| Joined: | Mon Apr 2nd, 2012 |
| Location: | South Lakeland, UK |
| Posts: | 4066 |
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The simplistic example is a farmer wants to insure his sheep from theft... this can only be covered if lot's of farmers want to pay to insure against their sheep being stolen.
Some farmers live in very remote locations and their Herdwick sheep wander the mountains for 365 days a year, so spread out that at best a thief might be lucky to catch 6 after a mighty effort, other farmers living in the lowlands have hundreds of tame sheep in a single small field very close to a main road. The risk varies but should the premium? My perception of insurance is the risk is shared, all farmers paying a contribution into a pot, so any among their number unfortunate enough to have their sheep stolen can be compensated. Or, the farmer takes the risk.
While I can see a bonus for not claiming year on year, and some small variation depending on individual circumstances may be reasonable, the variation in motor insurance seems to me to be grossly disproportionate, bordering on extortion.
My Astra insurance is about £400, The car is worth less than £200, OK it can do much damage in the wrong circumstances but in my eyes that premium is way too high. About 4 years ago I was paying about £180, so what has changed? I haven't had a claim, it's virtually the same car, same location and same everything else. Perhaps it's all these spurious, fraudulent claims which are bumping up the overall risk. We are told it's also caused by uninsured cars, but with continuous insurance or SORN now there should be far fewer uninsured cars around.
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Robert.