Insurers are like councils

LETTER

An insurance representative explained on TV recently that they were forced to raise car insurance premiums because there were so many more cars on our roads now — there was an increase in accidents, and they therefore had far more claims to settle.

Do they think we are stupid? If there are more cars, surely that equates to more premiums paid meaning more income for the companies.

I get tired of the insurance companies complaining about how much they have to pay out in times of tragedy. What about the countless good years they’ve had when profit was astronomical? They seem to have selective memory.

We all go through good times and bad. The difference is, we cannot get more money from our employers or, if we are on superannuation, our government.

Insurers are just like councils. They suddenly find there is not enough money available for some of their pipe dreams, so they put up our rates or, alternatively, borrow more.

Banks will always loan to councils because they have a bottomless pit from which to draw money to repay the debt. The bottomless pit is, quite simply, us ratepayers.

Getting back to the car insurance problem, the simple answer is to make car insurance compulsory. If your car is not insured, you cannot drive. This rule applies to WoFs and registrations, so why not insurance?

Insurers upping their charges is getting to the stage where policyholders will simply say enough is enough — they’ll take the chance that nothing will happen to themselves or their property.

Another possible problem-solver is to reduce premiums to make them more affordable. That way they may get thousands more insuring and, thus, increase their cash flow.

Mike Mulrooney

An insurance representative explained on TV recently that they were forced to raise car insurance premiums because there were so many more cars on our roads now — there was an increase in accidents, and they therefore had far more claims to settle.

Do they think we are stupid? If there are more cars, surely that equates to more premiums paid meaning more income for the companies.

I get tired of the insurance companies complaining about how much they have to pay out in times of tragedy. What about the countless good years they’ve had when profit was astronomical? They seem to have selective memory.

We all go through good times and bad. The difference is, we cannot get more money from our employers or, if we are on superannuation, our government.

Insurers are just like councils. They suddenly find there is not enough money available for some of their pipe dreams, so they put up our rates or, alternatively, borrow more.

Banks will always loan to councils because they have a bottomless pit from which to draw money to repay the debt. The bottomless pit is, quite simply, us ratepayers.

Getting back to the car insurance problem, the simple answer is to make car insurance compulsory. If your car is not insured, you cannot drive. This rule applies to WoFs and registrations, so why not insurance?

Insurers upping their charges is getting to the stage where policyholders will simply say enough is enough — they’ll take the chance that nothing will happen to themselves or their property.

Another possible problem-solver is to reduce premiums to make them more affordable. That way they may get thousands more insuring and, thus, increase their cash flow.

Mike Mulrooney

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