Van insurance news roundup: 7 days ending 20 Dec 2013:
Well, it’s finally a matter of the official record: you are literally paying more than you should be for van insurance, even if you somehow got a good quote.
How can I say that with so much certainty? Well I mean everyone knows that van and car insurance companies charge you an arm and a leg, but most of the time this has meant just impotent complaining. However, this time things are different: the Competition Commission itself has finally weighed in, declaring that we’re all being taken to the cleaners by the insurance industry – and the methods insurers use to crank up the prices may come as a bit of a shock.
The Commission discovered that whether it’s a car insurance or commercial van insurance provider, they have probably been ratcheting up their premium prices in order to cover the costs they incur in over-charging their customers when it comes to car hire and repair bills.
It’s more or less a scam if you ask me, and it works brilliantly: insurers have substandard parts and shoddy workmanship to repair damaged cars and then charge full-price to whomever was at fault in the accident. The same goes for car hire costs as well – insurers inflate these costs in order to line their own pockets – and the end result is massive rate hikes for unsuspecting drivers.
The Competition Commission was quick to condemn the practice – as they should have – but the insurance industry responded to the publication of the report as well. Unsurprisingly the industry tried to spin the results to make them appear more favourable or to garner some sympathy; while the Commission recommended regulatory action be taken in order to stamp out this price-gouging behaviour on the part of the industry, repair service and car hire firms have been quick to say that any new regulations may endanger the ability of these companies to make a living!.
This is of course patently ridiculous. Only in the insurance industry can you catch a company with their hand in the cookie jar and have them vehemently deny any wrongdoing. Typical if you ask me!
