Car Insurance?

Paul,

As i understand it, car insurance (or any insurance for that matter) is calculated using a reasonably complex statistical model which evaluates risk.

I presume that a 'zero cost notification' doesn't change the risk massively, but a tick in that box (which doesn't warrant further details as it's obviously a relatively minor detail which the statistical model doesn't extend to) adds a standard amount onto the premium to cover the small added risk.

The fact that something happened, however minor, means that the risk of another accident is calculated to be higher than if you'd declared no previous altercations.

Phil

Thanks Phil. I guess it's all about statistics, suppose I'm struggling to see it any way other than "some tosser drives into the back of me, it costs me £120 more a year later".

Paul

Try looking at "peart" insurance. They are one of the brokers who give good rates to porsche owners club members. Also try the www.confused.com site. The best deal for me & my boxster was with "more than", this year, although I have to admit to being a smidge older than you!
matt.

Thanks Matt, I think it'll be interesting when the time comes, we'll see just how big of a difference the "30 thing" actually makes.

Car insurance:-

Point one: beware of cover for extras including factory fit extras. Some insurers will not pay out on the valu of extras eh Admiral and related companies.

Point two: I am currently insured with Direct Line and they have been very competitive. Liverpool Victoria I have heard recommended many times.

Do not just buy on price perhaps. Policies vary, not least in terms of things like excess, provision of courtesy car etc etc. Service also counts.

We have 2 cars insured via Direct Line, and after shopping around we added our house cover too. The prices were competitive, but more importantly we have had a complex legal fees claim handled by them with exceptional efficiency and a 'no fault' car insurance claim managed with similar swiftness. They always seem to answer the phone in 2 rings, you get a helpful adviser and I cannot fault the service in any way. Very different to my experience with a travel insurance cheapie who seemed to systematically provide every possible hurdle to making a claim, or even being able to contacting them.

Bruce

Thanks Bruce. I do tend be suspicious of companies I've never heard of, but Bell Direct are AIUI part of Admiral.

What I don't understand is all these companies that seem to be the same company in disguise - I could understand if it were just a branding excersise but the idea that you can get insured through the same company at a different price depending which brand you choose to go through seems stupid (or very clever if you're the insurance company).

Paul

I used to work for one of the mass market direct insurers, or more strictly the sister company that provided the IT. They were in the process of setting up another company aimed at a different sector (higher premium, higher risk cars, probably covering your Boxster in fact) to the main one when I left them.

They also underwrite the insurance for other companies (including a bank and a supermarket), which is also fairly commonplace. Also the different companies are aimed at different demographic groups, so re-branding can make sense. Another reason is that the start up costs can be written off against tax!

Premiums
The premiums are calculated based on a large number of factors (driver gender, age, length of time licence held, number of driving convictions and time since conviction, number of insurance claims, claim value and time since claim, number of years no claims bonus (as this can be protected you could have a claim in the last year but still have full no claims bonus if it is protected), your postcode, vehicle postcode (this can be different, e.g. if you live in Liverpool and the car is kept in Cornwall, then the Cornwall address would be used that would be used for the car location), car usage (commuting, pleasure etc.), annual mileage, car make, model, engine size, car age, value of in-car entertainment, security features, market value etc. etc.). The figures used are regularly updated.

In other words they make it up as they go along!

So don't expect any quote you get now to be anything like what you will get in September.

quote:

Originally posted by seagull:
In other words they make it up as they go along!

So don't expect any quote you get now to be anything like what you will get in September.

Thanks Seagull, I'd gathered the bit about making it up!

The batch of quotes I'd been doing were just to give me a ballpark figure - if every one had come back at £2k or something silly I'd be seriously considering cancelling the car - I presume everyone does the same exercise a long time before the "main event" when looking at changing cars?

Paul

Each insurance company with have a different policy on who they insure, and hence the levels of acceptable risk to them. This will result in their premiums being different to others...

It's not made up, it can't be. It's actually calculated on a whole bunch of statistics. Not a very nice job an actuary (i wouldn't like it anyway):

http://www.beanactuary.org/about/whatis.cfm

Phil