Car Insurance Industry Accepts the Help of the British Government

Car Insurance IndustryWith unstoppable car insurance premiums rising concurrently, it is just about time for the government to interfere and help ease out the situation for British drivers. However, Prime Minister David Cameron did not enter the picture because of the mere costs of car insurance coverages. After the UK was dubbed the ‘Whiplash Capital of Europe’, insurance company heads and pertinent people in office were called upon for a car insurance summit that will discuss and evaluate the overall situation regarding whiplash injury claims.

According to a recent release on 20 February, the car insurance summit took place at Downing Street. And aside from talks on issues regarding bogus whiplash claims, the rising costs of car insurance were also tackled. With a 30 % increase in car insurance payments over the last three years, it is just about time for the government to butt in.

One of the pertinent people in office who were present at the car insurance summit was Justine Greening, UK Transport Secretary. According to the secretary of transport, “With the excessive number of whiplash claims made on a daily basis, the UK is surely the whiplash capital of Europe”

PM David Cameron, on the other hand, has heatedly discussed the situation within the car insurance industry and had vowed to put a stop to all of these excessive bogus and trivial injury claims within the United Kingdom.

A lot of things were tackled during the car insurance summit at Downing Street. One of the most relevant topics was the issue of too many personal injury cases within the UK. The summit also tried to create solutions so that these numbers would be reduced. If this would be acted out appropriately, then there is a great possibility that the prices of car insurance coverages would then follow. One of the most promising solutions that the summit has come up with is the introduction or establishment of providing legitimate medical records to prove that an injury truly was gained from the collision. However, instead of only supplicating one medical record, two medical certificates were needed.

One particular car insurance expert was quoted saying, “I believe that this summit is a positive move. After all of these solutions would be introduced to the motoring public, it is most likely that ever inflating insurance premiums would eventually be lowered.”

Disparity between Female and Male Car Insurance Costs

Car Insurance CostsYoung drivers are the policy holders with the highest car insurance policies. However, in spite of this fact, the difference between insurance premiums for young male drivers and young female driver is rather significant. This is because of the fact that young male drivers pay twice as much for their insurance policies. As of a recent study, young male drivers aged 17-20 pay an average car insurance premium of £ 3,700. A young female driver of the same age, on the other hand, would be expected to pay a premium around £1,700 – £1,900.

Apart from gender, another factor that significantly affects your car insurance premium if your postcode. Now, the disparities of car insurance premiums for both male and female drivers located in London have been noticed to rise. This is because a young male driver from London will most likely receive an insurance quote of around £5,500 whist a female driver from the same location would just be expected to pay around £3,200.

According to a recent research based on more than 4 million car insurance policies collated for this very purpose, young drivers have been incurring annual increases on their policies for the past few years.

As revealed by the study, young male drivers in London have been incurring increases of up to 5.7% per year whilst drivers located in Manchester and Merseyside have incurred whopping increases of up to 10.6 %.

Last year, the average costs of car insurance policies have soared so high that the average car insurance policy cost was at £3,600. This was in spite of the fact showing that the accountability of young drivers as being the major reprobate players in car crashes has lowered. According to the figures revealed by the Department of Transport, young drivers stood accountable for 24 % in road deaths whilst figures in 2009 were 23% higher.

According to a car insurance expert who conducted the study, “As of December 2012, gender will no longer be a factor in assessing car insurance premiums., Hence, female drivers should brace themselves for the exorbitant increases that they will be receiving from then on. The study that we have here only highlights the disparity between the two genders.”

“Insurance companies and car insurance brokers still have some time to embrace the legislation. Yet with the current climate within the economy and expected increases in car insurance costs, this is the perfect time to make a move and try to save on your car insurance policy.”

Car Insurance and It’s Political Storm

Car InsuranceCar insurance premiums have been on the rise for quite some time and as a result of this, political storms are now brewing all across theUnited Kingdom. With this in mind, it is wise for any motorist to scour the market and search for a deal that is not too incredulously exorbitant.

Lately, car insurance factors and costs have become the highlight in political debates and battles. In lieu with the information released by the Automobile Association, the cost of car insurance premiums has been on a steady rise, with no intention of backing down. Because of this, young drivers have been suffering with outrageously hefty costs.

