Potential Conflict of Interest with Car Insurance Companies

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RichInSpirit

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A good number of the Car Insurance companies also provide Car Finance and Hire Purchase for cars.
Therefore it is in their financial interest to promote selling new/newer cars.
I see this as the main reason why it is harder to insure an older car.
Or am I just being paranoid about these benign insurance institutions ?
 
Which insurance companies are providing finance here?

Of the best selling makes, Hyundai, Ford, Kia, Mercedes, & Peugeot finance is through BoI. Volkswagen, Toyota, Nissan, Renault, Skoda, BMW all finance through brand owned banks. For example, VW & Skoda finance goes through Volkswagen Financial Services AG, Renault & Nissan through RCI Banque.

I have a friend who used to work on the quote engine of one of the larger providers here, they said the calculations are largely based on payout stats. Older cars are statistically more likely to be involved in claims, and pretty much all the suspect claims with large injuries payouts involve older cars.
 
A good number of the Car Insurance companies also provide Car Finance and Hire Purchase for cars.

can you enlighten us as to what Insurance companies do this? AXA, AVIVA, RSA, FBD would be four of the bigger ones that come to mind and none of these provide car finance or HP.
 
RichInSpirit said:
A good number of the Car Insurance companies also provide Car Finance and Hire Purchase for cars.
Therefore it is in their financial interest to promote selling new/newer cars.
I see this as the main reason why it is harder to insure an older car.
Or am I just being paranoid about these benign insurance institutions ?
Click to expand...

I think we clarified this already didnt we? You consider incorrectly bank of ireland to be an insurance company. They arent. Banks, the few that still do insurance, are tied agents. Not insurance companies. Not insurance brokers. Tied agents.
 
I have heard before the propositions that older cars are more likely to be involved in suspect or fraudulent claims and or that such cars are actually more likely to be involved in an accident.

Is there any reliable source for these propositions or is this just some kind of self-serving and contrived insurance industry guff ?
 
I have heard before the propositions that older cars are more likely to be involved in suspect or fraudulent claims

pay €500 for 20 year old car, take out insurance, stage accident and your outlay is premium plus €500. Buy 2018 car for €20K, take out insurance, stage accident and your outlay is premium plus €20K.

Old car fails NCT and is not worth repairing given the cost, have it 'stolen' and burned out and collect the premium.
 
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