Rich_P Posted October 25, 2011 Share Posted October 25, 2011 Hi guys, Wondering if anyone knows the official answer to this one. Why does the insurance premium drop depending on how many years you have owned the vehicle in question? This is not the same as no claims bonus either! Also how can an insurance company enforce checks on this if the logbook is merely a registered keeper and does not state ownership? Quote Link to comment Share on other sites More sharing options...
Boro Posted October 25, 2011 Share Posted October 25, 2011 Must depend on company as i just tried this out of curiousity mainly because i spent the afternoon getting insurance quotes, anyway it made no odds to the quote with lancaster whether i had owned the vehicle for 10 years or 1 day Quote Link to comment Share on other sites More sharing options...
disco2hse Posted October 26, 2011 Share Posted October 26, 2011 It's based on risk and many factors that determine the level of risk an owner presents. One guess is that they have evidence to show that people who own cars for a longer period tend to be at a lower risk from submitting claims. Quote Link to comment Share on other sites More sharing options...
FridgeFreezer Posted October 26, 2011 Share Posted October 26, 2011 Never been asked that question by my insurance other than when getting a quote on something I was thinking of buying/just bought. I'd guess Alan is on the mark though - the longer you own it, the more used to driving it you get. Quote Link to comment Share on other sites More sharing options...
CwazyWabbit Posted October 26, 2011 Share Posted October 26, 2011 .... and the longer you have managed to not get it nicked! Quote Link to comment Share on other sites More sharing options...
matt bristol Posted October 26, 2011 Share Posted October 26, 2011 it goes towards building up how they think you are in terms of a claims risk. If you have owned and cherished a car for several years teh rational is that you are more likely to exercise due care and attention when it comes to the lieks of security and also in theory your driving and exposure to potential risk of your pride and joy when on the road. My cousin is an underwriter and he told me they consider all sorts of parameters - not all companies - including how faithful to the insurance company you have been, ie if you shop around every year they won't necessarily offer you as good a deal as they won't have several years of premiums to a potential loss over. He also told me a lot of other stuff that is less sceintific in the approach to underwriting rates as the underwriters tend to set general trends not assess each individual proposal. Also each insurance company (underwriting company not the company that sell you the policy) try to maintain a certain market share by adjusting their premiums regularly to increase or decrease their market share to the level thay feel thay can profitably cover the risk they have bought. For instance if a company wanted a 20% market share but only had 18% they may reduce premiums to increase business until such time as they were at or near 20% and conversely if over subscribed they will increase premiums. that help? matt Quote Link to comment Share on other sites More sharing options...
g&t Posted October 26, 2011 Share Posted October 26, 2011 Re. the 'shopping around' comment Matt, then we are all 'twix the rock & a hard place because it's the greedy insurers that have forced us to do just that, with their best deals for new clients approach. Last year the premium for our eurobox increased by £130 when there had been no change in circumstance or car & when I informed the IC that I had obtained a quote at the same level as 'their' previous year the cheeky b.....ds offered to match it! Too bloody late I said - sit & spin! Quote Link to comment Share on other sites More sharing options...
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