What Sort of Customers Should UK Car Insurers Hate?
UK car insurers desire to issue policies to certain types of car owners over others. But there are certain proven customers that these insurance companies don't like to insure.
Bad Driving Records
Even for a short term car insurance policy (check here for more details), car insurers in the UK look to avoid potential customers who have had bad driving histories. Even if they raise their premiums when they issue a policy to them, they can lose money in the end due to the driving habits and patterns of these customers. People who have been in many accidents, who have many speeding tickets, or have drunk driving convictions are all considered bad drivers. The costs to reimburse the inured when any personal or property damage occurs can cost the car insurers a great deal of money so they'd rather avoid such customers.
Teenagers or other very young drivers are brand new to the way to handle a vehicle. Plus, being young, they tend to drive in a much less responsible and mature way when out on the road. Such age groups pose a much higher insurance risk to car insurance companies because their unfamiliar and dangerous ways of driving put them at increased risk for crashing their vehicles and incurring injury to either themselves, other drivers, pedestrians, as well as personal property. This puts these drivers in a disadvantage when it comes to even trying to get car insurance. But even if they do get it, the car insurance companies won't be too thrilled about issuing them a policy because they can lose money when the high incidence of accident claims are reported.
High Crime Areas
In neighborhoods where there's high crime activity, cars often are involved in many of the crimes. Such crimes include automotive theft, vandalism, and even fires. To the car insurance company, this translates into a much higher risk when issuing a policy because they know there's a much increased likelihood of having to pay for the entire replacement costs of the damaged or stolen vehicle when an insured carries a policy with them. This makes car insurers hate to insure the car owners and drivers who either live in these high crime areas or park there during the day or night when they're at work.
Sports and Luxury Car Owners
Car insurers in the UK definitely hate to
issue policies to customers who own expensive sports and luxury cars.
This is because such vehicles are highly vulnerable to theft, no mater
where they're parked. Car thieves routinely go after these cars to
either chop them up for parts or sell them overseas on the black market.
For the insurance company, these thefts require that they have to pay
the full replacement value of each stolen vehicle. This can easily cost
the insurance company much more money out of its own pocket than it
takes in from premiums from the insured driver. Even if the insured of
such a vehicle has to pay much higher premiums to get issued a policy,
it still might not cover the replacement cost of the vehicle, even with
a a short term car insurance policy being issued.
Copyright, or maybe not, by Crazy Joe 2004. That's 'Crazy' with a 'K'. Say, how do they spell that word?