The Common Transport Committee reached out to ministers asking them to change the British law to make it tougher for people to make unchallenged claims for whiplash injuries; so it could be good news for car insurance costs as they are once again under scrutiny by the UK Government.

Back at the beginning of 2011, the Transport Committee started investigating the reason for the continually rising costs of insurance; in fact the cost of car insurance has risen 50% in the past two years. The Transport Committee particularly examined the reasons for recent increases in insurance premiums and the impact it is having on younger motorists.

The previous report detailing their findings was published back in March 2011. It highlighted the issues of high insurance premiums. Nevertheless, a new report has now been published in 2012 which reveals that car insurance costs had risen by a further 17% in 2011 because of whiplash claims made through insurance companies.

Louise Ellman from the Common Transport Committee has suggested that people trying to claim should be made to provide come sort of evidence of the whiplash and how the whiplash has adversely impacted their lives. This should be undertaken before the possibility of receiving any compensation. Many GP’s have acknowledged some cases of whiplash can be over diagnosed which only add to the problem.

Louise commented on this new report saying: “Many of these claims are for whiplash, an injury where diagnosis is often subjective and therefore very costly for insurers to challenge and the threshold for receiving compensation in whiplash cases should be raised.”

In Britain, around 600,000 whiplash claims are reported each year. This could theoretically add £90 to a typical car insurance policy. Around £2 billion was paid out last year for whiplash claims; so you can recognize the need for the rise in the insurance premiums. Unfortunately, with so many claims being made every year it is causing drivers who don’t claim to have an enlarged premium as prices continue to increase in the insurance industry.

This report has been an optimistic step in altering the way in which insurance claims can be made by drivers who think they may have suffered from whiplash in a crash.

Nick Starling from the Association of British Insurers responded to the report, “We are pleased that the Transport Select Committee has recognised that spiralling personal injury claims are the real reason car insurance premiums have been increasing and made recommendations for meaningful reform.

“It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all and the Select Committee’s acknowledgment that the bar to receiving compensation for whiplash is too low is a step in the right direction.”

Time will tell if the UK Government decide to take any action against whiplash claims which are resulting in higher vehicle insurance premium costs.

In the meantime Powerseeker’s advice to all drivers; male and female, young and old, is to make sure you shop around with insurance comparison sites when your insurance policy is up for renewal.

Post from: Car Insurance

Bogus whiplash claims cause Car insurance premiums to rise

The study found millions of Brits who are being impacted by the economic crisis in the UK have to look at new ways to slash their day to day living costs and it seemed that motor vehicles had to become the main focus of belt tightening.

Andy Dingley from Bridgestone UK, who commissioned research on 2,000 families said, ”Rising fuel prices mean that a large proportion of the family wage is spent purely on things like petrol, gas and electricity.

”But with prices increasing faster than the rate of people’s incomes, families are having to make extremely difficult decisions.

”The balancing act for a family nowadays does not leave much room for manoeuvers financially which can have a knock on effect on people’s peace of mind.

”This affects every part of people’s lives – including how and when they drive.”

The report which became available in January 2012 showed that mothers are feeling the pinch the most in regards to the high fuel and vehicle insurance costs and are forced to take some radical measures in order to decrease the family’s bills. Some of these variations mean they are no longer able to afford to do the school run and are choosing to leave the car at home in favor of walking their children to school. Other mothers who wish to continue to drive their children to school are making alternate savings such as cutting back on named brand supermarket items, turning off the lights in the home, turning down the heating or simply just cutting back on indulgent treats for the family.

Some additional facts which came out of the report were

• Nearly half of the people in the poll said they had considered buying a car that uses alternative fuel in order to reduce petrol costs
• Roughly two thirds said they would consider buying electric cars in the future
• Nine out of ten families who currently own more than one car have considered getting rid of additional vehicles in order to cut costs such as insurance, fuel prices and services
• A staggering 70% of people polled advised they were actively cutting down on use their car now than they were a year ago to reduce monthly costs
• 50% of people informed they can no longer fill their petrol tank full of fuel in one go due to the ever-increasing fuel costs
• 25%r of families have considered sacrificing the heating in their home in order to be able to keep their car on the road

The UK government forecasts we will fall back in to recession during 2012 so it’s only a matter of time before even more cash strapped Brits will look at further ways of cutting their living costs.

