Insurance

In the UK I believe our insurance works a little differently to the US.
I have fully comprehensive insurance that covers the car and occupants in case of an accident, it is also covered if an uninsured driver hits my car.
I also have insured no claim discount (allows 3 claims in two years without affecting premium), breakdown cover, theft from vehicle cover, glass cover, hire car, accommodation expenses and legal expense cover. All this for the equivalent of $321 per year.

John (Britprius)

 

"Works differently" is an understatement! That is a fraction of what people over here would pay for similar coverage.

 

I live out in the countryside in a small village. Living in a large town would increase the premium by about $100. Insurance cost are based on type of car you drive and your previous driving history. Young drivers "minimum age 18 in the UK are heavily loaded, so that a 1200 cc small car would probably cost in the region of £2000 ($3120) for drivers between 18 and 25 years.

John (Britprius)

 

You really should consider insurance as only for major claims. As you found, it is not worth making a claim for small damages.

In other words, if you car (or yourself) sustains several thousand $$$ worth of damage. I am also in Oregon and have the highest deductible possible.

For example, a new windshield is $200-$300 -- chip repair is $30. I am not going to pay for that coverage. If my windshield breaks, I get it fixed myself.

 

FWIW, not everyone has LARGE wads of cash laying around to cover a HIGH deductible. I do agree that one should not file a claim on a small ticket item. But not everyone can afford to lay out 1 or 2 K if they do get into a situation where they have to use their insurance.

 

Of course, but as said, if you do make a claim be prepared for rates to rise -- indeed -- even calling your agent to ask a question can cause rates to bump for some companies.

 

That is a bit of a stretch if you ask me. Insurance companies cannot raise your rate simply because you called them and asked a question. They can raise your rate if you file a claim and then do not get anything back due to deductibles. But a simple phone call asking a question is NOT a valid reason for raising a rate. If that is happening, someone is cheating you and you should get a different policy.

 

In my opinion, comprehensive and collision insurance is there to cover you if you cannot afford the loss. Same with any other type of insurance for a home, health or life. If you can afford it, there is no reason to have it. If you can easily replace the 2005 Prius if something happened to it, then I agree with having only liability on it. I made the same decision on my 2006 Civic. My 2009 Sonata is worth a bit more and therefore, I maintain full coverage on it.

Get the highest deductible available within reason. If you can't afford a $1k or $2k deductible, I'd argue you can't afford the car. Get a cheaper vehicle where you don't need full coverage.

 

You've an amazingly low premium as the average UK premium is £600.

BBC News - Car insurance prices 'falling at record rate'

I pay about £450 ($700) a year for full comprehensive with a £100 deductable/excess and protected bonus, uninsured driver and legal cover. I could get cover for £320 a year with a higher excess through a company with questionable claims service, but having been in the insurance industry in the past I'd rather go with a decent insurer.

The only time you know if your insurance is any good is when you need to claim or more likely if you have a difficult or disputed claim. If you're ever unlucky enough to have one of those, you'd be glad you paid the extra £100 per year. Any insurer will be ok for low speed car park knocks and bumps, but run someone over or injure someone and you will be glad you have a good insurer behind you!

 

This!
I know I could get bargain basement insurance for quite a bit cheaper than what I pay, but I have never had to worry about being dropped or significant rate increases for filing a claim. As long as I'm not at fault, there is never a rate increase and I'm even allowed some at-fault claims without any rate increase. My rates have fluctuated over the years (23) because of accidents, but it always comes back down after a few years and there's never been a problem filing a claim. I almost never deal with the other persons insurance company, I always go through mine and let them fight it out (my insurance co has much better lawyers and resources to make sure they get reimbursed). If the only reason I have insurance is to be legal to drive and NOT to get any real coverage, then I'd go with the cheapest available, but I've learned over the years, that you get what you pay for. I would never get insurance with a company that would raise my rates just for making a claim, without any consideration for the situation - it says something about the stability of the company itself.

I pay about $900/yr, $500 deductible, 24k mile/yr, 2 drivers for a 2010 Prius (we lost our good driver discount last year) - I also live in So Cal, so our insurance is almost twice that of most places in the US.

