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.”


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”.


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.

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