Help the insurers??

[MAD]

http://www.theage.com.au/national/in...219-1th5w.html

INSURANCE companies hope to avoid millions of dollars in claims by sending text alerts to warn car owners of hailstorms.

According to the Insurance Council of Australia, insurers received more than 77,000 claims following Melbourne's Christmas Day hailstorms, with an estimated worth of more than $550 million. The council said 56 per cent of claims were for damage to motor vehicles; the rest were for residential and commercial property and interruption to business.

Budget Direct is one of several companies and emergency services using SMS and social media to communicate quickly with policyholders.
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A spokesman for the Insurance Council of Australia, which represents about 120 brands, said: ''The industry is watching advances in technology very closely, working out how we can best harness it to speed communications.''

Some still have misgivings about text messaging. ''What we don't want to do is to create panic,'' said Damien Butler, a spokesman for Insurance Australia Group whose portfolio includes businesses such as NRMA Insurance. ''Companies can use Twitter and Facebook to provide general advice on fire, flood, hail and other hazards. Like 'clean out gutters, check for overhanging trees', etc.

''We want to alert but not panic.''

Budget Direct, part of A&G Insurance, is confident its ''hail automated notification system'' strikes the right balance, offering a fast, reliable service targeted at specific suburbs.

Since the system was introduced two months ago, more than 100,000 text messages have been sent.

Read more: http://news.drive.com.au/national/in...#ixzz1mskM1gtG

So they want us to help them cut their costs. I wonder how much of those 'savings' will be passed on in reduced premiums, or yearly CEO bonuses.

What happens if you are warned, but your car still gets damaged?
Very easy situation to occur; forgot phone, in a meeting, at a funeral, flat battery, didn't feel like stalking anyone on FB so you didn't see the 'social' update.

[Yellow_Festiva]

I don't see a problem with it...... If a cheap SMS saves claims then great. The Festiva was trashed in a hail storm (thus the yellow paint) but it was 2 months off the road, I had to pay my excess and the repair needed to be fixed a few times after the event. Would have gladly not gone through it if I had my time again as it was a waste of my time and energy. Would have been nice to avoid that.

Anyway... I see another issue here. People who get a txt then go to that location in the hope of getting a new car or a new paint job.

[The Yeti]

I recon it's a pretty good idea

and the savings are passed on to you, if the company has huge pay outs like the Xmas day storms, their proffit margins are slim, when the margins are slim they put EVERY ones premium costs up so as a result if this saves them money it saves you and I money

plus, making a claim is such a hassel

[2011G6E]

Providing the savings are passed on...

But having cancelled one car insurance in the past with one well known company that put our premium up by an extra $200 in a year because of "increased claims by young drivers", I find it hard to have much faith in them.
I asked "So I've never made a claim...what has that got to do with me?". The reply was "Well we have to spread costs around". "Why not increase the premiums for those making lots of claims and reducing the premiums for those who don't make claims?", I asked.

"That wouldn't be fair on some people though."...

[Bucknaked]

I think its a great idea. The benefit is not only in saving the vehicle, but its saves all that mucking around dealing with claims, going to get repairs and all the running around. Save plenty of grief. Plus, as a rider, I would like to know when a storm is coming, so I can ensure I plan ahead.