 

I have been paying around the same figure for some years, but find if you change company you always get a better quote. Insurance companies put there premiums up year on year for existing customers while offering new customers good deals.
I was with Morethan for a number of years but every time I changed my car the premium went up, no matter what the car. I finally changed my car from a 7 series BMW to a Nissan sunny 1 ltre you've got it my premium went up from £380 to £450. I rang them and they said that's the price. I put my details and car in there system on line as a new customer and the premium was £185.
I booked it online then rang again and informed them, the sales person on the other end told me I could not do that. I then informed them the details I had given were correct, there was no where on there site that said I could not renew that way, the system had accepted my money, and I had the certificate in my hand. Stayed with them till I changed the car after two years, premium went up, I left them.
Was with Churchill till last year and they doubled my premium for no reason, I left and am now with Hastings, premium is as in my previous post with all the extras built into the premium with a guarantee of the same premium fixed for next year. Cheaper than when I first went with Churchill.
Insurance claims have gone down over the last couple of years "mainly due to vehicle security features built in by manufacturers, and cuts in fraud" by 10% the industries own figures. Some of this saving is beginning to be past on to customers.
The insurance comparison web sites are very helpful in getting the best quotes "not the necessarily cheapest" I always stick with the well known names.
I do have a good insurance record and aim to keep it that way, but like a lot of large companies from banking to telecoms they rely on customer loyalty not switching to other suppliers. Offering discounts to new customers not looking after there existing customers. I vote with my feet, and walk away. The third paragraph from the bottom in your link states exactly this.
I do not dispute your claim of companies with poor claims handling, but how is the average customer going to know these facts. Obviously sticking to well known companies is the only rout apart from listening to others that may have been treated badly.
I also insure 4 classic cars for six months of the year as a block limited to 3000 miles. Considering the value of these cars the premium is tiny. All the cars have a set agreed individual value.

John (Britprius)

 

Saying this in the nicest way possible -- In other words, I'm not trying to be nasty, but you are wrong this time.

Quote from a large U.S. consumer newsletter about what NOT TO DO regarding insurance.

"At some insurance companies, merely calling to inquire about your policy is documented as making a claim, harming your record."

Asked my own agent about this when this became public knowledge and he said it was true. He is "required" to document and report queries. He said that sometimes he does, sometimes he doesn't....

It really did make a big splash in the news media several years ago....

 

I have USAA, and six-figure liabilities and full coverage on three cars, the oldest of which is an 06.
There's a rule of thumb out there on when you should roll the dice and drop Comp and Collision based on the real world value of the car versus what you're paying for insurance, and I know I'm close on the 06, but it's still worth five figures - so I'll keep full coverage for now.

You're probably close to being able to keep paying liability only, but it boils down to what would happen if somebody stole your car---right now.
Would you be able to replace it without going into hock for another 48 months?
How much is it worth?
How financially stable are you?
If you're driving a paid-for 05 and you're not one of these morons like I used to be that pop for a new car every 3-4 years, then you're probably not doing too bad.

My deductibles are all $1,000, and this really isn't "wads of money" and it's not just laying around.
You've heard it before.
You should have 3 months worth of expenses in the bank for emergencies, or you're going to be paying for "emergencies" with credit cards, store cards, or "90 days same as cash"
That way...if your washing machine goes TANGO-UNIFORM you don't have to sweat how you're going to pay for the new one - you already have the money.
You just have to have to common sense to put it back before the next emergency.

If you can't afford to strike a check for one kilobuck in an emergency, (hint: getting into an accident = an emergency...)then you have some spending/money management issues that seriously need addressing, and driving a car with a dent in the door is the least of the the things that you have to worry about financially.
Many many people are driving around with low deductibles with money in the bank to cover higher deductibles just because those were the coverages that were defaulted by the web site or the broker that they bought the insurance with.

 

There's a phrase I heard when I worked in car insurance years ago and it'll probably translate for our American friends;

If you can't afford comprehensive insurance, you can't afford not to.

 

You were lied to. Your rate should not go up unless you are high risk. I carry "$0" deductable. Every couple of years a have hit a dear. Totaled one car. They pay for everything. The difference in cost is not that much for me. I have had Allstate for 40 years.

SCH-I535 ? 2

 

If you say so, but I have not heard of that. Nor has any insurance company ever raised my rate simply because I called them on the phone and asked a question.

Since we are on the subject, can you post a link that supports your statement?

It would not be the first time I was wrong. I can't walk on water. Those that can know where the rocks are, except for the one. Anyway, I would love to see a link to a document that supports your statement.

 

Ok, I digress. It does appear that "certain" (meaning not ALL) companies do this. What they are doing is considering a inquiry the same as a claim. However in the real world a "claim" and a inquiry is two different things. IMO, if you are dealing with a company that does this sort of thing my advice would be to change companies. There is a old saying, you get what you pay for. Just because it is cheap does not always mean it is the best. Nuff said.

Can Query Phone Call to Company Hotline Raise Insurance Rate, Premium ... - AARP

 

Haha, thats a good phrase. Hilarious. Thanks for the laugh this morning. Straight out of the lion's den.