They’re not the charity sector and need to balance their books, so premiums will rise.
Not just balance books, but make a fat profit. The last few decades have seen a number of shyst..., ahem, entrepreneurs, who have made a substantial fortune out of motor insurance. This is because of the staggering expense of minor accidents and the absurdly generous compensation available for alleged minor sprains and strains from impacts no greater than those available - and presumably desirable - from fairground bumper cars. Cars with so-called 5mph impact resilience can result in a four figure bill at 6mph, as can a small scratch along a couple of doors. The inefficient repair service can result in the absurdly high car hire cost being more than the repair cost, especially if the 'just in time' availability of a part has to wait for a ship to come from the far east via the Cape of Good Hope - ha! Thanks to the current fashion of car bodywork being treated like a delicate work of art, the punter is at the mercy of the repair, car hire and insurance industries which work hand in hand to ensure the huge expenses result in high premiums. I'm old enough to remember being stung by the scandal of Vehicle & General's collapse shortly after making huge profits for its owners.
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