Drivers Afraid To Make Insurance Claims
Posted on November 29, 2010 by Margaret Chan
The world of British auto insurance has always been a place where people followed misinformation and a significant number of bad decisions were commonplace. Lately, though, it seems as if this has been ratcheted up a couple of notches. The article in question speaks to the idea that people are willing try almost anything to bring down their car insurance. Making horrible financial decision is a huge part of it, as people are gambling by taking out an excess amount that makes their insurance policy largely unusable.
Should it be surprising to anyone, then, that a person would leave the scene of an accident if it looked like it would work and they payoff was a few thousand pounds? The article paints this as being a common thing, and that is especially troubling.
This seems to truly be a situation where the industry is completely out of sorts. Insurance is supposed to be a winning bet. It is supposed to be an industry where risk is spread out among a bunch of different drivers so that no one driver would have to carry the entire burden. This design works in ideal and it works when everyone plays by the rules. As of now, though, it appears that people are far too concerned with gaming the system and not nearly concerned enough with getting the proper coverage.
The point of insurance The article brings up thoughts about just what insurance is all about. Drivers are supposed to be paying in, little bit little each month, in an effort to reduce the burden when they finally get in an accident. In a way, it is a savings plan that people are basically forced into. People seem to have lost sight of this, though. Their insurance policies are largely useless because they fear that the premiums will charge upward. In a way, this is a problem caused by both the driver and the insurance company. If a person has been paying into an insurance premium, it seems irrational that his rates should go up so much when he finally gets into an accident. Though it might be true that that driver has become a larger risk, wasn’t the initial premium calculating some risk in the first place?
How far will people go? This article presents an interesting perspective on the human condition. Just how far will people go to save a pound? That question is obviously different depending upon who you talk to, but it remains true that many drivers today are willing to go outside the bounds of the law if it means they’ll have a bit more financial success. The market has gone mad and there are truly irrational decisions being made. If one was presented with the idea of paying one thousand pounds more or going to jail for six months, which would they choose? Almost everyone would choose the payment, but people are still putting their freedom at risk for the possibility of saving a buck. The insurance industry is in shambles as a result and it’s only getting worse.
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