CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 11 SEPT 2013:
Everyone’s got something to say this week regarding the scarcity of affordable car insurance, whether it be a major insurer or a concerned MP.
First up this week is how one of the nation’s largest general insurance firms has their trousers in a twist because its motor car insurance division has been letting the side down. In fact, LV= says its 3.1 million insurance policies weren’t enough to keep its general insurance profits drom dropping by a massive 30 percentage points.
Of course the firm still made some £43.5 million in profits for the first half of 2013. Yes, if you do the maths you’ll realise that it made shedloads of money last year as well as this year – it’s funny how LV= is complaining about turning millions in profit.
The biggest problem, according to insurer spokespeople? Apparently there’s a price war amongst car insurance companies that’s eating into their profits. Cry me a river.
Meanwhile, the price of a year’s worth of insurance cover isn’t necessarily getting less expensive in some areas. Local residents of Bradford are having a devil of a time finding cheap car insurance, and David Ward, MP for Bradford East has had enough – he’s even gone to the Association of British Insurers for some answers from the trade industry body.
Honestly Mr Ward’s constituency isn’t exactly the luckiest. Bradford has more than its fair share of uninsured drivers, and there’s a serious problem with the number of road traffic accidents and car thefts. This tends to contribute to rates that are higher than normal simply on a statistical level, but for what it’s worth the whole thing smells a bit fishy to me.
I mean let’s get serious here – if insurers like LV= are turning millions in profit but they complain long and hard about how some regions are more statistically dangerous to insure motorists in than others, it seems like they’re just blowing smoke up our arses in order to justify their high car insurance rates. It would be one thing if insurers were deep in the red, but that’s simply not happening – it sounds instead like they’re just being damned greedy.
I don’t know why anyone would be surprised that a large firm like an insurer would have greed as its primary motivation. I know I’m not taken aback by the least – just disappointed, I suppose.