Members of Parliament have placed a ban on the practice going on between car insurance companies and personal injury lawyers. This practice is referring to the exchange of referral fees for customer details. Personal injury lawyers offer referral fees to car insurance companies for customer details like the name, address, car accident details and other pertinent information. Once the personal injury lawyer has hold of this information, they will then force the customer to make a claim, whether or not they were truly inconvenienced by the accident. According to the MP’s, it has been this practice that has been the cause for excessive car insurance claims over the last few years. And, as a result, it has also been the cause for excessively high car insurance premiums.

Early this year, car insurance companies have entered the limelight of the Parliament because of their charges to the unemployed. According to several researches conducted for this matter, car insurance companies charge jobless drivers by more than 60% on top of their average car insurance premium. According to the parliament, this is an unfair ruling because unemployment in theUnited Kingdomis at its highest since 16 years ago. Now, more than ever, the unemployed need a break from this entire economic crisis.

In their defense, the Association of British Insurers said that the cause for rising up premiums for the jobless is because of the risk that they present while driving. Also, all of their data is based upon fact and actuarial data that they gathered and studied throughout the years.

As a representative for the Association said in an interview, “We really do understand that higher car insurance premiums for the jobless can cause complications or difficulties to drivers. However, we have based the premium on the risk that they present. And the fact that they are unemployed acts as a quantified factor in assessing their risk and car insurance premium.”

Car Insurance Gender Gap is Now Over

Car Insurance Gender GapThere has been a lot of discussion regarding the EU ruling of gender discrimination when it comes to calculating car insurance premiums. Lately, a certain car insurance comparison site has questioned the overall impact of this ruling. This is due to the fact that car insurance premiums will start to look steeper for women, as compared to men. With the EU ruling being set in December 21, 2012; women can expect their next Christmas to be an expensive one.

In relation with this ruling, the car insurance comparison site has gathered all data regarding insurance pricing for women. With data gathered from two years ago, the comparison site doubts that women will just be slightly affected by the EU ruling.

The research that they have gone ahead with suggests that young female drivers getting cheap car insurance quotes will now be a thing of the past. In lieu with their research, they have analyzed profiles of a male and female driver, both at 20-years old. According to their research, the pricing gap between men and women is gradually closing.

Upon data analysis, it can be seen that a 20-year old driver is no longer expected to pay a considerable amount on their car insurance premium as compared to a female counterpart. During the first half of 2010, the difference between male and female insurance pricing was at 16%. And, by the last half of 2011, the difference between the two was only at 2%. This simply shows that the gap between car insurance calculations is now almost equal. Interestingly, it can also be seen that the majority of this gap was simply due to the gender pricing that car insurance companies used to follow

Another research seems to reinforce the initial results that have been revealed here. This is because of the year-after-year inflation that affects both male drivers and female drivers. However, whereas male drivers would be experiencing an increase of about 14 %, female drivers would be experiencing an increase of up to 24 %.

Based on what a car insurance expert said at the car insurance comparison site, “There have been a lot of debates and discussions when it comes to the EU ruling. Due to this ruling, cheap car insurance premiums for female drivers are finally put to an end. After analyzing thousands of driver profiles and car insurance quotes, our research seems to suggest that the gender pricing gap regarding car insurance payments is over.”


Car Insurance Expert Says Alcohol Limit on Driving is Just a Myth

Car Insurance ExpertMore than half of the drivers in theUnited Kingdomdo not know what their legal limit is on driving under the influence of alcohol. According to a recent online survey, 31 % of motorists are in the dark when it comes to weight, levels of stress, gender, recent meals and age as factors being observed when a person is evaluated of alcohol levels.

In 2010, there were 250 people who were the tragic victims of drink-and-drive motorists. The number of seriously injured people reached 1,230. All of these daunting figures reflect the ignorance of motorists when it comes to drinking and driving. If only these motorists were capable of recognizing and following the legal limit for alcoholic drinking, then there would be more than 1,500 people with us today celebrating the New Year and its festivities once again.

Campaigns leader for Drink Aware, an alcohol education organization, has said that, “The fact is that even small amounts of alcohol can be capable of affecting a driver from driving less safely. The most ideal advice is to simply avoid drinking and driving altogether. If you are planning on having a few drinks at a party, it is best to make alternative arrangements like getting a cab or designated driver to take you home.”

The research revealed 13 % of motorists admitting to have felt tipsy while driving and a further 20 % would actually chance by drinking and driving.

