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.

50% of drivers may downsize their car due to rising motoring costs

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50% of drivers plan to downsize their vehicle to a more affordable model should the cost of motoring continue to rise as recently seen, that’s the results of a survey which sought to discover the feelings of UK drivers on the future of motoring.

The survey was carried out by the British Car Auction (BCA) with 4,000 motorists being questioned as part of the poll. Out of those 4,000 drivers who took part in the research, 50% revealed that they would be looking to downsize their car in the future should the cost of motoring continue to be as costly as it is currently.

Rising fuel costs and the higher rates of insurance premiums were pinpointed as the two most concerning areas for the drivers, according to the BCA survey. 39% of those who took part in the poll said they would cut fuel duty if they were in charge of the government as future predictions are forecasting that the cost of a tank of fuel will cost on average £100 by the year 2015.

While the price of car insurance has been rising at an alarming rate in recent years, the latest figures did signal a fall in the sharp rise in motor insurance premiums which will hopefully signal a levelling off in the price of insurance rates, which will be good news for drivers.

30% of Brits choosing to not insure their vehicles

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A report by the Motor Insurers Bureau has found that almost a third of motorists are failing to take out car insurance, despite the fact that the Bureau has records of all uninsured vehicles in the country.

The Motor Insurers Bureau’s recent report into uninsured vehicles and drivers focuses upon four main areas, namely Birmingham, Essex, Manchester and West Yorkshire and estimates that a massive 1.4 million drivers are using UK roads without any type of cover.

Research has shown that uninsured drivers are responsible for causing 23,000 injuries and 160 deaths on UK roads every year. In addition, drivers without insurance add £30 to the insurance premium of every driver in the UK. The negative effect uninsured drivers have on other drivers is unacceptable, according to Motor Insurers Bureau, and they say they are taking steps to tackle the problem.

The rising cost of car insurance has been cited as one possible reason for the high volume of uninsured drivers on UK roads as many motorists are simply unable to afford the extortionate annual insurance premiums, and so choose to risk driving without. The Office of Fair Trading has just outlined plans to investigate the rising cost of car insurance, the results of which will be ready by the end of the year. If they find the rises in car insurance are unfair, measures may be made to curb the spiralling rate of motor of insurance costs.

Drivers in US listing their sports cars as farm vehicles to save money on insurance

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A recent investigation by a San Francisco company in the US uncovered a worrying trend of motorists declaring their sports cars as farm vehicles on their insurance policies in order to reap discounts of up to 20% on their annual motor insurance policy.

Quality Planning was called in to verify the details on thousands of car insurance policies, the LA Times reported, and found that out of 80,000 policies it investigated, 8% so some 6,382 vehicles, were registered for farm use and yet they were registered to an address where less than 1% of the population in that area are engaged in agriculture.

One of the examples flagged up by the investigation cited an Audi A4 model which was registered to an inner city address in Brooklyn, New York City, however the owner had claimed on the insurance document that the car was for farm-use, saving the driver $389 a year on the cost of cover.

Insurance providers offer concessionary rates on insurance policies for vehicles which are largely engaged in farm use as they are statistically less likely to be involved in accidents with other vehicles or to fall victim to theft compared to urban cars.

However this practice of wrongly claiming cars for farm use is costing the insurance industry £150 million a year in unpaid premiums and so insurers have decided to get tough on these unscrupulous drivers by bringing in outside companies to verify the data of their policy holders – so be warned, if your Porsche is registered for farm use to save you a few quid, now’s probably a good time to change it.

Sainsbury’s to launch car insurance policies

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Sainsbury’s is the latest supermarket names to announce its going into the insurance market putting the business in direct to competition with another leading supermarket, Tesco.

Sainsbury’s will offer insurance products in partnership with RBS Insurance and will provide benefits for their customers as those with nectar cards will receive the equivalent of a 15% discount in the form of nectar points when they purchase an insurance policy through the supermarket. A further perk comes in the form of double nectar card points on all shopping at Sainsbury’s bought in the two years after taking out a policy.

The potential savings for regular Sainsbury’s customers will be welcomed by many motorists as any chance to make savings on car insurance is sorely needed after annual motor insurance premiums rose by an average of 30% of the course of the last year.

Offering reductions in the form of nectar points will hopefully encourage customer loyalty, the supermarket chain says, while at the same time offering Sainsbury customers a highly competitive deal on their insurance policy.

The supermarket chain previously offered insurance underwritten by Esure, however the switch to RBS Insurance is said to reflect Sainsbury’s plans to expand its financial arm of the business.

Changes to car insurance rules could make it illegal to not have breakdown cover

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Under proposed changes to car insurance legislation, it would become illegal to not have breakdown car insurance cover in place on your vehicle. At present, it’s considered illegal to keep a vehicle with valid motor insurance, however there are no rules on breakdown insurance.

The new proposals put forward by the coalition government would change the current system by making it a legal requirement to hold a valid breakdown insurance policy on a motor vehicle.

The British Insurance Brokers Association has welcomed the news as they believe it will encourage a responsibility culture amongst UK motorists and also create a “fairer system” for honest and conscientious drivers.

The penalties for being caught in possession of a car without a valid breakdown insurance policy have not yet been specified.

The change would come under the Continuous Insurance Enforcement (CIE) regulations, legislation which the BIBA have been fighting for since 2004.

As well as changing the law on breakdown cover, the CIE regulations are also considering a change to the rules on uninsured drivers which would mean a car owner could be charged for simply owning a vehicle without adequate car insurance, whereas currently, the driver must be caught behind the wheel of the illegal vehicle for police to be able to take action.

Cold and flu risk for car insurance holders

Car insurance policyholders are being warned to ensure they do not take drowsy medicines if they suffer from a cold or flu this winter.

Car insurance holders warned of dangers of glare from the sun

Motor insurance policyholders have been warned that the glare from the sun creates more dangerous driving conditions than motoring at night or in bad weather.

Car insurance holders benefit from better fuel economy

Car insurance policyholders have benefited from more fuel-efficient vehicles over the past 12 months.

More than 50% of Brits believe young car insurance holders should drive at night

More than 50 per cent of Britons think young car insurance policyholders should be allowed to drive at night.