For help, advice and discussion about stuff not related to aviation. Play nice: no religion, no politics and no axe grinding please.
#1783032
What an utter scam motor insurance is. They hike annual premiums far in excess of inflation and insert no claims and excess clauses that make the policy worthless for all but potentially deadly incidents. The government then enforces it with laws and provides a police force to enforce it with menaces that include penury and loss of liberty.

The mafia run similar schemes and at least they are nice to their mum.
Flyin'Dutch', Spooky liked this
#1783040
If I recall correctly, apart from not seeing Bob and his wife in rags at trade shows, light aircraft insurance doesn't make that much profit each year.

How profitable is motor insurance, say compared to home insurance?
#1783043
When a claim does come it, it is much more expensive now than it once was.
Personal injury payments are significantly higher, car hire is provided for the person who has been bumped into, cars are much easier to write off (any damage to anything structural will pretty much do it), panels are all colour specific and often not pre-painted, with paint shops charging hundreds of pounds to mix any paint, the standard of any repair must be "as new", There are also lots of regulatory hurdles to jump through.
Actuaries work out risk multipliers which are used to set premiums. The admin cost of a claim is so high, that increased excesses reduce the chance of claims (and so admin costs). You would have thought that admin costs would be much reduced for long term customers but as they need to go through the full sales cycle for every renewal anyway it doesn't make a lot of difference.
Still money is being made by them though!

My latest insurance company question was on travel insurance. We had booked a B&B in France for a week earlier this summer, non-refundable, before Covid had been mentioned. B&B wasn't actually closed (they just weren't allowing Brits into France) so couldn't claim on credit card, as B&B would still provide the service.
Couldn't provide a refund but they would give us vouchers (kind of them) but as we are having our first child next month there is no way we could ever use such vouchers (which needed used within 6 months), so instead tried to claim on travel insurance.
However travel insurance company says that as we were offered vouchers, we can't claim. Its going through their complaints process but they have paused that process during CV19...
#1783052
With that in mind I am surprised they haven't written off Charles' car!

Joking apart, one mirror may not do it but if it was two it would have been 'beyond economical repair' innit.

COVID is a difficult issue, we had hoped to go to Croatia, the place was open but we did not know there would be flights, so we opted to get vouchers for the flights and the place (again non-refundable) offered to accommodate us in 12 months. That is great but if they had not we would have taken it on the chin, paying for a holiday and not going is always cheaper than paying and going. Granted, if it would have been an expensive round the world trip I might have been less sanguine about it, but some risks we can carry ourselves innit?
#1783108
stevelup wrote:That is very spendy on a 14yr old car


Oh, I don't know -- that's what my 14-year-old car cost me. :D
kanga liked this
#1783115
When my Krauto was 12 (it's now 17) the driver's mirror electrical adjustment packed up due to a fractured wire as a result of a zillion cycles of mirror retraction/self parking.

Local Merc outfit said (teeth sucking)... you'll need a new mirror unit sir £680.00 plus fitting....

So I swallowed my pride and went back to an indy which I previously took the car to for a service when I got right royally pi ss-taken on here for using the main dealer. for services:

The indy saw me coming and ripped me off for the service so I said 'Never again'.

However , he soldered the wire and advised me to disable the self parking mirrors , which I did and everything is sweetness and light.
Cost me £25.00

Peter
User avatar
By Rob P
#1783126
stevelup wrote:Ouch. As a percentage of the value of the vehicle, that is painful...


I think you don't quite get bangernomics

As a percentage of what you'll lose on your new EV in Year One it barely registers.

Rob P
#1783127
Bangernomics is not buying a brand new expensive part from a main dealer though is it?

I've got a 1998 Range Rover which is my banger! Love hacking around with that.

The EV is leased and a company vehicle and thanks to the current taxation regime will be costing me not one single penny this tax year.
Flyin'Dutch' liked this
#1783197
riverrock wrote:When a claim does come it, it is much more expensive now than it once was.
Personal injury payments are significantly higher, car hire is provided for the person who has been bumped into, cars are much easier to write off (any damage to anything structural will pretty much do it), panels are all colour specific and often not pre-painted, with paint shops charging hundreds of pounds to mix any paint, the standard of any repair must be "as new", There are also lots of regulatory hurdles to jump through.
Actuaries work out risk multipliers which are used to set premiums. The admin cost of a claim is so high, that increased excesses reduce the chance of claims (and so admin costs). You would have thought that admin costs would be much reduced for long term customers but as they need to go through the full sales cycle for every renewal anyway it doesn't make a lot of difference.
Still money is being made by them though! .


Nah, I'm not buying it. :? :P
30 years ago insurers would have been complaining about the added costs and regulation of fuel injectors, alloy wheels, catalytic converters,
40 years ago, disk brakes, seat belts...
50 years ago, too many other working class motorists, causing more accidents...
120 years ago, bemoaning the lack of a valet walking out front with a red flag...
etc.

Motor insurance has become a state regulated tax on ownership, not a service to consumers. The road fund licence should include a statutory 3rd party insurance and with it a presumed legal liability of motorists against all other road users. Maybe then we'd see some innovation and competition in the market that looks more like an old boys club. (Cutting out brokers with a website and/or giving away a toy meerkat isn't innovation)
#1783201
eltonioni wrote:The road fund licence ...


:lol: :lol: :lol:

I love this retro stuff.

It is now more honestly called Vehicle Excise Duty

Rob P
townleyc liked this