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High costs forces motorists off the road…..

admin — Sun, 15 Jan 2012 08:27:37 +0000

A survey from AXA insurance, has shown the 40% will use their car less in 2012, due to increased car costs. The forever rising costs of fuel and insurance, means that 1 in 13 are forced to give up driving, and many enjoy their driving much less because of its expense. Some motorists, may find no financial benefit from car ownership, perhaps hiring cars or taking taxi’s for their infrequent journeys.

Maybe to late for some, but things need to change to help the motorists, who are always on the sharp end of increased costs. The government needs to review their stance on fuel taxations, and also look at the current way that insurance companies operate.

Report shows average motor policy now costs £844 per year…..

admin — Thu, 12 Jan 2012 14:31:33 +0000

A report from Confused.com/Towers Watson Car Insurance Price Index shows more dramatic increases, in cost of car insurance premiums. Bradford with 17.1% was shown to have the largest increase in 2011, with those in Falkirk fairing the best seeing reductions of 4.6% on their premiums. The average cost of a comprehensive policy at the end of 2011 is £844, with the average third party fire and theft policy £1162. The young did not get off lightly with 17-20 paying an average £2,590 per year to insure their motors.

Continuing bad news for motorists finances, especially for the young. Many now pay much more insurance, than the vehicle is actually worth.

MP’s tackling insurance companies over rising cost of premiums…..

admin — Thu, 12 Jan 2012 09:32:42 +0000

MPs are pushing for insurance companies to end ‘sharp practices’, that have led to increases in motor premiums. Something that needs to stop, is the passing of drivers data to third parties, in return for lucrative referral fees. This can potentially inflate motor claims, as costs are increased by car hire and personal injury claims. In their report the cross-party Transport Committee of MP’s, blames in particular the increase in uncontested claims for whiplash injury.

Louise Ellman, chair of the committee said: “The insurance industry must abandon sharp practices that push up premiums such as passing drivers’ personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms. Insurers, solicitors and claims management companies have themselves driven up the cost by encouraging people caught up in road accidents they did not cause to claim for personal injury, car hire, and other legal costs. Drivers should not be railroaded by cold callers into launching legal action.”

Something needs to be done to protect honest motorists from bogus inflating of accident claims. The massive increases in premiums over the past few years, need to be reversed as much as possible. If not many will struggle to remain on the road, this in turn does not help them, or business in the long term.

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OFT to investigate high insurance costs!

admin — Wed, 14 Dec 2011 21:44:22 +0000

An inquiry into the soaring cost of motor insurance has been launched by the Office of Fair Trading as motorists have seen the price of their premiums rise by more than nine per cent since the start of the year. It will focus on the bill faced by insurers for repairing cars after a cash as well as providing a loan vehicle. The OFT voiced fears that insurance companies were using accidents to extract money from each other rather than competing by trying to keep the cost of premiums down. A separate investigation into the impact of personal injury claims on the cost of insurance is being carried out by the Ministry of Justice. The move by the OFT reflects mounting concern within Government at how the cost of a crash is being inflated by the “accident management” industry. It is believed that it is this industry which leaves insurers paying over the odds for repairs and replacement cars as well as picking up the bill for referral fees. More

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Types of Road Accident

admin — Fri, 02 Dec 2011 18:09:04 +0000

Driving poses many dangers. It is important that drivers drive defensively. They need to anticipate these dangers and be ready to respond to them should they occur. Often this can keep accidents from occurring. However, in many situations, accidents are simply unavoidable. There are major types of road accidents that stem from specific causes. Knowing these can help a driver be more proactive when operating their vehicle on the road.

Many accidents are a result of driver error. In fact, this is the number one reason for accidents. Driver error refers to any sort of mistake the drive makes while on the road. For instance, they might underestimate a braking distance. They may also fail to check their blind spots. Tailgating is another driver error that can result in rear end collisions. Given the fact that driver error is responsible for more road accidents, it further emphasizes the importance of defensive driving.

Speeding or reckless driving can also result in other types of road accidents. Many drivers simply do not observe speed limits. These limits are set with safety in mind. Whenever they are exceeded, the driver is asking for potential problems. For every increase in the speed of a vehicle, the greater the chance that a road accident will occur.

Another type of road accident involves drunk driving. The accident occurs as a result of the driver’s blood alcohol level. This creates impaired judgment on the part of the driver. Some drivers may also be under the influence of other mind altering substances.

Road accidents can also be due to malfunctions within the vehicle itself. For example, brake failure can cause a car to be unable to stop or slow down. This creates the potential for a collision with another vehicle or stationary object on the roadside. Sometimes tires can fall apart which leads to a road accident.

Whiplash is a common injury after a car accident. If you want to know more about making whiplash claims, then visit www.roadtrafficaccidentsite.com.

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ABI reassurance to motorists about winter tyres!

admin — Thu, 01 Dec 2011 23:40:06 +0000

The ABI has issued reassurance to motorists that fitting winter tyres should not result in an extra charge on their motor insurance.

Under an ABI commitment ABI member insurers representing 90% of the motor insurance market confirm that they will not charge any additional premium if winter tyres are fitted, provided that the tyres meet, and are fitted in accordance with, the vehicle manufacturers’ specifications and are in a roadworthy condition.

Nick Starling, ABI’s Director of General Insurance, said:

“Insurers do not want to penalise motorists who take steps, like fitting winter tyres, to improve their safety on dangerous winter roads. Last year cold weather came early and there was some uncertainty for customers about the insurance implications of fitting winter tyres. This commitment clarifies the position for motorists.”

While the insurers signed up to the commitment will not charge an additional premium for the fitting of winter tyres, some may require the customer to advise them that these tyres have been fitted. The commitment covers cars used for personal use, under a private or personal use car insurance policy.

The commitment does not cover fitting new wheels. Any motorist who has winter tyres fitted to new wheels should contact their motor insurer for advice.

