dbd33

That's not a loss, that's the amount paid in claims vs. the amount taken in premiums. Since the premiums are collected today and the claims paid tomorrow, 103% is profitable if the market rate for investments is 10% (or something, determining this year's something is what actuaries do).

In a competitive market the objectives are retention and then new business, the aim is always to make rates low enough that customers don't look around at renewal (getting a new policy sale costs something, just collecting the renewal premium costs less). That's why a firm might go for 103 instead of 99.

All of this is much complicated by segmentation, regulation and the fact that, in general, insurance companies just don't know what profit, if any, they make on any particular line of business or market segment. Insurance companies are more muddling along than ruthlessly exploiting their customers.

yzf.shaun

Thats what I've discovered.

Merc, BMW, Audi, Porsche etc. All generally cheaper than Honda Civic, Neon, or any other cheaper cars. Then if one of those brands isn't cheaper it still often no more than the cheaper cars.

Other that that trucks are generally cheaper. In my case the overall chepest have been the Porsche Ceyenne or Mercedes R Class.

As you say if you have the money then just buy the car you want as there is no point buying a cheaper car thinking you will save on insurance.

staceyhall71

OMG what an absolute nightmare were having with JOHNSONS insurance. They asked for the no claims bonus so they could insure us on our Nissan Maxima. So I provided that now they are saying it is not good enough and need a LETTER OF EXPERIENCE detailing if any claims have been made. When the no claims bonus specifically states this. We are having such a hard time trying to get insured by anyone, and my husband is paying a fortune on hire car charges when he has a perfectly good car sat on the drive waiting to be insured. I don't really know what other information they need when I have provided everything they have asked for!!!

Former Lancastrian

Perhaps a new insurance broker.

christmasoompa

Unfortunately, the NCB isn't good enough on it's own. Have you got your Drivers Record from the DVLA? They'll need that too. And which province are you in?

staceyhall71

I have just called the insurance company and they are doing me a letter. But I have only been insured with them for a year, so they can only really put in the letter my experience for that year even though I have my no claims of 7 years.
I am in Ontario.

And my driving record from DVLA is in the post. So without that I am abit stuck at the min.
Argh stressed out!! lol

magnumpi

Maybe worth getting a letter from the previous insurer too

FYI No claims bonus does not mean no claims for all who have it....Some may have paid to have their no claims bonus protected. I know I used too.

staceyhall71

Thank you I will do that too! Thanks for all the help