Insurance Rip Off

Discussion in 'Off Topic [BG]' started by Lexx, Aug 7, 2002.

  1. Yup

    21 vote(s)
  2. Nah

    6 vote(s)
  1. Lexx


    Aug 7, 2002
    Got absolutaly nothing to do with anything relevant. But Im just so annoyed at the moment. Just got a quote for car insurance...£4000 !!!!!1 The car is only worth £6000. Someone is making alot of money somewhere and it sure as hell aint the consumers.
    Sorry folks, Just had to get that outta my system
  2. I think it's pretty much the same wherever you are in the world, although some places are much worse than others. If I remember correctly, the three things that most of us purchase which are absolute rip-offs are:

    1.) Insurance
    2.) Jewelry
    3.) Furniture

    I forgot where I heard this, but, it said these three things are marked up astronomically, almost more than anything else in life.

    Mike J.
  3. Aaron


    Jun 2, 2001
    Bellingham, WA
    WHOA! A LEXX FAN?!!!
  4. Definitely a rip off. One thing though, is you can't be caught without liability insurance or and accident can ruin the rest of your life.
  5. Sofa King

    Sofa King

    Aug 20, 2000
    Rowlett, TX
    Was it Chris Tucker who said "Car insurance should be renamed. It should be named to 'In case sh!t happens fee'"? I thought it was hilarious :D

    Car insurance is extremely expensive, especially for 17 year olds. And what bothers me is that insurance is so high for my age because of all the 16 year old's who think whatever they drive is a drag car and end up wrecking their cars. I would love to be able to get a '90s Corvette... could afford the car, couldn't afford the $3000-4000 a year insurance. I mean, in the 4 years to pay off the car you'd almost pay it off twice because of insurance!
  6. lneal


    Apr 12, 2002
    Lee County, Alabama
    NO 17 year old should get behind the wheel of a Corvette. Ever.
  7. Here in New York state, if you take your car off the road and drop the insurance for a relatively short period of time (6 months? I forget) when you try to reinsure that, or another car, the Insurance companies put you back into the assigned risk pool, which means you get much higher rates just because you were not insured for a period of time. It doesn't matter that you had no car and weren't driving, and had no accidents; you get the shaft.

    BTW, the same goes for a lot of credit cards. If you pay off the entire balance, and then don't use the card at all for say, six months, they may cancel your card for not using it.

    That's like any store you can name charging you for not buying something from them. What a racket! :mad: A sad fact of business today.

    Mike J.
  8. john turner

    john turner You don't want to do that. Trust me. Staff Member Administrator

    Mar 14, 2000
    atlanta ga
    actually, i have the exact opposite experience with credit cards - if i pay off a card and don't use it for a while, they tend to increase my available credit and decrease my interest rate, trying to get me to use the card again.

    as for jewelry being a rip off, well all i can say is that the biggest jewelry purchases i've made had a much bigger return than the investment :D ;)
  9. Johnalex


    Jul 20, 2001
    South Carolina
    My first car was a POS 94' toyota pickup truck. I only paid $900 for it. I paid the insurance which was like $500. Then I got in am accident which was not my fault. The insurance company gave me $1600 to get the truck fixed. So I decided screw the truck, so I bought a bass amp and gave the rest to my mum for car insurance. Then I sold the truck for $400. Man I love capitalism! well good luck with the insurance.
  10. jasonbraatz


    Oct 18, 2000
    Oakland, CA
  11. Sofa King

    Sofa King

    Aug 20, 2000
    Rowlett, TX
    Why? The notion of a responsible 17 year old is not completely impossible. I know a 16 year old with a Corvette and there's no way he'd mistreat it and be irresponsible with it, he loves it waaay too much to put it in harms way :D
  12. Too true. I had a friend who father owned a Porsche 911. On the road that thing never went 5 miles over the speed limit. Matt was VERY careful with that car, and not just cause he was worried that his dad would kill him. He was scared of being pulled over, scared of traffic tickets, and scared of being in a high-speed wreck.

