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.”

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.”


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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