Most surprisingly, there are 44 % of motorists who know another motorist who has been caught drink-driving. 5 % of these motorists admit to have been caught drink-driving themselves. Male drivers are frequently caught drink-driving in contrast with women.

Apart from all of these figures and percentages, it is a known fact that a drink-and-drive conviction can raise one’s car insurance premium. To highlight this factor, car insurance premiums could increase by as much as 42 % in the first year of being caught.

Car insurance expert, Gareth Kloet said that, “I advise motorists not to drink-and-drive. If you are going to drink at all, it is best not to drive. Without paying any attention to the daunting toll on drink-and-drive victims, the injured third-parties, the ban on driving, the possible conviction and jail time; a drink-and drive conviction can also prevent a driver from getting a car insurance coverage at all. The limit that they have set on alcohol is not to be taken seriously because alcohol affects each individual differently.”


Too Many Motorists Log In to Facebook says Car Insurance Company

Car Insurance CompanyAccording to recently gathered data, there were almost 180,000 British motorists who were fined with penalties in 2010 and 2011. And all of these driving penalties were counts on driving while using their mobile phones. This particular number is twice more than the 74,000 driving offences committed when the drive-and-text- ban was first commenced. These statistics were gained from 43 forces acrossEnglandandWalesand was revealed today by the Freedom on Information organization.

In 2004, the first ever driving and texting (calling) ban was first set. This ban was a result of numerous accidents that were caused by driver’s using their mobile phones. Since mobile phones can distract a driver from looking at the road, a lot of accidents have occurred due to this slight carelessness. One major highlight that car insurance companies implied was the fact that a driver who texts and calls while driving is not only increasing their own risk, they were also creating a more dangerous place for other motorists to drive.

In addition to this information, another survey stated that over 7 million motorists were estimated to have used their mobile phones while driving during the last 7 months. This estimation would mean that 1 million drivers use their mobile phones to text, call or to surf the internet while driving per month. These numbers have been based on a number of researches that were gathered by a particular car insurance company in lieu of this report.

If all of these surveys will be gathered together, it would be clear that only a small number of motorists are caught driving and texting. With mobile phones now bragging internet compatibility, 3g technology and other impressive capabilities, it is not surprising to observe motorists using their mobiles while driving. Also, social networks like Facebook and Twitter do not help motorists. According to a survey this December, 12 % of motorists aged 18 – 34 admitted to log into their Facebook account or Twitter account while driving. In addition to this, about 94 % of 18-24 year old drivers admit to text while driving while 71 % use their mobiles to make calls while driving.

While this driving habit may seem substantial, it simply has too many risks adjacent to the primary motorist, to other motorists and even to third party passer-bys. Hence, a certain car insurance company is trying to urge the government to place a heftier fine by the start of New Year (2012). If things will go as planned, motorists will most likely see fines of up to £ 100 implemented.

Cheaper Car Insurance for Young Motorists Who Are Driving To School or Work

Cheaper Car InsuranceYoung motorists aged 17-24 would be able to pay a lower car insurance premium if the proposal of the Labor Part would push through. The Labor Party has brought forward a proposal to lower premiums for responsible young drivers who are either using their cars for trips to school or to work. According to the Opposition, “It is these staggering costs of car insurance that is driving young motorists off the road”.

In lieu with the proposal, the Labor party suggested car insurance providers to lower their premiums for young drivers if they are only using their vehicles as transportation to their University classes or to their part-time jobs. This is to help the younger generation stay in school or to help them obtain opportunities that would not have been able to receive if they were hindered from traveling.

In response to this proposal, car insurance providers have said that it is a nice notion but they have their doubts as to its practicality.

Car insurance companies have said that the young drivers with high-premiums only reflect the inordinate number of accidents that these drivers are involved in.

According to various statistics, it shows that male drivers under the age of 25 are 500 % more likely to be a participant in a car accident then men who are 5 years older and above.

The Opposition countered that the costs of car insurance premiums, together with the rising costs of transportation, are the main reason why young drivers are held back.

They highlighted the fact that by offering cheaper insurance for ‘timely’ journeys to college, university or work; young motorists’ opportunities would not be lost and car insurance companies would be able to prevent the link between car accidents and late night driving. As said by John Woodcock MP, Shadow transport minister, “Car insurance firms have a way to help young motorists by offering them cheaper rates that give them insurance coverage at the same time.”

