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Beat the rising cost of car insurance with our helpful tips

January 31, 2012 By Paul Roberts Leave a Comment
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With recent statistics from the AA estimating that car insurance premiums have risen by 15% in the last year, pushing the average cost of a comprehensive car insurance policy up by £128.71 a year to £971.40 for an annual policy, here are our top tips to help you get the very best quote for car insurance to help beat the rising cost of cover.

At the top of the list for tips for cheaper car insurance is, shopping around. Comparing quotes from a range of providers, as opposed to just letting your current policy renew automatically, is the first piece of advice an insurance expert will give you. Head to an insurance price comparison website to compare a range of quotes in one go.

If you know your premium is coming up for renewal, try to save up so you can pay it off in one lump sum as paying off your premium month by month through a direct debit can add approximately 11% to the overall cost of your cover compared to paying outright at the start.

Increasing your voluntary excess is another way to help lower your insurance quote, however don’t be tempted to set your excess at too high a rate as if you are involved in an accident, this is the amount you will have to pay before your insurance covers the cost.

If you’re a young driver, consider adding an older driver to your policy as a named driver if they also use your car, or look into taking out a telematics insurance policy. These policies work by placing a box in the car which records data that is then used to calculate the cost of the driver’s policy. If you’re a careful driver and you don’t use your car at peak hours and rack up high mileage, you could benefit from lower premiums with these types of policies.

Follow our top tips to find the very best rates on annual car insurance.

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Claims for whiplash pushing up the cost of car insurance

January 17, 2012 By Paul Roberts Leave a Comment
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The thousands of claims for whiplash following a road traffic accident are pushing up the cost of car insurance, according to a recent report by MPs, who are calling for a ban of insurance companies selling customer information to private injury lawyers, and also raising the threshold for payments for neck injury cases in a bid to curb this growing problem.

Often claims for whiplash injuries are not being contested by the insurance company as diagnosis of this type of injury can be subjective, the recent study by the MPs found, which deters insurers from fighting the claim as it is hard to defend this type of case.

While the MPs behind the study say they support justice, and those who have been seriously affected as a result of an accident that wasn’t their fault should not be put off seeking compensation. However there was concern that victims who are not seriously hurt or have suffered lasting injury, are being railroaded into making claims from cold calling personal injury companies who persuade them to pursue a claim.

The report from the transport select committee found that the spiralling number of uncontested whiplash claims in the UK is having a negative impact on the cost of car insurance, with premiums rising at a staggering rate in order to fund the claims for compensation. Curbing the number of whiplash claims, would help bring the cost of insurance back under control, it recommends.

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Warning on invalid insurance policies sold through Aston Midshires

January 17, 2012 By Katrina Campbell Leave a Comment
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A warning has been issued to any drivers who have car insurance policies with Aston Midshires after it was announced that the company is under investigation for selling invalid insurance policies.

Aston Midshires targeted young drivers in particular, offering competitive prices on insurance policies for new drivers and learner drivers. However there are fears that thousands of drivers on UK road could be driving without any form of insurance as the policies sold by Aston Midshires have been brought into question after 30 complaints were received from drivers who’d discovered their policies were not legitimate.

The Financial Services Authority, the police and Trading Standards are all reported to be carrying out investigations into the insurance provider. So far, the authorities have discovered that the company is linked to a foreign address, however Aston Midshires have most recently pulled down their website and also stopped answering phone calls.

When the authorities visited the building listed as the UK address for the insurance company in Leicestershire, the owners of the building said they had no record of the company ever operating from the address.

The consequences for drivers who have invalid policies with Aston Midshires is far reaching as not only are they not covered should they have an accident in their vehicle, but the consequences will affect the other drivers if they have the misfortune to be involved in an accident with a driver who doesn’t have valid insurance.

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Car insurance premium doubles after policyholder moves 175 yards

January 12, 2012 By Paul Roberts Leave a Comment
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One driver from Shropshire was astonished to find that her car insurance premium more than doubled after her address changed, despite the fact she’d only moved 175 yards away from her previous home, and was still living on the same street.

Hayley Fulton’s car insurance premium stood at £720 for the year prior to moving to a larger property in the same village of Highley in Shropshire with her family. However when the mother-of-two contacted her insurance company to change her home address, with a postcode that was one digit different to her former postcode, her new insurance premium was calculated at £1,600.

