Mandatory Car Insurance cost

Why in Hungary the cost of the car insurance is going down. In the UK it’s going up.

In Hungary the average car insurance for a 25 year old person with a 10 years old BMW  is around  £160 pounds per year. In the UK that same car, same driver, same insurance company will cost an average about £3,000 – £20,000 pounds per year. Yet they are still profitable in Hungary, or else they wouldn’t be there.

Wow, it’s a bummer right? No. It’s a scam!!  A scam as far as the UK drivers are concerned.

Most drivers never ever have a claim in their life and even if they do it’s for a minor amount and their deductible usually covers it.

The car insurance companies prey on young people, claiming high risk.

Of all of the drivers, they might  be having the most claims by number, but not by dollar amount). On the other hand (looking at the number of young drivers), they are not having more accidents than an older person.

Dollar amount wise an older person has higher  claims than a young one. (so they cost more to the insurance industry) They drive more expensive cars and having the same number of accidents. A young driver having an accident more likely will report it because they don’t know what to do and since they are told you are supposed to report an accident, they do, and with that they just increased their insurance  rate starting from the next renewal, for years to come.

An older person might just say no big deal and don’t report it because they know their rate will go up if they do and the repair most likely will be covered by their deductible anyway or somewhere near to it. Most cars have minimal damage. A little bump here and there, most likely to the bumper area or to the light lenses.

Car insurance companies keeping the data secret, because otherwise they would not be able to scam all these youngsters out of billions.

As you can see I am very much against Mandatory Car Insurance and for a reason. The insurance companies are running wild, charging as much as they want for any reason they want. Designing rules and categories that not reflecting anything but their own theory. THEORY!

If we would have a voluntary car insurance system, just like life or home insurance, that would be fair to everyone, because we would insure ourselves and not others. Some might not agree with this, but I would rather take my chance of someone uninsured will hit my car on the road knowing that it was my choice to drive it, than paying exorbitant fees (fees) year after year for something speculative as the theory behind car accident could happen speculation.

On the other hand if I choose to buy insurance for my own self and for my own car, I and my car would be covered against those uninsured drivers.

I know the insurance companies don’t like this theory, but they would have no choice, but to get rid of the scam and be competitive.  Why mandatorize something that is not fair at all?

Make the cr insurance market competitive. Get rid of mandatory car insurance!

2 Comments

    1. While that would work fine but only if car insurance was voluntary as my proposal, or else it would be an additional expense that the existing car insurance should cover already. Especially for the cost they are charging their clients for the cheap service they provide.

Leave a Reply