Why is motor insurance so expensive? Why do we reimburse for others.?
Answers: Atsun's got it right but underestimates the huge profit made by these company's who will use every trick and turn to avoid paying out.
insurance companies charge young teenagers so much because most accident are caused by 18 / 25 yr olds,
and we all pay cheque for it.
The insurance company calculate the risk that you will cost them money, and how much you are likely to cost them when that occur based on which little boxes you and your vehicle fit into.
They then convert this to an amount, tag on whatever profit they wish to manufacture on top of that and this makes up your premium.
When you read aloud "Why do we pay for others?" I presume you mean why do we foot to cover those uninsured amongst us. The reason is if you are hit by an uninsured driver who has no money next when they are being sentenced the magistrate can't make them foot you the compensation you deserve. Therefore everyone pays a bit extra so that the unlucky victims can still be compensated.
This is why the police are targetting and taking cars off uninsured drivers. But then citizens tell them to go and stop real criminals!
Don't drive. No bill.
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