Rocketing petrol and vehicle insurance prices will most likely prove motoring to be a popular way to try and save money.

Post from: Car Insurance

Rising fuel and insurance costs force families to sell second cars

Apparently, young drivers are more likely to be distracted at the wheel of a car thus causing more accidents to them and surrounding vehicles which sends the cost of young driver policies rocketing through the roof. Therefore, some insurance companies find no problem in quoting young drivers an excess of £10,000 to ensure they cannot insure with their Insurance Company.

A survey conducted by young driver insurance specialist ‘Young Marmalade’ and the House of Commons Transport Select Committee which polled 1,127 younger drivers showed that an incredible 96% of young motorists feel ‘priced off the road’.

A shocking 30% of young drivers have considered altering their personal or vehicle information to lower their insurance quote. Also, 21% of them have thought about driving without insurance, which is a criminal offence.

In addition, many parents choose to insure their children’s car for them in their name and then add their offspring as a second driver. This practice known as “fronting” and although many do not realise, it is illegal.

It’s a fact that uninsured drivers cause insurance premiums to rise, however when insurance companies effectively block all routes of insurance to a young driver, many of them are likely to seek illegal routes.

It’s understandable that insurance companies need to charge larger amounts of money that will cover young drivers due to them being more of a liability. However, I am sure we would all agree that it would be better all-round if young drivers could afford to insure; legally as none of us want to be hit by an uninsured driver.

Here are some top tips to enable young drivers to get a fair price for car insurance:

1. Choose the car carefully
A car make, model and age can make a huge difference to insurance premiums. It is best to choose a modest vehicle without any modifications.

2. Cut down the amount of cover
Young motorists should consider dropping down to third party fire and theft or third party-only cover as limited cover is better than the illegal route of driving without insurance.

3. Keep your licence clean for at least a year
Drive ultra-cautiously in your first year as young drivers are most likely to have an accident. A clean, full driving licence for more than a year will help to lower your insurance premium.

4. Make sure you shop around
Shopping around for car insurance could find you a deal to help slash your premium. It’s a proven fact that getting quotes online could reduce your premium by more than a third.

Compare car insurance quotes with Powerseeker here.

5. Share a car and become a ‘named driver’

Your own personal policy may cost a small fortune but it would cost a lot less if you were named on the insurance of your parent’s car.

However, it is not an option for parents to insure their children’s car for them in their name and then add the child as a second driver as this practice known as “fronting” and it is illegal.

6. Become a safer driver
Taking an Advanced Driving Test could help you to become a safer driver. After passing this test many insurers will lower your premium.

7. Look after your car
Look after your car as by keeping it safe will reduce the risk of an accident or theft claim which will help to build up your No Claims Bonus discount which will help to save you money the next time you renew your car insurance.

Finally, the very best way to keep your insurance premiums affordable is to drive carefully, so go easy on that accelerator pedal!

8. Ask for a discount
You can reduce an insurance premium using a range of security and safety discounts. For example, an insurer-approved car alarm or tracker will lower your premium. Also, adding a second named driver to your policy could cost you less on the overall cost.

9. Increase the voluntary excess
A standard policy excesses is usually between £100 to £250, which is the amount that you would have to pay for each claim. However, you could increase the voluntary excess by choosing to pay more which would lower the cost of the voluntary excess.

10. Pay annually where possible
If you can afford to then pay for your insurance with a one off payment.

If you do have to pay for your car insurance via monthly premiums you could pay extra of up to 30% APR.

On a final note, keep it legal by taking out adequate car insurance. It is law in the UK for every every person who uses a vehicle on the road to have at least third party insurance.

