Why does bhp effect your quote? (one for Rum?)
11 February 2002, 03:02 PM
#1
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Just phoned my insurance company and I've been wondering why the bhp of your car effects the insurance premium if I havn't made any external mods (which I assume makes it more nickable).
I thought the bulk of the insurance premium on cars were from nickability. Surely if I own a powerfull car making it (a little) more powerfull wont effect the likelyhood of a crash. Is it a case of I'm modding it therefor I'm morelikely to drive like a maniac and crash.
subquestion : Whats the spread on the premium?
20% My crash 30% into other ppl 50% theft?
I thought the bulk of the insurance premium on cars were from nickability. Surely if I own a powerfull car making it (a little) more powerfull wont effect the likelyhood of a crash. Is it a case of I'm modding it therefor I'm morelikely to drive like a maniac and crash.
subquestion : Whats the spread on the premium?
20% My crash 30% into other ppl 50% theft?
12 February 2002, 02:37 AM
#2
If the car (with whatever mods) gets nicked, they're looking at a sub 20 grand payout.
If, however, you hit and injure a third party (or group of them at a bus stop), they're looking at an exceedingly bigger payout.
More power = more risk
12 February 2002, 08:18 AM
#3
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As our society becomes more Americanised every incident has to be compensated with cash (OK there many exceptions where this should be the case).
I think these days insurance companies pay out more in compensation and paying hospital costs for injured parties than they do for repairing vehicles involved in the accident, or at least it is moving in that direction anyway.
In theory a passenger in a vehicle driven by you could sue you for damages if you are found at fault for the injuries that they suffer in an accident.
I think these days insurance companies pay out more in compensation and paying hospital costs for injured parties than they do for repairing vehicles involved in the accident, or at least it is moving in that direction anyway.
In theory a passenger in a vehicle driven by you could sue you for damages if you are found at fault for the injuries that they suffer in an accident.
12 February 2002, 11:03 AM
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Dizzy,
Stu and Nigel are right !
Insurers see the additional power/performance as an additional risk.
To the average driver - a car with an output that is higher than it is designed give is considered more likely to be involved in an incident (theft/accident etc..). Why is a £30k Scoob a much higher group than a £30k BMW 330d !? Yep... performance !!
Also, if insurers are covering the additional cost of mods then they will want some form of additional premium to do so.
There certainly is some form of 'money for jam' onvolved and many insurers see mods as a perfect excuse to get more money in. With the majority of motor insurers making huge losses each year you can't really blame them !!
As Stu put it - Generally, as a rule of thumb, More power = more risk !!
Hope this clears a few things up !!
Cheers,
John
Schofield Insurance Brokers (covering for Rum* who is currently burning his bald bonce in Borneo
)
Stu and Nigel are right !
Insurers see the additional power/performance as an additional risk.
To the average driver - a car with an output that is higher than it is designed give is considered more likely to be involved in an incident (theft/accident etc..). Why is a £30k Scoob a much higher group than a £30k BMW 330d !? Yep... performance !!
Also, if insurers are covering the additional cost of mods then they will want some form of additional premium to do so.
There certainly is some form of 'money for jam' onvolved and many insurers see mods as a perfect excuse to get more money in. With the majority of motor insurers making huge losses each year you can't really blame them !!
As Stu put it - Generally, as a rule of thumb, More power = more risk !!
Hope this clears a few things up !!
Cheers,
John
Schofield Insurance Brokers (covering for Rum* who is currently burning his bald bonce in Borneo
)
12 February 2002, 11:19 AM
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Dizzy,
In answer to your "subquestion"
There is no specific split as to what your overall premium pays for.
Generally insurers charge what they feel is a suitable price for your risk. The figures are drawn up fro years of experience in certain areas of the country, age groups, car types, driving habits, clases of use etc..
In basic terms..An insurer could take on 50 policies at £1000 and receive no claims, but could then have one charlie plough into a padestrian or the back end of an Aston Martin or cause a multiple car pile up and the £50k they had made is soon written off !! They have to strike a balance.
Overall, car insurance is silly expensive but one of the main reasons for this are the dishonest plonkers that see pound signs when someone runs into the back of them and claim for whiplash and anything else they can think of. There are many genuine cases for this, but lots are completely fraudulent. Many people think they are getting their own back on the "rip-off" insurance companies but they are really making the problem worse.
All the best..
John
In answer to your "subquestion"
There is no specific split as to what your overall premium pays for.
Generally insurers charge what they feel is a suitable price for your risk. The figures are drawn up fro years of experience in certain areas of the country, age groups, car types, driving habits, clases of use etc..
In basic terms..An insurer could take on 50 policies at £1000 and receive no claims, but could then have one charlie plough into a padestrian or the back end of an Aston Martin or cause a multiple car pile up and the £50k they had made is soon written off !! They have to strike a balance.
Overall, car insurance is silly expensive but one of the main reasons for this are the dishonest plonkers that see pound signs when someone runs into the back of them and claim for whiplash and anything else they can think of. There are many genuine cases for this, but lots are completely fraudulent. Many people think they are getting their own back on the "rip-off" insurance companies but they are really making the problem worse.
All the best..
John
12 February 2002, 01:04 PM
#6
nigelward,
In theory a passenger in a vehicle driven by you could sue you for damages if you are found at fault for the injuries that they suffer in an accident.
There's no theory about it ... it's called Third Party Passenger Liability. The instant you have anyone else in your car, you have a legal duty of care towards them and TPPL exists to cover that. If your passenger traps a finger in the door (never mind gets his head cut off in an accident), the passenger is entitled to make a claim for injury against you/your insurers.
In these circumstances, fault doesn't directly come into it, as your passenger will always make their claim against you and your insurer will pay out, because there is no question of liability ... however, your insurer will then seek to recover their costs from the person "at fault" for the underlying incident.
And don't even get me started on Cl**ms Di**ct and their ilk ...
In theory a passenger in a vehicle driven by you could sue you for damages if you are found at fault for the injuries that they suffer in an accident.
There's no theory about it ... it's called Third Party Passenger Liability. The instant you have anyone else in your car, you have a legal duty of care towards them and TPPL exists to cover that. If your passenger traps a finger in the door (never mind gets his head cut off in an accident), the passenger is entitled to make a claim for injury against you/your insurers.
In these circumstances, fault doesn't directly come into it, as your passenger will always make their claim against you and your insurer will pay out, because there is no question of liability ... however, your insurer will then seek to recover their costs from the person "at fault" for the underlying incident.
And don't even get me started on Cl**ms Di**ct and their ilk ...
13 February 2002, 08:22 AM
#7
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Overall, car insurance is silly expensive but one of the main reasons for this are the dishonest plonkers that see pound signs when someone runs into the back of them and claim for whiplash and anything else they can think of. There are many genuine cases for this, but lots are completely fraudulent. Many people think they are getting their own back on the "rip-off" insurance companies but they are really making the problem worse.
Thanks for the replies... glad I dont have to insure me
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