Quote:
Originally Posted by accyman
of course insurance rates are set on a whim thats why it is always better to shop around and not stay with an insurer each year because they never give any discount unless you ring back with a lower quote
if they had to stick to a price because of statistics there would be little in variation of prices between companies yet for some reason there can be up to £900 a year difference between companies
seems whimsical to me
this so called science is not science it is merely surveys which they pick out the parts they want to include so as to be able to charge extoritionate premiums and this is why they can afford to undercut each other by such huge amounts.It all depends on which company is willing to reduce their level of greed the most
they argue that 3 points for speeding makes you a greater risk where as teh other side of that argument is that somone with 3 points is going to drive a lot more carefully so as to avoid further fines and points and therefore should have cheaper insurance not extra lol
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There most definitely is an actuarial science, and insurance companies do base their rates on the tables produced by actuaries. That doesn't mean that they slavishly follow the tables to the exact tenth of a cent ... insurance companies are in the business of making money; so, they will charge what the customer is willing to pay. People choose a particular company based on more than price. Service is still important. And customers will stay with companies that give them good service. If this were not the case, then all would insure with the cheapest company.
By the way, is there any form of government insurance over there ... a couple of Canadian provinces have government insurance ... a driver must have basic insurance from the govt. ... it is included in the price of the plate ... insurance companies are, of course, opposed to this, as the provincial govt. will offer the lowest possible rate without haggling ... those who wish to have extra coverage, say, for example, a lower deductible, or, esp. in Saskatchewan, which still has quite a few gravel roads, insurance for the windsheild, can buy it from a private company.