SOURCE: ABI.ORG.UK

Dodgy whiplash claims add £90 to each policy!

admin — Thu, 03 Nov 2011 21:01:34 +0000

Thousands of whiplash claims are adding £90 to the average car insurance policy – despite a drop in the number of accidents, it was revealed yesterday. Damning figures show the scale of a £2billion-a-year ‘whiplash epidemic’ – with claims up by a third in three years, despite the accident rate falling by 16 per cent. A quarter of the 600,000 whiplash claims made each year are ‘fake or over-diagnosed’, according to a survey of GPs revealed by the King’s Fund think-tank at a conference of doctors and insurers in London. At least 30,000 whiplash claims are outright fraudulent, costing £350million a year, according to separate figures from the Insurance Fraud Bureau. More

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Single males pay more for car insurance!

admin — Wed, 26 Oct 2011 17:25:10 +0000

An investigation of major online car insurance firms found that marital status can bump up the price you pay for motor cover. Consumer group Which? looked into twelve insurance providers and found that eight varied in price depending on whether the car owner was married or not. It found the biggest discrepancies were with the RAC. A 27 year-old ‘divorced/dissolved’ man living in South London was charged £266.42. This was 28 per cent higher than the best quote, which was for a motorist labelled as ‘cohabiting or partnered’. Quotes from More Than and RIAS changed by more than 10 per cent, Which? found. Being single, divorced, separated or widowed increased the price of insurance cover compared to if you were married. Other insurance firms offer different ways to describe motorists marital status and this can have a negative impact when it comes to the cost of your insurance. More

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Premiums inflated by £2billion a year in referral fees!

admin — Wed, 12 Oct 2011 21:57:23 +0000

Motorists are being fleeced of £2billion a year in unnecessary insurance costs caused by money-grabbing ‘parasites’ and ‘dodgy solicitors’ whose actions are little short of criminal, MP’s were told yesterday. Former Home Secretary Jack Straw took a swipe at lawyers, claims firms, garages, credit hire firms and others engaged in a controversial cash-for-contacts referral fee ‘racket’ which he said in any other walk of life would be condemned as ‘bribery.’ He told the House of Commons Transport Committee that as a result of the claims ‘merry–go-round’ some rocketing car insurance premiums have now reached ‘extortionate’ levels. Justice minister Jonathan Djanogly reiterated the Government’s intention to outlaw referral fees, crack-down on bogus whiplash claims, to spare the UK’s 33 million motorists ‘the symptoms of a sick, suing culture,’ and to help ease insurance premiums. Outlawing such practices should see car insurance policies – which are legally compulsory – tumble by up to a fifth if Mr Straw’s assessment holds true. More

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Drivers advised to check tyres for safety and to maintain insurance cover!

admin — Thu, 29 Sep 2011 22:40:36 +0000

Drivers could see their motor insurance claims denied and face fines of up to £10,000, simply by failing to take proper care of their tyres. One defective or bald tyre could see drivers hit with a fine of up to £2,500 and three penalty points¹ or up to £5,000 and 6 points for two defective tyres. In fact if all four tyres were defective, the maximum fine could be as much as £10,000 with a whopping 12 penalty points. More

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Crackdown on car insurance referral fees could raise premiums higher!

admin — Mon, 12 Sep 2011 20:42:27 +0000

Motorists face even higher insurance premiums if the Government presses ahead with a ban on controversial injury ‘referral fees’, the head of insurer Admiral has warned. Shares in the company plunged seven per cent after the clampdown was announced on Friday, wiping more than £260million off its value. Justice Secretary Ken Clarke announced the end of ‘referral fees’ – a cynical scam in which insurers trade details of accident victims with claims-shark lawyers. The racket is blamed for the soaring cost of car insurance – the average comprehensive policy is now nearly £1,000 and has risen 40 per cent in a year. The price rise has also been blamed for many driving without insurance. More

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Hidden insurance fees add to car premiums!

admin — Wed, 07 Sep 2011 20:50:39 +0000

Hidden charges are allowing car insurance companies to boost their profits while passing on record premiums to loyal customers, a Money Mail investigation can reveal. Our probe has discovered that hikes in little-known administrative fees have allowed insurers to rake in bumper profits. But while insurers are pocketing this extra cash drivers have endured a 30 per cent increase in their premiums, with the average now £923 a year Insurers claim they are not benefiting from these hikes, which are to pay for steep rises in fraud, personal injury claims and damage caused by uninsured drivers. But behind closed doors they are creaming off more from drivers through clandestine add-on charges. For example, Admiral, which insures 2.8million cars in the UK, boosted its car insurance profits by 28 per cent in the first six months of this year. Typical extra add-on charges include a £17 fee for sending out new documents; £47.50 for cancelling a policy mid-term; £22.50 for cancelling in a 14-day cooling off period; a £5.95 fee for paying by credit card; and a £20 charge for unpaid bills, which are passed to a debt collectors. More

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Advice and myth busting about car insurance!

admin — Wed, 17 Aug 2011 21:25:30 +0000

A poll carried out by breakdown and road safety organisation GEM Motoring Assist today revealed that a shocking one in three UK drivers knows someone who has either driven, is driving or has considered driving without motor insurance. Whilst the nation has been trying to save money during the recession, it is becoming more apparent that drivers are cutting corners when it comes to their vehicles. The alarming results expose a huge proportion of drivers who are at risk to a number of serious consequences. David Williams, CEO of GEM Motoring Assist comments, “It is imperative that drivers understand the importance of always having motor insurance and always at the correct level. The truth is that if you find yourself in an accident without insurance you will end up forking out a whole lot more money, not forgetting the penalties if you are caught driving your vehicle without insurance”. The severe punishment drivers can face if caught, includes a fine of up to £5,000, six to eight points on their driving licence, having their licence revoked or even having the police confiscate and dispose of their vehicle. Furthermore, with the new motor insurance law which came into force earlier this year, it is now possible for the DVLA to compare its database with the motor insurance database to find out if vehicles are insured. The DVLA can then inform uninsured drivers and should they subsequently not renew their insurance their car can be confiscated. More

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Average young male drivers insurance is now £4000!

admin — Mon, 01 Aug 2011 21:15:22 +0000

Confused.com/Towers Watson Car Insurance Price Index reveals: Average policy for a 17-20 year old single male is now more than £4,000 Car insurance costs for 17-20 year olds have crashed through the £4,000 barrier, with the average 17-20 year old male now paying a staggering £4,006 per year for comprehensive cover. This is the first time since the Confused.com/Towers Watson Car Insurance Price Index began in 2006 that average annual car insurance costs for young men have exceeded £4,000. Bizarrely, young male drivers in this age bracket see their car insurance costs reduce by around £1,000 if the driver is married and adds their partner to the policy. In order to afford a £4,000 a year premium and cover the cost of running a car, the average single male would need to spend £6,500 a year – almost half of the average salary of full-time employees at this age^. This effectively prices them out of the market. More

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Whiplash lie detector could help with insurance claims!

