My car insurance has gone mental- any ideas?

[finlay666]

i believe it is to do with the "claim" culture the nation has become and the increase in fraudulent crashes/claims.

And the amount of drivers driving with no insurance

[[GSV]Trig]

Yeah they say its that but I saw something on TV where the amount that uninsured drivers actually costs insurance companies doesnt add up when you look at the cost of claims, the amount insurance has gone up by and the amount of profit that the insurance companys make..

[roachcoach]

Thing is, unless they leave the 'victim' completely alone (and we know they don't) no matter if people are insured or not, SOMEONE is paying. Just a question of who. Usually it's not the insurance company. I know some don't penalise you if you're hit by an uninsured driver but since they hike your premium up even if there's no fault accidents (hey, you're unlucky, we can't use you) I'd be surprised if they're taking that much of a hit.

It's gotten to the point where it's chicken & egg. The cost of insurance for a younger person is getting a little bit daft, (I remember as an experiment I added a fake child of 18 years of age to my policy and I didn't get a quote under £10,000). So they gamble. So the insurance rises.

And the penalty for driving without insurance? A fine FAR under the premium cost, IF they get caught and points. Points which only really serve to increase insurance premiums...

It's a vicious circle. Younger people are getting externally pressured to not drive until they are older, which merely increases the number of inexperienced 'less young' drivers on the roads. Which in turn, if unchecked will increase the age at which premiums get 'sensible' again.

[badass]

Say what you like about the increased premiums. Insurance companies pay out more in claims than they collect in premiums.
Hardly robbery?
They used to make up the shortfall by investing the premiums and effectively sharing the profits with the insured. Unfortunately, these days most classes of investment aren't doing too well............

[roachcoach]

It might help if they stopped paying out on obviously fraudulent claims.

Something far wrong when it makes more sense to do that than investigate it and knock it on the head.

[Smudger]

Say what you like about the increased premiums. Insurance companies pay out more in claims than they collect in premiums.
Hardly robbery?
They used to make up the shortfall by investing the premiums and effectively sharing the profits with the insured. Unfortunately, these days most classes of investment aren't doing too well............

I thought I'd heard that this was a myth the insurance companies liked to propagate, but was just a smokescreen? I bet their directors still got fat bonuses and jollies...

[jim]

It's not as if there's a lack of competition out there

[kalniel]

It's not as if there's a lack of competition out there

Well, don't Admiral (and other groups under their ownership) own some ridiculously large proportion of the market? It's like the chemical companies - only a few, but each producing a number of supposedly competing brands.

[Apex]

02 Plate 2.0L Ford Mondeo LX TDDi
30 years old
1 years ncb
WF15 Postcode

554 full comp.... so i think some one is having a laugh at you sadly :/

[jim]

Well, don't Admiral (and other groups under their ownership) own some ridiculously large proportion of the market? It's like the chemical companies - only a few, but each producing a number of supposedly competing brands.

According to Wikipedia:

Admiral Insurance
Bell Insurance
Diamond Insurance (for female drivers)
Gladiator (for commercial vehicles)
elephant.co.uk
Confused.com

Admittedly a fair proportion, but that's ignoring Aviva, LV, Direct Line, Churchill (who are currently under RBS but likely won't be for too long), Esure etc

[Smudger]

Direct Line were under RBS, recently sold to Friends Provident, as part of the breakup of RBS, I think.

[jim]

Direct Line were under RBS, recently sold to Friends Provident, as part of the breakup of RBS, I think.

Their website says they're still part of RBS? Either way, it's still a lot of options.

[Smudger]

Their website says they're still part of RBS? Either way, it's still a lot of options.

Sorry, you're right. RSA have been hived off to FP, not DL...

[roachcoach]

Timing is apt.

http://www.oft.gov.uk/OFTwork/market...tor-insurance/

Have it it

[Macman]

Well hopefully OFT look into Insurance Companies and the reason for the overall 20% increase is simply a profit-margin reasoning or due to the volume of accidents increasing etc etc is the reasoning behind the increase of premiums.

So there might be light left in the tunnel...

Dammit... just seen the post above

[Betty_Swallocks]

Say what you like about the increased premiums. Insurance companies pay out more in claims than they collect in premiums.
Hardly robbery?

Really? Citation please. I find that difficult to believe when every time company accounts are released insurance companies report increased profits.