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

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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.

Insurance survey finds 123 working hours are being wasted due to traffic jams

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A survey by car insurance provider Churchill has estimated that 123 million working hours are being lost every year due to commuters getting stuck in traffic jams.

Churchill Car Insurance discovered that of Brits 11% who drive to work end up being a minimum of 40 minutes late every time they get stuck in traffic, while commuters were found to arrive at work 27 minutes late on average at least once a month as a result of getting stuck in gridlocked traffic. For many, this equates to their journey time being doubled.

Due to the huge impact that congestion is having on the working lives of Brits, many of us are changing our working routines in a bid to beat the traffic with 21% of workers starting their day at the office between 5:15 am and 7.30 am in order to help avoid the traditional rush hour, while the car insurance survey also found that 51% of Brits are starting working before 8:30 with the sole aim of starting early so as to not get stuck in traffic.

12% of those who took part in the study said they frequently stayed longer at work in an attempt to miss traffic, while 19% admitted they would often arrive at work already feeling stressed as a result of being late after getting caught in a traffic jam.

1,095 motorists who drive to their place of work took part in the study which sought to evaluate the affect traffic congestion is having on the lives of British workers. The results seem to speak for themselves, with millions of working hours being lost and many Brits being forced change their working lives in order to avoid congested roads.

Footballer wins case against car insurance company

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England and Aston Villa footballer, Darren Brent, has had his case upheld by three appeal judges who found that he was within his rights to hire an Aston Martin sports car for three months after his own Mercedes sports car was damaged in an accident which was not his fault.

The insurance provider had refused to foot the car hire bill of £63,000 which the footballer had run up saying that although he was entitled to hire a “broadly equivalent” car while his own vehicle was being repaired, however the Aston Martin DB5 which he hired at a daily rate of £573.28 plus VAT had an estimated value of £105,000, while Brent’s own Mercedes was said to be worth in the region of £72,000.

The car insurance provider for the driver of the van who had damaged Brent’s Mercedes following an accident in South London had argued that the footballer should have hired a cheaper hire car while his own sports car was being repaired.

However the appeal judges ruled in favour of Brent, saying he was entitled to be reimbursed for almost the entire cost of hiring the luxury car, finding that a reasonable daily hire rate would have been £504, meaning he will receive over £50,000 from the insurer to cover the £63,000 he paid in car hire fees.

The case has been ongoing for four years which has resulted in two county court hearings and two trips to the court of appeal.

New insurance providers join Tesco price comparison website

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Tesco’s price comparison website has announced that six new insurance providers will join its portfolio of companies from this week. The leading insurance comparison site already boasts a wide range of leading insurance companies on its website, and so the inclusion of another six top name providers will help customers find an even better deal on their car or home insurance.

The six new insurance companies signed up to the Tesco price comparison website have been revealed as Bell, Elephant, Lloyds, Halifax and Swiftcover, all of which will provide competitively priced quotes for car insurance which will be indexed on the comparison site’s quote results list.

Tesco say they are delighted to welcome the new insurance companies to their site as it will enable their customers to compare insurance rates across an even wider network of insurers, helping them to seek out the most competitive premium available.

As well as allowing customers to search for insurance quotes by price, indexing the cheapest rates first, Tesco price comparison site also enables customers to view their quote results via features and benefits according to what is most important to them.

Ultimately the inclusion of six extra leading insurance companies in Tesco’s comparison site can only lead to a better service for the customer as a wider choice of providers will lead them to a cheaper annual premium.

Car insurance provider estimates 2.7 million UK motorists are driving with bad eyesight

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Car insurance provider, Esure, estimate that 2.7 million drivers on UK roads are putting themselves and other road users in danger by driving with bad eyesight.

According to insurer Esure who carried out the study, 2.7 million drivers admitted they’d probably fail their driving test if they were to take it again because of their poor eyesight, with 50% of those questioned by the insurer revealing their eyesight had deteriorated since the time they’d first taken their driving test.

The insurance provider discovered that the number of drivers banned from the roads as a result of poor eyesight in 2009 stood at just over 4,000 which is a significant jump of over 50% compared to just three years previously when 1,597 drivers were banned in 2006 as a result of poor eyesight.

42% of respondents who took part in the Esure study revealed they squint in order to read road signs, while 28% even ask their passenger to read the signs out for them. Despite the shocking admissions, 43% of those polled said they felt confident they’d be able to pass the distance reading aspect of the driving test if they were re-tested.

Another 24% of drivers who took part in the Esure poll admitted to getting behind the wheel without wearing their prescription glasses.

Insurance experts believe the results of the study are extremely worrying as driving with poor eyesight can lead to an increase in accidents, and a rise in the cost of insurance premiums for those involved in any claims.

Worst area for uninsured drivers revealed

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The area of the UK where uninsured drivers are most prevalent has been revealed as West Yorkshire as 17 of the most problematic postcodes in the country for drivers with no insurance are situated in the West Midlands or West Riding region.

