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Motor Insurance to rise from 5% & upwards


CookieMonster

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Joined
Feb 19, 2005
Messages
34,801
I've been saying this for ages.
 

CookieMonster

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Feb 19, 2005
Messages
34,801
Let us introduce something along the lines of the ballpark model.
Let us introduce flogging for every moron who claims a soft tissue injury after a bump in a car park.
 
B

birthday

What evidence is there to simply write this down as corporate greed without any background analysis of the industry. It may be excessive profiteering but where is the analysis?
Have the insurance companies rewarded their workers with pay rises for instance?
Has the overall profitability increased?
Have claims increased?
Interest rates are low this environment tends to increase insurance costs.
 

seanmacc

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Joined
Jan 10, 2009
Messages
1,022
The insurance companies rely on making profits from investments on the cash they get from premiums rather than premiums alone. Downward trend in property + billions being wiped off share values this year= less profits from investments. I believe they are moving into government bonds more so now.
 

CookieMonster

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Joined
Feb 19, 2005
Messages
34,801
What evidence is there to simply write this down as corporate greed without any background analysis of the industry. It may be excessive profiteering but where is the analysis?
Have the insurance companies rewarded their workers with pay rises for instance?
Has the overall profitability increased?
Have claims increased?
Interest rates are low this environment tends to increase insurance costs.
There are a number of issues.

*In order to be competitive the cost of premiums was kept low.
*The cost of claims increased. It's a lot more expensive to replace the bumper on a 5 series BMW (and even more so if you insist on using a BMW Garage) than it is to replace the bumper on a 5 year old Toyota Avensis. There were a lot more BMW drivers out there in the last few years.
*More injury claims. While PIAB (or whatever they call themselves now) has gone someway to lower the cost of an injury claim the fact that there are more than there used to be doesn't negate the costs involved.

The above issues along with the stock market woes have left Insurance companies with insufficient reserves to deal with their risk and as such they have to increase those reserves. The easiest way to do that is increase premiums. This situation is not down to imprudence or greed, it's simply a market situation that needs to be addressed.

Having sufficient reserves is in the interest of the customer, as when it does come to dealing with a claim, either for or against you, there is enough there to cover it.
 

crocked

Active member
Joined
Jun 25, 2008
Messages
171
The above issues along with the stock market woes have left Insurance companies with insufficient reserves to deal with their risk and as such they have to increase those reserves. The easiest way to do that is increase premiums. This situation is not down to imprudence or greed, it's simply a market situation that needs to be addressed.

Having sufficient reserves is in the interest of the customer, as when it does come to dealing with a claim, either for or against you, there is enough there to cover it.
Was it not insurance companies greed, that got them involved in the stock markets in the first place?

To make more profit!!! :mad:
 

thebarfly1

New member
Joined
May 21, 2008
Messages
4
5%?!! Yeah, and the rest!
I just renewed my insurance, which in 12 months has risen from €430 to €595! Despite having no claims, an extra yrs NCB and the same car (the resale value on which has decreased by a massive 40% due to the economic difficulties!)

And just to make it clear, thats the price i got after phoning a LOT of companies and haggling the cheapest one down from €700... (the previous years price was straight off a website with no haggling etc) Absolutely crazy. The feckers must be price fixing. Every company i tried were coming in at between 40 and 60% higher than their respective quotes from last year...
 

CookieMonster

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Feb 19, 2005
Messages
34,801
Was it not insurance companies greed, that got them involved in the stock markets in the first place?

To make more profit!!! :mad:
They have always been involved in investments in some way or another. They do it to lower premiums for their customers, which are based on the risk they pose and their reserve levels.

In part their recent worries have been because they needed to compete with rogue insurance companies who were taking on dangerous levels of risk without reserving correctly.
 

Akrasia

Well-known member
Joined
Oct 6, 2006
Messages
1,128
5%?!! Yeah, and the rest!
I just renewed my insurance, which in 12 months has risen from €430 to €595! Despite having no claims, an extra yrs NCB and the same car (the resale value on which has decreased by a massive 40% due to the economic difficulties!)

