The Car insurance industry may be often described as a rip-off, an out of control industry or unregulated by no matter how motorists describe this industry, the fact still remains that they have to endure the exorbitant premiums being set by their insurance companies.
As based on the recent BBC program, Rip Off Britain, car insurance companies seem to competing against giving the highest premiums. And unlike the old times wherein a motorists would only be required to pay for a cover that is based on the car value, horse power and number of years that the drivers hasn’t made a claim; motorists have to endure more factors now that they ever had. Nowadays, a motorist’s car insurance premium needs to be based on annual mileage, car parking location, address, security and safety systems, age, gender, modifications, continual travel, coverage excess, no-claims protection bonus, legal fees and much more. Based on the legion of factors that car insurance companies seem to take into consideration, it seems that car insurance companies have introduced these factors in the name of added profit instead of added protection. If this were the case, then it seems like motorists are paying insurance to support and protect insurance.
With these factors, motorists just can’t help but ask questions. Like, why should annual mileage figures be noted down when there has been no reduction? As for a driver’s postcode, why don’t drivers get a reduction when they are from a bad postcode but park their car in a good area? As for age, it shouldn’t be considered as a factor because it is discriminating. Using gender as a car insurance factor has just proven that point recently when the European Court of Justice banned insurers from using gender as a factor in assessing a driver’s premium.
Insurers can often be misleading. Whilst most insurers, in our first year, would promise us to receive the whole amount for a replacement, car prices drop by almost 50% in a year whilst car insurance costs rise continually. And still, these factors are never taken into account. With the knowledge also that in the event of a write off, insurance providers would only pay market value. In effect, the whole operation is just a rip-off. Hopefully, with the event of the new car insurance summit headed by Prime Minister David Cameron, things will start to change in the car insurance industry and motorists can, once again, enjoy the nostalgic car insurance premiums they once used to have.
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