Car Insurance..why?!

[Noodle-Pulp]

The Press Association: Admiral profits up as premiums rise

Admiral posts profits...and doesn't pass them back to us...why?!

Admiral will distribute the windfall between its staff - worth an average of more than £2,500 each - following a £215.8 million profits haul in 2009.
Investors will also get a 10% increase in the annual dividend payout after the record result.
Admiral said the cost of car insurance was likely to rise again by a similar amount over 2010 amid the rise in personal injury claims, made easier in recent years by the explosion of "no win, no fee" compensation lawyers.

 

[mbenz76]

Because they can! Insurance companies never lose!

 

[wemorgan]

Customers are revenue streams and shareholders profit takers.
It's how the world goes around

Because they can! Insurance companies never lose!

Ask a Lloyds name in the 1990s.

 

[whitenemesis]

Because it's a profit making business, to benefit it's shareholders and staff.

 

[Rayny]

Because it's a profit making business, to benefit it's shareholders and staff.

It must also do it's job better and/or cheaper than it's competitors to be of benefit to customers in a sufficient share of the market, otherwise it will end up with no customers and therefore no staff nor shareholders.

 

[whitenemesis]

It must also do it's job better and/or cheaper than it's competitors to be of benefit to customers in a sufficient share of the market, otherwise it will end up with no customers and therefore no staff nor shareholders.

Yes, to increase profits

This is a side effect of the first point...

Cynical, me? No just realistic. If the insurers could reduce benefits and therefore payouts to increase profits they would. The service and benefit to customers is merely a means to an end, their profits

 

[moonloops]

Welcome to a capitalist economy

I do wonder sometimes when people slate companies for making money - it is their sole purpose.. customer care? Well only if it gets 'em more money or advertising cover etc

 

[Noodle-Pulp]

but...

Admiral said the cost of car insurance was likely to rise again by a similar amount over 2010 amid the rise in personal injury claims, made easier in recent years by the explosion of "no win, no fee" compensation lawyers.

Does this mean if we can figure out a way to get rid of these parasites, we can start seeing insurance costs decrease?

 

[rogkildare]

Insurance Companies

When you insure your car you are gambling as you are saying to your insurance company here is £200, I bet you I will prang my car this year. The insurance company says I'll accept your bet as I think you wont. Six guesses who normally wins the bet. Pity it's compulsory.

 

[Deleted member 6183]

Admiral pay good staff bonus by all accounts.

 

[mbenz76]

Insurance costs would come down if scum stopped claiming for made up whiplash whenever they have even a minor bump, and if the uninsured were took off the roads so as not to crash into the rest of us.

Of course, the first will not stop as long as the ambulance chasers are humoured by the poor legal system in this country, and the latter will not stop as long as the useless courts hand out meaningless sentences for the offence - I mean, a fine which is less than the insurance would have been is not a deterrent!

 

[kwakdonut]

W4nkers!!!

 

[Noodle-Pulp]

Insurance costs would come down if scum stopped claiming for made up whiplash whenever they have even a minor bump, and if the uninsured were took off the roads so as not to crash into the rest of us.

Of course, the first will not stop as long as the ambulance chasers are humoured by the poor legal system in this country, and the latter will not stop as long as the useless courts hand out meaningless sentences for the offence - I mean, a fine which is less than the insurance would have been is not a deterrent!

Of course.. this reminds me of this little gem:
http://www.youtube.com/watch?v=CbOtiOfRSiY