Fonz
Premium Member
Registered: 12th May 06
Location: Newbury, Berks
User status: Offline
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I’ve been thinking about insurance a lot over the past few weeks. Some already know that I will be coming into some money soon and thoughts instantly run to a new car. Now the idea of moving away from the 12v to some real power I need not explain why it is an attraction but trying to get insurance on anything above group 5 becomes a lottery!
We all know that cars are grouped for insurance. If its fun, fast, and has less than 15mpg its group 20. if its slow, practical, reaches 0-60 in 43s and can achieve 70mpg its group 1 – well you get the idea. This is to allow the insurance companies determine how to grade cars. High group = high risk
This is a standard system adopted in the UK and recognised by all manufacturer, insurer and consumer alike.
So here is my suggestion.
Adopt grouping drivers.
Now before you think wtf and question everything, bare with here. The car grouping system is standard and seen as equal risk by all insurers (they accept and agree with the grouping). Drivers however are graded differently by each insurance company, whether you are 25+, have 4+ years NCB, are a woman or even having children has an effect.
I would like to see a standard (government/DVLA?) form found online. Using your driving licence number as a “log in/reference number” you input your details, everything that each insurance company ask for, age, marital status, career, claims, driving experience etc etc.*
This then uses the inputted information to calculate a group for the driver. For eg
You gain points for each piece of information (losing points for claims)
i.e Age
17-20 = 1
21-25 = 2
25-30 = 4
30-45 = 6 etc etc
*this form could also be directly linked to the DVLA/police network thus each driving conviction/bans/additional category of vehicle is automatically added to the form using your licence number. And likewise Insurers inform the authority of claims thus giving a more truthful assessment of the driver.
This is used for all variables use to asses the driver’s “risk”. The points can be bias in certain directions (ie 4+ NCB gets 12points while 4 gets 8) but the end result will give high risk drivers a low point score. It’s the old points win prizes syndrome. The more points a driver has (the lower the risk) the better the prize is (higher group car)
At the end of the form you get a final score and this is used to grade the driver
Lets say 19yr old, 0NCB, 2yrs driving, student, lives in a “B” graded postcode, no claims, no convictions, single, car usage personal and pleasure, 6k miles pa = 12 points
43 yr old, 9yrs NCB, married with kids, works as a Distribution manager, no claims, no convictions, lives in a “C” graded postcode, car usage: personal, pleasure commuting and business, 19k miles pa = 32 points
High risk drivers get low final scores; low risk drivers have high result scores
5-8pts = grp 1 driver
8-12pts = grp 2 driver
13-16pts = grp 3 driver
17-20pts = grp 4 driver
20-25pts = grp 5 driver etc etc
That way gaining an insurance quote is simply state the car, state what insurance group the driver is in (proven by a reference number) and what sort of cover.
This would make insurance quotes a lot more transparent, the insurer would look at the two groups and determine the quite from that.
This would in my opinion give the consumer a greater choice knowing that the insurance companies are all working off the same information and avoids ONE criteria (claim, age, marital status) determining and influencing the final quote. It would also increase additional services offered to the consumer i.e. free breakdown cover, free legal cover, courtesy car etc as an incentive to sign up to one company over another.
It would make budgeting a lot easier for all motorists having a better idea what to expect for a renewal quote a useful advantage for the lower income families.
It could also allow for self assessment insurance quotes. If for example you were a grp 3 driver, wanting to insure a grp 14 car, a simple table can be viewed online for the insurance company’s website matching up the two and giving an approx quote – later adjusted for cover requirements (FC, TPFT, Legal cover, courtesy car etc, car modification, method of payment etc) rather than spend 8mins filling in the online form.
Well it’s just my thoughts. I would like to know your thoughts; I personally think it would make the fiasco of gaining a list of insurance quotes a lot simpler, quicker and transparent which can only help the consumer and the certainly the first two benefit the insurer in terms of formulating quotes.
I am not asking if I would work, if it makes financial or business sense, nor do I want smart comments.
I am just wanting a yes or no to the question
IF this could be made to work, do you think you would approve of it, welcome its adoption and believe it would make motor insurance a less complex and (possibly) less expensive business to deal with?
summary: Drivers, like cars, are "group" according to "risk" a good idea? Yes or no?
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ed
Member
Registered: 10th Sep 03
User status: Offline
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That's a long essay, I've skimmed it and it's what they already do.
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richc
Member
Registered: 24th Mar 07
Location: Ilkeston
User status: Offline
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I know what your saying. Its basically like a more advanced NCB system!
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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quote:
Originally posted by ed
That's a long essay, I've skimmed it and it's what they already do.
Agree.
Insurance companies dont just take the group of a car into account, tho the grouping extends from 1 to 40 on their scale, 0-20 is old hat & not used by thm, they look at age, ncb, postcode, mileage your gonna do, claims, convictions, security features, cost to repair the car, cost of parts etc. Loads of different factors. I think your thinking too hard about it!
Also what if the points system allows me to have a fast car & the mrs cant, am I to suffer a 1L where with the current system just means a bit extra ££ to add her to my policy.
Would be difficult to understand & to impliment the above, too much details to be stored & maintained. Searching for a car quote isnt that difficult, 1/2hr once a year
[Edited on 04-03-2008 by Colin]
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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nothing wrong with how it is at the moment.
if you want a fast car at a young age, pay a lot.
if you want a fast car at an experienced age i.e. 25+ expect to have a good premium if you have NCB
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BlueCorsa
Member
Registered: 14th Jan 04
Location: Midlands Drives: MB SLK250 CDI
User status: Offline
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Making it more transparent like that means the insurance companies will have less chance to screw us over. It'll never happen.
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Fonz
Premium Member
Registered: 12th May 06
Location: Newbury, Berks
User status: Offline
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BlueCorsa has the right idea, i'm not asking if it would ne possible to impliement - lets be fair any computer system fails NHS, Passport and DVLA all have history in the past 8 years or so concerned system upgrades.
i'm just asking for some transparency.
If your 17 and drive a Enzo you will still pay alot, and vice versa.
richc: i wouldnt say its a NCB system, just an adaption of what already is done.
Colin: all those factors would be worked into the points system, i admit there is alot of text but its all there.
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