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Insider experience with car insurance, anyone?

Discussion in 'off topic' started by Vinny, Sep 26, 2018.

  1. Snufkin

    Snufkin pfm Member

    I think what you are saying is that we get the insurance climate that we deserve. My limited dealings with insurance companies have not been that positive I am afraid, they seem slippery and less than honest. However the population of the UK is generally short sighted and a little economic with the truth when dealing with insurance companies so its all a bit 'chicken and egg'. Perhaps motor vehicle insurance should be nationalised and attached to the vehicle, not the driver.
  2. SteveS1

    SteveS1 I heard that, pardon?

    The risks are with the driver, not the vehicle.

    But we do tend to get the insurance we deserve which is unfortunate but we have to take responsibility for it. We want most of all cheap premiums and this works because only a minority have accidents so consideration beyond price is low. Too many of us inflate or even invent claims, no accident is ever anyone's fault, my car is always worth more - yours is worth nothing and so on...... all part of the claims experience.
  3. dweezil

    dweezil pfm Member

    Not quite clear on the details but you're claiming either from First Direct who run a very tight business and would hate to pay too much, the premium should have reflected this,

    or from the ABI fund which is duty bound to make a well justified low contribution; low but a lot better than if you had to rely on finding the other driver.

    You'll never make a fortune providing high quality car insurance, some years it's a dismal experience.
  4. SteveS1

    SteveS1 I heard that, pardon?

    That's correct. There is lots of money in distribution and sales of products, but providing the cover loses money more years than it makes. The constant turnover of Insurance providers hides this and it is also offset to some extent by other products and services provided to motor insurance customers.

    People come into the market when premium increases are back up at realistic levels, that increases competition so premiums reduce down as a result and some lose their shirts - it's always been this way and I see no sign of it changing.
  5. The Far North

    The Far North pfm Member

    Before going to the small claims court, have you tried asking them to source a replacement vehicle of the same age and condition? Probably won't happen, but it would be another string to your claim if you can show you were only being reasonable about it.
    Millennium likes this.
  6. zippy

    zippy pfm Member

    Works both ways though - a few years back a car ran into the back of mine. I came to an agreement with the insurance company that they'd write off the car as 'not worth repairing' although still roadworthy. They also let me keep the car.
    I was able to patch up the car myself for much less than the write-off value, and sell it for a substantial profit.
  7. richgilb

    richgilb Admonishtrator

    Unless its brake lights are not working?
  8. JensenHealey

    JensenHealey pfm Member

    Possibly - but even so an alert driver should mitigate this by being both a correct distance away and observing that the object in front is getting larger!
  9. Vinny

    Vinny pfm Member

    I have done that at least once in the past, Zippy, over 20 years ago though. Not so easy today due to changes to stop ringing (passing-off stolen cars using paperwork for salvaged write-offs).

    A double-edged sword...……….. If they did supply a replacement, I'd be stuck with a car that I did not want which was worth even less via private sale, or just a bit more than that as a trade-in for another car that I did not want.
  10. gintonic

    gintonic 50 shades of grey pussy cats

    very true

    Not always - I was in lane 1 of a dual carriage road, came up to a vehicle in front of me, pulled out to overtake in good time, maintaining good braking distance. But the vehicle I was overtaking, pulled out sharply in front of me and slammed on their brakes - all without warning, At 60mph (my dash cam told me that), I managed to brake enough to get down to about 20mph when I hit the other vehicle in the back. The road was clear, no traffic, no animals, no pedestrians, no fault with the vehicle.
  11. Cav

    Cav pfm Member

    That was the circumstance then. No need to be coy about it. Crash for cash?
  12. TPA

    TPA Trade: Tiger Paw

    The problem with insurance seems to be that there is a culture of scam - whether it be from trying to cheat the policy holder by offering inadequate compensation, or (trying) to force owners to have their car repaired at poor quality bodyshops, through to renewal hikes that are uncompetitive and prey on those who reward them with loyalty.
  13. stevec67

    stevec67 pfm Member

    I only had one car written off, after it was stolen. It was knackered but the insurers still gave me £1800. I'd hoped for, and asked for, 1500 and would have accepted 1000. They are just businesses, deal with them as you would any other.
  14. Seeker_UK

    Seeker_UK Waiting for the streetcar..