    And I like the idea of that Armed and Amoured Suburban!! Traffic jam? WHAT traffic jam?:D

    Rock on
  13. This is the mentality of the insurance companies, young males guilty until proven innocent. I have a friend who just turned 20, he is the best driver I know and he was when he was 17 as well. I would have felt more safe in a Corvette with him than anyone else I knew regardless of how long they had been driving. Aside from the odd case of dumb 16 year old kids who drive really fast and get in accidents, it has been my experience that past a certain point, the older people get the more dangerous they are behind the wheel. I had to go through driving school, I know the rules of the road, seems half the people 40+ years old do not. Actually every single near accident myself or my friends have had has been caused by a very old person and/or a....woman :eek:, but I don't want to start an argument about that.

    I hate insurance companies with a passion, IMO it is legalized fraud. With the exception of 1 person in a few hundred million, everyone will put far more into the insurance companies than they could ever possibly get back. I think around here you could get a fine of $2000 for getting caught without insurance. For the kind of insurance that us young guys pay around here, if you got caught once every year, you would save $3000/year. The insurance companies have a million silly little rules which are just excuses to charge you more. I know someone whose insurance company actually added a speeding ticket to his file that he never got, said that because of policy they couldn't remove it at this point, then raised his premiums because of it. Crooks all of them, greed like this makes me sick.
  14. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    I thought mine was bad at £700 - you have to shop around. One of the things to do is to join a motoring organisation - like AA, RAC etc - I joined the CSMA, but this may not be avilable to everyone. I got very cheap breakdown cover and they do deals on insurance.

    If you have a car worth £6,000 and are being charged £4,000, then I can only imagine it must be a "boy racer" type - you need to get a car in a lower insurance group until you can afford it.

    I was on the M4 coming back from Jazz Summerschool in Wales last week and saw several accidents - they invariably appeared to be caused by young men driving too fast in wet conditions - just sheer stupidity! I'm suprised anybody would give these people insurance in the first place!

    What the insurers are saying by proposing such high premiums is that they don't think you are a good risk and as I say you should probably be going for a safer car. They aren't making big money on these transactions as they almost always have to pay out - they make the money out of the safe drivers who never claim!! :(
  15. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    You're just plain wrong here! Insurance companies base their charges very closely on statistics which invariably show that it is young men who cause the vast majority of accidents .

    One of the big advances for the insurance industry was "Data Mining" which allowed them to predict very accurately which type of person is likely to have an accident - their success depends on this!

    So they take traffic accident statistics very seriously and no insurance company would want to base their scales on innaccurate data, as this would discourage the sort of customers they want. It's very much a science now and there have been many case studies on this.
  16. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    Here's a graph from UK government report that analysed road traffic accidents in 1998 :

  17. Ya know, statistics can be used to prove anything.
  18. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    Maybe, but they're certainly more reliable than "anecdotal" evidence!
  19. Lexx


    Aug 7, 2002
    I can easily afford the car and the insurance (by the way the car is a Nissan 200SX) Im just amazed at why they can get away with charging so much. Some of my mates dont earn that much in a year!
  20. HeavyDuty

    HeavyDuty Supporting Curmudgeon Staff Member Gold Supporting Member

    Jun 26, 2000
    Suburban Chicago, IL
    Sure, car insurance is a rip-off. Every insurance company I work with is either barely breaking even or losing money despite massive staff layoffs. But it's still a ripoff, right? :mad:

    Look to where the problem is, guys. The reason rates are so high is that claims are going through the roof. Excess profits ARE NOT ALLOWED by the states that regulate the insurance industry.

    You may not know this, but if your (US) insurance company name includes the word "Mutual", the company is owned by the POLICYHOLDERS. Yep, some major gouging going on there, I bet. And when a stock company can show a 106% ROI, the stockholders are dancing in the streets. You can do better opening a hot dog stand.

    Analyze the situation a bit before you condemn the industry, huh?