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I think a member here has found a great idea for dealing with insurance...

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posted on Oct, 9 2012 @ 07:35 PM
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reply to post by kdog1982
 





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.


What do other cars on the road have to do with anything? Have you read the whole thread or just the OP?
It wouldn't matter who you hit, the payout would be all the same. It doesn't matter who hits you, their insurance deals with it.




posted on Oct, 9 2012 @ 07:42 PM
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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.



posted on Oct, 9 2012 @ 07:44 PM
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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...


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.



posted on Oct, 9 2012 @ 07:46 PM
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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.


Lol, and the search rate for "new insurance scam" soars the first year you are announced!



posted on Oct, 9 2012 @ 07:48 PM
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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.

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.



posted on Oct, 9 2012 @ 07:53 PM
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reply to post by Socrato
 





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...


Muhuhahahaha...





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.


Hmmmm should really go with uk rates but this is cool as I can't be bothered to find out. So, so far so good...




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.


Now the dollars thing is screwing me up a little, because of the currency we pay less than you. But anyway for this exercise it doesn't matter... See you are missing a very important point. The tier system. Not all the people will be paying equal! Ahhhhhh, So you are rewarded for not claiming and you go up the tiers with other people that do not claim and or pay back there claims... You see? So yes, it is pretty much genius. If you have only a couple years no claims in this you could be paying next to nothing! Most of the irresponsible drivers would be in tier 1 or expelled from the system.

Edit... In fact I would say you would be paying nothing. Even if someone in tier 3 had a crash and made a claim they would want to stay in that tier so they would pay it off. Would they want to go back to tier 1? So you would get your money back. It's like with the no claims how people fix the cars without involving the insurance company.
edit on 9-10-2012 by mee30 because: (no reason given)



posted on Oct, 9 2012 @ 07:55 PM
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reply to post by Socrato
 





Lol, and the search rate for "new insurance scam" soars the first year you are announced!


Oh of course but it would only return rave reviews from all the ecstatic customers!



posted on Oct, 9 2012 @ 07:57 PM
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reply to post by smurfy
 





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.


Yes when looked at from the perspective of the entire populous. But not in a 1000 strong group. And if you did have every driver on your books then you would a few billion to deal with everything.



posted on Oct, 9 2012 @ 07:57 PM
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This tier system is starting to sound a lot like pyramid scheme.



posted on Oct, 9 2012 @ 08:03 PM
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reply to post by Socrato
 


Hmmm why? You are rewarded for not making a claim. People that are always making claims will be with others that also make claims. There is no pyramid, more a filing system. Good drivers go in the good driver pool. Bad drivers in the bad. It is like calling no claims a pyramid scheme.

Edit... Oh and in a pyramid scheme you can not go down. You can stay where you are but not go down. In the tier system you crash and don't pay you go down. Drivers are crying all the time, why do i have to pay for bad drivers? Well now they don't
.
edit on 9-10-2012 by mee30 because: (no reason given)



posted on Oct, 9 2012 @ 08:06 PM
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reply to post by Socrato
 


Oh and also I didn't factor in the possibility of charging people with more expensive cars a higher starting fee. Someone did mention it earlier and actually they are right. So that would effect the pot greatly! Well putting a lot more into it anyway.

Edit... Just thought of a slogan. Pay as you crash car insurance!

edit on 9-10-2012 by mee30 because: (no reason given)



posted on Oct, 9 2012 @ 10:16 PM
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reply to post by mee30
 


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..



posted on Oct, 9 2012 @ 10:26 PM
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edit on 9-10-2012 by kdog1982 because: (no reason given)



posted on Oct, 10 2012 @ 04:12 AM
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reply to post by ThoughtIsMadness
 





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..


Why is it? It is sold every day when people open a bank account or get insurance etc. Some people on ATS are hyper critical and stubborn. Just look at the first reply saying this is how insurance already works, and he got a star! lmao... This is super easy to sell once they understood it properly. Who wouldn't want to pay next to nothing for their insurance? Only having to pay if they crash and that is at your own leisure. Would such a thing be super easy to start? No but tell me a business that is?

What is there to stop a bigger firm offering this? Of course they won't because it gives the consumer a great deal and they won't be able to rape good drivers anymore.



posted on Oct, 10 2012 @ 04:16 AM
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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



posted on Oct, 10 2012 @ 04:27 AM
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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.
reply to post by djyorkie
 


Finally someone that wants to think about how to solve the problems rather than just discovering them.

It is a great idea and you are dead right. You could most definitely arrange the T&C to make this work in any situation I would argue. Even guys with lambos and even offer legal expenses and such. But yes to begin with it would be much easier to stick to a budget style plan.




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


This is a good point and a good way to get around having to offer that yourself. If it could come out of the interest. Otherwise I really think you could offer it direct if you had enough people . Say a million. That would be well over 100 million in the pot to deal with any eventuality and also a million people to share the burden of a big payout.

EDIT: Hey had another thought. Now lets say instead of the operator taking 100% of the interest how about they agree on a percentage to put back into the pot every year. Lets say 10%. Now lets assume you have a 1000 people all with cars worth around the £1000 mark. They have all paid in their share so you have a million. From that million you earn £40,000 for the year. Out of that you put 10% back in which would be £4,000 pounds. That would happen every year and it should cover the people that do not pay back the system and what not. Obviously as you scale up the business the figure being put back in the pot would increase too. Over time I would bet that you would have a pretty nice safety net for if there was a major disaster.
edit on 10-10-2012 by mee30 because: (no reason given)



posted on Oct, 10 2012 @ 05:50 AM
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reply to post by schuyler
 

Interesting, how long did the experiment last?



posted on Oct, 10 2012 @ 07:26 AM
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reply to post by gladtobehere
 





Interesting, how long did the experiment last?


That is a good question, as he said they saved thousands it must have been for some time. And it is a proof of concept (you can pay next to nothing and save thousands).

To be honest I can't believe more people are not all over this. Any problems can be resolved with minor tweaks/t&c. I think someone should take it to the dragons den! lol



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