posted 6 years ago

Car Insurance Premiums To Rise

Car insurance premiums could rise by up to ten percent.

Car insurance premiums could rise by up to ten percent, according to The Guardian. Why? Because – believe it or not – motor insurers have their own insurance to recoup the costs of exposing themselves to the public. Prices for this reinsurance could rise because of how some people are compensated for motor related injuries. In the past, insurers tended to make single payments. These were fairly easy to predict based on precedents. However, serious injury claims are now increasingly settled via regular instalments known as Periodic Payment Orders. Predicting the costs of these can be challenging. Injured motorists, after all, could live for five years or fifty. This creates uncertainty and increases the risks. As such, the reinsurance companies could raise the premiums motor insurers pay and this expense could be passed to consumers. This, of course, is on top of the recent legislation that made it illegal for motor insurers to base premiums on gender. The result is that female motorists - who have historically had cheaper car insurance than men as they are less likely to crash - now pay premiums in-line with males.

Fortunately, motorists can take steps to minimise their premiums. The starting point is to buy the right vehicles. Every model, you see, is assigned a rating from one to fifty. The lower the rating … the lower the premium. These are assigned by a Panel of Insures based on information provided by research centre Thatcham. Various factors are considered. The first is the cost of parts to repair simulated front/rear crashes at 15kph (9.3mph). This could include bumpers or headlights. Repair times are also considered as mechanics charge by the hour. As such, entry-level superminis that emerge from these light collisions could probably be repaired much cheaper than luxury saloons. Why? Because the latter are likely to have extras such as parking sensors and front fog lights. As such more parts and time - and therefore larger payouts - are required for the repairs.

Thatcham also evaluates the prices of twenty-three common components. Supermini headlights, for example, might cost very little but those for luxury saloons can be pricey. The latter might incorporate infraed beams as parts of night vision systems, after all. Thatcham also considers performance, specifically acceleration and top speed. Why? Because their statistics prove that fast cars are more likely to be involved with incidents. Security plays its part too as well protected vehicles should be hard to steal. That reduces the chances of theft related insurance claims. Features such as high security locks, alarms, immobilisers, and locking wheel nuts can therefore lower ratings. New values are also evaluated as guides to the price of replacements/repairs. Cars classified in groups one to three include the entry-level Vauxhall Corsa, Ford Ka, and Citroen C1. Premiums can also be reduced by adding experienced named drivers to policies, earning no claims discounts, moving to low crime areas and committing to small annual mileages.

I have recent experience of motor insurance company incompetence, bodyshop fraud and inflated bills being raised which inevitably lead to higher premiums for all of us. I had a no fault accident, my vehicle was repaired at a garage who had authority to self authorise work without inspection by an insurance company estimator. The bodyshop the proceeded to carry out work on the vehicle, some of which that was sub-standard. This work involved areas of the vehicle that were completely unaffected by the accident. The then raised their bill for what I consider to be double what would be reasonable. THIS IS FRAUD! I would urge all motorists to gain written notification of the work the insurance company intend to have done before you give consent. My personal experience of UK motor insurance companies is that they are managed by incompetent idiots with little regard for the customer.

We are all in it together....the 'it' being Sh*t pot Brittania!

well isint that a supprise NOT. new year more money wanted bonuses to be paid.dividends to share holders to be paid. then they will be saying bacause of the bad weather more accidents have happend and therefore more pay outs have been made.I have over 20 years no claims and consider my self a compatent driver. so if bad whether conditions are forcast i act. but the insurance companys reply when i complain is (this is priceless) there have been a lot of claims in your area. AND What the hell has that got too do with me? i take the right steps so as not to endanger any persons and get penilised for doing so. WELL MAKE THESE PEOPLE PAY NOT ME.

Will be seen as yet another excuse to justify a premium increase. Reinsurance is what its all about but ultimately the shareholders and holding companies many of whom surprise surprise are the banks in another guise together with insurance industry "names" offset potential losses by reinsuring and diversifying their financial investments. Unfortuantely no one ever seems to challenge the rights of these groups to either reduce their profits, lose some innvestments etc. in times of recession everyone should suffer proportionally but do we see sight of this? Remember the "names" bleating a few years ago that they were losing money because of large commercial claims answer you play the market you win some you lose some and dont enter the kitchen if you can't stand the heat springs to mind.