Third party insurance

This article was published in 2001, in Newsletter 39.

I am sorry to report that the CTC has told us, at only four weeks notice, that the third-party insurance rates that we pay to them (for of those of you who opt for it) annually are to more than treble. In addition they will impose a £250 excess. That means they will deduct £250 from any claim, and of course minor incidents which cost less than this are not covered.

This puts us in a financial quandary. We collect from you when you join or renew throughout the year. We charge a small contingency to cover increases and administration. But this doesn’t cover anything like the increase they are demanding. This means that if we cannot find an alternative in time, we may have to suspend third party insurance from 29 November 2001. We’ll write directly to those of you affected when the position becomes clearer.

If we do have to continue with the CTC scheme, we will have to charge £11 or more per person. Though the existing charge is good value, a new fee of this size would be particularly regrettable for households. We would also have to ask you for a top up for the current year. Not to do that would cost the Campaign more then £2,000, which we clearly cannot afford. Of course we will refund any money you have already paid us for insurance after November, if we cannot continue to offer the insurance at all or you choose not to continue with the increased premium.

We are very sorry this has happened, but I am afraid it is completely out of our control. As well as the individual protection, it is important to us collectively to be able to offer this service because it deflects the motorists’ hoary chestnut ‘we have to pay insurance, but you don’t so you don’t deserve any respect from us.’

David Earl