Post from: Car Insurance

Insurance worries – young drivers feel priced off the road

Just like any other vehicle on the road, the black cab also needs to be insured. Black cabs require insurance to comply with UK law but because it is such a unique vehicle, the black cab taxi insurance also needs to give the driver peace of mind they have the relevant level of insurance cover. It needs to protect both you and your passengers in case of any accidents. The insurance also needs to cover the taxi for any repair work, medical and legal expenses which could be incurred. You will almost certainly be interested in breakdown cover and the opportunity for a replacement vehicle and windscreen should these be required. After all, if you’re a black cab taxi driver then time is money!

There are an increasing number of insurance brokers in UK that deal only in black cabs and it’s a good idea to go with a specialist black cab taxi insurance company as they have all the experience necessary to help you with your insurance decisions.

Black cab insurers will offer insurance policies to enable you to operate your black cab business effectively. The first thing you should look for is that the insurance covers against all likely risks to your vehicle and your business. Some black cab risks include:

• Risk of damage by customers that is covered by third party insurance
• Risk of fire and theft, coverage of which is usually included in all black cab insurance policies.

Choice Quote Insurance Services have been providing specialist black cab insurance since 1995. They offer cab drivers excellent taxi insurance cover and professional services.

MCE insurance is another black cab insurer famous for their cheapest quotes obtained by comparing insurance prices with more than a dozen leading companies.

Another company to consider is Taxi Protection who also compares the rate of UKs top specialist taxi insurers. They provide cabbies with choices of three level of cover: comprehensive, third party fire and theft and third party only

As you can appreciate, there are many things to consider when looking for black cab insurance. By searching online you can compare different black cab insurance policies to make sure that you’re getting the right cover for your black cab, letting you get on the road with complete confidence.

Post from: Car Insurance

Black Cab Taxi Insurance

According to previous surveys at least 47% of us in the UK are guilty of this. It’s important to make you aware at this stage that your Insurance Company may refuse to payout if your vehicle is stolen as a result of this negligence.

Be warned as opportunist thieves are on the lookout for an easy target.  Around 2000 car thefts occur each year because motorists leave their vehicles to warm up during winter mornings. This equates to vehicle thieves getting away with around £12.7m worth of vehicles every year.

Claims director at swiftcover.com, Robin Reames said, “Leaving a car with keys in the ignition provides a perfect opportunity for thieves, and we as motorists are especially likely to do this at this time of year.

“People have an ‘it won’t happen to me’ attitude. However in reality, it can and does happen anywhere in the UK.”

For some, this is not just an occurrence during winter months as many motorists will leave their engine running whilst they just pop in the house to get something they forgot; or just pop in the local newsagent to pick up a paper

It doesn’t matter what reason the vehicle has been left; many insurance companies will in these circumstances nullify an insurance claim where a vehicle has been stolen with its keys left inside.

At present, it is a criminal offence to leave your car engine running when you are not in the vehicle. The offence is called ‘quitting’; t comes from the Road Traffic Act 1986.

The Road Vehicles (Constriction and Use) Regulation 1986 (SI 1986/1078) deals with the actual offence of “quitting”. It states “… that no person shall cause or permit to be on any road any motor vehicle which is not attended by a person duly licensed to drive it unless the engine is stopped and the parking brake is effectively set. Exemptions to the requirements of this Regulation as to the stopping of the engine include a fire brigade vehicle.”

Post from: Car Insurance

Insurance warning about leaving your engine running

Whilst you are towing your caravan you are covered by your motor insurance policy and so you may wonder whether caravan insurance is worth the cost, but as soon as the caravan is un-coupled this is no longer the case and not really worth the risk.

It is estimated that around 3,000 touring caravans a year are the target of crime. This includes anything from the actual caravan being stolen through to personal items being stolen from within the caravan itself. Therefore, when taking out caravan insurance you need to ensure you have the adequate level of insurance.

If you have a new caravan then you may wish to take out a new for old insurance policy; this means that if your caravan is stolen your insurers will pay out the cost of buying a new caravan. However, if you own an older caravan then you may wish to restrict the policy to market value only which will keep the cost of the insurance premium to a minimum.

