Are Insurance Companies ripping us off?

[Deleted member 37751]

Having gone from a nice but very old C220 CDI estate IRAC insurance around the £400 mark) to an ML (again old but immaculate) which I've yearned for, I found the insurance at £900+ for the year! 10 years plus no claims WTF
WHY???

The very nature of insurance is essentially a racket just legalised.

 

[Harridog]

How come you have a no fault claim on someone else's insurance, your insurance co gets all the costs back and some, then you have to pay more on next premium for all your car and motorbike insurance?

Why is it that you pay extra to protect your NCD and still get charged extra cos you claimed?

Just saying....

 

[GreetMe]

How come you have a no fault claim on someone else's insurance, your insurance co gets all the costs back and some, then you have to pay more on next premium for all your car and motorbike insurance?

Because being involved in an accident means you're more likely to be involved in another one (which therefore puts you in a higher risk category), even if the first accident wasn't your fault. That's what Direct Line told me after increasing my premium as a result of a bus driving into the side of me as I was queuing in a car park.

The very nature of insurance is essentially a racket just legalised.

Never a truer word spoken.

 

[markjay]

The very nature of insurance is essentially a racket just legalised.

The idea is that while insurance in mandatory, value for money for consumers is managed by competition.

And this seems to work well... motor insurance policies can be had for quite cheap if you do your homework and shop around.

(And off course the government gets its pound of flesh in the form of insurance tax.....)

 

[Deleted member 6183]

Having gone from a nice but very old C220 CDI estate IRAC insurance around the £400 mark) to an ML (again old but immaculate) which I've yearned for, I found the insurance at £900+ for the year! 10 years plus no claims WTF
WHY???

Maybe it's your name?

 

[Alfie]

How come you have a no fault claim on someone else's insurance, your insurance co gets all the costs back and some, then you have to pay more on next premium for all your car and motorbike insurance?

Why is it that you pay extra to protect your NCD and still get charged extra cos you claimed?

Just saying....

Its because its a no Claim bonus not a no blame bonus.

 

[Cymruambyth]

Be very wary of swapping for that 'new deal'. Year one, insurers will drop their pants to get you in the door knowing that they will claw it back year two - been there.

Then you change again, simple...they give you nothing for being loyal any longer. I was with More Than many years back...3 years running they increased my premium so each time I cancelled and took out a new policy through Confused.com Insurance companies are scum.

Why penalise people based on their post code....why not use their actual driving history???

I understand it`s a business but why increase premiums and then when you phone to cancel.....they give you a discount? Just apply the "discount" straight away to keep peoples business ?:fail

 

[MancMike]

Why penalise people based on their post code....why not use their actual driving history???

It's not whether or not you lose control and have a crash. It's how likely it is your car will be damaged or stolen while outside your house.

Both our cars were smashed up last year, so I guess the postcode risk is correct. No, we didn't claim, only for the glass.

 

[Deleted member 113659]

Both our cars were smashed up last year, so I guess the postcode risk is correct. No, we didn't claim, only for the glass.

And that's another huge fault with insurance isn't it?

Customer pays handsomely for a policy then the worst happens and they're scared to make a claim because of the cost implications. Win win for the insurance company yet again.

 

[Cymruambyth]

It's not whether or not you lose control and have a crash. It's how likely it is your car will be damaged or stolen while outside your house.

Both our cars were smashed up last year, so I guess the postcode risk is correct. No, we didn't claim, only for the glass.

So they penalise drivers for things which may happen

 

[whitenemesis]

Insurance premium calculation is all statistics and probability

 

[markjay]

So they penalise drivers for things which may happen

They don't actually penalise their customers.... it's a commercial transaction.

In the same way that MB do not penalise you if you get a flat tyre - if you have Mobilo, they'll come out and swap the wheel for you, but if you don't have Mobilo cover, then you're on your own....

It's a dispassionate industry. It's all statistics and commercials.

 

[190]

£173 with Privilege.

It's a pain but I find you have to move insurance company every year or they bump up the renewal premium by a huge amount. Sometimes you can negotiate renewal premiums down to your best quote or one so close it's not worth the hassle of moving.

Having claimed on any type of insurance only once in 40+ years I view it as necessary evil and spend as little as possible.

Premiums rise because insurance companies are hopeless at addressing fraud and in getting value for money. Any service funded solely by insurance is always going to be overpriced.

 

[Deleted member 6183]

So they penalise drivers for things which may happen

Absolutely.

 

[Deleted member 37751]

Never a truer word spoken.

My sister has just gone through a claim after having her Golf stolen, after much toing and froing they dug their heels in and only offered £18k, once she involved the Ombudsman they upped their offer by £5,000 to £23,000!!! Rob dogs!

And this was from the major insurer that's got Keitel fronting its adverts!

 

[rockits]

Insurance companies....scum of the earth...hate them.

Unscrupulous, uncaring, out for themselves scumbags who lie & cheat. However they don't like it when the boot is on the other foot. Of course not that I ever lie & cheat and that is against my moral high ground.

 

[Bobby Dazzler]

Serious question: how would you do it better?

 

[Blue Stripe]

Which insurance co. Are you with?

 

[flowrider]

Just insured my ML350 for another year, last year went with LV for £475, this years renewal was £535 but i went with RAC at £385. I could have got cheaper but i stick with known companies with good reviews. My SL500 is insured with Saga who were the cheapest big name surprisingly. I have most of the options, protected NCB, free courtesy car, legal cover and a low excess.

 

[rockits]

Serious question: how would you do it better?

I'm not suggesting I would do any better but would operate honestly, morally and transparently. Also likely more efficiently with less desire for ridiculous profits of often is the case with our modern world.

Trust is a big thing for me and I just don't trust them. This is of course a generalisation as I haven;t dealt with all insurance companies on this planet. It is also direct towards insurance companies and underwriters and not brokers in the main.