Quote ="cod'ead"Quote ="Stand-Offish"
Although he worded it poorly, I think he is referring to fraudulent claims.'"
I reckon a far greater factor in increased pemiums is the bloat that the insurance comapnies themselves have introduced, such as:
"Free" courtesy car
"Free" legal expenses cover
...
And the myriad of referral fees collected by passing on details of collisions to ambulance-chasers'"
And scams such as setting up fake "repair" companies whose sole raison d'etre is NOt to repair a car, but to fake an "invoice" at a higher price than the price paid, to claim a falsely inflated amount from another insurer.
Courtesy cars are another major scam, some insurers actually subcontract this to credit hire companies who then claim thousands off the other insurer for a car which you thought you were getting as a "courtesy" by dint of having chosen that policy. The insurers of course getting an obscene kickback from the "hire" company.
Often you are conned into paying "legal expenses cover" simply as an unashamed claims capture device, when in fact you have no legal expenses, your claim is simply sold to a lawyer who will offer the insurer £600 or whatever for the claim, and your "legal expenses insurance company" does nothing , except trouser the money.
As for referral fees, insurers blatantly dissemble about "losing money" on motor policies, and a willing government full of liars, cheats and halfwits parrots it all back at us. Losing money? That would be why for example Admiral, as a company, made around 5.6 per cent of its entire £265m profits from referral fees. Now that's the sort of money-losing insurance business I'd like to be. In fact, they are now looking into taking up the claims game themselves, to replace that nice little earner. A tad hypocritical one may be forgiven for thinking.
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