# Fuck you car insurance! **URL:** \ **Category:** The BBQ Pit\ **Created:** [July 10, 2012, 4:28pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804 "2012-07-10T16:28:02Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![ladybird185](https://avatars.discourse-cdn.com/v4/letter/l/67e7ee/32.png) [@ladybird185](https://boards.straightdope.com/u/ladybird185)\ **Post date:** [July 10, 2012, 4:28pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/1 "2012-07-10T16:28:02Z")
How on earth can it be legal for car insurance companies to so blatantly rip people off. I have moved to a new area, this new area just so happens to be closer to the city centre, I do the ‘right’ thing and phone my insurance company to tell them I have changed address. The company sees this as a perfect opportunity to rob me blind by more than DOUBLING the cost per month!!! I only have 4 fucking payments left!!! Just what anyone who has just moved house and started a new job so with no income for a whole month!!! To make matters worse, after a quick search on a comparison sight, if I were to take out a new policy, it would cost me less than half what they’ve added on for 4 months for the entire year!! If they didn’t already discriminate against me enough because of my age and I didn’t need to get as many years no claims as I possibly could in the vein attempt to lower the bloody premiums I could just cancel it! The ironic thing is I changed the address “just incase there was an accident” however, if anyone crashed into me or I crashed, I would be reluctant to claim it on the bloody insurance because the price would sky rocket!!! Rant over, feeling much better, anyone else hate how insurance companies are allowed to do this to us just because it’s compulsory to have the insurance in the first place? ---
**Author:** ![Absolute](https://avatars.discourse-cdn.com/v4/letter/a/b2d939/32.png) [@Absolute](https://boards.straightdope.com/u/Absolute)\ **Post date:** [July 10, 2012, 4:49pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/2 "2012-07-10T16:49:45Z")
Only liability insurance is compulsory. Are you saying they doubled the price of your liability insurance? And you should be able to switch companies at any time. You are not obligated to pay the remaining 4 months of your policy. Just call your current company, cancel, and switch to whoever is giving you a better deal. ---
**Author:** ![Jas09](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@Jas09](https://boards.straightdope.com/u/Jas09)\ **Post date:** [July 10, 2012, 4:51pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/3 "2012-07-10T16:51:43Z")
I’ve never seen car insurance that didn’t let you cancel the policy at any time and typically get a pro-rated refund on the part you didn’t “use”. What company is telling you they won’t let you do this? ---
**Author:** ![Leaffan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/leaffan/32/299_2.png) [@Leaffan](https://boards.straightdope.com/u/Leaffan)\ **Post date:** [July 10, 2012, 4:56pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/4 "2012-07-10T16:56:15Z")
Yeah, what they ^ said. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [July 10, 2012, 4:56pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/5 "2012-07-10T16:56:45Z")
> [@Absolute](#): > > Only liability insurance is compulsory. Are you saying they doubled the price of your liability insurance? This post not valid in all jurisdictions, including the UK where the OP seems to be from. ---
**Author:** ![postcards](https://avatars.discourse-cdn.com/v4/letter/p/8e8cbc/32.png) [@postcards](https://boards.straightdope.com/u/postcards)\ **Post date:** [July 10, 2012, 5:00pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/6 "2012-07-10T17:00:41Z")
…after a quick search on a comparison sight, if I were to take out a new policy, it would cost me less than half what they’ve added on for 4 months for the entire year!! [/QUOTE] And precisely what is stopping you from doing exactly this? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [July 10, 2012, 5:03pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/7 "2012-07-10T17:03:20Z")
> [@postcards](#): > > And precisely what is stopping you from doing exactly this? Hefty early cancellation penalties, probably. ---
**Author:** ![Leaffan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/leaffan/32/299_2.png) [@Leaffan](https://boards.straightdope.com/u/Leaffan)\ **Post date:** [July 10, 2012, 5:07pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/8 "2012-07-10T17:07:37Z")
Ah, it might work differently in the UK I guess. In Canada we can also just cancel any at any time. I wonder why on Earth you can’t cancel your own insurance policy if you no longer want it. I mean, as long as you get another one in place immediately, obviously. ---
