Comprehensive Insurance FTW - accidents are gay

[GT R31]

Nice reply Shifty

The damage to the car went something like this:

Nudgebar shoved back into grill
Radiator/Aircon shoved into engine
Bumped shoved onto LH tyre
LH tyre would then steer rapdily to the left - lots of work to fix this
LH guard replaced, LH light replaced, LH door replaced, Interior gauges replaced (f@cked from impact)

Looking at the pics, you'd have to wonder how they managed to spend $8500 fixing it. Also, the assessor was considering writing it off - which he really should have done. Ahh well. I'm just glad the car is back - the smash repairers did a sh!t-awful job on the repairs, its been back once, and it'll be going back again until I'm happy (and things are fixed PROPERLY). I'm also still waiting on a few minor parts, 18 weeks after the accident....

[Asteroid]

Nooooo... If it becomes compulsory, then those of you with low premiums will see HUGE increases as you have to start subsidising those that are currently uninsurable due to a poor driving history, or fraud etc..

if it becomes compulsory, there will be government intervention and specific price rules introduced, so basically the good risks will be subsidising the bad risks...

Frankly i'd rather pay a little more for my third party, than risk being taken out by an uninsured driver who can't pay up. Remember without full comp (which is fark-off expensive for an <25) you're screwed too.

Asteroid

[dhs]

Looking at the pics, you'd have to wonder how they managed to spend $8500 fixing it.

Because panelbeaters are scumbags..

[TonyJZX]

Because panelbeaters are scumbags..

they're not all scumbags

however if they're gonna milk someone they're gonna milk the insurance companies - all's fair in love and war I guess

you all saw the damage to my car

I got quotes anywhere from $3,500 - $8,000.

I'm currently getting it done cash in hand style with me providing the parts with a bunch of really genuinely good smashies

[Southo]

You should be able to privately insure yourself for the third party medical - if you are a good driver with no accident history why should you subsidise a complete farkwit?. Of course the compulsory aspect would remain the same, surely the competition between insurance companise would keep things competitive. Or is that just a lumpy pipe-dream?

Forg stop being bitter and jealous because you don't live in Kingswood country.

Third party "Medical" (Third Party Personal Injury as it is called) is completely different to Third Party Property..

The Personal injury insuirance is Compulsory at the moment and you may know it as CTP or "greeenslip" (for those in NSW).

As for the competition between insurance companies - here what will happen.. (in a very basic outline so as not to confuse or lose anyone)

ALL the insurance companies will be chasing the "good business" or "Low Risks" and to get them, they get Lower premiums. Naturally, to discourage the "bad business" or "High Risks" from insuring with them, they will all make the premiums undesirable. - so the premiums for the Bas risks will be very very high, and the good risks, very very low. This is where the bad risks start to whinge and carry on to the government and say.. You make this insurance compulsory , but we all suck and are bad drivers and poor risks and now we can not afford it.

The Government steps in and says - to the insurance companies, YOU MUST INSURE THE POOR RISKS at affordable rates... therefore, if you want the good risks, you have to take the poor risks - The maximum premium you can charge is (say) 1.6x your cheapest rate.
Therefore, when it was not compulsory a GOOD risk was (say) $250 in premium and a Poor risk (say) $1,000 in premium.

So the insurance company says, OK, if I have 10,000 policies, (split Good 85% and poor 15%) then they used to get $2,125,000 from the good risks and $1,500,000 from the poor (Total $3,625,000 in premium...)

IF they are forced to charge a maximum rate based on a loading on their minimum, then they are likely to get LOTS more of the poor risks if they still want a good deal of the good risks.. in the end, the ratio of good to poor is probably 70:30 or worse - so the fact that if the same minimum rate was charged for low risks - $250 ( meaning the higest rate is $400) - the total imcome from premium becomes $1,750,000 + $1,200,000 ($1,925,000 total) - Where is the insurance compay going to get that $1.7 million deficit....

By Increasing ALL premiums... (and remember, it the above example, they now have an EXTRA 15% of the poor risks that will cost them even MORE money.... )


If you don't beleive me - Look at the regulation and pricing of CTP insurance Australia wide where you can chose your own insurer...

[lumpy]

Thanks for the reply southo, I thought it was a bit too simple to work!

[2JZR31]

Who is the cheapest CTP insurer?

[TonyJZX]

Who is the cheapest CTP insurer?

I pay around $300 for sydney. Prob. just under depending on the car.

AAMI are good.

[2JZR31]

Cheers