|
Just read in todays paper that for every £100 we pay for Comp. cover the insurance companies payout £82 in claims. That's a hell of a lot of crashes/thefts.
|
No. That's a lot of ridiculous prices for repairs. If they stomped on garages doing insurance coach work at £1k per panel and kept their payout to policy ratio I reckon all of us would pay half for the cover. The moment £2k car with smashed tailgate is an automatic write off you immediately know something on this market has gone in wrong direction...
--------------------
[Nissan 2.2 dCi are NOT Renault engines. Grrr...]
|
|
Agree with that. My BIL had a minor bump and the first question the garage asked was "Is it an insurance job?".
|
|
|
>>If they stomped on garages doing insurance coach work at £1k per panel ....
that would be one of the reasons for developing a recommended repairer scheme. You know, the sort of scheme that all the conspiracy theory "insurance companies hate me" crowd reckon you should steer away from.
|
>>If they stomped on garages doing insurance coach work at £1k per panel .... that would be one of the reasons for developing a recommended repairer scheme. You know, the sort of scheme that all the conspiracy theory "insurance companies hate me" crowd reckon you should steer away from.
would be no good to me unless the repairer can ensure my manufacturer's paint warranty remained valid...most insurer's approved places can't achieve this......so I choose where it goes
|
|
|
|
|
Insurance Companies like any large concern has huge fixed costs over the whole Insurance Business. The Insure Property, cars, life......................
When they tell you they make no profits on motor policies (Why do they actively recruit new iustomers if it is that bad?) they can load any part of the business with an unfair proportion of costs and show profits elsewhere.
Garage owners often day they do not make profits from new cars - if they distributed the overheads differently they could show a profit on new car sales and show less of a profit from Hire cars or the workshops.
I used to work for a small software company - 15 of us and "Head Office charged us £144,000 / year for Admin - as a result we only made £100K / year on new business - if we employed our own HO Admin we would have shown £200K / year profit ( 2 x admin clerks at ~ £20K). Group profits are the same whatever way you cut it.
|
Garages don't make big profits from bodywork repairs. Its a fairly competitive and tightly controlled business (insurance co's are always on their backs). A lot of independent repairers have gone out of business over the last 10 years. The recommended repairer scheme is a way that ins. cos. try to cut costs by pushing repairs through repairer as fast a possible with expected consequences (i.e. many cars with shoddy repair work).
Insurance co's tend to be unwieldy organisations with high internal costs - maybe if they could trim out a bit of the fat then premiums would drop a little. Remember that they have your premium to invest for 12 months - so if they pay out 1:1 they can still make some money.
|
My son was paying about £100 per hr for his BMW repairs (Mechanical). The BMW body shop rates are around £35 / hr - I am sure the painter gets as much as the mechanic.
Reason - on the bodyshop they have competition and Ins Co breathing down their necks - on the repairs side they have the FUD ( Fear, Uncertainty & Doubt) of taking their beloved BMW to an Independent.
|
|
|
Dunno about garage profit margins so can't comment.
>>Insurance co's tend to be unwieldy organisations with high internal costs
Not so much as they used to be. And in fact in the motor areas they're fairly efficient (in comparison to their awful state a few years ago). The other areas which are not under such price pressures tend to be more inefficient.
>>Remember that they have your premium to invest for 12 months - so if they pay out 1:1 they can still make some money.
Your principle is certainly corrrect although you omit two significant costs - commision (anywhere from 7.5% to 35% depending on teh broker) and the costs of running their business (still significant).
|
|
|
|
|
![2023 BMW 1 Series 118i [136] Sport 5dr Step Auto [Live Cockpit Pro]](https://img.common.prod.group-mobility-trader.com/unsafe/trim/90x60/smart/filters:quality(70):no_upscale():format(webp)/https://cdn.uk.prod.group-mobility-trader.com/images/cas/8f880fcabd37557d908c28a4d66bdb53/3fbad8b2291927dfff4a517b10b43a88.jpg)
£20,252was £20,915Details:no_upscale():format(webp)/https://cdn.uk.prod.group-mobility-trader.com/images/cas/1a7d4474b17676684a348cdd448c4b92/08bb122aa412bc7f4fd14d51efe0f7ec.jpg)
£29,937was £30,619Details:no_upscale():format(webp)/https://cdn.uk.prod.group-mobility-trader.com/images/cas/3541ab6c55c241daa536e7011376e00a/2ade89a4638733a7b49c56a4ed052ac8.jpg)
£18,340was £19,200Details:no_upscale():format(webp)/https://cdn.uk.prod.group-mobility-trader.com/images/cas/50317e11790e78d451cd7ea1034db948/945052e3f5e296502220368946402172.jpg)
£14,662was £14,989Details
