<!--quoteo(post=228212:date=Thu 15th Dec 2011, 07:22 PM:name=Studley Ramrod)-->QUOTE(Studley Ramrod @ Thu 15th Dec 2011, 07:22 PM) <{POST_SNAPBACK}><!--quotec-->The OFT have recently set up an inquiry, through the FSA, looking into why premiums have risen by over 20% in the past 2 yrs.
Don't hold yer breath, but ya never know !<!--QuoteEnd--><!--QuoteEEnd-->
Its a bit late !
Accident management companies and referral fees are the problem. Encouraging and pretty much forcing people into making claims for personal injuries and credit hire. Below is some info on and what they charge.
Personal Injury - Nowadays you can claim for almost anything, Got a stiff neck for a day after an accident? you can claim for that, and if you lie a little and say its causing you more pain than it is you can get a significant amount of money. I believe the average PI claim in the UK is £1500 with £800 Solicitors fees.
This is one of the problems, the amount that solicitors charge is extortionate in the uk, in Germany for example the average solicitor fee is £300 per PI claim.
Credit hire doesn't help either. Because, if your involved in a none fault incident, you have the right to claim a like-for-like vehicle from the third party. Any solicitor, accident management company or insurer will refer you to credit hire.
The only good thing I can say on this is that the Big insurance companies have Bi-Lateral agreements between them which means the policy holder will get a Like-for-like car but its charged at the amount it actually costs to hire. So, the actual cost to Hire a 2L Mondeo would be about £35 a day, a Credit hire for a 2L Mondeo would be anything from £60 to £100 a day. so whatever you do don't reverse into a Porsche like my dad did the other day ! DOH !!
The above regarding Bi-Lat's wont apply if your policy is through Budget, Post office, RAC, Swinton, and many other brokers. These companies will take details of your accident on the first call, transfer you to a company called drive assist (accident management) who tell you that you cant have you car repaired unless you get one of their credit hire cars, then pass you on to your insurance company who have no idea that you've just been on the phone for an hour, have no details of your accident and have to take everything to log it.
If you have a small car or aren't bothered about being in a 3 door hatch for a week or two. Try getting the number of your insurance company and ringing them directly, trust me, you'll save yourself a lot of hassle.
keep your eyes open as their should be an announcement soon in the news regarding the banning of Referral fees, no doubt they will find a way around it but it may put some accident management companies out of business.
Now i understand that was an awful lot of information and if you chose not to read it i don't blame you, but for some i hope it was interesting.
and trust me, I've got plenty more insider information than that [img]style_emoticons/<#EMO_DIR#>/biggrin.gif[/img]
The reason your renewal will be higher is someone in your postcode will likely have had made a claim on their insurance in the last year and as your in an area with a higher risk, you now have to pay more. Its a harsh reality, but that's how insurance companies manage Risk I'm afraid.
Don't hold yer breath, but ya never know !<!--QuoteEnd--><!--QuoteEEnd-->
Its a bit late !
Accident management companies and referral fees are the problem. Encouraging and pretty much forcing people into making claims for personal injuries and credit hire. Below is some info on and what they charge.
Personal Injury - Nowadays you can claim for almost anything, Got a stiff neck for a day after an accident? you can claim for that, and if you lie a little and say its causing you more pain than it is you can get a significant amount of money. I believe the average PI claim in the UK is £1500 with £800 Solicitors fees.
This is one of the problems, the amount that solicitors charge is extortionate in the uk, in Germany for example the average solicitor fee is £300 per PI claim.
Credit hire doesn't help either. Because, if your involved in a none fault incident, you have the right to claim a like-for-like vehicle from the third party. Any solicitor, accident management company or insurer will refer you to credit hire.
The only good thing I can say on this is that the Big insurance companies have Bi-Lateral agreements between them which means the policy holder will get a Like-for-like car but its charged at the amount it actually costs to hire. So, the actual cost to Hire a 2L Mondeo would be about £35 a day, a Credit hire for a 2L Mondeo would be anything from £60 to £100 a day. so whatever you do don't reverse into a Porsche like my dad did the other day ! DOH !!
The above regarding Bi-Lat's wont apply if your policy is through Budget, Post office, RAC, Swinton, and many other brokers. These companies will take details of your accident on the first call, transfer you to a company called drive assist (accident management) who tell you that you cant have you car repaired unless you get one of their credit hire cars, then pass you on to your insurance company who have no idea that you've just been on the phone for an hour, have no details of your accident and have to take everything to log it.
If you have a small car or aren't bothered about being in a 3 door hatch for a week or two. Try getting the number of your insurance company and ringing them directly, trust me, you'll save yourself a lot of hassle.
keep your eyes open as their should be an announcement soon in the news regarding the banning of Referral fees, no doubt they will find a way around it but it may put some accident management companies out of business.
Now i understand that was an awful lot of information and if you chose not to read it i don't blame you, but for some i hope it was interesting.
and trust me, I've got plenty more insider information than that [img]style_emoticons/<#EMO_DIR#>/biggrin.gif[/img]
The reason your renewal will be higher is someone in your postcode will likely have had made a claim on their insurance in the last year and as your in an area with a higher risk, you now have to pay more. Its a harsh reality, but that's how insurance companies manage Risk I'm afraid.