“With more than one million young people without a job, the barriers that are restricting them from finding one must be removed. Yet the sky high costs of car insurance premiums are making it next to impossible for this younger generation to stay in University and continue their schooling or to find a job.”

As included in the proposal, the Labor party states that cheaper insurance rates must be combined with road awareness seminars and safety courses for young motorists.

22% of Drivers Do Not Know What Their Dashboard Symbols Represent

Car Insurance RatesRecently, there have been a lot of surveys and debates going on in order to relieve British motorists of staggering car insurance costs. With the several government-mandated changes in car insurance regulations, it is not surprising to find car insurance providers stepping up to help the government find a solution to this increasing social problem.

One of the largest car insurance companies in theUnited Kingdomhas added themselves to the roster of car insurance companies searching for an answer. According to their latest research, almost ¼ of their 1000 survey participants admitted to have no idea on what the symbols on their dashboard are.

The survey surveyed if the 1000 car insurance policy-holders were capable of identifying the signals and symbols on their car’s dashboard. A whopping 220 participants or 22 % confessed to find dashboard symbols and signals mind boggling.

Some of the signals and symbols that were included in the survey were the electric power steering symbol, the engine overheat symbol and the tire pressure monitor.

Unsurprisingly, the majority of motorists that were unsure of the symbols were female drivers. Next to the women were young male drivers. The most knowledgeable drivers of dashboard symbols and signals turned out to be the older male motorists.

On another note, drivers who only used the main insured car from time to time were more likely to be incapable of identifying dashboard symbols in comparison with the main driver. Also, the car insurance company found out that about 10 % of motorists only investigate a dashboard signal one week after it had first flashed.

This car insurance survey was also able to bring to light the fact that some motorists have trouble deciding on which symbol is which. The percentage of motorists that were not able to identify the fog light was at 8 % while the drivers that were not able to identify the rear window heater were at 6 %.

A representative of the car insurance company has highlighted the fact that, “As vehicles become more and more complex, the number of hazard lights and other symbols that appear on the dashboard also increases. It is significant to have every driver recognize these symbols and understand what it represents. This way if ever a warning signal will ever appear, the driver will be able to check it out immediately. Driving about on British roads with a fault can cause a lot of long-term damage to the car, to property and to innocent people. This will simply lead to increased and unnecessary car insurance claims”.


Top 10 Locations that are Favored by Bogus Car insurance Claimants

Car insurance ClaimantsFraudsters who make false claims on their car insurance schemes have now become a huge issue because they are now hitting the rural areas as well. These schematic people who cause fake car accidents in order to make an insurance claim are not only an irritating actuality to car insurance providers, but they are also endangering the lives of other motorists.

In order to pull through their plan, the most common tactic that they use is to make unnecessary stops at busy round-abouts or slip roads. Hence, other motorists who are quietly making their way are being forced to crash into these schematic motorists.

Once the accident has been caused, these car insurance policy holders will then make bogus claims using fictitious information.

One online car insurance company has made an analysis to this recurring and progressing problem. And according to their research, they have now come up with the top 10 most preferred locations in theUnited Kingdomto carry out their fraudulent scams.

These are the top 10 car crash hot spots:

  1. North Orbital RdatLye Ln
  2. A406 Eastbound Junction nearAbbey Rd
  3. A5 Dunstable Rd Junction near B4540 Lynch Hill
  4. A40 Intersection or more popularly known as Hanger Ln Gyatory
  5. OldhamBypass &Manchester Rd
  6. BoltonM61 Junction Four
  7. Chester Rd,Birminghamnear the junctionHobs Hole Ln
  8. Woolston Grange Ave,Warrington
  9. A10 / A121 Roundabout
  10. A4177 Honiley Rdgoing towardsWarwick

The Head of Counter Fraud Operations at the car insurance company that held the analysis, Paul Hubbard, has mentioned that, “Fraudulent claims really do pose a huge risk to the public’s safety.”

“Apart from adding to car insurance costs, it is these fraudulent claimants that delay the pay-out on authentic claims because accidents need to undergo additional investigations.”

When further asked, he also said that “Our own investigation procedure lets us pinpoint the areas of concern and these top 10 rural areas are only a small; percentage of the data that represents the whole insurance industry.”

One main issue with false claims is that they do not only affect the car insurance company. They also affect honest motorists whose car insurance costs are going up because of these false claims.