Out of the 17 postcodes highlighted for having a high level of uninsured drivers, 5 of the postcodes are situated in Bradford where figures show there are 7 times more illegal drivers than the national average.

It’s estimated that 4% of cars on UK roads are being driven illegally with no insurance, which works out as 1.4 million cars out of the 34 million cars on British roads. Uninsured drivers have a negative impact on honest motorists, with £30 being added to each and every car insurance policy for insured motorists because of reckless drivers who take to the roads with no cover.

From June of this year, it became illegal to own a car without either taking out an insurance policy for the vehicle, or declaring it off the road. The authorities now have the power to seize any vehicle which does not comply with the new legislation.

Due to the high concentration of uninsured drivers in the Bradford region, the authorities are having to work extra hard to clamp down on these illegal motorists. Since the legislation came into force in June, 1,110 vehicles have been seized in Bradford, which averages at 6 vehicles per day, well above the national average.

Drivers advised to provide more details to get best car insurance rate

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Drivers are being advised to provide as many details as possible when obtaining a car insurance quote in order to receive the most accurate rate. Adding details such as marital status, occupation, and number of miles covered can help to reduce premiums for low risk drivers.

Car insurance providers are increasingly offering no claims bonus cover with a recent survey revealing that 17% of policies offer the assurance of safeguarding a driver’s no claims bonus even if they have a collision which has risen from 13% two years ago. The study was carried out by Defaqto and scrutinised some 5,000 policies in order to compile the results.

Separate research also found that the inclusion of extra personal details on an insurance policy can help lower the annual premium in some cases. Volunteering information such as where your vehicle is kept overnight, your marital status, and the area your car is most in use, can help to generate a quote which accurately reflects your driving habits and behaviour, which can lead to a reduced premium being quoted.

Car insurance experts are also urging drivers to double check their policy details before signing on the dotted line to ensure all of their needs are being met with the policy. Another key details to look for when taking out a new policy is that your vehicle is covered should you have an accident involving an uninsured vehicle.

6% of accidents caused by lane changing

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According to recent statistics collected by the Accident Exchange, 6% of accidents which occur on UK roads come about as result of changing lanes, with the estimated cost of damage topping £437 million every year.

If this news wasn’t bad enough, it seems accidents arising as a result of poor awareness while changing lanes is on the rise as statistics show the figure has almost doubled in the space of the last two years.

Not checking driving blind spots properly and failing to indicate have both been highlighted as reasons for the high number of lane changing accidents, while some motoring experts have hinted that the increase in these kinds of accidents could be due to the extra safety features on new cars. These types of vehicles often have strengthened frames which can reduce visibility and increase the driver’s blind spot making it harder to check for traffic when changing lanes.

Poor visibility and driving without due care and attention were cited as the most common reasons for accidents involving lane changes. With the average cost of repairs following an accident as a result of a bad lane change costing £2,876, insurers are warning drivers to take extra care when carrying out risky driving manoeuvres such as lane changing.

Young drivers pick up the bad driving habits of their parents

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A recent survey by car insurance provider, AXA has found that the way in which parents of young people conduct themselves when behind the wheel is likely to be replicated when their children take up driving as the study suggests we are more likely to pick up the bad driving habits of our mother or father.

The AXA Car Insurance survey discovered that drivers aged 18-30 and three times more likely to get banned from driving or to receive points on their licence if their parents have done either of the aforementioned. Also young drivers are seven times more likely to get behind the wheel after consuming alcohol if they have witnessed their parents doing the same compared to a young person who has never seen their parents drive after drinking.

Young drivers are also more likely to be aggressive motorists if their mother or father have a tendency to display angry traits when driving such as swearing at other road users, beeping their horn and flashing their lights excessively.

The research highlights just how much young drivers are being influenced, whether consciously or subconsciously, by the driving actions of their parents. Years of watching how their mums and dads behave behind the wheel rubs off on youngsters and they are more likely to pick up their bad habits from what they’ve seen.

Ban on injury claim referrals could lead to drop in cost of car insurance

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The government has revealed plans to investigate and possibly seek a ban on referral fees for personal injury claims in an attempt to curb the rising cost of car insurance.

Year on year annual car insurance premiums have been rising at a rate of as much a 40% every 12 months. The Office of Fair Trading (OFT) has revealed plans to investigate car insurance in the UK with this in mind, and will reveal their findings in December. If they find the industry has been operating in a non competitive way, further action will be taken by the official body.

The most interesting development on late is the government’s plans to tackle referral costs which it feels is having a direct effect on the rising cost of car insurance. Often motorists who have been involved in an accident are encouraged to make a claim on a “no win no fee” basis. The claim is then passed between a management company, insurance company and lawyer who charge each other for the claim referral, with the lawyers recovering their costs from the losing defendant. The upshot being that honest motorists are being hit with higher premiums to cover the cost of the high number of personal injury claims being made.

If the government is successful in their bid to put a stop to “no win no fee” claims, this is likely to lead to a decrease in the number of personal injury claims being made, helping to put an end to the compensation culture and the year on year increases in the cost of car insurance.