Car insurers are constantly reviewing strategies and investigating measures that could reduce the pricing pressures on car insurance premiums.
Inflationary pressures will not go away – and there will always be rising costs in employment, administrative costs, cost of repair, vehicle parts etc.
Not much can be done to reduce these escalating costs – but there might be other initiatives to reduce car insurance premiums!!
One of the most important measures is to ensure that the risks of accident claims are measured correctly. It is important that car insurance clients are correctly insured and that they pay the correct premium for the “claims risk” that they present!
If some vehicle owners pay too little and claim often – they will add to the pressure of expensive car insurance premiums for the whole client base.
Claims history and disclosures made by the client
Not only is car insurance fraud during the claims process hurting car insurers – but also the failure to make proper disclosures on signing the car insurance policy!
Too many clients – especially younger vehicle owners – try to gain cheaper car insurance premiums by not making a full disclosure of all the material facts. If this is discovered after a claim has been submitted, the claim could be rejected by the insurer as it amounts to breach of the policy agreement.
It is however also important for car insurers to pay closer attention to the disclosures made by the vehicle owner when his premium is calculated and before the policy document is signed! Applicants attempting to secure car insurance could be subject to additional background checks, which could keep premiums down in the future.
Insurance representatives are in agreement that greater attention be given to effective history checks of claims records and driving behaviour. One of these experts has noted that “It is not fair that safe, law-abiding drivers should pay higher premiums to subsidise people who lie about their previous claims to get cheaper insurance”.
Vehicle owners need to be active participants in this process – and blow the whistle on car insurance fraudsters. Cheaper car insurance requires that no client is able to take “short cuts” at the cost of other vehicle owners.
We would like to urge all vehicle owners to pay close attention to the terms and conditions of the car insurance policy and to make a full disclosure of all the material facts that have an effect on the car insurance premium. Be alert to others who pride themselves in saving money at the cost of honest policyholders – and alert the insurers to these consumers!!