Car insurance rip off

Garry Edwards

Garry Edwards

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Garry Edwards
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My youngest had a Supercharged 2.3 litre Mercedes for 5 years, he was very happy with it but the time came to replace it.
And he replaced it with a car that was identical in every way, except that it has the much slower diesel engine.

The insurance Company have charged him £140 to change the insurance from the fast car to the slow one, they say that the reason for this is that people are more likely to have an accident when they change to a different vehicle, because they aren't used to it...

He pointed out that he is extremely used to it, it is identical to the old car, except that it's a slow diesel instead of a very fast petrol.

But, he had to pay them the extra £140, the option was cancelling the insurance and getting stung for their charges for that.
 
Insurance costs are basically random.

In the trade, I believe that's known as a "because we can" charge.
 
Insurance, another industry thats got us over a barrel with no way to fight back.
 
onomatopoeia said:
Your proposal to change this?
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Nobodies managed to come up with one yet. Neither can I. At least you can shop around a bit with insurance at renewal time. All the energy companies are one big cartel rigging prices as they see fit to make their billions of pounds.
 
hmmmm the only thing i can argue with this is that usually diesel engines these days are turbo charged and are equal to or superior in performance to there petrol equivalents ,i.e the 2.0ltr mondeo tdci 115bhp i have now leaves the previous 2.0 ltr petrol 135bhp mondeo standing .there is obviously more in it than that though i.e what was the HP of the petrol car as opposed to the HP of the diesel
 
I have to agree, new car takes some getting used to. First 10 miles can be pretty dangerous, and then you are more or less there over next couple of days. Oh wait, it doesn't take a year!

I doubt there is much practical difference between that 2.3 petrol and any competent 2L or bigger diesel. If anything diesel will always have more torque and is faster off the line. Maybe he won't drive at 150mph, but only at 138mph if he feels really naughty. So all in all insurance is a rip off.
 
Playing devils advocate, there is so much pressure on cheap, cheap, cheap... and competing on price that many companies will have additional charges to offset the reduction in price. (ie. charge £200 rather than £250 for policies and then have all sorts of charging for add ons and changes so that over the year the average price is £250). Just a random theory!
 
My biggest surprise came when I removed my ex from my policy, making it one female driver only and they increased the premium :thinking:
I asked why and apparently when you have a loved one in the car you drive more carefully, how the hell does that equate, we had 2 cars
and mostly only one person in either at a time, plus "loved one" about an ex o_O
 
Car insurance a rip off, whatever next.

My son had fully comp insurance on his Honda Civic Type R, so quite a rapid car, his premium was well over a grand a year. He had a low speed shunt (his fault) and reported the accident to his insurance company, it was then that he found out his well over a grand fully comp insurance was worthless as he then found out that the small print in the schedule they never sent him showed that his fully comp policy had a 3 grand all sections excess, so he would have to pay not only the first 3 grand for repairs to his own car but also the first 3 grand of the other drivers bill as well.

His car only suffered minor damage as it was only a low speed accident (about 5MPH) but the other driver managed to boost his claim to that magic 3 grand (How coincident was that).

After a long fight we did get his 3 grand back but it was a long fight and it had to be paid first.

They knew full well the other driver was making a bogus over inflated claim but did nothing about it.

Ripoff insurance, never ;)

Paul
 
Mine went up on one vehicle (a scooter) when I got married. No change in users or usage, just my marital status. Oddly, they changed their minds when I told them I was moving companies. Even more oddly, another motorbike insured with the same company through the same broker had a premium drop at the same renewal date.
 
As in Paul's case above, there is no incentive for them to fight bogus claims it's easier for them to just pay out and load all the premiums. A win win as far as they are concerned.
 
Dunno about most folk i gnerally check with insurance company what the cost is to change/insure a car before i buy it?

is that just crazy talk?
 
Garry Edwards said:
My youngest had a Supercharged 2.3 litre Mercedes for 5 years, he was very happy with it but the time came to replace it.
And he replaced it with a car that was identical in every way, except that it has the much slower diesel engine.

The insurance Company have charged him £140 to change the insurance from the fast car to the slow one, they say that the reason for this is that people are more likely to have an accident when they change to a different vehicle, because they aren't used to it...

He pointed out that he is extremely used to it, it is identical to the old car, except that it's a slow diesel instead of a very fast petrol.

But, he had to pay them the extra £140, the option was cancelling the insurance and getting stung for their charges for that.
Click to expand...


