Another Week That Was In The Insurance World
There is no doubt about it; the heavy car insurance marketing is back. Everyone has a new improved website and of course there are the messages of getting cheaper car insurance and we all end up wondering, not every company can offer better value than everyone else, what are the insurance companies left that still sell expensive policies?
The recent heavy weather spell certainly would not have been good news for the insurance industry. Of course they plan for bad weather spells, but with the worst spell of weather in nearly 20 years and most insurance corporations associated with banks that are just about held together with tax payers’ money, the last thing they needed was to have to put their hands into their stretched piggy banks with unplanned pay outs.
The AA had claimed that roads were unnecessarily unsafe and the excess accidents were due to low levels of salt. They of course were talking about the human costs, but it is the car insurance companies that will pick up most of the financial costs. Many more roads were blocked or just too slippery to drive, but many tried anyway and accidents occurred. We bet the auto salvage auctions had a few more vehicles in this month.
Even the breakdown insurance companies found themselves extremely stretched and as many of these are owned by the car insurance companies, you can see the link. It was predicted anyway at the beginning of the year that car insurance premiums would rise because of the current credit crisis, but you can’t help felling this weather bought and extra payouts, will take premiums even higher. Whether we will se higher breakdown insurance premiums also, we have yet to see, as it si possible that many are just choosing not to renew this year.
Ironically it was the unpopular vehicles that stole the show this week. We are talking about the 4 x 4 vehicles, that have become too expensive to drive because of fuel costs (although this has dropped now) high congestion charges and very soon high road tax charges. The only people who seemed to move last week, were those in 4×4s, we wonder if their value will start to come back.