admin — Mon, 01 Aug 2011 20:34:59 +0000

We are in the middle of a compensation epidemic, with whiplash accounting for 76 per cent of all car-accident insurance claims. Could a whiplash ‘lie detector’ be the solution? ‘I just cannot believe that a bump at snail’s pace could have caused an injury like that,” says Claire Coleman, a motorist who earlier this year accidentally shunted the car in front while in traffic near her south London home. The driver of the Vauxhall Zafira got out, saw there was no damage and drove off. Claire assumed that would be the end of it, but was astonished to find out a couple of months later that the driver had claimed for a whiplash injury, and won more than £2,000. “There was absolutely no visible damage to either car – not even a scratch or a tiny dent,” she says. As Claire discovered, we are in the middle of a whiplash epidemic. Compensation claims for the neck injury now stand at three quarters of all personal injury claims as a result of a car accident. And the insurance industry is convinced that many are fraudulent. “Seventy-six per cent is twice the average for other European countries,” says a spokesman for the Association of British Insurers (ABI). “It’s unlikely we’ve got some of the weakest necks in Europe.” This compensation cash machine is having a disastrous effect on our insurance premiums: according to the AA, in the first four months this year they shot up by a record 40 per cent. But now the insurance industry is fighting back with what has been privately dubbed the whiplash lie detector test. It doesn’t measure heart rate, blood pressure or skin moisture, but instead is a sophisticated piece of software into which you feed details of the accident. So in goes the speed of the crash, the weight of the cars, the visible damage and lastly the type of cars. The so-called WITkit (for Whiplash Injury Toolkit) then gives you a probability that the person claiming whiplash injury is telling porkies. More

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Insurers ‘detect more fake claims’!

admin — Fri, 29 Jul 2011 22:45:58 +0000

Insurers are spotting and blocking more fraudulent claims, figures have shown. The Association of British Insurers (ABI) revealed that 133,000 false claims were detected in 2010, which is a 9% increase on the previous year. Overall, the value of these fraudulent claims reached £919 million, which is also a 9% increase on the previous year. The news that more fraudsters are being caught in the act could be good news for British motorists who see around £44 a year added to their car insurance bills as a result of these claims. More

Lower car insurance for young drivers!

admin — Thu, 28 Jul 2011 22:28:07 +0000

According to the AA’s British Insurance Premium Index, the cost of insuring drivers aged 17-21 fell by 5.6pc during the last quarter, bringing the average annual premium to £2,294. Simon Douglas, director of AA Insurance, said young drivers have for a long time been the biggest losers in the insurance market with premiums driving them off the road. “Premiums have been rising at a disproportionate rate, but it seems at last that insurers are starting to compete a bit more for their business with rates starting to come down,” he said. Premiums have always been higher for young drivers, due to higher risk or traffic accidents. According to road safety charity Brake, one in five new drivers has a crash within six months of passing a test and newly qualified drivers are more likely to be involved in a traffic accident during the first two years after passing their test. More

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Police selling crash details to breakdown companies!

admin — Tue, 28 Jun 2011 21:25:20 +0000

One police force alone made £1.3 million in just one year in “fees” that it charged to vehicle recovery companies. It was claimed that officers tip off local garages and breakdown firms who collect the cars, then charge motorists removal and storage fees. For this service the police demand a so-called “administration fee” of up to £25 per vehicle. The claim was made as Jack Straw, the former home secretary launched a campaign to expose the widespread practice of insurance companies selling the details of customers who have had accidents to “no win, no fee” claims firms. The Labour MP for Blackburn said that insurance companies sold them on for up to £1,000 per case. Injury lawyers then contact the motorists with unsolicited messages and phone calls suggesting that they pursue compensation claims. More

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Crackdown on uninsured driving gets underway!

admin — Mon, 20 Jun 2011 14:58:36 +0000

New laws to tackle uninsured driving will be enforced from today. Under the new Continuous Insurance Enforcement law it’s an offence to be the keeper of an uninsured vehicle, rather than just to drive when uninsured. From today, registered keepers identified as having an uninsured vehicle will be sent a letter telling them that their vehicle appears to be uninsured, and warning them of the consequences if they fail to take action. Those who don’t act on this warning – either by taking out insurance or declaring their vehicle off the road – will receive a £100 fine and could have their vehicle clamped, seized and destroyed. They may also face a court prosecution. All drivers can check their vehicle is recorded correctly for free at askMID.com.

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Motorists warned to get insured ahead of crackdown!

admin — Tue, 24 May 2011 08:52:29 +0000

Motorists warned to get insured ahead of crackdown

Motorists are being warned to insure their vehicles ahead of a new crackdown to tackle the menace of uninsured driving.

Under the new Continuous Insurance Enforcement law – which will affect all motorists from 20 June – it is an offence to keep an uninsured vehicle, rather than just to drive when uninsured.

A national advertising campaign will be launched by the Motor Insurers’ Bureau today to raise awareness of the law.

Road Safety Minister Mike Penning said:

“Uninsured drivers are a danger on our roads, killing 160 and injuring a further 23,000 people each year, and they cost honest motorists £500 million in extra premiums. That is why we are introducing this tough new law which will leave uninsured drivers with nowhere to hide.

“Our message is clear – get insured or face a fine, court action or seeing your car seized and destroyed.”

Ashton West, Chief Executive at the Motor Insurers’ Bureau, said:

“The change in law is a stepping up of enforcement activity, so that not only those vehicles driven without insurance will be caught. Now the registered keeper must make sure that their vehicle is insured all the time.

“In order to make sure everyone is aware of the new scheme, a national awareness campaign will be shown on satellite and terrestrial TV channels.

“Around four percent of vehicles have no motor insurance at any given time, and this needs to change so that is why this new enforcement approach is so important.”

Watch the TV advert on YouTube

Under the new system:

The DVLA will work in partnership with the Motor Insurers’ Bureau to identify uninsured vehicles.
Motorists will receive a letter telling them that their vehicle appears to be uninsured and warning them that they will be fined unless they take action.
If the keeper fails to insure the vehicle they will be given a £100 fine.
If the vehicle remains uninsured – regardless of whether the fine is paid – further action will be taken. If the vehicle is on public land it could then be clamped, seized and destroyed. Alternatively court action could be taken, with the offender facing a fine of up to £1,000.
Seized vehicles would only be released when the keeper provided evidence that the registered keeper is no longer committing an offence of having no insurance and the person proposing to drive the vehicle away is insured to do so.
Vehicles with a valid Statutory Off Road Notice (SORN) will not be required to be insured.

The new law will run alongside the existing offence of using a vehicle with no insurance, which is enforced by the police. The police seize 180,000 vehicles each year for this offence, and offenders also face a £200 fixed penalty or a court fine of up to £5,000 and possible disqualification.

The DVLA’s records will be compared regularly with the Motor Insurance Database (MID) and this process will identify registered keepers of vehicles that appear to have no insurance. All drivers can check their vehicle is recorded on the MID for free – visit askMID.com.