That's what happens when you choose a shyte insurer (and by that I will say pretty much any direct or those on price comparison websites.... cheap as chips to entice you in and then often premium numbers to call CS (and big queues, as it's all about sales) and charge you to do anything.. another trick of theirs is to give a bargain bucket price, then £25 for legal cover, £20 for this, £15 for that, stupid excesses.

Also with the diesel one - diesels are often more expensive to repair - when it comes to engine bits and if replaced it, chances are a higher sum insured and probably updated?
 
onomatopoeia said:
Your proposal to change this?
Click to expand...

How about he Spanish and Slovak systems (possibly many other countries too) where the car is insured so anyone qith a valid licence can drive it.

They also seem to be a darned sight cheaper too.
 
ChasG said:
How about he Spanish and Slovak systems (possibly many other countries too) where the car is insured so anyone qith a valid licence can drive it.

They also seem to be a darned sight cheaper too.
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we have that option here. Any driver (can specify min age - or std excess varies with age. Often found on fleet policies, but can be done on an individual vehicle.)
 
Here A, B or C^n
Lynton said:
we have that option here. Any driver (can specify min age - or std excess varies with age. Often found on fleet policies, but can be done on an individual vehicle.)
Click to expand...

What I am trying to convey that this is a standard cover not some super expensive option as it is here.
 
My renewal came in and had increased from £250 to just under £600 although I had made no claims at all. I went onto the same company's web site and put in exactly the same details and lo and behold it came up with £275. Phoned them up to renew and told them what I had done, the excuses they give for the increase were needless to say pathetic, my reply £275 or I am off, they caved in. Always worth doing.
 
Lynton said:
Also with the diesel one - diesels are often more expensive to repair - when it comes to engine bits and if replaced it, chances are a higher sum insured and probably updated?
Click to expand...

Diesels are also often chosen by people who are going to drive for more miles on those risky roads out there than the people who choose thirsty big petrol engines.
 
Yves Geza said:
Diesels are also often chosen by people who are going to drive for more miles on those risky roads out there than the people who choose thirsty big petrol engines.
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I'd love to see the face of one of those brokers when I drive him at barely legal speed through A82 bends at midnight :)
 
Yves Geza said:
Diesels are also often chosen by people who are going to drive for more miles on those risky roads out there than the people who choose thirsty big petrol engines.
Click to expand...

And they choke all those kids lungs up in the city :-(
 
Mr Bump said:
And they choke all those kids lungs up in the city :-(
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Exactly. Petrol spray in your nose is so much healthier. Nice try and better luck next time trolling.
 
ChasG said:
How about he Spanish and Slovak systems (possibly many other countries too) where the car is insured so anyone qith a valid licence can drive it.

They also seem to be a darned sight cheaper too.
Click to expand...

So, supposing I had 17 year old offspring that had just passed their test, they could drive my car (any of the road legal ones, say the tarmac stage rally car, or the 986) on my insurance, and my insurance would be cheaper as a consequence? I struggle to believe that.
 
I've been insured with Directline for years, they've sometimes been a little more expensive than their competitors but on the ocassions I've needed them to do something they've always been good.

In 2013 I paid around £350 to insure my 55-plate 2.0 TDCi Focus Titanium, my 2014 renewal came in at over £500. I quick look on their website and it was down to £275 :jawdrop:

I gave them a call and they looked into it and agreed to match the online quote. I did have quite a lengthy email ready to send to their CEO to invite him to comment on the situation but tbh I got to the point where I CBA.
 
Russ77 said:
I've been insured with Directline for years, they've sometimes been a little more expensive than their competitors but on the ocassions I've needed them to do something they've always been good.

In 2013 I paid around £350 to insure my 55-plate 2.0 TDCi Focus Titanium, my 2014 renewal came in at over £500. I quick look on their website and it was down to £275 :jawdrop:
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I've been insured with Bell for seven years and the price goes down every year. £190 at last renewal. I don't even bother with comparison sites for that particular car.

Direct line want £300 to insure the boring diesel Audi, so I'll have a hunt around for a better price in the next week.
 
JonathanRyan said:
Insurance costs are basically random.
Click to expand...

You can look for patterns and rationalisation but it's so complex and variable that it's more sensible to treat them as random.

Why is it cheaper to add my wife as a named driver on a car she never drives than not to? Nobody knows.
 
POAH said:
I take it the age of the car is the same?
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Yes, pretty much. and the new car has 99bhp less than the old one.
 