**Author:** ![ladybird185](https://avatars.discourse-cdn.com/v4/letter/l/67e7ee/32.png) [@ladybird185](https://boards.straightdope.com/u/ladybird185)\ **Post date:** [July 10, 2012, 5:08pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/9 "2012-07-10T17:08:05Z")
If I cancel early I get charged, if I take out a new policy I lose the 8 months towards another years NCD, which is really needed to bring down any future premiums as I’m still classed as a ‘new’ driver ---
**Author:** ![Leaffan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/leaffan/32/299_2.png) [@Leaffan](https://boards.straightdope.com/u/Leaffan)\ **Post date:** [July 10, 2012, 5:09pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/10 "2012-07-10T17:09:27Z")
> [@ladybird185](#): > > If I cancel early I get charged, if I take out a new policy I lose the 8 months towards another years NCD, which is really needed to bring down any future premiums as I’m still classed as a ‘new’ driver Well, that’s a shitty system. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [July 10, 2012, 5:10pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/11 "2012-07-10T17:10:47Z")
> [@](#): > > I wonder why on Earth you can’t cancel your own insurance policy if you no longer want it. I mean, as long as you get another one in place immediately, obviously. The same reason you can’t always (without incurring a penalty) pay off a mortgage early, or break a lease, or cancel your cellular contract. That is, because people don’t bargain for stuff like that, and in the absence of legislation to the contrary it makes sense for businesses to impose those restrictions because their prices are based on a certain level of predictability. ---
**Author:** ![Dag\_Otto](https://avatars.discourse-cdn.com/v4/letter/d/439d5e/32.png) [@Dag\_Otto](https://boards.straightdope.com/u/Dag_Otto)\ **Post date:** [July 10, 2012, 5:23pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/12 "2012-07-10T17:23:20Z")
> [@ladybird185](#): > > in the vein attempt to lower the bloody premiums I could just cancel it! So in 4 months you can switch? I suggest you remain sanguine about the situation and change policies as soon as you can. ---
**Author:** ![Cheesesteak](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cheesesteak/32/3694_2.png) [@Cheesesteak](https://boards.straightdope.com/u/Cheesesteak)\ **Post date:** [July 10, 2012, 5:25pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/13 "2012-07-10T17:25:02Z")
> [@Really\_Not\_All\_That\_Bright](#): > > The same reason you can’t always (without incurring a penalty) pay off a mortgage early, or break a lease, or cancel your cellular contract. In a civilized society you can pay off a mortgage early without penalty, such as when you sell your house, or refinance. You’re locked in with a lease because the rent you pay is based on the fact that you are guaranteeing a full term rental for a single resource. Month to month rentals are always more expensive. Cellular contracts generally help pay for the cost of the phone, once the phone is paid off, you go month to month. Insurance, at least in the states, is a straight up service. There’s no fixed cost to cover, like a phone or wire installation. There’s no limited resource like an apartment that you are tying up, and making unavailable for others. It’s just a service, and if I want to change my service provider, I should be able to without a penalty. ESPECIALLY if the provider has the right to jack up my monthly bill mid-stream. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [July 10, 2012, 5:38pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/14 "2012-07-10T17:38:32Z")
> [@Cheesesteak](#): > > In a civilized society you can pay off a mortgage early without penalty, such as when you sell your house, or refinance. You’re locked in with a lease because the rent you pay is based on the fact that you are guaranteeing a full term rental for a single resource. Month to month rentals are always more expensive. Cellular contracts generally help pay for the cost of the phone, once the phone is paid off, you go month to month. > > Insurance, at least in the states, is a straight up service. There’s no fixed cost to cover, like a phone or wire installation. There’s no limited resource like an apartment that you are tying up, and making unavailable for others. It’s just a service, and if I want to change my service provider, I should be able to without a penalty. ESPECIALLY if the provider has the right to jack up my monthly bill mid-stream. What “civilized society” is that? Most non-FHA mortgages include early payoff penalties. There is a limited resource involved: money. Insurers have to pay claims. Those funds come from premiums. ---