Source: nds.coi.gov.uk 23/05/11

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New in-car technology monitors young drivers behaviour!

admin — Thu, 31 Mar 2011 21:24:34 +0000

A new internet insurance package which lets parents monitor their child’s driving, launches at the end of this month. Devised by Marmalade – which sells and leases small cars to newly-qualified drivers – it is claimed to offer particularly competitive insurance rates in return for motorists having a “black box” fitted to their cars. Using telematics that feed a website, the black box records details of every journey made, allowing both the insured and their parents to monitor how fast, or how carefully, the car is being driven. By accessing a web page it will be possible for customers to examine tell-tale factors such as how harshly the car is being braked, how fast it accelerates and how fast it corners. Drivers who keep within the “green” zone won’t hear from “Intelligent Marmalade” operators – at least until it’s time to renew their premium. But those who drive into the “red” zone will get a written warning – and so will their parents. Anyone receiving a second warning within a month faces the prospect of their premiums rising by up to £400. More

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Teens quoted £24,000 and £32,000 to insure their cars!

admin — Wed, 23 Mar 2011 23:47:23 +0000

When Daniel Grey was told it would cost £24,000 to insure his 12-year-old Volvo, he assumed it was the highest quote in the country. But stunned teenager Jake Redshaw’s dream of driving has now also stalled, after he was quoted more than £32,000 to cover his second-hand hatchback. Both quotes came from the AA. Jake, 17, bought a six-year-old Vauxhall Corsa for £3,000 after he passed his test earlier this month. The student, from Salford, Greater Manchester, said he expected online insurance quotes to reach a couple of thousand pounds. Instead he received a headline figure of £32,819 from the AA. Jake’s cheapest fully-comprehensive quote was almost £6,000, twice the car’s value. The second most expensive quote was £21,000. Jake is studying IT and works part-time in a warehouse at Salford-based telecoms distributor Nimans. He lives with his parents in Eccles, Greater Manchester. He said: ‘I thought passing my test would be the hardest part about getting my own wheels. ‘It’s not as if I was trying to insure a high-powered sports car. I was gobsmacked.’ More

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Personal Injury Lawyers push up car insurance premiums!

admin — Fri, 11 Mar 2011 22:06:54 +0000

The cost of car insurance is soaring because of a boom in ‘abhorrent ambulance chasing’ by personal injury claim firms and escalating fraud, MPs have warned. They criticised a ‘cash for contacts’ culture which means that within days or even hours of an accident, motorists’ personal details are sold and re-sold for up to £1,000 a time between interested parties. ‘Over 40 per cent of personal injury lawyers pay referral fees to receive work from insurers or claims management firms,’ according to a report from the Commons transport select committee. ‘Fees range from £200 to £1,000 per referral.’ In evidence to the committee, the AA reported that average premiums quoted to motorists for comprehensive cover increased by 29.9% in the year to October 2010. The report said there can be several referrals for a single insurance claim and that fees may be paid and received by insurance firms, vehicle repairers, rescue truck drivers, claims and accident management firms and law firms. More

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Older ladies pay more for their car insurance!

Men and Women to pay the same insurance rates!

admin — Tue, 01 Mar 2011 21:10:38 +0000

Insurers cannot charge different premiums to men and women because of their gender, the European Court of Justice (ECJ) has ruled. The decision means that women can no longer be charged lower car insurance premiums than men, and the cost of buying a pensions annuity will change. The change will come into effect in December 2012, although customers could see premiums alter in the interim. Representatives of the insurance industry said they were disappointed. The court was ruling on a challenge by a Belgian consumer group Test-Achats. It had argued that a current exemption for insurers contradicted the wider European principle of gender equality. “Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination,” the ECJ said. The requirement for unisex insurance premiums and benefits will start on 21 December 2012, giving national governments and the European insurance industry time to adjust. More

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Women could soon pay same as men for car insurance!

admin — Wed, 16 Feb 2011 23:18:42 +0000

The court is expected to rule that calculating car insurance based on gender is unlawful. Young women will be hit hardest by the ruling – they currently get cheaper deals than men of the same age, because they are considered a ‘safer risk’. Typically, a woman aged 17-22 currently pays just £1,682 a year in motor insurance, compared to a young man who pays an average £2,750. Figures show that young men are twice as likely to make a car insurance claim and 10 times more likely to be in a crash involving serious injury than young women. Young men are also 25 times more likely to commit a traffic offence within their first three years of driving. The AA said that although the anticipated ruling would result in young men’s premiums dropping slightly, the key effect would be a near doubling for young women’s premiums. Simon Douglas, director of AA Insurance, said: “This will be particularly bad news for young women who are proven to present a much lower risk to insurers and at present, pay premiums that are up to 50 per cent cheaper than their male peers. I expect premiums to increase substantially for them, while they will probably fall a little for young men. According to the company, the use of gender in calculating insurance risk has been a ‘thorn in the EC’s side’ for many years. The AA believes that the current use of gender for determining premiums is technically illegal, although the UK has enjoyed derogation based on evidence of the its risk-based approach to insurance. “My fear is that the European Court of Justice will no longer tolerate such exceptions and the UK will have to toe the European line,” said Mr Douglas. Added an AA insurance expert: “Insurers may look to use other risk factors as a proxy for gender – for instance occupation or vehicle type – but it isn’t clear to what extent this will be permitted if it constitutes a form of indirect discrimination.” More

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Survey shows ‘Majority think insurance fronting is acceptable’!

admin — Wed, 19 Jan 2011 22:52:49 +0000

More than 50% of people think that insurance ‘fronting’ is an acceptable practice, new research from an industry body could suggest. Commissioned by the Association of British Insurers (ABI), the poll of 2,600 adults found that 53% believed that fronting – where a lower-risk, usually older driver, insures a vehicle in their own name, despite the main driver being a higher-risk driver – is “acceptable or borderline behaviour”. Naming a less experienced, or higher-risk person on a policy is legitimate practice if they are not the main driver. However, fronting is typically done by parents, who help their children to obtain cheaper insurance – in the knowledge that the younger driver will be the primary user of the vehicle. In addition, one in five of those polled said they would not rule out exaggerating the period since they last claimed, while 12% would consider not disclosing relevant motoring convictions, and one in ten would contemplate changing details such as age or occupation. The ABI is warning that such drivers are putting their cover at risk, and could be driving illegally, as they have deceived their insurance company by knowingly giving false information, or withholding important details. More

New rules could mean an offence not to insure a car!

