Will car insurance go up or down in 2014?

[ChrisKnottIns]

WILL CAR INSURANCE GO UP OR DOWN IN 2014?

Our prediction here - http://www.chrisknott.co.uk/news/car-insurance-cheaper-2014-or-more-expensive.html

 

[Gkinghorn]

If it stays the same its a blessing.... it only goes down becuase I shop around.

Would be nice if you commented on the couple of threads here on how Insurers never pay out to put a person back on the road in the same car he had before it was written off.

I insure my car just bought for a good price for £5k , a week later it gets written off , insurer says its only worth £4k ... yet its impossible to buy the same car in the same condition for £4k ... why dont insurers pay back the actual car value or source one the same as was written off ....

Or just tell folks they can have a reduced premium becuase value wise we only ever insure it for 4/5 of its value and not the full cost.... And on a reducing value basis of course my premium should go down every year....

Feel free to chip in?

 

[bembo449]

mines gone down every year in recent times

 

[ChrisKnottIns]

If it stays the same its a blessing.... it only goes down becuase I shop around.

Would be nice if you commented on the couple of threads here on how Insurers never pay out to put a person back on the road in the same car he had before it was written off.

I insure my car just bought for a good price for £5k , a week later it gets written off , insurer says its only worth £4k ... yet its impossible to buy the same car in the same condition for £4k ... why dont insurers pay back the actual car value or source one the same as was written off ....

Or just tell folks they can have a reduced premium becuase value wise we only ever insure it for 4/5 of its value and not the full cost.... And on a reducing value basis of course my premium should go down every year....

Feel free to chip in?

Hi Gary, if you've got a broker on side they should fight your corner with regard to getting a realistic settlement. Otherwise you're on your own against the insurer.

 

[Gkinghorn]

Who's Gary? You missed the question entirely....

 

[ChrisKnottIns]

Well the answer is that they should pay full market value. There's no reason why you should settle for 4/5, so maybe with an intermediary there to get that for you, you might have more success. If that's not your question, please enlighten me.

 

[InsideInsurance]

I think they will fall slightly this year as we continue to see the impact on changes to the conditional funding agreements starting to manifest properly and the land grab from a few players pulling down the prices of some of the slower to react types.

 

[drmw]

Well the answer is that they should pay full market value. There's no reason why you should settle for 4/5, so maybe with an intermediary there to get that for you, you might have more success. If that's not your question, please enlighten me.

I should pre-empt this post by stating quite clearly that I do not trust insurance companies (particularly those that deal with motor policies) one inch. It has to be one of the very few industries that has quite literally a captive market by law.

"Should" is too subjective a term, particularly when dealing with insurance companies, every one of which will try to get the lowest settlement in the event of a payout.

If you are saying that by taking out a policy via a broker/intermediary rather than direct you stand a better chance of achieving the best deal in the event of a claim, could you explain why that is the case?

I'm a simple person, so would you please keep the response simple?

 

[Gkinghorn]

Well the answer is that they should pay full market value. There's no reason why you should settle for 4/5, so maybe with an intermediary there to get that for you, you might have more success. If that's not your question, please enlighten me.

I simply used that to point out the kind of debate going on in another thread which discussed a member here who wasn't being offered what he considered was the right amount for his car that had been written off. I did ask on that thread for our insurance sponsors to comment but you clearly didn't read it.

Seems you only contribute when it's in your interest as opposed to being active forum members...and I don't mean that in a bad way but it seems to be the case.

Participating on the other threads especially where insurance related issues are discussed would be really good.

This was the debate in question : http://forums.mercedesclub.org.uk/showthread.php?t=127710



Sent from my SM-P605 using Tapatalk

 

[epervier]

From a GOV.UK website,

Rules in England, Wales and Scotland

The rules for insuring vehicles are called ‘continuous insurance enforcement’. They mean that if you’re the registered keeper of a vehicle it must be insured or declared as off the road (SORN).

If not, you could:
get a fixed penalty of £100
have your vehicle wheel-clamped, impounded or destroyed
face a court prosecution, with a possible maximum fine of £1,000.

1984 or what!

As stated above by dmrw how can you trust an industry that is effectively sponsored by the government with a law that ensures that they,(the insurers) get the business.

In years gone by you could have road risk only insurance, third party,third party fire and theft, and comprehensive.Now for some bizarre reason the cheaper option appears to be comprehensive cover.

In boating circles it is not a requirement of law to be insured, although foolish if you don't, that issue aside, I think the main reason boat owners insure is because,in the main, even a relatively small craft is many thousands in value, but my experience has been that insurers know that if the premiums are too high boaters don't have to pay it, so they seem to strike a happy medium with their pricing,

A personal example, my boat is insured at an agreed valuation with the insurers, in conjunction with a surveyors report every five years, if the boat is lost,stolen,or sinks they pay an agreed value to replace it, like for like,plus I could easily crash into a million pound yacht and do all sorts of expensive damage, my premium for this is £240 per annum, the agreed value is well north of £40k.

By the way, you don't even need a license to helm a boat!
ironically you need a license to call on the radio that you're on fire and sinking!

To my mind, it begs the question, why does it cost so much to insure a £10k car?

Is the answer.............................because they can?

 

[ChrisKnottIns]

I simply used that to point out the kind of debate going on in another thread which discussed a member here who wasn't being offered what he considered was the right amount for his car that had been written off. I did ask on that thread for our insurance sponsors to comment but you clearly didn't read it.

Seems you only contribute when it's in your interest as opposed to being active forum members...and I don't mean that in a bad way but it seems to be the case.

Participating on the other threads especially where insurance related issues are discussed would be really good.

This was the debate in question : http://forums.mercedesclub.org.uk/showthread.php?t=127710



Sent from my SM-P605 using Tapatalk

We didn't spot it because it's a thread in the General section. We do try to respond to relevant threads in the Insurance section though.

 

[ChrisKnottIns]

If you are saying that by taking out a policy via a broker/intermediary rather than direct you stand a better chance of achieving the best deal in the event of a claim, could you explain why that is the case?

I'm a simple person, so would you please keep the response simple?

Independent brokers are not tied to any one insurance company. They're working for you, not the insurer. They should (sorry!) get involved if you're not happy with any element of your claim. They'll fight your corner with the insurer if you're not getting anywhere. As an example, we've helped policyholders get enhanced settlements, especially because there's a relationship between us and a car club - we can call on expert, model-specific advice from within the club to support our view if an offer is too low. We have had many successes like this.

 

[Triv]

Is it Gary 'cos that's 2/3rds of Gordon? :lol:

 

[Triv]

Independent brokers are not tied to any one insurance company. They're working for you, not the insurer. They should (sorry!) get involved if you're not happy with any element of your claim. They'll fight your corner with the insurer if you're not getting anywhere. As an example, we've helped policyholders get enhanced settlements, especially because there's a relationship between us and a car club - we can call on expert, model-specific advice from within the club to support our view if an offer is too low. We have had many successes like this.

So why would a broker be able to negotiate a better payout than a client?
It can't be because the broker threatens to take his business elsewhere, he's a broker!

 

[ChrisKnottIns]

In cases where you think there's a difference we can advise you and then use our skills as another insurance professional to encourage the insurer to make a better offer.

 

[InsideInsurance]

So why would a broker be able to negotiate a better payout than a client?
It can't be because the broker threatens to take his business elsewhere, he's a broker!

Ultimately comes down to knowledge and experience rather than anything else.

To take a Home example as its easier, most mainstream home policies do not cover matching sets so if one chair of a three piece suite is damaged beyond repair the insurer is only liable for paying for that one chair even if it is impossible to buy that set anymore.

Most would, and do, get annoyed when they are told this but ultimately accept it is in the policy terms. The Financial Ombudsman Service however has historically ruled that despite the terms the insurer should contribute 50% towards replacing the remaining parts. I'd expect that a broker etc should know this and help you achieve the same settlement. You could do this yourself too but you'd need to know its a possibility.

On the flip side of cause though, some intermediaries do have profit share agreements with their insurers/ MGAs on top of sales commissions and so their pure independence and motives may not be as clear as they may profess. Having experienced these relationships from the otherside though it is often more complex than necessarily biased

 

[drmw]

Ultimately comes down to knowledge and experience rather than anything else.

The Financial Ombudsman Service however has historically ruled that despite the terms the insurer should contribute 50% towards replacing the remaining parts. I'd expect that a broker etc should know this and help you achieve the same settlement. You could do this yourself too but you'd need to know its a possibility.

On the flip side of cause though, some intermediaries do have profit share agreements with their insurers/ MGAs on top of sales commissions and so their pure independence and motives may not be as clear as they may profess. Having experienced these relationships from the otherside though it is often more complex than necessarily biased

Thank you for the information, all of which does nothing to alter my view of insurance companies - completely bereft of morals.

 

[Triv]

So from what you say re the financial ombudsman having ruled that an insurer should contribute 50% towards replacing the remaining parts of a matching set and the fact that a broker would know this, I as a lay person, now see insurance companies as acting dishonestly.
In effect, from what is written above, InsideInsurance has just confirmed to me that some, if not all, insurance companies are lying, cheating, swindling con artists.
Surely that can't be true...

 

[drmw]

So from what you say re the financial ombudsman having ruled that an insurer should contribute 50% towards replacing the remaining parts of a matching set and the fact that a broker would know this, I as a lay person, now see insurance companies as acting dishonestly.
In effect, from what is written above, InsideInsurance has just confirmed to me that some, if not all, insurance companies are lying, cheating, swindling con artists.
Surely that can't be true...

http://www.youtube.com/watch?v=hW9tq9ImRTg

 

[turbopete]

im preying mine will go down. its far too expensive as it is!