Safe Speed Forums

By definition you can't assess profitability on individual policies, as insurers have to pool them together. They will make a profit on most policies, but a massive loss on a minority.

Car insurance as a whole isn't a particularly profitable business and if you were to have greater government regulation it would tend to lead to higher prices on average.

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"Show me someone who says that they have never exceeded a speed limit, and I'll show you a liar, or a menace." (Austin Williams - Director, Transport Research Group)

Any views expressed in this post are personal opinions and may not represent the views of Safe Speed

I've often heard that said, and yet I'm constantly surprised at the number (and variety!) of companies offering it! I'm currently with Autotrader (!) They never used t do insurance! Even Tesco are at it! It makes me think it can't be SUCH a bad business to be in!

If my reading of the financial press is correct the motor insurance sector has made a loss (i.e cost of claims > income from premiums) every year this century. Which makes one wonder why the insurers continue not only to offer policies but to actively compete with one another for this loss making business

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When I see an adult on a bicycle, I do not despair for the future of the human race. H.G. Wells
When I see a youth in a motor car I do d.c.brown

Mind you, judging by the quotes I get these days, it must be a pretty damned competitive industry, which must hold margins down. The market working as it should.

Yeah, but it doesn't seem to stop the world and its wife offering insurance! I'm completely bemused(.com) at the idea that ever increasing numbers of companies should be falling over themselves to get a piece of this (allegedly) loss-making business!

We too have some niche operators in the motor insurance business. My normal insurer for vehicles and my residence (but not my investments) has two main subsidiaries; one specialises in difficult cases such as modified vehicles, "Grey" imports etc and the other in "Pensioners" defined as over 55 and working less than 20 hours per week. Examination of Co records revealed the connection.

Hence it is quite likely that if you dig below the facade that these niche providers eg supermarkets are underwritten by big name insurance companies who make a saving by not having front offices with the retail outlet benefitting from the add on product but with little or no in house insurance expertise or overheads. It is wise to check out their real behaviour when dealing with claims.

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The only thing that should be prohibited is prohibition.

Perhaps the governemt is making it worth there while?

http://www.infowars.com/hawaiians-may-n ... s-in-2010/

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"The road to a police state is paved with public safety legislation"

Take me for example. First year, provisional licence, no experience as a named driver: €450 on top of the mothers insurance of €300
Second year, Full licence (plus 10months of back pay for having the full but paid for provisional), years experience, 0 points, mothers €300, me €500.
This year (as of yet unpaid, haven't driven in 2 weeks because of it, out of insurance a week now), Full licence, no collisions, 0 points, going to be 21 at end of the month, mothers €30, me €1000.

Can someone please explain how my insurance doubled this year despite no claims, an extra years experience and turning 21 (all this on a 1litre corsa).

Because with a full licence you can drive unsupervised with a car full of friends encouraging you to go faster. (Note I didn't say that you will do that )

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When I see an adult on a bicycle, I do not despair for the future of the human race. H.G. Wells
When I see a youth in a motor car I do d.c.brown

dcbwhaley, I keep hearing in the financial press how badly the insurance industry is doing yet thier annual company reports seem to paint a very different picture. Maybe this crying wolf about how bad of the industry is maybe why some are sceptical of these claims.

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Gordon Brown saying I got the country into it's current economic mess so I'll get us out of it is the same as Bomber Harris nipping over to Dresden and offering to repair a few windows.

Chaos, panic and disorder - my work here is done.

http://www.wildcrafts.co.uk

Most Insurance companies make a loss on premiums/cost of claims but their profits are made on the investment returns. Premiums are invested and the longer they are invested the better the returns so it is in the insurers interest to delay payouts. Insurance companies usually have vast financial holdings and are a valuable source of capital.

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The only thing that should be prohibited is prohibition.

Have that a year and a half so could of been doing it for a good while. Although in a 1ltr its not really an option!