admin — Sun, 09 Jan 2011 21:29:45 +0000

Uninsured drivers face fines or the prospect of having their car crushed, even if they have not stepped behind the wheel, under government plans. In the next few days ministers are expected to unveil new rules which will make it illegal to keep an uninsured car – irrespective of whether it is being driven. It will mean that car owners will face a fine or worse for having an uninsured vehicle. This will apply even if the car is kept in a garage or on the driveway, unless the owner has remembered to fill out a form – known as a Statutory Off Road Notification (SORN) – declaring that the vehicle is off the road. The new measure, which was originally part of the 2006 Road Safety Act, will be enforced by comparing the Motor Insurers’ Bureau database with that held by the Driver and Vehicle Licensing Agency. But an AA spokesman voiced fears that this could catch the innocent motorist while leaving the “motoring underclass” – who deliberately neither tax nor insure a car – untouched. “This could hit people who happen to be away or who are in hospital when their car insurance is up for renewal,” an AA spokesman said. “At the same time this will not deal with the sort of people who are not recorded at all by the DVLA. More

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Astras ‘most-seized uninsured cars’!

admin — Thu, 30 Dec 2010 23:56:22 +0000

As many as 500 uninsured vehicles are seized every day, with Vauxhall Astras the cars removed from the road most frequently, figures showed today. After Astras, the next most-seized vehicles are BMW 3 Series cars, according to figures based on roadside calls to the Motor Insurers’ Bureau (MIB) police helpline. The statistics come as a new online video warning of the consequences of driving without insurance is launched by the MIB, which compensates victims involved in accidents with drivers who have no insurance. Police use the Motor Insurance Database to detect cars being driven without insurance. The consequences for drivers taking to the road without insurance include vehicle seizure, a minimum of six licence penalty points, and a fixed fine of £200. Drivers who have their cars seized will also be liable for £150 in recovery fees and still have to prove that they have insurance before they can get their vehicles back. MIB chief executive Ashton West said: “Christmas is a time when household budgets are stretched to the limit and, for some, the renewal of insurance may be overlooked. “Modern technology means that motorists who have no insurance are more likely than ever to be caught. It is simply not worth the risk.” More & List

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Car insurance up 40% in last year!

admin — Wed, 10 Nov 2010 21:24:32 +0000

Rises in car insurance premiums are set to continue in the foreseeable future, with motorists likely to face double digit price hikes, an expert has warned. Over the past one year, the cost of comprehensive car insurance has shot up by 40% on average, with younger drivers bearing the brunt of it – facing increases of 51%. Rise in fraud, higher personal injury costs, an increase in claims management companies and the cost to the industry of uninsured drivers, have together led to the hike, the Transport Select Committee heard. Duncan Anderson, of EMB Consultancy, said the sharp rise mirrored a “catch up” in insurance premiums after higher claims costs. However, he added: “If claims continue to rise at the rate that they have been increasing, rates will continue to increase as well. More

Some insurers charging £55 to amend policies!

admin — Wed, 22 Sep 2010 22:46:29 +0000

Insurers are charging up to £55 to make minor changes to policies, a report has revealed. Research by Which? Money found seven in ten car insurance providers and a third of home insurance firms make people pay for changing details such as marital status or address. On average, customers are charged £21 for car insurance policy amendments and £18 for changes to home insurance details. But some companies are charging much more. Young driver specialist I-Kube charges £55, while home insurer Bluefin has a £35 fee. Which? Money found 105 of 151 car insurance providers it analysed charge policy amendment fees. In addition 60 out of 180 home insurers levy the charges. Consumers also face fees for cancelling insurance midway through their policy term. More

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‘Female-friendly’ insurers not always have the cheapest premiums!

admin — Sun, 12 Sep 2010 00:05:47 +0000

Specialist insurers that promise cheap deals for women often charge over the odds for cover. Exclusive research undertaken for The Independent on Sunday by Confused.com reveals that self-proclaimed female-friendly firms can charge hundreds of pounds more than mainstream insurers. The comparison site looked at car insurance premiums for women of differing levels of age and experience. The results show that specialist providers seldom offer the best deals. Confused’s figures show that a 40-year-old woman in Cardiff, driving a Ford Fiesta Style, with five years’ no claims bonus (NCB) and a £250 voluntary excess would pay £575.60 with Diamond – more than £300 higher than Esure’s premium of £273.48. Other bespoke providers were even more expensive, with a policy from Diva costing £586.40, Women on Wheels costing £633.26 and Ladybird costing £682.05 – £400 more than the best deal. “Statistically, women drivers are the safest on UK road, and it is no surprise that some providers have created specific brands and bespoke policy offerings with the intention of attracting this market,” says Will Thomas, head of motor insurance at Confused.com. Home Office figures show that over the past five years, male drivers in the UK have accounted for 94 per cent of all car accidents involving death or bodily harm, 97 per cent of all dangerous driving convictions and 83 per cent of all speeding convictions. This is despite the fact that the driving population is currently split 55 per cent men and 45 per cent women. With this in mind, insurance dedicated to female drivers makes complete sense – they focus their attention on safer drivers and pledge to reward them with smaller premiums.’ More

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Car insurance cancelled after lad passes test!

admin — Sat, 11 Sep 2010 20:49:31 +0000

Passing your driving test is usually a time to celebrate. But for Independent reader Mike Ford, his joy was cut short when he passed his test last month because his insurer suddenly withdrew his cover. The reason? Marks & Spencer said it didn’t want to insure the 17-year-old any more because, as a qualified young driver, he was too much of a risk. M&S isn’t alone in penalising young people for being successful learners. Our tables below show that most insurance providers ramp up the cost of cover, but few go as far as M&S in simply leaving their customers uninsured. The move angered Mike’s father, Rob. “I find it totally reprehensible that a company of M&S’s standing should take on a provisional driver in full knowledge that they would cancel the policy the minute he passed his test, with no prior warning,” Mr Ford said. “What sort of signal does this send out to young drivers and their parents? Insurers warn of the dire consequences of a driver being found to be fronting [when someone other than the main driver is declared as the policyholder]; yet they treat honest policyholders with contempt.” More

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‘Crash for cash’ scams adds £44 to each motor policy!

admin — Sat, 21 Aug 2010 21:35:09 +0000

“Crash for cash” scams where fraudsters stage accidents to claim on other drivers’ insurance are at an all-time high, the BBC has learned. The Insurance Fraud Bureau (IFB) estimates around 30,000 accidents were staged last year. The scams cost insurers about £350m in 2009 and added £44 to the premium of every driver in the country. Birmingham was the UK’s top fraud hot-spot and incidents rose in parts of London, the industry-funded body said. Until recently the claims were largely confined to north-west England, and the other four top spots for insurance fraud of this sort were filled by Liverpool, Blackburn, Manchester and Leeds. But the scam appears to be moving south, with parts of London in the top 10 for the first time. East London takes sixth position while north London is in ninth position. The fraudsters ensure an innocent motorist drives into the back of their vehicle by braking suddenly on a clear road or roundabout. Often they use the handbrake so there are no warning lights. More

