ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Product Reviews The big fat car motor insurance scam

Updated on October 14, 2011

Least ‘Value For Money Services’

Car insurance companies should be categorized as one of the least ‘value for money services’ provided to us, their customer! What a rip off, they are a complete scam & there’s just no other way around it. It’s about time someone did something about the rising costs of car insurance quotes & these companies should be better regulated,more suited for us, their customer.

Obviously having motor insurance insures us against accidents, injuries & death to self & to other persons & also protects property! & you have to have insurance cover by law! But what a big fat scam, we are suckered into their own made up laws & I’ll reveal to you exactly why a little later within this letter!

The car insurance scenario is a multimillion £££$$$ profit for these car insurance companies & the many brokers out there, providing our insurance, so that we are properly covered to drive our motorized vehicles on the public highways & byways worldwide, but other than this, what else, exactly, do they provide us with besides filling their own bank accounts with our money?

Sure, these companies provide themselves with big fat major profits each financial year within these uncertain uneconomical times of financial hardship & stress because they know we NEED & HAVE TO HAVE, by law, WHAT THEY GOT TO OFFER US but for the majority of ordinary folk struggling to make ends meet ‘we are always penalized’ & it’s about time someone, from an higher authority, someone with the clout & inclination, did something about it.

Let me give you a few examples. Take young driver Curtis, he spent time & money & passed his driving test after taking lessons, & now owns a diesel motor car. He is 23 years old working 40 hours a week since leaving school as a mechanic & has been driving,quite sensibly let me just add, since he was 17 with no claims at all, & even now, because his insurance is quite expensive (£800)! So, one would think, that if he did have an accident that was his own fault, maybe the £800 he pays for insurance this year would help cover him for the costs of being involved within an accident?

Well not quite you see; because, he managed to get his insurance down to a mere £800 only because he was willing to pay more for what is called an excess policy, which means, if he does have an accident that is his fault, he has to pay the amount of his excess first, which is a whopping £1000 towards the cost of damage repairs to the car.

Value for money, I don’t think so, & I’ll tell you why later!

What about Jason, this is an even worse case scenario & the same applies here, he works 40 hours a week in a shop, his actual wage is quite poor for the hours he does, but his car insurance, £1300, & no, he hasn’t made any claims on his insurance because of accidents or stolen cars previously. well, let’s just say he has even less left over once he pays his annual fee & the running costs of his small engine car.

Now don’t get me wrong, these guys actually NEED transport to get back & forth to work so that they can earn money to make a living also, so that they can pay for their car to enable them to get back & forth to work.

Take Ryan, now he may be only 18, but this young guy saw an opportunity, & actually took it upon his own back, to apply for one of the not too many job positions that became available when he turned 16. Lucky for him! & he’s so grateful too for the privilege of working even though they offered him a part time position. Quite a few months later, he purchased his very first 1ltr small engine car obviously, because he thought the insurance would be reasonably affordable because of the engine size & his age, but how wrong he was, his quotes range from anything as low as £6000 up to a mind blowing kick in the bollocks £12000. Even though, he is a little experienced already as he has owned, insured & been riding his motorized scooter on the roads for some time with no claims of accident injury or damage what so ever. & the value of his car, Less than £2000! Well yes you may say, maybe he should have got quotes before buying the car but still, the price to insure his car is just too high!

These insurance companies are having a laugh!

And did these guys all shop around to get the best quote/deal? You sure bet they did these are smart folk!

Now let me tell you something here. There certainly are irresponsible drivers & don’t get me wrong, the insurance companies get to know about these people, & many of them are paying their dues! But there are irresponsible folk worldwide in many of their doings anyway, & just as much, there are also responsible drivers too, & the insurance companies get to know these folk when they renew each year, even if Curtis & Jason are young & in-experienced as such on the road (that is within the insurance company eyes) they are still paying over the odds for their insurance because of something I will bring to your attention shortly.

& what about Ryan, although he has a little experience with a good clean record he will never get the opportunity to gain any further driving experience with his car if he can’t even afford to drive on the road LEGALLY because of the cost of his unfair, car insurance quotation price!

Does it make sense that a guy or a girl, that would take it upon him/her self, to actually get up in the morning, & use what could be their free time if they were unemployed, to actually go to work, because they were BOTHERED to get a job in the first place & to spend their time & money on lessons to gain their driving license TO BETTER his or her life, & shouldn’t these guys be placed within the more mature category whereas insurance prices are concerned especially if they have shown insurance companies a clean driving record & has not had an accident?

What about deaths & injuries to third parties? Surely there must only be a minor percentage of actual deaths or injuries claimed for compared to the amount of customers that have actually paid a full successful year of driving without making a claim!

Insurance companies can make even more profits for themselves & beat over their competitors because it seems, as though the insurance quote competitiveness is a very open & unregulated market. Someone set a price then we will all follow & try to undercut you by a tiny amount?

Imagine how much money it cost for an insurance company to advertise on TV for instance? Astronomical! It costs a massive amount of money to advertise within the avenues that they do! Where do you think they are getting all this profit from? Government grants? I don’t think so!

Maybe they can do something else more ‘constructive’ with their advertising & profit margin.

Insurance companies seem to check each other’s quotes constantly to try to undercut the next insurance quote offered by the competitor,to get your money.

As do fat profit supermarket prices, but that’s another article.

Ok, insurance companies are more than welcome to comment on this article telling us about inexperienced drivers are more at risk etc; the value of the car to be insured, the risk factor of the postal code area you live in, the claims for cars accidents bodily injury or death but none the less, these prices were created by insurance companies anyway, & this is what each of them go by when you phone up for your quote.

It doesn’t matter nowadays where you live because your car can become damaged anywhere, day or night. Your car could be parked at home or even in another area or even away at your work & it still can become damaged or vandalized. As for cars getting nicked or stolen, they can get stolen from any area, day or night but many cars nowadays are really hard to steal as you know although many cars are easy to break into anyhow.

There are so many laws governing speeding & reckless driving & so many ways for us to be caught by the appropriate authorities & the police & this is up to the law to keep a check on & re-enforce & not the insurance companies, they should be doing their own job & providing a SUITABLE SERVICE for us, THEIR CUSTOMERS.

Right, here’s the clincher, here’s the reason why insurance companies are a big fat scam & as soon as one single entrepreneurial modern thinking mind who owns, or is part of running, an insurance company, breaks this stale mould & steps out from the ‘follow the herd adherence’ he will become the king of insurance & his profits will flourish. & forget advertising by forking out a wedge of your profits, because the word will very quickly spread like wildfire! We will know who you are!

The example of 18 year old Ryan above! Ok, they know a little of his driving, highway & road usage experience as he has told them his record of motorized scooter knowledge so let’s say, they do actually charge him £6000 to allow him to insure his car for the first time so he can legally do so. They have not given him the benefit of the doubt because of his inexperience & rightly so too. If he as an accident because of his inexperience, (depending on the accident) the cost of his £6000 fee he already paid, plus his excess, will surely help cover the mass of the cost’s & the insurance company haven’t really lost a lot now have they, but remember, they are supposed to be providing a ‘HIGH-RISK-FACTOR’ service to us.

Now let’s just assume, that the first year of driving has now passed & Ryan has not even made a claim & now he has a bit more experience, & built up a little more ‘sensibility clout’ within the eyes of the insurance company. Now this insurance company that kindly (cheapest quote) gave him the opportunity to drive for the very first year HAS JUST MADE £6000 PROFIT off this young fellow! Yes that’s right. Very greedy I would say! Only because, THEY GIVE NOTHING BACK so they have just earned £6000 profit for doing just a little paperwork & answered a few phone enquiries & then Ryan is left searching for the best quote once again.

& Curtis & Jason, well, they have driven safely & responsibly once again for yet another year & built up a clean record with no claims financial or otherwise, well done guys, & also many others reading this, but also, in the process, they have fattened the insurance company’s bank accounts even more so. Curtis gave them £800 FOR VERY LITTLE WORK & Jason, well he provided the insurance company with £1300.

Well, these guys, & maybe you too, are forced to unfortunately supplement ‘financially’ all the mistakes of the bad high risk drivers that have been involved in accidents & such who have made a claim previously! But doesn’t their own insurance payment fee cover this for these unruly or even unfortunate folk?

But going at current rates of the amount of what we have to pay to insure us to legally drive our car on the road Is reasonably expensive as it is right now & there should be a check on the prices & these should be looked into and maybe capped!

So then, when we roughly know the going rate to insure our car, what every single insurance company should offer to every single customer that has not made a claim last year is:


& no, why should YOUNG or MATURE clean driving record builders become financially penalized for NOT making any driving errors or mistakes within their insured period?

Insurance companies & the law that regulates them:

Here's how it could work for insurance companies to flourish without spending astronomically on advertising. Offer their customer back a percentage of their fee if they have not made a claim, then re-quote your customer again when their policy is due for renewal! Word will get around & spread like wild fire by satisfied customers, you offer an affiliate/ joint venture, whereas others will sell for you for a small percentage, these eager folk will write articles & spread the word & create advertising videos for you-tube & such, you also offer an offline telephone number whereas folk who don't use the computer can contact you for a quote!

1: Insure your new customer for the high price (as in Ryan’s case above) for the first time; they certainly are at high risk after all, I should know, I had my first 25 accidents by the time I was 19! Thus you make sure most of your profits are well covered ‘if the worst should happen.’ & he has made a claim!

2: When your customer then renews & has not made a claim in that year, GIVE THEM BACK 50% (or a tidy percentage at least) of their original fee (give them some money back that they have given you unless you can legally justify how you used all of his money) of the price of his insurance, then kindly provide them with another quote.

Thank you for reading. That’s all I have to say on this matter until I view your comment!

Regards Dale Ovenstone


    0 of 8192 characters used
    Post Comment

    • Inspired to write profile imageAUTHOR

      Dale J Ovenstone 

      7 years ago from Wales UK

      Thank you for your comment goprisca

    • goprisca profile image


      7 years ago from Bangalore

      This is informative

    • Inspired to write profile imageAUTHOR

      Dale J Ovenstone 

      7 years ago from Wales UK

      Thank you Kim it's about time someone looked into this.

    • profile image

      kim Ovenstone 

      7 years ago

      I totally agree with your comments Dale, its unfair and unjust for young people,


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)