep up until challenged is one way of doing it.  Negotiation often gets the price down, but not if the insurers purpose in raising the premium is telling the customer their business isn’t wanted.   Happens a lot to new drivers, but any group an insurer considers is unbalancing their basket, will be encouraged to go elsewhere!   Nothing personal in it.

A few years ago insurers claimed that motor insurance runs at a loss – motor customers don’t pay enough in to cover motoring losses.   I think they’re attempting to close the gap and we find that painful.

Dave

[Bo’sunParticipant @bosun58570]

“Shopping around” is clearly a good idea, but i always find comparing levels cover a nightmare when looking at the detail.  Some include this, some include that, some things cost extra, etc.  Little or no uniformity.

[noel shelleyParticipant @noelshelley55608]

My renewal came through to tell me they WOULD NOT offer a renewal as my peugeot 305 was to old ! Noel.

[Peter GreeneParticipant @petergreene36336]

Don’t see why. They’ll take your money and pay you sixpence if you (or they) write it off. And they will write it off as soon as you make a damage claim that exceeds that sixpence.

You might need a roadworthy certificate though.

[bernard towersParticipant @bernardtowers37738]

halved my house and contents policy from A***a to well known building society with marginally better cover!!!!

[Peter Greene]

On Peter Greene Said:

Don’t see why. They’ll take your money and pay you sixpence if you (or they) write it off…

The value of the vehicle is only the tip of the iceberg!  The big payouts are personal injury claims, where a motor accident causing life changing injuries to a child can easily cost millions.

We don’t know why Noel’s insurer refused his Peugeot, but it’s unlikely to be personal.  Insurers look constantly at their statistics, looking for unprofitable or risky customers.  Maybe Noel’s insurer discovered a correlation between above average payouts and old cars.  Several old-banger drivers had costly accidents last year, and now Noel suddenly finds he’s in a high risk group!

Dave

[noel shelleyParticipant @noelshelley55608]

As I soon pass 75 years of age I expect that will put me in a high risk category with price hikes ? At least that’s what I expect, even though I’ve driven for almost 60 years and never had an accident. Noel.

[Mark RandParticipant @markrand96270]

It is irritating that the made-up injury claims from the no-win-no-fee lawyers aren’t treated with the contempt that they deserve.

I had been a loyal customer of the Co-op insurance ever since they offered me fully comp insurance on my Triumph TSS in 1982 for a third of the price of the only other company that would quote at all, only loading it with £30 per year for its value (£2400) and ignoring the fact that I was a 24 year old diabetic. A few years ago they finally gave up the mutual vehicle insurance game and sold it to a for profit company. Come the car renewal, the price more than doubled. I phoned them and queried it. They redid the calculations and came back with a further 50% increase, with no option to revert to the original inflated quote. Moved to Aviva, trading as General Accident at half the price I’d been paying before renewal time.

So yes, loyalty is not a thing in today’s world.

[Chris CrewParticipant @chriscrew66644]

It seemed to me that between the ages of 60 to 68 were the cheapest years for my car insurances. It may be coincidence but as soon as I started approaching 70 the price increased. At 72 this year I am expecting another hit on the renewal.

[Chris Crew]

On Chris Crew Said:

… may be coincidence but as soon as I started approaching 70 the price increased. At 72 this year I expecting another hit on the renewal.

Well, older drivers cost insurers less than other groups, so we get a good deal.  My youngest nephew pays 5 times more than I do.

But as I explained in an earlier post, insurance is cross-connected.  Ironically, one of the reasons insurance  costs are rising is due to something many don’t believe exists – climate change!  Global warming may not be obvious in your backyard yet, but around the planet it’s causing more extreme weather to occur more frequently, resulting in more claims and bigger payouts.  Individuals don’t see the connection, but it’s becoming painfully clear to insurance companies with many millions of customers.

Dave

[Howard LewisParticipant @howardlewis46836]

Wait until you hit 80!

It seems that the logic , now, is what the traffic will bear.

But I resent having to horse trade every year, having survived another year without claim, on a vehicle which has decreased in commercial value.

Yet again, paying more for less, to subsidise some other part of the business, with which we have no contact.

Howard

[jimmy bParticipant @jimmyb]

I pay £194 for my Volvo, not bad for my age (I’m 58).

Some of the young lads at work are paying £4,500+ on insurance for “cheap” to insure cars. One even has to have a “black” box and a curfew on use!!!

 

Glad it was easier in my youth!

 

Jimb

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