i'm much lower w no claims history and younger, and the premium is maybe 20ish %+ of yours for more or less the same car. Not knowing your post code i assume its different there. but still, safe ish.
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If the rise in insurance is because of repair costs why isn’t third party cheap too?
- Thread starter Kenners
- Start date
ACarneiro
Active Member
I think when you renewed is the biggest factor, I'm due in about 6 weeks so last years price was about 25% up on the previous year, when I renew this year it'll be +50% I expect.
The reason is clear, they've allowed claims management companies to exist that massively inflate the cost of third party repairs particularly hire cars, total con. While no doubt real repairs are more expensive due to inflation and worker shortages this would be around the 10-20% mark, not possibly 50%.
ACarneiro
Active Member
Rustybkts
Member
I had an Ampera some years ago with a bad impact in the rear wheel area that took 5 months to repair.
Auxillis were given the job by the insurance company and charged well over £5000 for the car rental in fact more than the repair cost. I could have purchased a second hand car and sold it for more at the end, never mind renting a car for many thousands less.
These companies need to be regulated as its us that end up paying!
Yup, my Mrs was hit by another driver, her insurance put her in an Enterprise rental, but as soon as the claim was clearly the other parties folk they tricked her to come back into the Enterprise office and sign a new loan agreement for the appointed claims company that was 50% more. They then stretched the whole write off process out as far as possible, and tried to ignore the other parties scrap valuation and use their own figure that was £500 lower. Utter and complete crooks.
I can't say this with any certainty, but I suspect insurance costs are rising partly as a result of a changed business model. In the event of an accident, all of those additional costs (engineering assessment, legal cover, claims management) are being used to generate additional profits, either for the insurer or third parties. These additional profits are being passed into the customer via premium increases.
Repair costs have risen astronomically due to the increased costs of body parts, labour, sensors, trim and other overheads. There is a massive disparities between 'self-pay' repair quotes and prices provided by authorised repair centres to insurers.. the latter is probably a consequence of an negotiated framework/price book uplift that increases costs to insurers and therefore, the insurance policy holders.
I don't work in the trade, but someone who does can probably explain what's actually going on. There is (afaik) little regulation aimed at containing insurance costs and there may need to be a competition and markers authority investigation and/or legislation to change some of these behaviors.
Repair costs have risen astronomically due to the increased costs of body parts, labour, sensors, trim and other overheads. There is a massive disparities between 'self-pay' repair quotes and prices provided by authorised repair centres to insurers.. the latter is probably a consequence of an negotiated framework/price book uplift that increases costs to insurers and therefore, the insurance policy holders.
I don't work in the trade, but someone who does can probably explain what's actually going on. There is (afaik) little regulation aimed at containing insurance costs and there may need to be a competition and markers authority investigation and/or legislation to change some of these behaviors.
MrBadger
Badger out
This has been going on for decades, and not just insurance, but grant based schemes etc.
As an example, about 20 years ago, I had a medical procedure done privately. Originally it was going to be done as part of (iirc) Bupa package but in the end I paid myself. I got to see both Bupa and self funded costs. I can’t remember the specifics other than there was a considerable difference in cost for what was the exact same procedure, in exact same location at exact same timeframes by the exact same consultant who I happened to indirectly know so no confusion as to who did it.
Jason71
Well-Known Member
US health care has caused the opposite effect on their market. The insurance companies demand huge discounts on prices from drug companies so the drug companies inflate the list price to compensate. which is fine until you are a person paying cash then you have to pay the list price with no discount making even cheap drugs astronomical. Insulin until recently was about $100 in the US for what would cost about $12 in Canada. Crazy
MrBadger
Badger out
Is that because the US didn’t have an NHS type to have already driven down the pricing?
Jason71
Well-Known Member
I guess that would have changed things but its really just an example what happens when you have very little regulation and just "let the market decide" upto and including deciding which politicians to
They do of course have govt healthcare in the form of medicare and medicade but someone ( no doubt donated to) snuck a provision into a bill years ago that said they were not allowed to negotiate on price with the drug companies!! so they basically have to pay the list price!! and even if they didn't they aren't in direct competition with the insurance companies anyway
… which gives the lie to the whole notion of a free market! Markets are constrained, regulated… and inevitably distorted… throughout the world and most certainly within the good old US Of A! Not that I would argue for a free market anyway but some people seem to think that it actually exists.
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