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Youngster faces £17,000 bill to insure £2,000 motor!

admin — Thu, 29 Jul 2010 22:20:06 +0000

A learner driver has been quoted a staggering £17,000 to insure his £2,000 Vauxhall Corsa. Student James Hayes, who turns 17 next week, saved for months to buy his modest one-litre car but has been astonished at the sky-high quotes for insurance. He will have to work flat out over the summer to pay the premiums. His case highlights how insurers are increasingly using prohibitive premiums as a weapon against young male drivers. The failure of insurers to offer reasonably priced insurance is being blamed on an explosion in uninsured drivers, which drives up the cost of cover for others and leads middle-class parents to commit a crime by putting themselves as the main driver on their children’s cars. This reluctance to insure young men is based on accident statistics. Men aged 17 to 20 are almost ten times more likely to be killed or seriously injured on the roads than older drivers, while one in five new drivers has a crash within six months of passing their test, according to road safety charity Brake. The Association of British Insurers (ABI) says the average claim of a younger driver is also three times more than older drivers. But their refusal to cover male teenagers for affordable premiums has led to almost a quarter driving uninsured, according to Brake. And this ends up costing all motorists as they foot the £500million annual bill for accidents caused by uninsured drivers. Fines for driving without insurance can be as small as £200 plus six points on the licence. More

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Older drivers show the youngsters how its done!

admin — Fri, 23 Jul 2010 21:51:52 +0000

Whether dithering at a junction or taking an age to park, the older motorist is often a horn beep away from a confrontation with an angry, younger driver. But those critics should perhaps take a long look at themselves in the rear-view mirror. A study shows elderly drivers are more capable than their less experienced counterparts. Researchers wired up 74 drivers, split into three age categories, to software that simulated driving and tracked responses to hazards, such as cars emerging from blind spots and pedestrians standing on kerbs. Those in the oldest age category, who had been driving for more than 37 years, were as good at responding to risks as those in the middle age category. Inexperienced drivers performed the worst, tending to fixate on what was straight ahead, and many failed to respond to cars emerging from the sides of the road. Older drivers, though, were quick to point the finger when things went wrong, the study found. Avinoam Borowsky, who led the research at the Ben Gurion University in Israel, said that while older drivers relied quite heavily on signs, they were more capable of perceiving dangers than young motorists. More

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Increase in fraud gives fastest rise in car insurance premiums!

admin — Sun, 18 Jul 2010 23:57:02 +0000

The cost of car insurance has grown at its fastest rate, in large part due to a rise in fraudulent claims, according to data released today. During the three months to the end of June, car insurance premiums went up by 11.5% to £704 for an average annual comprehensive car policy, according to the AA British Insurance Premium Index. This is the biggest increase recorded by the motoring organisation since it started tracking quarterly insurance premium trends 16 years ago. This cost is the average of the cheapest three premiums quoted for those shopping around at renewal time, a measure the AA uses because it is closer to what most people pay for their insurance. The overall average premium has risen even more in the last quarter, by 12% to almost £1,000. This is up from just under £800 a year ago and £337 in 1994 when the index started. Young drivers now fare particularly badly. Premiums for third party, fire and theft cover, often bought by young drivers, climbed by 15.9% in the three months to the end of June bringing the average for this age group to £1,224.99. Third party, fire and theft cover is now more expensive for many drivers, not just younger ones, than comprehensive cover due to a higher incidence of claims on this type of insurance. “The latest British Crime Survey, published last week, suggests that crime levels are falling, but crucially, it misses a new 21st-century wave of fraud such as providing false information and claiming for non-existent personal injuries, which just isn’t being picked up,” said Edmund King, AA president. Cases of insurance fraud have been on the rise since the recession began. Figures to be published by the Association of British Insurers (ABI) later this week are expected to show that these are still on the rise. As it is, the ABI puts the total cost to the industry of undetected general insurance claims fraud at £2bn per year. This adds around £40 a year to the insurance premiums paid by all policyholders. The most common and costly form of general insurance claims fraud is “opportunistic retail fraud”. This is where individuals exaggerate or inflate genuine claims to increase the value of a payout. More

Youngsters insurance premiums hit by tax increase!

admin — Fri, 16 Jul 2010 21:19:20 +0000

Young drivers could be put off getting car insurance as a result of the Budget’s increase in insurance tax, Tory MPs have warned. The jump from 5% to 6% was criticised by former minister Christopher Chope. He said it could also result in fewer people taking out health insurance putting more pressure on the NHS. Former Cabinet minister John Redwood also hit out at the move, which would raise £400 million a year, saying that the rise would impact already heavily taxed motorists. Mr Chope called for Insurance Premium Tax (IPT) to be frozen for health and vehicle policies. The standard rate is set to increase to 6% from January 4 next year as part of the Budget’s package of measures to cut the deficit. More

Parents trying to save on car insurance breaking the law!

admin — Fri, 04 Jun 2010 21:23:48 +0000

Millions of parents are said to be breaking the law in order to save money on car insurance for their children. New figures suggest that 41% of parents deliberately lie when filling out policy applications. Parents are claiming to be the main drivers on the policy, when in fact it is one of their children who is the main driver, or owner of the car. The practice known as fronting potentially offers large savings but could lead to prosecution. Research by Co-operative Insurance found that 41% of parents were actually fronting policies at the moment, and 61% would do so in the future. More

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100,000 written off cars are returned to the roads!

admin — Thu, 29 Apr 2010 20:24:47 +0000

The number of crashed cars being put back on the road by car insurance customers over the past two years has increased by ten per cent, reports car insurance provider Swiftcover, whose cover can only be bought online. Last year, according to DVLA figures, more than 100,000 cars were written off in crashes then allowed back on the roads after passing checks. swiftcover.com has warned that these cars may not be covered fully by motor insurance policies and that some owners will not know this until they try to file a car insurance claim. Due to the damage they may have sustained during the crash in which they were written off, the cars tend to be worth much less and cost more to repair in the future. The result of this is that many car insurance providers will not offer full market value for the car and some motor insurance companies may even refuse to provide any policy at all. More

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Black boxes could be installed to help car insurance claims!

