Over the years I’ve modified many cars that I’ve owned. Everything from small modifications that improve security or passenger comfort, to engine, suspension, and braking modifications. And there’s one thing I’ve learned with insurance companies. It’s how you explain the nature of modification in terms of how it affects performance and risk that affects the cost of your insurance.
One of the many jobs I’ve had in my career was working on the development of car insurance software and I got to see first hand how the process works behind the scenes. You essentially start off with a baseline insurance quote based on the stock version of your vehicle. Then you add the modifications, and the underwriter, the actual company that will insure the vehicle, reviews the modifications based on their understanding of the changes made, plus algorithms involving risk, the amount of time the car is likely to be driven on the road, etc. Then an additional amount is arrived at and added to the baseline cost to provide you with your individual quote.
So the key here is to ensure that you correctly inform your insurance company about all modifications that have been made to the vehicle, while trying to get the lowest quote you can. And there is an art in doing this.
Note: You must inform your insurance company of every and all modifications that have been made to the vehicle otherwise your insurance is null and void. It does not pay to lie! Many modifications are now standard, in that they are a selectable option, such as alloy wheels, wider wheel arches etc. Here I am talking about modifications which can be interpreted or stated in different ways.
As an example I once modified an Austin Mini by installing a ‘stage 1 kit’. There are at least two ways of informing the insurance company about this particular modification, those being that:
1 – I have increased the vehicle’s bhp by 20%
2 – I have increased the vehicle’s bhp by 8bhp
Both are factually correct. However as an experiment when repeating statement one to the potential insurer I was quoted a three-figure increase to my insurance, whereas with statement two they said it’s so low that they will note it on my policy but that it would not affect the premium in any way.
Notice the difference?
Category: learning
Never stop learning
One time I was asked to take a junior tester under my wing and show him the ropes. One day he says to me “It must be hard for you to learn new things at your age”. He wasn’t being funny or anything. He genuinely believed that the older you get the harder it is for you to learn new things. I corrected him on that.
This thinking is supported in our culture. We’ve all heard people say you can’t teach an old dog new tricks, or that it’s better to learn a new language at a young age. I’ve thought about this a lot and my thinking is this: that you can learn something new at any age, but as you get older you become more stubborn and resistant to learning something unless you absolutely need to know it or you find it interesting.
As I write this and look over at my bookshelf I see books on finance and investing that I’ve been reading recently as I’ve been fascinated by how the world of money works. And because I’m interested in this subject I’ve been devouring books and other media on the subject and I now know a lot more on the subject than I did a few months earlier.
You will also find that on occasion a client will ask you to learn or master a new tool or technique in order to be able to complete the work for them. Not learning in this scenario can cost you both money and reputation. I’ve met people who will say things like “I’m a tester I don’t write code”. What they really mean is that they are afraid to try. Don’t be afraid to leave your comfort zone but do manage the risks!
Never stop learning. Whether it’s new tools and techniques being developed for your profession or subjects you are interested in like finance, business, the economy, coaching or consulting. We should all never stop learning.
A good tip I’ve learned is to never be the smartest person in a room or on a team. It might boost your ego but that’s the only thing that will grow. Everyone else will have you to learn from but you won’t have anyone. I like to work with smart people so I learn something from them.
So remember:
You can teach an old dog new tricks!
Don’t be the smartest person in the room, understand your client’s business, and learn from other people’s mistakes (it’s cheaper).