I found a specialist broker for modified cars that were cheaper than when it was standard with mainstream insurers.
 
Lynton said:
That's what happens when you choose a shyte insurer (and by that I will say pretty much any direct or those on price comparison websites.... cheap as chips to entice you in and then often premium numbers to call CS (and big queues, as it's all about sales) and charge you to do anything.. another trick of theirs is to give a bargain bucket price, then £25 for legal cover, £20 for this, £15 for that, stupid excesses.

Also with the diesel one - diesels are often more expensive to repair - when it comes to engine bits and if replaced it, chances are a higher sum insured and probably updated?
Click to expand...

I have to agree with the above.

I retired many years ago but at one stage in my career with a major insurance company I was responsible for the statistical analysis and rate setting for car insurance. We did manual statistical analysis in those days and could only consider where data had been captured on the computer system. Nowadays much more data is captured and I believe over analysis, which results in a sample so small as not to be credible, but that doesn't stop modern companies using it.

Personally, I would never use a comparison website because the aim of those companies is to show the cheapest rate and therefore the maximum restrictions of cover or application of excesses and terms. I remain amazed that people do not use the same criteria when buying insurance as when they bought their car, or even their camera. Hands up who bought the cheapest car or camera!

Gary, if you want to cause trouble, challenge the insurance company to produce statistical evidence to back their claim and threaten that you will take the matter to the ombudsman. I doubt they have that evidence.
 
So what insurance companies/brokers would people recommend who arent in the top ten result list on Moneysupermarket etc? And who dont charge silly excesses, £25 for legal cover etc
Genuinely interested.
Thanks
 
JonathanRyan said:
Insurance costs are basically random.

.
Click to expand...

No its not.:)

The insurance industry works on data. if it were random then people would also get very very cheap premiums on Ferrari's etc.

The reason for the increase in the OP would have been down to statistics. More accidents would have happened in the diesel variant than the petrol one.

The diesel version may have been more popular with reps etc and would have been involved in more claims

Some insurance companies update their data daily. So quotes can change overnight.

Its all about risk management. If blue fiestas are involved in more accidents then the insurance renewal's on blue fiesta's will increase.
 
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DorsetDude said:
So what insurance companies/brokers would people recommend who arent in the top ten result list on Moneysupermarket etc? And who dont charge silly excesses, £25 for legal cover etc
Genuinely interested.
Thanks
Click to expand...
Difficult to answer this as I am out of touch with current markets. I use only the traditional insurance companies like AXA, Royal/Sun Alliance(More Than) and NFU. Not part of the traditional market but I would try Direct Line because they grew out of the traditional market and hold the same values and behaviours.

Currently I have a Volvo and insure it with Volvo's own scheme, which is with More Than. The scheme was cheaper than More Than's own rates and guaranteed a repair with a Volvo dealer with Volvo parts.

If you don't know what to look for, find a small local broker who will do the work for you. He is paid by commission.
 
mattyg said:
No its not.

The insurance industry works on data. if it were random then people would also get very very cheap premiums on Ferrari's etc.

The reason for the increase in the OP would have been down to statistics. More accidents would have happened in the diesel variant than the petrol one.

The diesel version may have been more popular with reps etc and would have been involved in more claims

Some insurance companies update their data daily. So quotes can change overnight.

Its all about risk management. If blue fiestas are involved in more accidents then the insurance renewal's on blue fiesta's will increase.
Click to expand...
Can't argue with any of this statement but would add that some years ago it was shown that dark blue cars had more accidents and white one's less. Common sense as you can see a white one easier.
 
@Garry Edwards very similar thing happened to me a few years ago. Went from a highly modified Impreza running @ 340bhp/340lb (apexi power ecu + commander, lowered, springs, suspension, polished / ported headers, larger turbo, uprated fuel system etc. all insurance declared) to a 2l TDCI with a whole 135bhp, my insurance shot up on renewal! I was flummoxed and got a similar story "it's a new car to you".
 
Sharky said:
@Garry Edwards very similar thing happened to me a few years ago. Went from a highly modified Impreza running @ 340bhp/340lb (apexi power ecu + commander, lowered, springs, suspension, polished / ported headers, larger turbo, uprated fuel system etc. all insurance declared) to a 2l TDCI with a whole 135bhp, my insurance shot up on renewal! I was flummoxed and got a similar story "it's a new car to you".
Click to expand...

That months stats would have shown A: That there was an increase in recent vehicle change accidents and B: mondeo drivers crash alot:p
 
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