Aviva Insurance - Be Aware
- Thread starter srhutch
- Start date
I am still in the dark about what is about to cause the imminent collapse of the insurance industry. One of us ought to pass the message on to the Financial Services Authority as soon as possible. 
I'm just winding you up PVR. Pay your premium and go for a drive.
I'm just winding you up PVR. Pay your premium and go for a drive.
It is not my premium being the issue, mine is dirt cheap as I pay £850 for 4 cars. Does not mean that I can not get frustrated about the injustice of it all though.
Principle is so simple (simplified example):
Europe:
Annual payout by insurance company: 1 million
1 million drivers, each paying £1 premium.
Now add the bonus malus system:
Everyone starts at 140% as a new driver of the standard premium of £1. Ignore for now the experience / no claim, type of car etc lets just concentrate on the third party element.
After 1 year no claim, premium goes to 120%, then after another year to 100%, then to 80 etc to the maximum no claim of 75%, i.e. paying 25%. Therefore, experienced drivers pay less, not experienced more. All simple so far.
Now get a claim, you drop 20% each time, so the accident people pay for the higher premiums.
There is a fund, like in the UK, for uninsured drivers. It is small however, as the premiums are all reasonable so 99% pay the premium.
As the car is insured, it is up the the insured person to let someone else drive. They crash, your premium goes up by 20%. End of story, everyone knows the score and you never have an uninsured car because the driver does not have insurance.
If there is a non fault accident, nothing happens to your premium as your company has not suffered a loss. All fair, the guilty party's insurance goes up and pays up. As everyone pays premium, the uninsured premium contribution is say 1% of your total premium.
Now take the UK:
Experienced drivers pay roughly the same as the European counterparts for the base premium. New drivers pay 1000% premium hike compared to other drivers, so they are priced out of the market and don't bother buying insurance as the fine is next to nothing.
This means that the uninsured fund has to be huge, therefore all other drivers have to pay a large contribution to this fund. Premium goes up again for everyone.
Now there is a claim from driver A (innocent) against driver B (guilty). Driver B pays more premium as his company paid the liability. However, now the weird bits come in. Driver A's premium also goes up based without foundation. This is unjust.
Also unjust are the premium increases for traffic penalty points, modifications that have no bearing on the risk.
As said, none of this affects me ...
Principle is so simple (simplified example):
Europe:
Annual payout by insurance company: 1 million
1 million drivers, each paying £1 premium.
Now add the bonus malus system:
Everyone starts at 140% as a new driver of the standard premium of £1. Ignore for now the experience / no claim, type of car etc lets just concentrate on the third party element.
After 1 year no claim, premium goes to 120%, then after another year to 100%, then to 80 etc to the maximum no claim of 75%, i.e. paying 25%. Therefore, experienced drivers pay less, not experienced more. All simple so far.
Now get a claim, you drop 20% each time, so the accident people pay for the higher premiums.
There is a fund, like in the UK, for uninsured drivers. It is small however, as the premiums are all reasonable so 99% pay the premium.
As the car is insured, it is up the the insured person to let someone else drive. They crash, your premium goes up by 20%. End of story, everyone knows the score and you never have an uninsured car because the driver does not have insurance.
If there is a non fault accident, nothing happens to your premium as your company has not suffered a loss. All fair, the guilty party's insurance goes up and pays up. As everyone pays premium, the uninsured premium contribution is say 1% of your total premium.
Now take the UK:
Experienced drivers pay roughly the same as the European counterparts for the base premium. New drivers pay 1000% premium hike compared to other drivers, so they are priced out of the market and don't bother buying insurance as the fine is next to nothing.
This means that the uninsured fund has to be huge, therefore all other drivers have to pay a large contribution to this fund. Premium goes up again for everyone.
Now there is a claim from driver A (innocent) against driver B (guilty). Driver B pays more premium as his company paid the liability. However, now the weird bits come in. Driver A's premium also goes up based without foundation. This is unjust.
Also unjust are the premium increases for traffic penalty points, modifications that have no bearing on the risk.
As said, none of this affects me ...
ferrelscent, you might not agree with pvr, but you got to admit this one is just plain daylight robbery:
When I got my car I was initally with Elephant. Paid £1600. When my renewal came this July it was over £2900!!! Why?? Nothing had changed... well except getting another NCD and being one year older.
Ended up going with Chris Knotts @ £1400. When I told them what Elephant quoted me he started laughing!!
pvr said:
When I got my car I was initally with Elephant. Paid £1600. When my renewal came this July it was over £2900!!! Why?? Nothing had changed... well except getting another NCD and being one year older.
Ended up going with Chris Knotts @ £1400. When I told them what Elephant quoted me he started laughing!!
srhutch said:Except for those Aero Skirts you wanted.
Needless to state that changes to the cars don't have to be reported on European insurances as it does not affect your risk. The only thing is that you don't get the money back for them if you had not specifically insured them.
Peddy it's because that particular insurer did not want your business at the time of your renewal. Chris Knott presumably was however looking to take on your risk profile at the time.
Got to stop taking insurance renewal personally.....
(sorry for all the edits, can't type properly on this phone)
Got to stop taking insurance renewal personally.....
(sorry for all the edits, can't type properly on this phone)
..........
chris said:
I have 6 points which I need to declare (3 which was over 4 years ago, so will not need to be declared next year) that increases it a little, but the killer is area. when elephant quoted me £2900 I decided to see what the quote would be if i lived in cornwall... it came up to around £950.
Anyways, I'm happy with Chris Knotts. Only small downside is that I'm not insured to drive any other car.
Russ59 said:I have just gone with Aviva. You can check online their approved repairers.
My nearest BMW dealer is on their list so I'm happy
Stratstone BMW in Chesterfield if anyone local is thinking of using Aviva.
Don't forget though they could be removed at any time.
Every year I faff around for ages looking for a good quote and always end up back with Direct Line. Always the cheapest for me. Bought my z4 mid year but it's about £650 annualized, in South London. Totally happy with that, European or not.
That does sound a bargain. Are you 165 years old and do you live on Pitcairn ?