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Are insurance companies taking advantage of the elderly and increasing their premiums?
There must be something seriously wrong in the motor insurance business when the following can be allowed to happen. My mother-in-law lives with us and is 85 years old. She has driven since 1968 without any accident or claim. For many years she has insured her Mercedes A-Class with XXXXX and renewed her policy when requested. Today she told me that she had received her renewal and it seemed a bit high. She was quoted £1,069 for comprehensive cover with a £150 excess. This was up some £300 from last year. I took all of her details from the XXXXX renewal and went online to check it out.
Within ten minutes I had over twenty quotes less than £500 for the same cover. The cheapest was £300. She cannot use the internet and it is only now she has moved in with us that somebody can assist her in such matters. Why is the sector of the community treated like this? XXXXX hold themselves up as specialists in dealing with older people in a wide range of financial services. I can see why if they exploit their weaknesses like this.
Within ten minutes I had over twenty quotes less than £500 for the same cover. The cheapest was £300. She cannot use the internet and it is only now she has moved in with us that somebody can assist her in such matters. Why is the sector of the community treated like this? XXXXX hold themselves up as specialists in dealing with older people in a wide range of financial services. I can see why if they exploit their weaknesses like this.
Asked on 21 May 2011 by BS, West Sussex
Answered by
Honest John
XXXXX is a broker, not an insurance underwriter, and has been taken over by private equity finance. They use the same tactics everywhere they have invested in businesses that charge annual renewals, whether it's breakdown insurance or car insurance or whatever. They are also involved in accident management, credit hire and private parking enforcement. That's how they make such fat profits.
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