Fascinating Breakdown Of Your Insurance Premium
Saturday, 3. July 2010
I saw recently in Auto Express a report on the way insurance premiums are spent on claims. Whilst I talk regularly about insurance, and how to reduce premiums etc., I thought it made interesting reading and felt I should share it with you. The average premium has risen from £354 annually 15 years ago to £616 annually, even worse if you have loyally stuck with the same insurer which they suggest would now have increased to £968 per annum. After accounting for the following the balance is left as profit:
|
Cost |
Price |
Percent |
| Operating Cost | £104.72 | 17 |
| Personal Injury Compensation | £103.98 | 16.88 |
| Labour | £96.71 | 15.7 |
| Legal Fees For Personal Injury | £69.36 | 11.26 |
| Parts | £67.70 | 10.99 |
| Fraud | £44.17 | 7.17 |
| Theft/Fire/Vandalism | £39.42 | 6.4 |
| Tax | £30.80 | 5.0 |
| Paint | £29.02 | 4.71 |
| Uninsured Drivers | £30.12 | 4.89 |
Interesting reading! Any views – let me know! By Graham Hill
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