Author Topic: Pooled insurance - thoughts  (Read 3916 times)

Offline Waspy

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Pooled insurance - thoughts
« on: 26 January 2015, 18:59 »
So was reading about an insurance company the other day who do pooled insurance. I won't put the name or link as we have forum sponsors, but if the mods give it the okay ill post it. I thought it was a pretty cool concept and was wondering what everyone else thought. Here's how it goes.

You form a group of minimum 20. So let's say 20 members of this forum.
Each member buys into the group. The buy in is essentially the same as a years premium. So let's say for me, and everyone else in the group it £1000 (that's an example, the buy in is based on risk, like any premium)
We now have 20k in our premium pot.
If any of the 20 members make a claim, it comes out of the 20k.
If the claim is more than 20k the insurance company covers it.
At the end of the year, whatever is left stays in the pot, the 20 members just have to pay enough to get the pot back to 20k
If the pot is empty, everyone pays 1k again. You never pay more than the initial buy in, unless circumstances change, such as change of car.

So if nobody makes a claim, nobody pays for another premium, as the pot is full. Everyone just pays a small fee to the insurance company.

But yeah, just thought it was a bit different. What are everyone's thoughts?
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Offline Adam

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Re: Pooled insurance - thoughts
« Reply #1 on: 16 February 2015, 20:13 »
Risky, putting your faith in other people not to make a claim. What if the claim includes liability with legal costs. You'll soon see a bill higher than the £20,000 bond.

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Offline Waspy

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Re: Pooled insurance - thoughts
« Reply #2 on: 16 February 2015, 22:55 »
Depends on the premium I guess. If the amount you put in is comparable to your normal premium then there is little to loose. Even if you spend all your £20k each year, you never pay more than you did in the first year. Obviously if the premiums are higher, then yeah, it would be risky. I havnt got a quote yet, so can't compare to my usual price
It's a mk2. Fill it, drive it, enjoy it.  :smiley: