Motor Trade Insurance: An Absolute Requisite, Part 1

December 19th, 2009 Posted in General Insurance
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This entry was posted on Saturday, December 19th, 2009 at 10:37 pm and is filed under General Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

11 Responses to “Motor Trade Insurance: An Absolute Requisite, Part 1”

  1. antanun nemaddiero Says:

    April 30th, 2010 at 12:19 pm

    National farmers union insurance credit union #administrativeassistant
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  2. tascob Says:

    May 5th, 2010 at 11:39 pm

    Farmers Insurance Agency: Insurance and Financial Services Professionals -Phoenix, AZ #jobs



  3. yolarshi yak Says:

    May 16th, 2010 at 10:29 pm

    How annoying lol



  4. tahman abutter Says:

    May 25th, 2010 at 10:04 pm

    1: liability 2: uninsured motorist 3: risk & loss 4: coll & comp 5: driving penalties 6: all accidents (according to the NYSDMV)



  5. kuzmakin Says:

    May 30th, 2010 at 10:55 pm

    I Just Saved $50 on my car insurance! :-)



  6. uda saller Says:

    June 27th, 2010 at 11:52 pm

    Such a good information especially for who involved in the world of insurance business.



  7. weipple thern Says:

    July 7th, 2011 at 10:50 am

    If Your Motor Trade Insurance Is Due For Renewal You May Want To Check These 3 Things



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    July 28th, 2011 at 12:07 pm

    tha cartoon didnt dissapoint, its cool how all tha peoples destinys intertwine



  10. gabbs samy Says:

    August 17th, 2011 at 1:35 am

    NEW YORK (Reuters) – Verizon Communications is sending its 45,000 striking workers notice that their health insurance benefits will expire at the end of the month if they are not back at work.



  11. boubreusch cic Says:

    September 1st, 2011 at 5:08 pm

    'temporary' or short term motor insurance would be prohibitively expensive for many reasons, the main ones being.

    a) Admin costs. It actually costs quite a bit to set up a policy, send out the documents, check that the premium has been paid etc. Let's say it costs 30 euro (it's usually a fair bit more) if an annual policy costs 240 euro, that's 210 for the insurance and 30 for admin which works out at 20 a month. Now if that policy was just for a month. The simple insurance cost (see below) would be 210/12 or 17.5 but the admin would still be 30 so the premium charged would have to be 47.5 for the month. Getting on for treble the equivalent premium on a an annual basis.

    b) Average rate. Annual insurance policies are based on the average claims cost in any given year. Summer and winter, car in use and car not in use. Obviously winter months see more accidents than summer ones as the driving conditions are worse. So on a short term basis you'd either have to charge more during the winter or (more likely) the 'winter rate' all year round. Also very few people use their car 52 weeks of the year what with holidays etc, annual policies reflect this in their cost. However no-one is going to buy a temporary policy for when they are on holiday, so the risk rate is much higher and the true 1 month risk rate would not be annual/12 but more like annual/11. Using the above example a 1 month policy would now cost 210/11 = 19 + 30 (admin) = 49 per month. At 49 per month you get less than 5 months cover (240/49 = 4.89) for what a 12 month policy would cost.

    As you can see, the math just doesn't really make it worth doing.

    There are a lot of other reasons as well, but hopefully the above gives a taste of the economics.

    Cheers



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