Car Insurance catches (article)

[Soulboy]

I would strongly advise everyone to read this recent article from The Telegraph, in light of forecast rising motor premiums anyway.

http://www.telegraph.co.uk/finance/...ness-course-and-my-car-insurance-doubled.html

There are more than a few eye openers in there!

 

[The Challinor]

Tossers

 

[a3_phil]

I'm not sure I understand what the problem is.

Insurers price the policy according to risk and all the things they mention in the article (address, speeding, mobile phone convictions etc.) are indicators of risk?

Sure, it's not nice when they bump up your premium but if you were careless enough to get caught speeding and I wasn't, why shouldn't you pay more?

 

[Liquidfusion-S3]

It always helps to shop around, they raise your premium every year regardless if you have a fault or not. They take us for fools thinking we won't bother to look around for cheaper deals.

 

[Nimbus265]

Admiral, Elephant and Shelias Wheels all charge more if you have done a speed awareness course - much to the disgust of the Thames Valley Police.

Their view is that, corrective 'training' for minor misdemeneours, helps reduce risk and stops bad behavious forming: which is why they don't prosecute, for small infringements.. Most people don't have any 'training' after their driving test, and bad behaviours develop over months and years of 'uncorrected' driving. The speed awareness training provides a means to 'reset' understanding of speed awareness and the behavious and reduces risk! This point is totally ignored by some insurers and only see this as a means to get more cash!!

 

[a3_phil]

Yeah but it's a tricky one though. Who's the greater risk:

Driver 1 - Never been caught speeding. Could be an absolutely terrible driver who's just got lucky, or could be an absolute driving god.

or

Driver 2 - Has been caught speeding. Again, could be a total one-off or could represent a pattern or terrible driving.

Surely it's simply a case of the insurer looking at their customers and seeing who, proportionally speaking, incurs the greatest costs to them ; drivers with no speeding points / courses, or drivers who've been caught.

If it's the latter, then they have to increase premiums.