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Why do insurers attempt to rip people off for repairs?

My experience with an insurance company and their "preferred" repair garage illustrates why car insurance premiums are so high. Last year I had to make a claim for damage done to my car. The insurers nominated garage came to take the car away. I asked that they give me a quote for a scrape to the side of the car that was nothing to do with the claim. He told me that off the top of his head it would cost £600. When I told him I was amazed at the price, he told me to make a claim for that on my policy too. I refused but he still tried to get me to change my mind. When I refused, he told me he would phone me later and give me a more accurate quote. This he did and the cost went up to £900 and he still tried to get me to claim on insurance. Again, I refused. This year I had the scrape repaired by my dealers nominated repair shop and it cost £150. I haven't named my insurer or its nominated garage as I have nothing in writing, it was all verbal, unfortunately.

Asked on 28 September 2013 by KB, Fareham

Answered by Honest John
Standard. We live in a country where about 10 per cent of all business is rip-off, and the UK insurance business plus the parasites who feed off it is about 75 per cent rip-off. Efforts have been made to clean it up but have not gone nearly far enough, almost as if there are so many fingers in the pie that there is a general reluctance to alter the status quo. People at very high level are obviously benefiting and no single individual is powerful enough to counter them.

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