Just Passed My Driving Test!!!

[Tarffie]

well played

[Russ]

its impossible for insurance companies to make a profit.

say for instance - they insure 10 drives @ £1000 each
10x1000 = 10,000

now, 2 of those cars smash into each other, both are written off.. both cost 8000 to replace.

8000x2 - 16,000
10,000 - 16,000 = -6k

thats not even including rent and wages etc :/

[dkmech]

Thats a fair point well made, if only it wasn't utterly unrepresentative.

Lets take another selection of 10 cars. All paying 1000 each. All of those crash and cost 20k to replace. Thats 200k-10k=-190k. A loss of 190k! How do those poor insurance people live!

For examples like that we need real statistics. You need to know how many accidents happen per year and how much they cost to repair. You can't just pull a number out of thin air.

Don't forget that for a lot of minor accidents people pay themselves because of excess and not wanting to lose NCB. When my stereo got stolen i paid for door repairs and a new head unit myself.

Insurance companies charge premiums based on statistics and generally i can't see them charging less than its costing them. It may happen for a short term but they would then surely raise the prices. There is no point doing business if you make no money.

[Stoo]

If insurance companies made no money, they wouldn't be in business

[Barakka]

If insurance companies made no money, they wouldn't be in business

The story goes that insurance companies make a nothing on the first year, they make the profit in the subsequent years when people don't bother shopping around.

The problem with insurance these days is that it's has no basis on individual cases just blanket answers based on "what the computer says".... News Flash - computers only say what you tell them to say !

[streetster]

its impossible for insurance companies to make a profit.

say for instance - they insure 10 drives @ £1000 each
10x1000 = 10,000

you cant say that 2 out of every 10 cars are gonna crash.. if it was 2/100 then they get 100x1000 = £100,000.. say two worth £16,000 are written off.. thats still £68,000 gained... i realise thats not 'proper' numbers and not real statistics.. hmmm...

[Oakey]

On that other forum we all hate, there's a member there who's quite clued up (I think he's in the insurance business). He says insurance companies actually make very little profit and one of the larger names is currently struggling