A couple of additional things you need to check when taking out an insurance policy for a caravan is that unattended personal items are covered when these are left in the caravan. Also check that emergency accommodation is included in the policy just in case the caravan gets badly damaged or stolen whilst on holiday; at least then you would have somewhere to stay the night. Finally safeguard against storm and flood damage as the past few years in the UK this has become a much more common issue with some of the unusual weather patterns we have experienced.

We know that insuring your caravan can become an expensive task but there are some things you can do to save yourself some money. Here are a few of our best tips when it comes to taking out caravan insurance.

• Parking Location
The location where you park your caravan is very important when purchasing insurance as insurance companies calculate the premium based on the location. As with all insurance, areas are assessed according to crime rates so if the area where your keep the caravan has  implemented security features such as a neighborhood watch then inform the insurance company to see if you are eligible for any discount.

• Safety features are an important part in reducing the cost of your policy
Adding inexpensive safety accessories to your caravan can significantly lower your insurance premium. Some safety features include hitch locks, alarms and wheel clamps; all of which could save you up to 10% on your policy. If you can afford a few more expensive items then some of the industry-approved security gadgets could save you up to 30% every year on your insurance.

• No previous insurance claims
If you’ve never made a claim on your insurance policy in the past then you could be eligible for a discount when purchasing an insurance policy for your caravan; that similar to no claims discount on car insurance. Simply ask the insurance company about any bonuses they have for caravan owners with no past claims.

• Caravan clubs could help reduce the cost of insurance
If you are a member of a caravanning club then mention this to the insurance company. You could also ask the organising body of the caravanning club about whether they are aware of any specialist companies that may be able to provide you with fair costs for caravan insurance.

• Increase your Voluntary Excess
Increasing the amount of the voluntary excess on your policy is one of the best ways to obtain cheap caravan insurance. The voluntary excess is the amount you agree to pay the insurance company prior to the insurance group takes over by paying for any damages or claims.

Post from: Car Insurance

Top tips For Cheaper Caravan Insurance

The UK government introduced the original law back in 1930 which requires every person who uses a vehicle on the road to have at least third party vehicle insurance.

Third party only insurance is the lowest level car insurance cover available and is therefore often the most low cost. Third Party Insurance will only cover you for causing accidental damage to other people’s property and causing injury or death to other people. However, please keep in mind that this level of insurance will not cover the cost of any damage to your vehicle or your personal belongings in the event of any accident.

Some road users refuse to purchase car insurance as they think they can get away without adhering to this law. This is often because they think car insurance is far too expensive, or maybe they think because they are good drivers they don’t need insurance as they are not likely to have an accident or it could simply be because they have forgotten to renew their insurance policy.

Whatever their reason for driving without insurance, unfortunately it means these people are pushing up the cost of insurance premiums for the law abiding motorists amongst us.

According to the AA, uninsured drivers are responsible for around 160 deaths on the road every year and an additional 23,000 injuries.

Knowing these figures, you may be shocked to learn that the average fine for driving without the adequate level of insurance cover is just £200, even though judges in the UK have the power to impose a fine up to £5000.

Mr Douglas from the AA remarked, “We’re failing honest motorists by such lenient fines. In my view, it’s vital to get the message over to this motoring underclass and, importantly, to their friends and families, that driving without insurance is socially unacceptable.

“People need to be stopped before they get behind the wheel of an uninsured car and go on to risk killing or injuring others.”

Apparently the UK motorists are around the worst in Europe for driving without car insurance. Around one in twenty-five people are driving on public roads in the UK without insurance.

This statistic may reduce considerably if these people knew where to look for cheap car insurance.

Post from: Car Insurance

Driving without Car Insurance is Illegal

Overall, the calls being made to the AA are considerably up compared to the usual number of calls which have been received at this same time of year in previous years.

The majority of calls regarding insurance, so far, are in regard to claims following the damage caused to property and vehicles as a result of the storms which were battering the UK over previous days.

