Is insurance to protect you or a way of making money?

Is insurance to protect you or a way of making money?

If you are like me I have just had make car insurance renewal.

No I have had no accidents touch wood and no speeding fines but my insurance was nearly £100 more.

So I have been delving into why I mean surly the insurance company is making millions out of us the British public.

Did you know that motor insurance has not been any where nearly profitable for insurance companies for many years? No I didn’t either I just thought that they must be making a fortune.

So ok so it stands to reason if we are all paying lots more for our motor insurance and the insurance companies are not amking a fortune we must be having lots more accidents.

Makes sense.

No statistics out show that the number of accidents fell by 10%  in the last three years. Strangely the number of people claiming when they where involved in an accident rose by over 43%.

Touch wood I have never had an accident in over twenty years driving but hey it can happen to anyone. But did you know that at the moment the are over 1200 new whiplash claims everyday.

Now wait if you have an accident and you are hurt you should be able to claim.

After all that is why we all pay for insurance isn’t it.

Sorry I wish it was that simple. The NHS spends about 8 million a year treating real whiplash victims. Insurance companies pay out around 2 billion.

There is big business in claims handling,  billions each year. In fact when the has been an accident where one driver is at fault some insurance companies refer the innocent driver to a specialist and claim up to £800 in referral fees.

So unfortunatly until we all stop abusing the system it looks as though our higher insurance costs are here to stay.