admin — Thu, 29 Apr 2010 20:20:19 +0000

Inserting black boxes into motor vehicles could help with any car insurance claim, a legal expert has suggested. Solicitor Ewan McIntyre claims that the devices are required by law in the US and can provide vital information on things such as throttle position, the vehicle’s speed and the brake light switch status. In addition, a black box could provide data on the car’s steering and braking system and whether seat belts were worn before a crash occurred. Mr McIntyre claims this sort of information would be a great help in determining who is responsible for an accident. More

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‘Crash for cash’ hotspots revealed!

admin — Mon, 26 Apr 2010 20:06:05 +0000

Analysis by Direct Line has identified the UK’s top ten ‘crash for cash’ hotspots, as the insurer steps up its fight against fraudsters who cost every other motorist an average of £44 a year and delay payments for genuine car insurance claims. ‘Crash for cash’ fraudsters fake accidents by making unnecessary emergency stops at busy roundabouts or slip roads, forcing motorists to crash into them. They then make bogus claims to the innocent motorist’s insurer, often including fictitious injuries. Direct Line’s sophisticated monitoring of data and coordinated nationwide investigations means its anti-fraud team are aware of hundreds of sites that have been used by fraudsters, enabling them to catch the perpetrators and bring them to justice. The scams are estimated to cost up to £350 million a year increasing the car insurance premiums of honest drivers, as well as delaying payouts for claims that happened at known hotspots by up to three weeks. Further analysis has enabled Direct Line to map the entire country to highlight evidence of suspicious claims and determine the ten worst hotspots for the scams. By utilising this information alongside specially developed technology and methodology, Direct Line is able to catch fraudsters more easily and quickly. The top ten hotspots include roundabouts and slip roads throughout the UK. More

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Cheap insurance give learner drivers their own policies in others cars!

admin — Wed, 21 Apr 2010 20:10:39 +0000

A new form of insurance will allow young learners to drive your car without prompting a massive rise in premiums or endangering your no-claims bonus. Young Marmalade, which specialises in offering cars and insurance to new drivers, has come up with the policy aimed at learners called Provisional Marmalade. The cover costs between £90.95 and £99.50 per month. The price is based on where you live, and you will be excluded only if you’re looking to add a learner to a high-powered car. Because it’s a separate, fully comprehensive policy in the name of the learner driver, the parent’s no-claims discount is not in danger. The policy tackles the dilemma facing many youngsters, who can’t practise in their parents’ car because insurers won’t cover them. Around half of insurers won’t offer cover to those aged under 21 – some place the restriction at 25 – and most won’t allow you to put a provisional driver on your insurance. Even those who will allow learners to be added as a named driver frequently charge between £1,000 and £3,000 for a year. Yet the Driving Standards Agency advises learners to have 22 hours’ practice after they have had 45 hours of professional driving instruction and before taking their test. Nigel Lacy, of Young Marmalade, says: ‘The high cost of insurance has put off youngsters learning to drive or they are tempted to practise without insurance. We want to encourage safer motoring. The more practice they get, the better drivers they will be.’ The policy, which is underwritten by Chaucer, is being sold by motoring accessory store Halfords, where details of the scheme are included in packs of L plates, as well as by brokers and through the company directly. It covers only young drivers in the car you’ve stipulated at the outset. The AA is also planning to bring out monthly provisional driver cover, though it hasn’t yet decided how much it will cost. Learners can be covered to drive your car as long as it’s not worth more than £20,000. As with Provisional Marmalade, friends or other family members can supervise the learner in your car provided they have been driving for three years. The supervisor must be aged over 25 with Marmalade and over 21 with the AA. Once the learner passes their test, the policy ends or you can add them to your existing policy as a named driver. Some insurers, such as Admiral, Direct Line and More Than, will allow you to add a learner to your policy on a monthly basis. And if you have protected your no-claims discount, you won’t lose it if your youngster has an accident. More

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Chrome mini worth £30,000 is uninsurable!

admin — Tue, 30 Mar 2010 21:17:16 +0000

It must have seemed like an expensive gift that would make his wife the flashiest thing on the road. But it has ended up becoming rather a burden. Ian Grice paid £30,000 for a chrome-plated Mini Cooper as a Valentine’s gift for his wife Toni. But to the couple’s dismay, they cannot even get the new car off their drive to show it off. Mr Grice, 42, cannot get anyone to insure the pricey vehicle. ‘I’ve been left with the world’s most expensive mirror,’ he complained. ‘No one will touch it with a barge pole.’ The builder bought the super-shiny car from a London showroom as a Valentine’s Day gift for his wife, 41. He was given a week’s free insurance so he could drive it back to their home in Greasley, Notts. But now insurance firms are refusing to give the couple cover. More

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Thousands of parents guilty of ‘fronting’ children on their car insurance!

admin — Thu, 25 Feb 2010 22:01:49 +0000

Around 36,000 parents are breaking the law by naming sons and daughters as a ‘spouse’ or ‘partner’ on their car insurance policy, our own research has found. swiftcover.com contacted policyholders over concerns with their cover and found that one in four admitted to ‘fronting’ by not putting down their offspring as a ‘named driver’. We estimate that the number of parents taking this fraudulent action has almost doubled in the last two years, with as many as 36,000 mums and dads guilty of doing so. Robin Reames, our claims director, warned those who front that insurers are clamping down on such behaviour, which ultimately ends up costing those who abide by the law and purchase car insurance honestly. “Trying to buck the system by fronting is not only illegal, it actually ends up costing law-abiding motorists if they are involved in an accident with a fronted driver who is actually an underinsured driver,” he added. More

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Uk’s un-insured driver hotspots announced!

admin — Thu, 18 Feb 2010 23:05:56 +0000

If you’re worried about getting hit by an uninsured driver, you might want to avoid these places. Listed below are the ten areas with the highest proportion of uninsured driver convictions. With uninsured driver accidents becoming an increasingly big problem for both motorists and insurers, price comparison website Moneysupermarket.com analysed almost 3 million car insurance quotes over a year and identified the places with the highest convictions. It said that the Scottish town, Sanquhar, in Dumfriesshire tops the list, with male motorists between the age 22-25 the main culprits. Amazingly, almost 30% of searches for insurance there showed up a conviction. Hebden Bridge, in West Yorkshire, and Glasgow were placed second and third in the list. Once again males in their early twenties were the main offenders. In fact, in all of the top ten areas men were the main offenders, except Bedfordshire – the only area with a female profile in the top ten. A surprise addition was London’s posh W11 postcode, where offenders were also older than the norm. Steve Sweeney, head of car insurance at moneysupermarket.com said: ‘It seems men under 25 are not only the country’s ‘boy racers’ but also ‘law breakers’. With half of the top ten profiles for uninsured drivers being males under 25, they are more likely to flout the law by driving without car insurance. ‘Unfortunately, the high cost of car insurance, especially for younger drivers could be the overriding reason for this.’ See the table of results

