Post Code Lottery

[Dustydog]

August PCv published a letter from a Caravan Insurance Specialist who felt the recent mystery shopper didn't do them justice!
They said if a different postcode had been used their premiums would have been cheaper.I bet if the other Insurers used the suggested post code their premiums would be cheaper still.
I obtained a quote from the Company concerned two years ago. They would not insure my caravan at my house, only at the storage.Why?
I live in the country well away from any major cities.
The CC insurers do give me the full cover I require.
The author of the letter said it wasn't a whinge.
Own goal if you ask me

 

[intransient1]

The insurance industry is by its nature fickle in what it wants from us before they quote the premium.
I store my van on a cassoa gold site as I don't have storage space at home, but the cost of insurance is still high.
I also have insurance approved security devices hitch/wheel lock /alarm and intelligent drive, these are all meant to reduce the cost but not enough.
If I fit a tracker it will fall a little more but not enough to help offset the cost of a tracker, and then even with all this it still does not mean my van is safe.
This is despite the fact that many vans sit in storage for more than 6 months of the year which also reduces the risk.
Maybe it's time to club together and make a stand for a better deal, after all without us they can not sell their policies.

 

[NigelHutson]

I'm glad you spotted it too Dusty! They whinged about things not being on a level playing field. Odd that, given that all the companies quoted based upon the same details! As the information given by the mystery shopper was losely based on us, obviously we had an interest. I would like to know (but would probably only be lied to) how many single axle caravans, fitted with active tracker systems, alarms, Al-Ko locks of varying sorts have been stolen from within ten miles of the quoted postcode within the last three years compared to their lowest quoted area. I'd wager that the correct answer would be the same. None!

 

[Raywood]

A single quote for each insurer can be misleading as premiums can vary between them for various reasons. There was some controversy over storage at the CC site at Strathclyde Park with at least one insurer loading premiums based on the post code when the others saw no problem.
The C&CC did publish the type of locations where theft occurred and from your home came top and CASSOA sites had least problems which may explain why one insurer would not cover a caravan at the posters home,
The profit margin on the insurance is however very low because of the difficulty of repairing caravans and if I remember rightly the C&CC quoted £1,600 as the average cost.

 

[David_BBM]

The insurance industry is by its nature fickle in what it wants from us before they quote the premium.
I store my van on a cassoa gold site as I don't have storage space at home, but the cost of insurance is still high.
I also have insurance approved security devices hitch/wheel lock /alarm and intelligent drive, these are all meant to reduce the cost but not enough.
If I fit a tracker it will fall a little more but not enough to help offset the cost of a tracker, and then even with all this it still does not mean my van is safe.
This is despite the fact that many vans sit in storage for more than 6 months of the year which also reduces the risk.
Maybe it's time to club together and make a stand for a better deal, after all without us they can not sell their policies.

Hi intransient1,

I read this thread, and in particular, your comment with interest. It looks like this is one of those frustrating insurance problems where the industry have just failed to understand the fundamental risks of the things they are insuring (i.e. being in secure storage is surely safer than being on the road!).

You then suggest clubbing together to try and fix these various problems. Bizarrely, that's exactly what I do for a living We group together people who share a similar need from or frustration with the insurance industry and then use the group's collective bargaining power to get a better deal from the insurance companies.

I hestitate to write more as I do not want to abuse this board but you comment was so closely related to our work that I wanted to let you know that we could help.

Cheers

David

[/Moderator Note: External links and Email addresses removed.

 

[Dustydog]

This philosophy has surely already been done by the CC and the C&CC hasn't it??

 

[WoodlandsCamper]

I hestitate to write more as I do not want to abuse this board but .....

However you managed to plug your company twice, plus your username has its initials.

 

[David_BBM]

I hestitate to write more as I do not want to abuse this board but .....

However you managed to plug your company twice, plus your username has its initials.

Yes, you're probably right, sorry. A bit over the top. I wanted it to be clear rather than pretending to be unconnected and then recommend myself..!

It was (unlike most of the insurance industry) a genuine attempt at being helpful though so hopefully the sentiment was right!

 

[RogerL]

This philosophy has surely already been done by the CC and the C&CC hasn't it??

Despite being competitive with commercial insurers (cheaper in some cases), the CC Insurance makes huge profits which are ploughed back into Club Sites - which is a bummer if you use CC Insurance but don't use Club Sites!

AFAIK the CC Insurance doesn't use postcodes to evaluate risk - and makes no distinction in premium between storing at home or in "ordinary" storage - although there is a discount for high-level security storage.

 

[Dustydog]

This philosophy has surely already been done by the CC and the C&CC hasn't it??

Despite being competitive with commercial insurers (cheaper in some cases), the CC Insurance makes huge profits which are ploughed back into Club Sites - which is a bummer if you use CC Insurance but don't use Club Sites!

