They are a total and utter law unto themselves...

As you say, your overall value of the car is going down (and even if it wasn't, the insurance company would SAY it was when they paid out, despite taking premiums on the higher insured value without saying a word) so their 'risk' is actually getting less.

And, don't the insurance companies have in fine print that you have to inform them of any tiny little thing that's changed, which may affect the policy?

Funny how this doesn't apply to them though...they'll keep renewing your $10,000 cover for a vehicle you assume is insured for 10k as that's what they are billing you for, but come time for a payout...oh, no, sorry sir...the current maket value for your vehicle is only 10c according to our valuer...

Case in point; when i got my 1991 Safari, it was a bit rough, but had a new engine 60,000km ago. I insured it for 10,000 and the insurance company was perfectly fine with it...

Time to renew it for the second year (i had fitted brand new shocks, new windscreen, had the trans and stall converter fully rebuilt($3300), fitted new seats, a new stereo, fixed the lights, fitted a new alternator and two new batteries and a new bull bar...).

Even after all this, which had definitely increased the [private] market value, the insurance company said it was now only worth 7000...

What can you do...?

I just went to someone else, and got it insured for 10k again...

This'll only work as long as you DON'T make a claim, soon as you do, all bets are off...

 

Someones got to help them pay for all the flood damage

 

Yes...that'd be us.

Insurance companies don't pay for anything...no, really.

Every claim they have to pay out on, HAS to be from someone who had a policy, and they (along with millions of others) have been giving the insurance company money (in many cases) for years...

It's some of THIS money that goes to pay a claim...the insurance company isn't out of pocket one single cent...

And, if they DO have a run of bad luck (too many claims), as stated above, they just HIKE the premiums...

They are not like other companies, whereby the money you pay at least partly goes to cover physical work, or products...

 

They must maintain a profit, like any other company. This last year they had had billions in write offs for all the natural disasters worldwide and so have to increase premiums to recoup. It does not matter if you were in one of the disasters or not.

They all borrow the money from the same sources to cover the insured, if billy-bob in bumfuk, Idaho gets his trailer park wiped out in a tornado, rjhug1 of Melbourne will cop and increase in his premiums to help cover the costs. It's not like Lloyds of London years ago, where there were just a few major underwriters. Does it make it right, no, but that is the way it is.

I hate thieves with a passion, every one of them, but reserve a special hatred of those who will steal off the working man. Therefore I do have exclusions to my hatred, only two of them, and that is the government and insurance companies.

 

Stic, none of the premium money goes to pay a claim (the money that comes in on a daily basis is called the float); all it does if cover costs, pay the brokers a nice fat salary and pay the insurance fund suppliers their whack etc.

Back in the old days it was the insurance company, they would gamble that there would be no claims and invest the premiums and get a return on investment.

With global corporations it does not work that way anymore, the scales are just too big. They invest the money from premiums with the different fund managers around (Goldman Saks, Lehman Bros etc etc) who make dubious investments so they will have lots of funds to make the billions of dollars in payouts, and you hope that all don’t go bust (haha).

The fact that this is all a house of cards means nothing to them, they will wiggle out of it if they can so they do not have to pay. In countries like Oz, where there are laws protecting you, it just makes borrowing cost a lot more (as the banks keep on telling us).

My cousins wife is a high flier in insurance and we had this discussion a few months ago when it was reported in the papers that insurance premiums around the world were about to go up on the back of all the disasters. There are some not for profit insurance companies (co-ops), but with the big ones if people really knew what was going on they would stuff their money in a mattress.....

 

I've got no major issues with price increases with certain things, just have some logic. This type of practise existed well before floods and fires struck. The way its structred is based upon the assumption people wont be bothered challenging or changing.
I got online and requoted the same vehicle and was $180p/a less than what I currently payed and $300 less than the renewal.
...and to actualy state there was an increase on the policy would have been kind of nice as well....

 

Aint that the truth, a lot of companies rely on customer apathy to keep paying up. While the worldwide natural disasters is the ploy that they are using now, if there had not been any there would be some other reason, cost of borrowing is a staple of the banks. However, cost will rise for all on the back of the disasters for all.

It pays to shop around, but then again, cheep does not necessarily mean good, it’s only good when you pay the premium, not so good when you go to make a claim and find out that under clause 37, sub section 2, paragraph 8, you are not covered at all.....

 

i swapped from RACQ to suncorp... cost me a few hunge more, but i did it for moral reasons...

My mate was lead to believe he had flood coverage, but when it came time to stump up the cash, RACQ left him hanging...

So i left. Suncorp paid out, so i'm with them. They also seem more ready to look after their customers with less rigmarole. I had arguments with RACQ when my rear bumper was repaired, not replaced meaning the paint didn't match the texture right. I even told them prior to the repairs i wanted it relaced not repaird.

Anyway, they gave me and loads of others grief, so i went elsewhere on principal...

 

I think Insurance companies are universally hated; they take our money in the good times, and raise the prmiums for what we see as obscue reasons and then try to obfuscate to reduce their liability in the event of a claim.

No news there!

12 years ago my wife had a prang and took out radiator amongst other bits (obviously) damaged beyond repair.

Having made a few claims in my life, I was surprised that they wanted me to kick in for 80% of the radiator 'cos the car was nearly 20 years old. I more or less said "get fawked" in a polite manner and they walked away from that idea. But I wonder how many people just cop it?