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AA warns of errors with number plates on insurance documents!

admin — Wed, 17 Feb 2010 23:25:02 +0000

AA Insurance has seen a sharp increase in the number of drivers being stopped by police because simple number plate errors have been made on their insurance record. Such mistakes are coming to light as police automatic number plate recognition (anpr) equipment – used to identify uninsured drivers – becomes more widespread. Motorists who have made simple registration errors on their insurance applications are being stopped by police – and occasionally having their cars confiscated as a result. Mistakes, such as transposing letters or numbers or getting a 0 and O mixed up, may mean that automatic number plate recognition (anpr) technology, which is increasingly carried both on police vehicles and at fixed roadside locations, won’t recognise that the car is insured. Comment Simon Douglas, director of AA Car Insurance, says: “Over the past few months we have seen a sharp rise in the number of ‘mistaken identity’ cases. Where we used to get one or two calls per month from police to verify whether a motorist they have stopped is insured for this reason, it’s now 20 or more per week. “I see this as encouraging because it also means that police are becoming increasingly successful at catching genuine uninsured drivers as well as people who’ve made simple mistakes.” He points out that drivers are usually sent on their way after confirming they’re covered. But in extreme cases cars have been confiscated until a correct insurance document can be provided along with a statement confirming the car was insured at the time. “If you’re applying for your car insurance online, it’s easy to confuse letters and numbers such as 0 and O. It’s also surprisingly common for drivers to transpose digits. If you are applying for cover by telephone, similarly-sounding letters (such as N and M) can also be confused. Insurance staff can make mistakes too.” Douglas points out insurers send every customer a summary of cover, which includes all the information it has about a customer and his or her car, as well as the insurance certificate itself. “It is really important to check that this information is correct – especially the registration number. The data is used to update the national Motor Insurance Database, which is used by the police anpr equipment to check whether your vehicle is covered. He says: “Simple errors can result in a lot of wasted time and inconvenience for you, the police and your insurer – quite apart from the risk of temporarily having your car confiscated.” More

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Axa car insurance site offers 90% no-claims discount!

admin — Mon, 01 Feb 2010 21:37:21 +0000

Insurer launches direct web sales in the hope of attracting the safest drivers. Axa has become the latest insurance company to launch a website selling direct to customers. And it is hoping to entice the safest drivers with the promise of a maximum 90% no-claims discount which, it claims, is the highest in the market. It has traditionally sold through brokers alongside its Swiftcover brand, and is unashamedly targeting middle-aged drivers of low-performance cars who are most likely to have a claims-free past. Policyholders also get a courtesy car “whenever they are without a car following any valid claim for accident, fire and theft”, not just while their own is being repaired. Claims can be tracked, and amendments made to the policy, at any time via the website. Its target market is those around 45 and upwards. It has a maximum age for new customers of 80. The company says motorists with less than eight years driving experience are three times more likely to have both been caught driving under the influence of drugs or alcohol, or convicted of dangerous driving in the last year. Experienced drivers, it says, are also less likely to have been caught using a mobile phone while driving, and five times less likely to have been fined for driving without a seatbelt. Tina Shortle, marketing director for Axa Insurance says that at a time when prices are rising sharply in this market, “we felt drivers with a proven track record deserved more”. The official launch on Monday will be backed by a £10m marketing campaign More

Record motor insurance hike of 20% on car renewals!

admin — Mon, 25 Jan 2010 23:45:56 +0000

The average annual premium is now £564.19 – almost 20pc more than it was this time last year, according to market research firm Consumer Intelligence. Motorists renewing car insurance policies face the largest annual hikes ever recorded, according to research from independent market research firm, Consumer Intelligence. The average annual premium is now £564.19 – almost 20pc more than it was this time last year, according to market research firm Consumer Intelligence. Those who have endured the biggest rise are 17-24-year-olds, with the average going up nearly 25pc to £1,489. Men are facing the most significant increases on their insurance premiums. In the last 12 months the average policy for a man has increased by 20pc to £599.65. This compares to an increase of 19.1pc to £523.55 for women. More

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Insurance premiums hiked up for those convicted of speeding!

admin — Fri, 22 Jan 2010 22:42:54 +0000

Having points on your licence for speeding means your annual insurance premiums jump to an average of almost £1,000 a year, up £180 on last year and double the price paid by those with a blemish free driving record. Drivers have always paid more if they have a speeding conviction as they are considered more likely to make a claim. But now the extra amount they pay is increasing. Insurers are pushing up prices to recoup some of their losses stemming from a rise in claims during the recession. Steve Sweeney, head of motor insurance at moneysupermarket.com said: “Speeding increases accident rates so it’s hardly surprising insurers view a conviction dimly. “Serial speeders are worse off year on year and have to fork out nearly £200 more on average for their insurance premiums compared to last year. This is the harsh reality facing anyone who has multiple points on their licence.” A third of providers will not increase premiums for one blemish on your record, but serial speeders will find fewer providers willing to insure them and at increased prices. More

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Older ladies pay more for their car insurance!

admin — Sat, 16 Jan 2010 23:29:48 +0000

We all know about the risk of young drivers. Now insurers are facing a wave of claims from women driving well into retirement. Men are worse drivers than women. That’s the inescapable conclusion from insurance statistics that show men, particularly those aged between 17 to 25, as the cause of the worst (and most expensive) smash-ups. It’s why young women pay just half the premiums of men the same age. But as Britain’s population ages, insurers have identified a new risk category – older female drivers. Guardian Money can reveal private data held by the insurers which shows that until their 60s, men have a worse accident record than women. But after that age, women are increasingly responsible for motor insurance claims and once they reach their 80s, are making far more claims than men of the same age. Some insurers are now demanding that women from the age of 75 pay 50% more for their car insurance than men, and, from 80, 100% more. Behind the figures is a dramatic surge in the number of elderly women driving on Britain’s roads. Licence statistics from the Department for Transport show that in 1976, only 4% of women who had driving licences were over the age of 70. In the 1990s that figure reached 20% and today it is 36%. Insurers are not sure why women become worse drivers than men as they grow older. But their claims data means they have no choice but to charge women more. The crossover point at which women start paying more than men has, according to AA Insurance, moved from 60 six years ago to below 50 today, although other insurers say they start charging more for women older than 60. A price test by Money this week found that by changing the title of a 75-year-old from Mr to Mrs and keeping all other details the same raised the premium by up to 53%. More

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Personal Injury Lawyers push up car insurance premiums!