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”.

Source: http://www.cheapvaninsurance.co.uk/

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.

 
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