Recent Home Office statics revealed that there was a low level of crime throughout the Shropshire village, and no difference at all between the crime rates for both postcodes. However the insurance provider justified the increased premium by stating that the new postcode flagged up on their system as higher risk than the previous postcode Ms Fulton resided at.

Another reason for the increase in price of cover according to the 25-year-old’s insurer, was that the car was kept on the driveway of the family home at the previous address, but at the new home the car would be kept in a gated car park a few yards from the house.

Insurance companies use sophisticated systems to calculate insurance premiums that provide very detailed and specific information on a postcode including levels of fraud, crime and other factors that can affect the cost of a premium. In the case of Ms Fulton, the insurance provider found that the change of postcode and overnight location of the vehicle increased the risk factor of the policy, which resulted in a higher premium cost.

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Car insurance claims shoot up by 28% at start of 2012

January 11, 2012 By Katrina Campbell Leave a Comment
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Car insurance claims shot up by as much as 28% in the first 5 days of January 2012, car insurance provider the AA has reported. High winds and stormy weather conditions which affected the UK in the early part of the New Year have been blamed for the sharp rise in claims on motor insurance policies. Statistics show that as many as 5,600 car insurance claims in the early part of January across the UK could be related to, or caused by, the stormy weather.

Scotland was hit the hardest by the extreme weather with high winds of 90mph reported, and this was certainly reflected in the claims figures issued by the AA for this part of the country with a 65% rise in the number of car insurance claims in the first five days of this month compared to the same time last January. Common claims according to the AA included accidents related to car doors with many policyholders reporting having their car doors ripped out of their hands by the strong winds.

This has resulted in claims for damage to car door hinges, also smashed windows and also damage to cars parked next to the vehicle. Other claims reported to the AA arose as a result of items not being fixed down properly with cars being damaged by flying trampolines, garden sheds wheelie bins and TV aerials.

Car insurance claims shoot up by 28% at start of 2012 Car insurance claims shot up by as much as 28% in the first 5 days of January 2012, car insurance provider the AA has reported. High winds and stormy weather conditions which affected the UK in the early part ofthe New Year have been blamed for the sharp rise in claims on motor insurance policies.Statistics show that as many as 5,600 car insurance claims in the early part of January acrossthe UK could be related to, or caused by, the stormy weather.

Scotland was hit the hardest by the extreme weather with high winds of 90mph reported,and this was certainly reflected in the claims figures issued by the AA for this part of thecountry with a 65% rise in the number of car insurance claims in the first five days of thismonth compared to the same time last January.

Common claims according to the AA included accidents related to car doors with manypolicyholders reporting having their car doors ripped out of their hands by the strong winds.This has resulted in claims for damage to car door hinges, also smashed windows and alsodamage to cars parked next to the vehicle.

Other claims reported to the AA arose as a result of items not being fixed down properlywith cars being damaged by flying trampolines, garden sheds wheelie bins and TV aerials.

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Insurer reports surge in car and home insurance claims as storms hit UK

January 6, 2012 By Paul Roberts Leave a Comment
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Insurance provider, the AA, has reported a 200% increase in the number of calls it has received this week with regard to claims following damaged caused to property of vehicles as a result of the storms which have been battering the UK in the last 7 days.

The most common issues being reported to AA insurance include damage to roofs including falling roof tiles, to broken windows caused by falling trees, fallen guttering and damage to cars caused by flying debris.

The continued stormy weather conditions are also having a knock on affect on repair work as high winds in many regions of the UK make it too dangerous for maintenance workers to get onto roofs to repair tile damage for example. Home insurers are recommending policy holders get in touch with their insurance provider before carrying out any repairs as they may be able to arrange temporary repair work to tide the property over until the issue can be resolved properly.

While last winter saw a rise in the number of claims being made on home and car insurance policies due to the icy and snowy weather conditions which affected the UK, this winter high winds and storms are hitting the headlines as Brits bear the brunt of this extreme weather.

The AA say roofs and cars are coming out as the areas in which most calls are being received with an increase of 12 times the normal ratio to report damage relating to these two areas. Overall calls to the AA are up by 200% compared to the number of calls usually received at this same time in previous years.

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Failure to renew licence photo could result in £1k fine

January 4, 2012 By Paul Roberts Leave a Comment
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Drivers who fail to update the photograph on their drivers licence could be hit with a maximum fine of £1,000 as photos on the new style licences must be renewed every 10 years by law, however a study by a car insurance provider has found there is widespread uncertainty amongst drivers with regard to this condition.

