Car insurance!

They wanted an 20% increase over last years premium! Quick phone call to a competitor saw my existing rate reduced by 15%!
Cannot emphasise enough that shopping around pays - in 20 odd years driving, I don't think I've ever had a policy with the same company for more than a year.
 
I'd imagine insurance companies could save on admin cost (and offer cheaper insurance) if most people stayed with them for more than 1 year and don't constantly switch.

But NO! We have to waste our time to shop around and pay for the additional admin costs.
 
wuyanxu said:
I'd imagine insurance companies could save on admin cost (and offer cheaper insurance) if most people stayed with them for more than 1 year and don't constantly switch.

But NO! We have to waste our time to shop around and pay for the additional admin costs.
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They'd save a lot more if people weren't pressured into making personal injury claims after the most minor accident...

An acquaintance of mine thought he was quids in when he added loss of earnings to his insurance claim for his week off work, not realising that since his employer had paid him while he was off work, he just had to pay it all straight back to his employer.
 
KitsuneAndy said:
A COR of 96% is considered very good, which means insurance companies are only making around 4% on the premiums. The rest is made from investing that 4%.
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I assume they are investing 100% of the premiums and paying out 96% of the premium value?
 
I'm with Admiral and I go through this every year. They send me a renewal for £200 or so more than the previous year, I ring them up to tell them not to renew, they ask why, I tell them why, they promptly reduce the premium by £250-£300. Every year it's the same, it's become a tradition!
 
Jim_Tod said:
I assume they are investing 100% of the premiums and paying out 96% of the premium value?
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Yeah sorry, I wrote that in a rush! :)

The 96% includes things like administration costs as well as the cost of claims etc. And each insurer will have a different target risk. So if you try to get a quote somewhere and it's stupidly high compared to other insurers, they probably just don't actually want your business as you're not in their target market based on their risk appetite and the view of their actuaries as to what is profitable business to write.
 
i know a fella who has his wife on the insurance...she has been dead for 4 years :rolleyes:
 
Brendan Mulachy said:
i know a fella who has his wife on the insurance...she has been dead for 4 years :rolleyes:
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Then there's no point having insurance as you have to be honest or it wont be honoured. First thing a loss adjuster will check is whether the info is correct and therefore insurance valid. I remember being burgled about 25 years ago, thieves broke in through patio door at the back of the house, first thing the loss adjuster did was check we had a 5 lever mortice lock on the front door- I asked him why and he advised that as the insurance was based on a 5 lever mortice to main point of entry if we didn't have it then there would be no payout even although the break in was through somewhere else.

Your friend might be better off saving all the premium than paying for nothing
 
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