According to the Insurance Fraud Bureau, they have estimated insurance companies to be paying out fraudulent car insurance claims at £ 350 million per year. If this is the case, honest customers have been shelling out £ 4 million per week to pay for these bogus claims.

Parents ‘Front’ to Save Money on their Offspring’s Car Insurance

Save Money on their Offspring’s Car InsuranceThe soaring car insurance premiums have forced parents to ‘front’ and break the law by falsely declaring that they drive their cars more than their offspring’s. This practice is often used by parents who want to help their sons or daughters save on their car insurance rates. Since car insurance rates are normally high for new drivers and students, the increases have affected everyone and are forcing people to go against the law.
The Financial Ombudsman Services who deals with complaints on financial services companies have announced that they number of ‘fronting’ cases have reached almost 50 within a single month. According to their spokesperson, “The largest portion of fronting cases that we have received concern people who have intentionally misled car insurers because of the eye-watering increases that have forced them into being ‘savvy’’.
The cost for a comprehensive car insurance coverage has risen to 40 %. This is according to the data gathered by AA Car Insurance. More so, the most affected motorists are the new drivers. Motorists aged 17-22 are paying an average of £2,400. This shows an increased percentage of 64 % per year.
Intentionally misleading car insurance providers is a grave offense. If caught doing so, financial and legal implications may occur. Also, the car insurance companies have the option of refusing to pay out in case of an accident. If a car insurance provider will refuse to pay out, the driver may be treated as an uninsured motorist and this will gradually lead to more grave and serious complications.
On another note, a recent market analyst report has come out saying that car insurance companies could do more to make policy-holders more aware of the pertinent risks.
Meanwhile, car insurance companies are doing their ‘best’ to handle the issue of unreasonable car insurance costs that have plagued young drivers. This is in accordance with their ‘black box’ policies. These policies rely on the installation of the black box into a driver’s car. It uses a satellite technology that is capable of monitoring driving behavior like acceleration and braking. Hence, the better the vehicle is driven: The lower the cost of car insurance.
There are already a growing number of car insurance companies that offer a black box installation. Some of these companies are Co-op, InsureTheBox and Young Marmalade. Also, according to their records, there have been an estimated 90 % of motorists that have received cash-backs after proving that they are not dangerous drivers. Hence, instead of parents fronting for their grown-up children, installing a black box can prove to be more effective than breaking the law.

Avoiding an Insurance Claim this Winter Season

Once the snowflakes start falling, winter is inevitable. However, as much as we may find a winter wonderland whimsical, this is the season to be careful. According to one of the largest insurance and financial organizations inCanada, snow-laden roads are a huge contributor that results in tragic accidents. Hence, if there is a soar in accidents, there will also be a huge increase in car insurance claims.

TD Insurance Company is one of the largest insurance and financial companies inCanada. And, according to their data, an increase in car insurance claims during the snowy season is not unusual.

While the best probable solution in avoiding car accidents during this season is to stop driving altogether, it isn’t quite an option. Many people brave the roads everyday to go to their jobs and they have started to get creative in their driving. When the windows start steaming up, they use their coats to clear up the windshield. However, are these creative driving tactics the best strategy?

The Vice-President and Chief Underwriter of TD Insurance, Henry Blumenthal, have given out some tips to motorists who constantly brave the chilling weather. With the awareness of how to weather the most piercing of winter storms, motorists can avoid making unwanted insurance claims.

According to Henry Blumenthal, there are three basic steps to follow. These are to prepare an emergency driving kit, purchasing winter tyres and to always be prepared.

Prepare an Emergency Kit – Since the winter season can bring down tons of snow, an emergency kit should be assembled. Part of this kit must be a snow shovel, snow brush, booster cables and window scraper. Also, candles, matches, blanket and an extra coat must be prepared. In addition to this, kitty litter is also a good alternative if ever there is a scarcity of road salt.

Winter Tyres are Vital – winter tyres may be expensive but high quality and well inflated winter tyres are capable of giving your car a better traction against snow-laden roads. Also, winter tyres can also help you be more fuel efficient. It is important to check the tyre pressure frequently especially before going for a drive.

Bracing up against the Season – Road conditions must always be checked and verified. This way when you are about to head out on the highway you would know which routes to avoid and which roads to utilize. With these three basic steps, you are ready for the worst the winter season has to offer. Not to mention saving on your insurance premium because of an unanticipated accident claim.

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