Do you think that it is fair?

When you get points on your license which after three years are removed, and a clean license issued if you wish, but insurance companies carry them on for a further 2 years so although not being penalised by the legal system,you are by the insurance companies by increases in premium for a further 2 years?

[DarrenSV650S]

Yes

[Bibio]

but its a clean licence how can they do that. i know by law that have to keep records for 5 years but if there are no points there are no points. so in the event of an accident you have a clean licence by law.

[DarrenSV650S]

No!

Sorry, I meant no

[maviczap]

Yes because you are an evil speeder



I'm only joking, not fair in my book

Cynical Mode On : "It`s just another way for them to bend you over and get 2 more years worth of money from you"

They are providing the insurance cover, they are hedging their bets in doing so, and they are setting the price, so they can take an indication of an increase in their risks, such as a speeding conviction, and make it valid to their policy for as long as they like. They could put it at 10 years and give really low cost policies to those people who have ten years with a clean license, but everyone with points would buy their insurance somewhere else. It's no different to Sheila's wheels dealing only with women, Saga dealing only with over 50's, and other insurers saying we only insure people with 4 years no claims. The insurance company could reduce it to the three years, but your annual policy would have to go up. It's all a financial calculation, fair doesn't come into it.

Originally Posted by -Ralph-

It's all a financial calculation, fair doesn't come into it.

Financial calculation? - er no. They will rip you off for as much as they can. There's calculation involved certainly, but it's not financial calculation IMHO

Fair doesn't come into it - er yes. I agree with you there.

Originally Posted by Ed

Financial calculation? - er no. They will rip you off for as much as they can. There's calculation involved certainly, but it's not financial calculation IMHO

Fair doesn't come into it - er yes. I agree with you there.

It may feel that way for a consumer, but a good friend of mine used to work as the Financial Controller for Royal Sun Alliance (Esure, etc), he would disagree with you.

Motor insurance is a highly competitive marketplace and the insurers are working on margins of only a few percent. There is no such thing brand loyalty and very little competitive advantage as a result of having a "better" product. People will buy motor insurance from the insurer that gives them the cheapest quote, and is a provider that they believe to be reputable, it is as simple as that. If you are already a "reputable" brand, then the business model is all about price.

You may argue that they are not 'ethical' at times, but they are operating in that manner because they are forced to reduce cost or go bust. They work on a business model where they sell at a price, but have unpredictable costs. I have customers who do nothing but re-insurance, underwriting the underwriters, in case they get a really big claim that bankrupts them. If the competitor takes 5 years convictions into account and manages to reduce their premiums accordingly, then all the competitors must do the same as they cannot afford to be more expensive. The likes of confused.com has really changed the market.

Running a motor insurance business is nothing but financial calculations, unfortunately the conclusion from those calculations is sometimes "we have to screw the customer".

[CheGuevara]

Originally Posted by -Ralph-

There is no such thing brand loyalty and very little competitive advantage as a result of having a "better" product. People will buy motor insurance from the insurer that gives them the cheapest quote, and is a provider that they believe to be reputable, it is as simple as that.

-1 on this.

I despise having to shop around for a new insurer each year. Unfortunately they seem to give you a great introductory rate, then jack it up in the subsequent years - presumably either hoping that you're not going to notice, or assuming that you'll be moving elsewhere anyhow.

I have a flawless driving record, I'm nearly 40, and I drive a slow vehicle. This year I spent nearly 3 days searching for a better rate as my insurer nearly doubled my rate for renewal. I had one company quote me £1000 to drive a 16yo low-powered SUV <10k miles in a year!

I have better things to do with my time than entering details on endless comparison sites and making countless phonecalls. Back home we had a crown-corp mandatory (for 3rd party) insurance company. Everyone complained about the monopoly, but I'd be thrilled to have it here as it was (by far) cheaper on average, less hassle, clearer, and more consistently fair.