Guest writer
Thanks to Mr. R.H. from Essex. A retired insurance company executive from the Lloyds of London Insurance Market.
Why are some idiots reluctant to change insurance companies and save money whilst others are happy to spend days trawling through directories?
There are two types of motorists as far as Car Insurance is concerned. Firstly the people that will go to any length to save money on their car Insurance, even if it means trawling through all 100 plus pages of the Yell Directory, which could take several years (hundreds of pages, thousands of phone numbers).
Or the people that think that if they have not heard of a particular company, the company is no good. These people usually pay their renewal without flinching, trusting their insurers to give them a fair deal (not very wise as the same banks that charge customers £30 plus for any excuse own the bulk of insurance companies trading in the UK).
The second type of motorist, are manna from heaven, to insurance companies as a straight renewal is the easiest and most profitable business.
So should people be wary of new names and worry about their long term reliability and longevity. Are they going to go broke? Will they pay my claim properly?
"Much of the UK motor insurance is actually underwritten by banks."
Well the facts are that to have a company wishing to transact motor insurance in the UK, you need to meet the most stringent of financial criteria and have enormous backing, hence much of the UK motor insurance is actually underwritten by banks.
Quality wise, very few, if any, companies try to dodge claims and would prefer to settle properly to avoid unnecessary legal costs or bad publicity.
The FSA closely monitors the performance of companies, to ensure that they are treating clients properly.
A motor insurer has not gone ‘belly up’ for over 30 years and companies pay in to a central fund, created to pay claims if an Insurer does go to the wall (a part of your premium).
There is also the Office of Fair Trading and Citizens Advice Bureau to help ensure that consumers rights are upheld, so much has changed in the last twenty years, as long ago, some insurance companies obviously did try to avoid paying claims.
Therefore it makes little sense not to find the best deal, as long as the cover offered, suits your needs.
As for the people that trawl through the pages of Yell, they should realise that in one way or another they are often ringing the same companies over and over again, as the companies will use different trading names and styles to attract the call.
Tips:
Always ensure that your answers are accurate when completing your proposal form when taking out your Insurance, which will avoid any problems if you have a claim.
• Use Best Advice UK
• The Matthews Guide
• Confused.com
• Money Supermarket
To find your best prices.
Helping us, keep everyone informed:
If you have any experiences, good or bad, that you would like to tell us about, we would be happy to hear from you as we are continually trying to establish which companies are better than others.
Email us at info@matthewsguide.co.uk with your experiences. |
