COPE3:I just did a couple of quotes on the insurance website and I couldn't help but notice that third party, fire, and theft was cheaper than third party only. Why is this? They are giving more services for a cheaper price. This doesn't make any sense. The difference was over 200 pounds. Does anyone have any insight into this?
And sometimes Comp can be cheaper than TPF&T.
I think it is just the way that the rates are calculated. I think that the rates for Comp, TPF&T and TP only are calculated as separate types of cover. TP only cover is not that popular so there are less policies, so any claims experience against a smaller volume, must equal a higher premium.
You would think that the individual component parts of cover would be calculated separately and then the more cover you opt for, the more the premium would be. This is not the way it works.
Huckster