    The "culture of scam" includes policy holders too. There just seems to be an inherent mutual lack of trust between insurer and customers now. Perhaps if they had more humans involved in insurance as opposed to 'computer says no', it might make for a slightly better situation.
    MikeMA likes this.
  15. steve watkins

    steve watkins pfm Member

    Hi Steve,
    I can understand them paying you money to avoid them coming off worst, they wouldn't have stood a chance! but from what I have seen and experienced over the years I'm not sure it is that simple for most.
    It is all far from simple to my eyes.
    People might stand a chance if the industry did not already have them by the short and curlies.
    Any negotiating power you have is much reduced because you need your vehicle. Even if you can afford to replace it independently of any insurance company you may not be able to reinstate or obtain insurance until any claim is settled.
    Coupled with a very slow ( having to wait 12 weeks? before any complaint can be assessed ) Ombudsman system that appears primarily staffed but people from the insurance industry who have a "That is how the industry works" rather than "No that is not what some one paid for or it has been demonstrated that the vehicle was in such condition and could not be replaced/repaired for the sum being offered. Which is presumably what insurance is for, to leave you in the same position as you were before, no better no worse.
    It also appears that without added extra cost legal cover it is nearly impossible to actually used the insurance you have paid for because they will not fight for you.
    They hold all the major cards Your vehicle, your time, your money and your ability to obtain insurance going forward and an Ombudsman that does a Bruce Hornsby on people and says "That is the way it is"
    Whatever the complexities of the industry and it is undoubtedly complex and motor insurance perhaps especially so but as far as I am concerned until it has a major overhaul, some clearly defined unambiguous base standards, genuine competition for the consumer and a robust and rapid conciliation system, it sucks and will continue to deserve the contempt heaped upon it.
    There is no way it should be as difficult as it is and any infighting about who should pay what should be kept within the industry and not allowed to spill over onto the consumer who funds it all and rarely gets value for money.
    There has to be a major problem with an industry that allows offers of peanuts to the insured and then sells the vehicle on for more than they have paid out and they have still pocketed the money paid for the insurance.
    I know it is a business but it has missed what should be its primary function and funds itself by depriving those that have paid for a service because they do not have the resources or recourse to fight back.
    As for there is no money in it. I know people that have made millions underwriting They may have lost a bit when a tide turned but the good years make that worth a little pain.
    There has to be a better way.
  16. Vinny

    Vinny pfm Member

    Update - I went through the total nonsense of the Ombudsman and then issued Small Claims proceedings against Direct Line before Christmas and they have not replied. IN THEORY, I just need to get judgment in my favour and then get the money. If they still don't pay, I use bailiffs - I've done that before too.

    Next PITA - Royal Mail stopped a small parcel from the US before Christmas and charged me import duty and handling costs of £16. They have not delivered the parcel. They are offering to refund the charges, but insist that the sender has to claim in the US under Universal Postal Union rules AAAAAAAARRRRRRRRRGGGGGHHHHHHHHHH.
    The carrier in the US was UPS so may not come under UPU rules. The entire world seems totally insane at times like these - the Royal Mail lost it FFS.
  17. Rug Doc

    Rug Doc pfm Member

    Gap insurance...

    I bet the person that thought that up over their breakfast cereal has made both themselves and the insurers millions..

    But what a con. You pay for insurance, then pay additional insurance for insurance claim shortfall. Which in turn gives the insurer a valid excuse to shortfall in the first place. Genius.

    What’s next I wonder?
    Snufkin, Tony Lockhart and doctorf like this.
  18. Tony Lockhart

    Tony Lockhart pfm Member

    Extended warranty for £25 on a £30 item from certain large retailers?
  19. gintonic

    gintonic 50 shades of grey pussy cats

    no it pays for the gap between the value of the car and the remaining finance you are contracted for.

    It works, I was hit in a 1 year old AMG SLK years ago.
    Car valued accurately at 54k, and the 3rd party insurance co paid that. But my finance contract meant I owed another 18k to close out the contract early. Gap insurance covered the difference, I walked away owing nothing and free to start another contract.
    Tony Lockhart and Rug Doc like this.
  20. stevec67

    stevec67 pfm Member

    Gap insurance is very worthwhile with lease cars too, for similar reasons. More and more people are leasing these days.
    doctorf likes this.

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