Insurance set to go up


Staff member
Deal, Kent UK
A3 1.4 TFSI 150 COD
Changes in compensation rules mean insurers have to pay out more to a victim due to the lower return on investment and rising cost of living eroding their lump sum payout.

It will affect us all in the long run :( Is it fair? What are your thoughts on the cost of car insurance and the benefits we get from it? Would a nationlised car insurance scheme which is non profit be better for us all?
It's a self perpetuating cycle that is proven (just one of many articles last time this happened) to increase in times of recession. More people are prone to commit insurance fraud and make exaggerated injury claims. This puts insurance premiums up.
Meaning people have less money and are more prone to make a claim when they probably shouldn't. etc etc etc.

Even during periods of growth (ie the opposite of recession) this happens. Is it fair? Not really, blame the people making claims when then shouldn't.

The cost are car insurance is just one of the many things I don't think about. The wifelet's car is cheap, mine isn't, is about as far as I think about it.

There was a petition for a nationalised insurance scheme some time ago. It didn't take off, only getting 44 signatures (though that may have been poor publicity).
Insurance companies do not make profit from our premiums. They take that money, invest in other markets (like many other financial companies do) and it's the profit from investment that drives the insurance company forward.
If the government were to run car insurance they would need to pay for it somehow. Either by putting premiums up, up and up (not really a favourable option), increasing tax revenue (might also lead to disapproval), or use the premiums to invest in other markets, to make money in order to pay claims. You see where this is going? The government are not the best at making profit, and profit is needed. Insurance cannot run on a not for profit basis as claims (and staff, overheads etc) will always need to be paid. And whilst predicting outgoing payments is quite accurate it is never perfect due to the nature of insurance claims.
There's never really a time where drivers aren't being screwed out of more money. Whether it's insurance, tax or fuel on the up they always find a way to but us out of more hard earned brass.
It should be based completely individually in my opinion
I don't think anyone feels sorry for the insurance companies though! They are a business like any other and have costs to cover. If insurance was nationalised perhaps it would be a different story.
I don't think anyone feels sorry for the insurance companies though! They are a business like any other and have costs to cover. If insurance was nationalised perhaps it would be a different story.
Absolutely, I wasn't trying to garner sympathy for the companies or the industry as a whole. They have a job to do and a service to provide and I think keeping it public keeps it fair. Would a nationalised scheme be good for competition?
I'm not sure if nationalizing car insurance would do any good to the drivers. In my homeland everything what is nationalized (health care, education, and cabs - in a way) works badly, and you must pay extra to receive the proper quality of service. Nevertheless the times are tough, and one must try to keep on. I started to search for some websites, blogs and forums, providing info about decent quality insurance. I always try to find out first what are others people opinions. Maybe somebody can help me out - I want to find a company that will not let me down, in case of a car break down. I'm looking for good specialists, worth recommendation. All ideas are welcome.
Last edited by a moderator:
Heard a story from a mate, his car was his on the sides and he lost his sidemirror, he recorded it with dashcam footage sent it and the insurance firm declined it saying they couldn't see the hit.

He then went edited the footage to show the clash in slow motion back and front views and they said he could have just smashed the pieces and catterend them in front of the camera himself.

Insurance companies don't seem to be on our side, especially if you're under 18 :(
I'm sorry to say that some claims handlers are douches. It's nothing to do with which company it is, it's just some people are douches.
I like to think that if that claim landed on my desk, with footage showing the car being rocked and the offending vehicle driving away, I would probably pursue that.

Similar threads

Please watch this on my YouTube channel & Subscribe.