Free Audi Ensurance Even For Older Models

[paulrstaylor]

Originally Posted by tintin

Adding another layer of intermediary just adds more cost, somewhere along the way.

It adds cost to our premiums as a nation, and profit to the insurance and motor industry in general - cons and pros I guess

[audifin]

Originally Posted by tintin

I think that's probably pretty much spot on: they "manage" this for you, and then take their cut/make their profit, on behalf on whoever is sponsoring/managing them.

I had the same with my recent (no fault) claim on my Tesla - the other party's insurer (Co-op) put me in touch with another "accident management company" who's primary interest was to act on behalf of them and manage their costs.

Adding another layer of intermediary just adds more cost, somewhere along the way.

So I suppose you just described a situation where it would have been useful to have such cover - to make sure your Tesla was repaired by Tesla's approved bodyshop rather than the cheapest one chosen by Co-op?

[tintin]

Originally Posted by audifin

So I suppose you just described a situation where it would have been useful to have such cover - to make sure your Tesla was repaired by Tesla's approved bodyshop rather than the cheapest one chosen by Co-op?

Not at all, I'd already had that agreed by the Co-op. I also had other "accident management" companies offering their services. Which they don't do out of the goodness of their hearts - they're in it to make money, and create another middleman and layer of costs, which - as already pointed out - ultimately just adds to the premium paid by us, the policyholder.

[audifin]

Originally Posted by tintin

Not at all, I'd already had that agreed by the Co-op. I also had other "accident management" companies offering their services. Which they don't do out of the goodness of their hearts - they're in it to make money, and create another middleman and layer of costs, which - as already pointed out - ultimately just adds to the premium paid by us, the policyholder.

So why did Co-op want you to use a management company if they had already agreed to have it repaired in your preferred bodyshop?

I had very similar experience to yours with my (non fault) claim, it was repaired in Audi approved body shop with no hassle - I had to demand it though. However, as pointed out above some insurance companies can be very difficult about it.

Audi's incentive here is of course to make money - by getting the repairs done by their dealers/partners. They also collect a database for marketing etc.

[tintin]

Originally Posted by audifin

So why did Co-op want you to use a management company if they had already agreed to have it repaired in your preferred bodyshop? Policy - for the reasons given

I had very similar experience to yours with my (non fault) claim, it was repaired in Audi approved body shop with no hassle - I had to demand it though. However, as pointed out above some insurance companies can be very difficult about it. Again, for the reasons given.

Audi's incentive here is of course to make money - by getting the repairs done by their dealers/partners. They also collect a database for marketing etc.

And they also make a profit - why else would they do it - just to cover their costs?

[audifin]

Originally Posted by tintin

And they also make a profit - why else would they do it - just to cover their costs?

? Of course they make a profit, All businesses endeavour to make a profit, I think I've lost you now

[paulrstaylor]

Originally Posted by audifin

So why did Co-op want you to use a management company if they had already agreed to have it repaired in your preferred bodyshop?

A few key reasons I see:

1. To control the costs, so you don't get sucked in by a 3rd party accident management company
2. It is in their interests financially in some way, commission payment, diversion of profits, possible tax benefits
3. Possibly to make sure you (3rd party) are happy - potential customer experience, we all take new policies out every year

Originally Posted by audifin

I had very similar experience to yours with my (non fault) claim, it was repaired in Audi approved body shop with no hassle - I had to demand it though. However, as pointed out above some insurance companies can be very difficult about it.

If you are willing to stand your ground, be reasonable but demand that they fulfil your rights and their obligations you don't need an accident management company, but for most people they do make the process easier - at an associated and indirect cost.

Originally Posted by audifin

Audi's incentive here is of course to make money - by getting the repairs done by their dealers/partners. They also collect a database for marketing etc.

Isn't that the game for most in a capitalist society?

I guess it could also be argued that increased costs and even company profits are good for the economy, as when cash flows it creates tax income - well it should

[tintin]

Originally Posted by audifin

? Of course they make a profit, All businesses endeavour to make a profit, I think I've lost you now

Or the other way round.

It's pretty straightforward arithmetic really: A+B+C is always >A+B - unless of course C is negative - i.e. they make a loss. Not the most interesting thread on here though, so probably not worth a further contribution really.

[audifin]

It is pretty straight forward indeed. Audi wants the repair business, so they've setup this "Ensurance" scheme to grow that business. Yes that will be additional cost to Audi, but any form of marketing costs money.

I own an Audi and in case there is a accident I want it to be repaired by Audi and no-one else. If I had a Tesla I would want it to be repaired by Tesla and no-one else etc. So for me as an Audi-owner it is a no-brainer to sign up for free.

I have zero experience in these accident management companies, but what I can gather is that they do what insurance companies would need to themselves otherwise. If the insurance companies are recommending third-party accident management companies, I am guessing it is more cost effective to them than doing it themselves. Therefore you could argue that they are actually reducing the total cost of insurances.