• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Premium calculation questions

M

Moggy

Member
I have a couple of qn's if someone can help.

1. e.g car insurance. Why, if someone has an accident, can they not receive a refund of the remaining premium if they decide to cancel the insurance mid term? Whereas someone who has not had a claim can receive a partial refund?

2. Some car insurance companies appear to rate for a "no fault claim", ie that is they assume that the person is more likely to have an accident and/or have a claim after they have had an accident that was no fault of their own.?

Thanks
 
1. I rather suspect it's because the company is taking every opportunity it can to claw back some of the loss you've caused it! I don't think it's any more complicated than that.


2. Some not-at-fault claims would indicate a higher possibility of future claims - for example, if you've been burgled (which isn't strictly speaking your fault), then you're more likely to be burgled again. Then, of course, there are always the people that drive very slowly and other drivers tend to drive into the back of them. Each time it will be the other driver's fault (according to the law at least), but I would still think their likelihood of being involved in other accidents to be higher than the norm.
 
You must log in or register to reply here.
Back
Top