**Author:** ![pbbth](https://avatars.discourse-cdn.com/v4/letter/p/f9ae1b/32.png) [@pbbth](https://boards.straightdope.com/u/pbbth)\ **Post date:** [July 10, 2012, 5:42pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/15 "2012-07-10T17:42:58Z")
Where are you from? I’ve never heard of an insurance policy that has a fee to cancel in the middle of a term and I’ve worked with insurance policies in several different states. Also, they **are** discriminating against you for being young and a new driver. They just don’t call it discrimination, they call it charging higher rates for higher risk individuals. You get charged more for car insurance the same way a 45 year old smoker gets charged more for life insurance, both of which happen because you are so much more likely to actually use the coverage than someone who isn’t in a high risk category. But all that aside, there are some things you can do to lower your premium. If your move reduced the number of miles you drive you can call them and report that to bring down your premium. You can also often voluntarily take a driver’s safety course to get a discount. Some insurers offer discounts to people in specific occupations because they tend to be safer drivers overall (teachers, military personnel, etc.) There may be several other potential discounts that would bring your costs down noticably if you aren’t actually able to switch policies. ---
**Author:** ![Smeghead](https://avatars.discourse-cdn.com/v4/letter/s/f1d935/32.png) [@Smeghead](https://boards.straightdope.com/u/Smeghead)\ **Post date:** [July 10, 2012, 6:00pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/16 "2012-07-10T18:00:55Z")
> [@ladybird185](#): > > If I cancel early I get charged, if I take out a new policy I lose the 8 months towards another years NCD, which is really needed to bring down any future premiums as I’m still classed as a ‘new’ driver Well, then, that’s why they’re doing it to you. Because they can. ---
**Author:** ![Cheesesteak](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cheesesteak/32/3694_2.png) [@Cheesesteak](https://boards.straightdope.com/u/Cheesesteak)\ **Post date:** [July 10, 2012, 6:04pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/17 "2012-07-10T18:04:01Z")
> [@Really\_Not\_All\_That\_Bright](#): > > What “civilized society” is that? Most non-FHA mortgages include early payoff penalties. I mistakenly used my personal experience with mortgages, I’ve never had a payoff penalty, or even discussed one with a lender, but I see that you’re right. > [@](#): > > There is a limited resource involved: money. Insurers have to pay claims. Those funds come from premiums. My cancellation relieves them of any duty to pay a claim, why would they need to continue collecting premiums from me? ---
**Author:** ![Anaamika](https://avatars.discourse-cdn.com/v4/letter/a/5f9b8f/32.png) [@Anaamika](https://boards.straightdope.com/u/Anaamika)\ **Post date:** [July 10, 2012, 6:11pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/18 "2012-07-10T18:11:58Z")
You cannot pay off a mortgage early without penalties? Could someone please explain in non-homeowner terms? ---
**Author:** ![Leaffan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/leaffan/32/299_2.png) [@Leaffan](https://boards.straightdope.com/u/Leaffan)\ **Post date:** [July 10, 2012, 6:16pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/19 "2012-07-10T18:16:43Z")
> [@Anaamika](#): > > You cannot pay off a mortgage early without penalties? Could someone please explain in non-homeowner terms? The lender is expecting principle and interest payments for x number of months. You walk in and say “I have the remaining principle here in cash and want to pay off my loan.” The lender says, “yes but I was also expecting y amount in interest, therefore if you give me the principle+(y-z) we can come to terms.” y being the remaining interest and z being an amount to be subtracted, that was already agreed to when you signed the mortgage. ---
**Author:** ![Labrador\_Deceiver](https://avatars.discourse-cdn.com/v4/letter/l/7c8e57/32.png) [@Labrador\_Deceiver](https://boards.straightdope.com/u/Labrador_Deceiver)\ **Post date:** [July 10, 2012, 6:17pm UTC](https://boards.straightdope.com/t/fuck-you-car-insurance/627804/20 "2012-07-10T18:17:34Z")
> [@Anaamika](#): > > You cannot pay off a mortgage early without penalties? Could someone please explain in non-homeowner terms? First of all, I don’t know that “most” mortgages include a prepayment penalty. That may be true, but I’m not positive either way. I’ve never had one on any of my mortgages. Second, the majority of prepayment penalties only apply to the first 3 or 4 years of the mortgage. Third, the penalty usually decreases with time. [Next page](https://boards.straightdope.com/t/fuck-you-car-insurance/627804.md?page=2)