It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Would work great in a small village with a thousand people and armed guards at the gates of the village to keep outsiders out that may screw the whole thing up. Not a perfect scenario in the real world,or,at least the world I live in.
Originally posted by mee30
reply to post by Socrato
It could be but it would get messy pretty quick for the reasons you already stated... Like most other things this would work better as a business. I'm sure you could earn enough to get a decent salary and pay a good salary just off the interest alone!
Now imagine if you got off the ground and people started to see others paying no monthly premiums what do you think they would do? I'm telling you it would absolutely EXPLODE! Then say you had 2,000,000 customers! That would be £200,000,000 in the pot! Pretty sure that would cover any type of cataclysmic disaster.
In the uk there are 31,035,791 cars on the road! 2,000,000 is a tiny market share! Can you imagine why someone would go elsewhere? Just think about it! The bigger it gets the less every pays when there is an accident.
Lets have some fun...
Lets say I managed to convince EVERY driver in the uk to sign up with me. Okay so I have 31,035,791 policies on my books (as each car would have a policy). That would be £3,103,579,100 in the pot! Now lets say a guy has a Ferrari and he plows into a school bus decapitating every child on board and the company gets hit with a £50,000,000 claim... What would you pay? You know what? I'm going to let you put that in the calculator yourself! 50,000,000 divided by 31,035,791 = .......
Obviously with that many cars you would have lots of accidents going on but honestly it's no big deal as you will see. Besides with the tier system safe drivers would pay less...
Originally posted by mee30
reply to post by Socrato
Another idea if you were to start this you could tell the early adopters that they pay £200 a month for a year and then they are exempt from payout for 2 years or something like that. Then you put the 1 mill in the pot and use the other mill to get everything set up and pay all the fancy lawyers.
Originally posted by mee30
reply to post by smurfy
I think you miss the point, repair damage, while expensive, is tiny in comparison to what the legal eagles can throw at you in terms of third party injury, and the courts cannot be avoided, they can also be very singular if a case is proven to their satisfaction. Scammers on the other hand, continue to work every trick in the book, a big problem in insurance, since it always includes mechanical damage and personal injury. There is more, if you as an insurer, are a combatant against a government body, they don't carry insurance, and you have again to prove your case in a court, so you can see there what you might be up against. signature:
I know you want to bring up worst case scenarios but lets just explore how we could get around the problems not only focus on really obscure ones.
That would be $1.60 per person for the murder of the school kids. A damn fine deal. Let's try some other less friendly math...
The US has 125,000,000 cars on the road and 5,250,000 auto accidents per year. That is about 2.9% of autos on the road in an accident in a year.
2.9% of 31,035,791 is about 900,000. Now let's say each claim is $10,000 average and court costs are $10,000 average per claim. That's $20,000 x 900,000 per year which is $18,000,000,000.... Divide that by the 31,000,000 insured.... and you get an average cost of $580 per year per vehicle.... Not very cheap really. I pay only about $600 a year for two vehicles with State Farm, a major insurance company.
Lol, and the search rate for "new insurance scam" soars the first year you are announced!
It's not obscure it's day and daily, like the rain belting down on your face, and in your face, one good reason to explore any insurance certificate.
one million in a bank account and one person has the acct# uhhh yeah sure but man that is a huge thing to try and sell to even a few people here on ATS never mind a thousand others..
reply to post by djyorkie
Love the idea... And have something to add..... To all those that say legal and medical costs will empty the account, that may not be the case. In the Uk you can get some policys that are third party only, and do not include legal costs.. I.e. The insurance pays for the othet persons damage if its yoir fault, and if you get legal proceedings against you, then your on your own. If it is made petfectly clear that you will not cover legal/medical cosys, then it becomes feasible. You are then able to cover costs to other people (third partu) and able to give this form of cheap insurance for life. This is a way to give cheap insurance. Someone witj a lambo will not be seeking this kind of civer, and even if they do wish to have cheap third partu only insurance, then its up to them to meet their own repair costs if the accident is their fault... They can afford it.
Just get a deal with a local personal insurance company for public liability to cover legal costs, and you may be able to offer a group discount.. With the buying powet of 1000 people, and if all local, you could probably offer a local store discount card as an incentive to join... Just a thought
Interesting, how long did the experiment last?