The most common problems from Car and Home owners being reported to AA insurance included things from damaged roofs caused by fallen tiles through to broken windows to cars caused by loose debris flying through the sky.

It was only last winter that insurance companies in the UK saw a massive rise in the number of claims being made on home and car insurance policies due to the icy and snowy weather conditions. But, this winter the increase in insurance calls are the high winds and storms hitting the headlines. As British
people continue to bear the brunt of this extreme weather it only goes to show just how important it is to have an adequate level of insurance cover for your home and vehicle.

Stormy weather conditions mean that house roofs and cars are coming out as the two areas in which most of the AA insurance calls are being received.
There has been an increase of 12 times the normal ratio to report damage relating to these two problematic areas.

The stormy weather has also had a bad effect on repair work which is needed. The high winds in many Northern regions of the UK have made it far too dangerous for maintenance work to take place on roofs to repair any tile damage.

Home insurance companies are mostly recommending policy holders to get in touch with their provider prior to carrying out any repair work to see if they may be able to arrange temporary repair work. This is just a short term fix to tide the property over until the issue can be resolved properly.

Whilst the effects of the storms vary throughout the country the same warnings can be applied to all. For example, do not drive in severe weather conditions unless you need too and wherever possible keep your
car in the garage to protect it from flying debris, make sure you clear loose objects from around the house and keep up repairs on the house when it becomes safe to do so.

Finally, if something does happen to your car or home then notify your insurer as soon as possible.

Post from: Car Insurance

UK storms cause a surge in Car and Home Insurance claims

The Association of British Insurers (ABI) has asserted that water damage to buildings and their contents costs the home insurance industry around £2 million per day. This is a huge amount of money that is drained out of the coffers for no good reason. For example, every year water is lost as a result of underground leaks, most of which can be detected and plugged. The water lost would fill approximately 3,880 Olympic swimming pools, which is simply staggering. Not only does this cause a major headache in terms of cost but it also causes untold environmental damage.

Having said that, there are some water home insurance claims that are at the heart of a major DIY problem. That is to say that homeowners are trying to do their own DIY and plumbing and doing more harm than good with 9.7 billion litres lost this way. Of course, this can cost more than a external leak. There was an example of this last year, with two flat owners claiming for one incident. A DIY related leak cost £20,000 for the flat in which it occurred thanks to a bit of inexpert drilling but cost the home insurance company covering the person living below £150,000 in damages. It really does defy belief.

So what can you do as far as your home insurance is concerned? Well, the first point is to make sure that you have enough cover because many people do not and water damage is amongst the most expensive types of damage out there. You should also make sure that your pipes are solid and that you know where they are in the walls so that you can avoid them when drilling holes. Finally, never undertake plumbing yourself. Always call in an expert. Unless you want a major bill of course…

Post from: Car Insurance

Home Insurance & Water

The news just seems to be getting better and better for young drivers and it is about time really when you consider just how much their premiums have gone up for their young drivers car insurance in recent years. They have suffered more than most when it comes to their costs and, in some cases, their inability to afford premiums to be on the road. However, insurers are now starting to recognise the fact that there is a gap in the market for them to exploit, which can only be good news for those who are looking for young drivers insurance that they can afford.

This particular provider offers young drivers car insurance that requires drivers to fit a black box on their car. If they stay within the speed limit, avoid excessive breaking and acceleration, and take corners well then they will be rewarded via cash straight into their bank account. As such, they have to pay full premiums but get some of their money back if they drive carefully. Of course, the better you drive the more money you get back and they have reported giving nine out of ten young drivers money back. This is no mean feat and far more generous than most providers are, but it is also thought to be a precedent that other young drivers insurance companies will follow.

Although young drivers insurance is coming down in some quarters, premiums are still quite high in others so it is important to get a range of quotes, compare them and then choose the best one for you. It may be difficult to choose substance over cost but it is important to do so if you want the best cover for you. After all, cashback is all well and good but it is no substitute for confirmed peace of mind.

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Young Drivers & Cashback Surprises!