AFAIK the CC Insurance doesn't use postcodes to evaluate risk - and makes no distinction in premium between storing at home or in "ordinary" storage - although there is a discount for high-level security storage.

Very true Roger.
but does BBM offer anything to us mere mortals?

The most important issue is what happens when a claim arises?

 

[RogerL]

The most important issue is what happens when a claim arises?

I've only made one claim in 30+ years, on CC for broken windows from a kids football - repair authorised quickly and painlessly.

 

[Damian]

If you insure with one of the better insurers through the clubs instead of going with the cheapest then claims are settled very quickly and without fuss.
Like Roger I have had to make three claims whilst with the CC and each was dealt with very quickly and no problems, with one claim the agreement was given for repairs within 30 minutes of informing them.
As with anything , you only get what you pay for.

 

[David_BBM]

This philosophy has surely already been done by the CC and the C&CC hasn't it??

Despite being competitive with commercial insurers (cheaper in some cases), the CC Insurance makes huge profits which are ploughed back into Club Sites - which is a bummer if you use CC Insurance but don't use Club Sites!

AFAIK the CC Insurance doesn't use postcodes to evaluate risk - and makes no distinction in premium between storing at home or in "ordinary" storage - although there is a discount for high-level security storage.

Very true Roger.
but does BBM offer anything to us mere mortals?

The most important issue is what happens when a claim arises?

To be honest I'm not completely sure on the commercial arrangements between CC / C&CC and the insurers. Usually such 'affinities' are paid a commission per sale made by the insurance company so it's possible that they are indeed ploughing this back into their other ventures / services.

I've already pushed the boundaries of what's acceptable on a forum so I won't say more about what we have to offer / what we do for 'mere mortals' (we like to call them members!!). Anyone interested can see that from our website.

Ultimately Damian is right - you should be getting what you pay for and it's sensible to consider the quality of the product rather than just the cheapest thing available.

 

[RogerL]

According to my CC policy, it's co-insured by Axa, Aviva and two Lloyds Syndicates so I guess the CC is just a broker - or does that just expose my admitted lack of knowledge of the Insurance Industry ?

 

[David_BBM]

Hi RogerL - that sounds about right actually so your knowledge is not bad at all.

I don't know the specifics for CC but by the sounds of what you've written, they will be acting as a broker. Hence they are due commissions in the event of a sale. It's Axa, Aviva and the Lloyd's Syndicates who are the actual insurers. They probably divide up the risks between them, as well as perhaps the duties of servicing policies and managing claims.

Interestingly, some brokers do a bit more than others. Some will contribute to the design of the products (what risks should be covered, for what amounts, what are good and bad features and so on), get involved in claims and so on. Not sure if this is the case for CC or not.

The truth about the insurance industry is that there are often a lot of companies in a long chain between the customer and the final insurer. That can lead to a lot of cost built into that chain which, if bypassed, makes things a lot cheaper for the customer.

 

[Dustydog]

According to my CC policy, it's co-insured by Axa, Aviva and two Lloyds Syndicates so I guess the CC is just a broker - or does that just expose my admitted lack of knowledge of the Insurance Industry ?[/quote

Spot on Roger.
For decades the CC have worked on a joint venture with a well respected International Lloyds' Broker Devitts. CC tell the Broker tbe covers they want for the members.Devitts place the insurance . Yes there is a commission which is shared. The share received by CC is ploughed back into the Club finances sites etc. A true symbiotic relationship.

 

[RogerL]

Yes there is a commission which is shared. The share received by CC is ploughed back into the Club finances sites etc. A true symbiotic relationship.

I have a similar "symbiotic" arrangement with my car insurance broker and my stock broker - they both share their commision with ME !!

 

[Raywood]

The system is known as co insurance and each company takes an agreed percentage of the total and shares the profits and loss accordingly. The club has agreed the premium levels with the insurers and Devitts are given claims handling authority. The big advantage we have in usuing the policy is that the club is careful to ensure members are treated fairly and if not can easily move the business so as long as it is reasonably profitable the insurers will try and go out of their way to keep it.
If you are insured through a broker or direct this leverage is not there.

Hi RogerL - that sounds about right actually so your knowledge is not bad at all.

I don't know the specifics for CC but by the sounds of what you've written, they will be acting as a broker. Hence they are due commissions in the event of a sale. It's Axa, Aviva and the Lloyd's Syndicates who are the actual insurers. They probably divide up the risks between them, as well as perhaps the duties of servicing policies and managing claims.

Interestingly, some brokers do a bit more than others. Some will contribute to the design of the products (what risks should be covered, for what amounts, what are good and bad features and so on), get involved in claims and so on. Not sure if this is the case for CC or not.

The truth about the insurance industry is that there are often a lot of companies in a long chain between the customer and the final insurer. That can lead to a lot of cost built into that chain which, if bypassed, makes things a lot cheaper for the customer.