General Insurance points
Hi guys flicking through the post here there are some recurring theme's that I figured I'd try and address.
1 Try X-brand insurance they were cheap for me!!!
No one company is going to be the cheapest for everyone. Different companies target different area's. This is why the major insurance groups have multiple brands. No two insurance companies have the same experiences and this is the main thing involved in pricing a policy, hence if they want to aim at a new or different sector of the market, they are more likely to launch a new brand than risk known business.
2 My no claims is worth?
Not alot is the honest answer here, since the advent of protected no claims bonus and more recently guaranteed no claims bonus, the amount NCB is worth has deminished. Besides we've all seen adverts for 75% ncb, the question to ask is 75% of what!!!!. Pricing a policy is a complex array of maths, which is hidden from most employees of insurance companies ie the people who email or answer the phone. This process starts with a base rate, this is set by the company based on incoming premium and outgoing claims, this is where everyone's quote starts, the next thing applied is the ncb , than the personal factors.... so it would look like this..
Base -less 75%(ncb) x 2.5%(post code) -1.5% (years clean lic held) x 4.5% choiced of car -1% (occupation) x7% (recent claim) *10 (young driver) and so on there are many many factors looked at... As you can see the chain get silly, ut thats a basic example.
3. Modifications/Optional extras
Basicly these are anything that deviates from the standard specification, be it upgraded wheels, metallic paint or a full engine remap. You are better off declaring them, the insurance industry is a cut throat business with a very low profit margin (contrary to what you may think, most companies make little on the policies thats why they keep offering extra's everytime you call), alot of companies will look for any reason to repudiate a claim. I'm lucky the company I work for will usually, provided our underwriting conditions are not breeched will update details and bill the difference rather than reject a claim, others will simply reject the claim leaving you in no mans land and carless. Btw if you do not disclose something, they may be entitled to keep any premium paid even if they offer no further cover.
4. Try Money supermarket/go compare/etc
Some of the quote process is bypassed for simplicity and to weight the quotes, certain assumptions are made eg level of excess, ncb protection and how you pay for the policy. When they send the info for quotes they basically want the best price so that you buy through them and they get the commision/advert allowance.
5. The devil is in the details....
Check what you get as part of the policy, eg courtesy car, euro travel, what the excess is. It's very easy to focus on price but if a claim happens , what if you've not got what you assume you have.e'g driving other cars, this is a massive issue at present and there is a huge police clampdown. What if you assume it's there and you take a family members car out only to be pulled over by the police, they check the database find no listed policy and seize the car, you take your certificate along to recover it and pay the release fee only to discover that your policy does not cover it and you now face prosecution for no insurance making it difficult to get further policies when your ban is up.
Before you ask I cant at this stage reveal who I work for....