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 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.”

 

 
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