Sainsbury’s Car Insurance discovered the high penalty for not having an updated photograph on a UK driving licence following a request made through the Freedom of Information Act. It’s reported that 1.6 million drivers could be at risk of receiving the fine at this time, while by the end of 2012, a further 2.9 million licences will be in need of renewal in order to fully abide by the licensing laws.

The DVLA charge £20 to have the photograph updated on each drivers licence however Sainsbury’s Car Insurance found that as many as 41% of UK drivers are now aware of the repercussions of not having an updated image on their licence after 10 years which means that millions of drivers could be putting themselves at risk of receiving the hefty fine.

Those with the old style paper drivers licences will be unaffected by the law, only those with the photograph licences which came into being in 1998 will need to ensure their photographs are updated every 10 years in order to avoid the £1,000 which can be enforced by the police under Section 99 of the Road Traffic act 1988.

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New car and home insurance app launched by Zurich

December 22, 2011 By Katrina Campbell Leave a Comment
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Zurich has become the first insurance provider to launch a smartphone application for home and car insurance combined. A number of insurers have introduced apps for either car or home cover, but Zurich are the first in the market to offer the two elements side by side.

The new app from Zurich is available to download onto Android and iOS devices and allows customers to record data following an accident, report an incident, and track their claim through the company.

These types of features are standard of insurance apps, however the Zurich application also provides customers with information on the nearest Zurich approved mechanic or home maintenance engineer, and also a helpful parking locator tool as well as advice on how to minimise the risk of a mishap in the home and tips for driving in severe weather conditions.

Having an app to hand when you encounter an accident can be especially beneficial in the claims procedure as the step by step guide ensures you record all relevant information your insurer will need to carry out a claim.

The app will also enable customers to submit pictures of damage which can be beneficial when filing a claim, and also ensure that the whole claim process is fast and efficient as information is received by Zurich with just a few taps of your phone keypad.

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Losing your job could cause your car insurance to increase

December 19, 2011 By Dawn Bickford Leave a Comment
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When you’ve been made redundant, the first thing you will probably consider doing is tightening your belt, but unfortunately for some drivers, losing their job has had a negative effect on their car insurance as they’re hit with a rise in their premium.

In a case highlighted in The Mirror this week, 51-year-old Tony Costello revealed how his car insurance rocketed from £630 a year to £861 after he contacted his insurance company to inform them that he’d been made redundant.

After checking the small print on his insurance policy, Mr Costello found that his car insurer, Tesco, had stipulated that loss of employment can affect the cost of the premium.

The Association of British Insurers also reiterated this point, saying that many insurers increase the cost of cover after the policyholder loses their job as statistics there is an additional risk factor once a person becomes unemployed. There’s also an argument that the driver is likely to be on the road more as he or she is out looking for work and attending interviews.

The car insurance company in Tony’s case said that the additional £231 which had been added to the cost of his premium after he became unemployed would be refunded should he find work, although an admin cost of £15 would apply to each change made.

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Car insurance premiums to be investigated by the Office of Fair Trading

December 15, 2011 By Katrina Campbell Leave a Comment
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The Office of Fair Trading (OFT) has revealed plans to investigate car insurance premiums after drivers in the UK were hit with yet another price hike in the average cost of an annual car insurance policy this year.

Following two successive of rises in car insurance premiums, in which an increase of 12% was calculated between 2009 and 2010 and a jump of 9% reported over just 9 months of this year believed to be linked to replacement car costs, the OFT have announced they plan to look into the rising cost of cover.

In recent years the OFT identified personal injury claims as one of the main causes for huge hikes in the cost of insurance, however more recently the regulatory body has highlighted credit hire replacement cars and third party vehicle repairs as two areas which it believes may be having an impact on the rising cost of car insurance premiums.

The credit hire companies offer a replacement car to the drive that was not at fault in the accident to use while their car is being repaired. This is being offered to the driver, regardless of whether they had a replacement car feature on their policy or not as the cost of the hire car is then passed onto the insurance company of the driver at blame, driving up the cost of a claim further. The impact of these more costly claims is then being felt by motorists in the form of more expensive premiums.

The OFT is continuing to probe this issue and will have concluded its enquiry by early next year.

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