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Let’s face it, it’s no secret that insurance companies have an easy ride. Would you be surprised to hear that average cost of car insurance in the UK is a whopping £827 per year. With 45 million drivers on the road you can see why it’s a £14 billion industry.
How much money do you cost your insurer?
If you live up to the national expectation, you might have 3 accidents in your driving career, maybe 4 if you’re particularly unlucky. So the question is: are you getting your moneys worth?
On initial inspection, rather surprisingly it actually looks like…Yes! The price of your average car on the road today is £24,660. So at the higher end of average, you’re costing your insurer close to £100,000 – whereas your insurance premiums would have only cost you about £58,000 after your 70 happy years of driving.
So there we go! Case closed. We can sleep easy with the knowledge that we’re all getting our moneys worth and the insurance companies aren’t taking advantage of us. Well sadly it’s not that simple, and here’s why.
3 Reasons Why:
- Your excess
- Settlement payout might be too low
- Your Insurer knows how to unlock your car’s hidden value
Your shiny metallic £24,660 that didn’t make it around the icy corner, isn’t really worth £24,660 in your insurers eyes, and your payout (or settlement) from them reflects that.
They only agree to pay you an amount that covers “a like-for-like replacement of your vehicle”. How much exactly? Really it’s anyones guess, the older it is the less you get, and you can be sure it’ll be thousands away from your initial £24,660. From our experience it always has been.
Okay but the savvy accountants among you will say “that’s just depreciation” and they’d be right…with a bit of artistic license. That’s not the only way your insurers are saving a few pounds.
Now, returning to our story about you, our average Joe. You’ve received your settlement figure now, for a not-so “like-for-like replacement” and you go on your merry way. Out with the old and in with the new…
But that’s not where your old car’s life ends. Your insurance company sell your lump of broken metal to salvage companies, who pay a surprisingly high price for it. It’s all money going back into the insurance companies pocket!
How much money do car insurance companies make?
Once you add it all up, all of a sudden that big insurance settlement payout only costs your insurer £14,000. If you crash 3 times, your insurer makes £16,000 out of your £58,000 in premiums over your lifetime. Crash 4 times and they might only make £2000.
This isn’t an article to incite you into having more accidents to get your money’s worth! But it does show you how the tables are tilted.
Rather than letting the insurance companies sell on your car. CarCrashProfit can partner with you to effortlessly buy-back your car from your insurer. They get the car, and you get some profit, up to £2000 depending on the extent of damage.