And just to make it clear, thats the price i got after phoning a LOT of companies and haggling the cheapest one down from €700... (the previous years price was straight off a website with no haggling etc) Absolutely crazy. The feckers must be price fixing. Every company i tried were coming in at between 40 and 60% higher than their respective quotes from last year...
I've had basically the exact same experience (although in fairness, this year I do get 24 hour breakdown cover which I didn't have with the same company last year)

The reasons for the increases are 2 fold.
1. losses from investments need to be covered
2. Increased fraudulant claims as people try to get out of ill advised car loan deals with their credit rating intact The number of cars catching fire has increased massively (despite our wet miserable weather)
 

Victor Meldrew

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Joined
Jun 8, 2007
Messages
7,184
Just got my policy under 400€ , which makes me officially an old git.
This is pure
Stock market collapse clawback.
 

dub14

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Joined
Oct 27, 2008
Messages
1,238
I've had basically the exact same experience (although in fairness, this year I do get 24 hour breakdown cover which I didn't have with the same company last year)

The reasons for the increases are 2 fold.
1. losses from investments need to be covered
2. Increased fraudulant claims as people try to get out of ill advised car loan deals with their credit rating intact The number of cars catching fire has increased massively (despite our wet miserable weather)
Can I buck the trend then and say that my existing company came in at 458 (a month ago). I shopped around using 123dotie and insuredotie and got it down to 396. Rang my existing company and offered them the deal at 396 - they offered 410 so I said goodbye and left them. No point in threatening to leave if you don't carry through.
 

hammer

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Joined
Jul 6, 2009
Messages
58,514
This will result in more uninsured cars driving around and a further collapse ( if possible ) in the motor trade as couples less the 2nd car.

Does anyone have the old PD poster - What we have achieved - " Cheaper Car Insurance"
maybe the insurance companies waited for the PD`s to fold !!!!!!!!!!!!!!!!!!!!!!!!!!!
 

beanie

Moderator
Joined
Sep 22, 2009
Messages
1,336
Can I buck the trend then and say that my existing company came in at 458 (a month ago). I shopped around using 123dotie and insuredotie and got it down to 396. Rang my existing company and offered them the deal at 396 - they offered 410 so I said goodbye and left them. No point in threatening to leave if you don't carry through.
Even if they matched it I'd have left anyway because of the fact that they were trying to fleece me in the first quote.
 

CookieMonster

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Feb 19, 2005
Messages
34,801
This will result in more uninsured cars driving around and a further collapse ( if possible ) in the motor trade as couples less the 2nd car.
There are, as such, no uninsured drivers in Ireland. The third party damage caused will either by covered by the insurer concerned or if none exists then by the MIBI.

Either way the Insurance company pays so it's not in their interests to cause an increase of uninsured drivers on the roads.
 
Joined
Sep 10, 2008
Messages
3,584
My fully comp policy is €305 per year for me and the wife.

What I dont understand is how a friend of mine who is still yet to pass their test and has failed 3 driving tests and has been stopped by the gardai on several occasions for having no road tax can still get away with no fines for driving without a qualified driver and has insurance costs at only €400 per year despite having 3 accidents/claims in the last 4 years!

Not to mention 6 years ago they had another accident with another learner driver and claimed €18,000 in claims for injurys!




.




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Joined
Jan 31, 2009
Messages
25
Proerly managed general insurance companies do not have much money invested in the stock market. Most of it is in hi grade corporate and govt bonds and cash where interest rate have collapsed so investment income will drop. Cookie is right as well, accident costs and frequency are going up (more fires) o the cost of claims is going up.
 

CookieMonster

Well-known member
Joined
Feb 19, 2005
Messages
34,801
The fires thing is gas... excuse the pun.

It wasn't such a big issue when I left insurance as it is now. But you had some very strange incidences in which cars went on fire.

They claims where the fire didn't quite render the car BER but where cover didn't exist were the best... "I'm sorry but you're not covered.... you idiot"
 
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