people power on insurance premiums?

[toadsRmylife]

Hi,

I've been thinking about this for some time and i'd be interested to know what others think... i don't know if anyone remembers the spitting image comedy sketch on 'the armadillo tax'? basically, it was a political joke about conservatives finding anything to tax people on and amounted to a 5% tax on Armadillos, and a new law that forces everyone to keep at least one male and one female Armadillo, thus ensuring escalating taxation. Very funny at the time.

 

I'm a police community support officer, and the other day i was talking to the local yoofs about their first forays into motoring. They told me that to insure (3rd party only) a peugeot 106 as a young driver with a clean license cost 3,000 pounds. I nearly fell over. This is what it has come to, and we are all being robbed one way or the other by insurance companies.

 

It strikes me that if having a minimum of 3rd party insurance is a legal requirement (which of course is a no-brainer). Then the cost of the minimum insurance should also be regulated by law. Insurance companies are free to refuse to insure, but 3rd party insurance should be available to anyone for £250. The sheer amount of money that is lifted from drivers every year by this uncompetitive and self serving industry is criminal. If the above was implemented, insurance companies would have to compete to sell the fully comprehensive packages, and their service would necessarily improve. Lets face it, it's not like their profits are low is it?

 

As it is, we are all at their mercy, its just not right. I speak as someone who is able to get fully comp on an average car for under £500, and the same on a ZZR1100 (motorcycle) for £120. It isn't me that's suffering, but i still recognize the bottomless greed and social injustice of it. Surely as a nation of motorist we have enough power to force a change?

[kabukiman]

It all falls down to statistics, I'm sure insurance companies would rather not insure young drivers but if they are desperate enough to pay the extortionate amounts, then why not. Insurance for the young is overpriced but for £250 would you want to be the underwriter as suggested. A compromise which could benefit both would be instead of charging 3k, charge 1k for insurance and an upfront 2k excess, this still amounts to 3k but if nothing unfortunate happens the insured gets their insurance for a thousand pounds.

[toadsRmylife]

Well... i take your point, and if insurance companies weren't making such extortionate profits i would concede. I dont know, it all just seems so unfair, and the lack of competitiveness affects all of us, not just the younger drivers. If we did a poll.... i wonder how many people would shout 'excellent service and value for money' about their insurance deal/company? In our capitalist system, we the consumers are supposed to be able to demand the best, not be over a barrel - aren't we?