Taxi Driver Online

The implications of the Office of Fair Trading’s (OFT’s) decision to refer the UK private motor insurance market to the Competition Commission for a full investigation could be much more wide-reaching than first thought.
The referral has already set insurers and credit hire firms on a collision course after it received overwhelming backing from the industry at the same time as it came under attack from the Credit Hire Organisation, which instead believes that customers will suffer as a result.
Rating agency Moody’s has become the latest to have its say on the referral issue, stating that it will lead to uncertainty for the industry and result in lower premiums for insurers.
Those who have most to fear are Direct Line Group, Aviva, LV=, AXA, RSA and Ageas, all top 10 motor insurers, who according to Moody’s, would see their earnings greatly diminished in what is already an unprofitable sector.
A more pressing issue that needs to be tackled by the commission is the lack of control that insurers of at-fault drivers have over repairs and replacement vehicles for non-at-fault drivers. This enables insurers of non-at-fault drivers, brokers, credit hire firms and repairers to generate revenue through rebates and referral fees, thus artificially inflating claims costs.
Another ongoing issue has been the possibility of the commission going down the same route of the referral fee ban in personal injury claims, this time with fees and rebates received by insurers from repairers and credit hire firms.
But any loss of revenues could be offset if the commission were to take decisive action to reduce claims costs through rewording agreements between insurers or similar means

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Nobody told me to use my initiative. To err is human to arr is pirate.

Seems the Insurers latest wheeze to save everyone on the Planet is to ban Drivers under 24 who have just passed their tests from Driving between 11pm and 4am for their first year and also take a minimum years worth of driving lessons.......

On the Radio they found obviously the thickest young female driver ever to speak up for them, She thought the Idea was brilliant as she says it takes up to a year to familiarise yourself with the cars controls..EG wipers and Indicators etc.......Doh!

Surely that should be hammered into the driver before they can pass a test..

What most people don't realise is, most of the Insurance companies are owned by a few big companies including banks and finance houses. This way they fix and inflate the prices.

And the French!

Its a sad truth that these days a lot of insurers and brokers make their profit from claims referral fees and hire car charges rather than actually selling insurance. Admiral are one of the best known. Their business model is along the lines that 15% of policyholders will make a claim. They will earn out of non fault claims by injury referral fees and hire car charges. Consequently the larger market share they have, the more claim hence more income.

Admiral also own one of the price comparison web sites so can "cherry pick" risks they want. Admiral also have several other household name brands.

But claims still are a problem. I was looking at a renewal yesterday locally at £3900. The cab driver is in his 70's and hit a motorcyclist on a roundabout. Injury claim currently stands at about £150000 so he's got a few more years premium to pay before he covers that cost.

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Nobody told me to use my initiative. To err is human to arr is pirate.

The thing is though that there are some massively inflated costs in accident repairs between the company approved insurers and smaller vehicle repairers and also the prices paid for replacement hire vehicles surely a vehicle can be provided for less than £900 a week rental fees !!!! There is a built in system of big fat bonus payments/ referral fees etc I know many of these companies offer taxi proprietors £100's of pounds if they push drivers their way after non fault accidents. I personally think it is obscene and would never do so but I'm sure there are many that do

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

my PH insurance is £1300, i cover 30,000 miles a year

my private insurance would be about £300 and id cover about 15,000 miles a year

why the vast increase when surely the risk is dictated by how much i use the car?

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Of all the things ive lost, i miss my mind the most

but HE doesnt have to cover it, thats as good as saying each insured will pay any claim against them, which rather makes insurance pointless

its INSURERS who cover claims, and ultimately the underwriters and "faces" at Lloyds, and its them who make the profits



Insurance is just likebig time gambling, a bookie who gets a big bet laid at big odds doesnt risk it all himself, he lays it off around other bookies to reduce the risk, theres even a central clearing house for big money bets, just like theres underwriters covering insurance companies

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Of all the things ive lost, i miss my mind the most