Car modifications can increase insurance by 139%

Modifications to cars can increase insurance premiums by as much as 139 per cent, according to new research.

Findings from Confused.com revealed that for a 20 year-old male driving a VW Golf GTI 1.5 litre with no claims or convictions, a quote could differ by up to £1026.42 – or 182 per cent – depending on whether the vehicle was modified or not.

Among the most common modifications are spoilers, alloy wheels, tinted windows, lower suspension and strip under-lighting.

Will Thomas, head of car insurance at Confused.com, said that as modifications become more popular with young drivers, it is important that they are made aware of the ensuing cost of car insurance.

“Adding spoilers and tinted windows, for example, can not only dramatically increase car insurance premiums, but they can render car insurance void in some instances, especially when the driver fails to inform the insurer of any changes,” he continued.

Meanwhile, research from swiftcover.com shows that 96 per cent of British motorists leave gadgets on display in their vehicles, making their cars targets for thieves.

Tags: Financial institutions, Service industries, lighting, vehicle, car insurance premiums, Admiral Group, quote, targets

Growth in the use of equity release in the UK is “only a matter of time”

Increasing numbers of consumers are expected to use equity release over the next few years, one financial expert has claimed.

According to the Safe Home Income Plans (SHIP), the increased use of equity release is only a matter of time, given the extent to which consumers have preferred property over pensions as a method of saving for retirement over many years.

The SHIP added that the quality and standards of equity release schemes have improved over a similar time scale has meant more savers are comfortable using the schemes.

Andrea Rozario, director general of SHIP, said that declining levels of private pension provision and smaller state pension benefits will drive more people in this country to explore alternative ways to top up their income in later life.

She added: “Some will work longer, but a very large number are already planning to use the value in their property.”

Last week, a report from the Council of Mortgage Lenders called for the government to do more to encourage the take up of equity release schemes after it noted the relatively slow use of them compared with the Australian and US markets.

Tags: law, home, SHIP, pensions, United States, income, time scale, Australia

Up to five out of six UK consumers fear for their finances

Up to 30 per cent of British spenders do not think they can cope much longer when it comes to managing the pressures surrounding their finances, according to new research.

Findings from a survey conducted by moneysupermarket.com during the budget week reveal that only 84 per cent of those questioned said they had no financial worries.

Additional research showed that Brits owe more than £1.3 trillion on loans, credit cards and overdrafts.

Tim Moss, head of loans and debt at moneysupermarket.com, said he was surprised by the levels of financial worry among UK consumers.

“There is little doubt many Brits will find their annual road tax as high as the value of their car as from next year, creating a massive headache for people who are really struggling,” he continued.

Moneysupermarket.com added that those spenders who are worried about their spending habits should take action rather than burying their head in the sand.

The firm recently said that consumers are becoming increasingly aware of having a good credit rating with more and more checking their financial status.

Tags: GBP, credit rating, loan, new research, budget, com, research, sand

Latest energy hike provides ‘green light to switch’

With the last of the big energy suppliers announcing an increase in its premiums consumers now have the “green light to switch” providers, one financial expert has claimed.

Money advisers Which? stated that spenders ensure they have the best deal when it comes to their mobile phone tariff and this should be no different for their energy bills.

Scottish and Southern Energy announced last week that its prices for electricity customers will rise by 14.2 per cent on average.

Siobhan Parker of Which? said that this latest price increase is the “green light to switch”.

“Everyone’s feeling the post-budget pinch and making sure you’re getting the best deal for your home energy is a smart and easy way to take some of the pressure off,” she continued.

Which? said that customers should use their buying power to show they mean business, and switch to a cheaper supplier.

Meanwhile, Scottish and Southern Energy increases mean that prices for gas customers will increase by 15.8 per cent.

Home energy bills have now smashed the £1,000 per year mark for many households.

Tags: best deal, pinch, business, energy, Everyone, Scottish

Over £9 bn wasted by UK spenders in tax payments

Almost £9.3 billion is wasted by UK consumers through unnecessary tax payments, one financial expert has claimed.

The amount wasted in tax will increase by almost £1.4 billion compared to 2007 shows research from Unbiased.co.uk.

Up to 82 per cent of consumers admit to do nothing to reduce their payments, despite over 34 million people expressing dissatisfaction with the extra costs.

David Elms, chief executive of Unbiased.co.uk, said that tax payers are wasting record sums.

“We estimate that each UK tax payer will waste an average of over £290 in tax payments this year,” he stated.

The findings shows that unnecessary Inheritance Tax (IHT) payments are set to rise by over £360 million in 2008, resulting in a predicted total waste of over £1.9 billion.

This is despite IHT being named the most resented tax by one in five UK adults said the survey.

Further research from the company showed that 70 days of an average consumers annual wage is spent on clearing interest on credit card and loan debts.

Tags: Inheritance tax, executive, Unbiased.co.uk, dissatisfaction, uk, card, consumers annual wage

Consumers need to be encouraged to use Isas say financial experts

More needs to be done to encourage savers to put their money into individual savings accounts (Isas) by showing them the benefits of the products, one financial expert has claimed.

Findings from research from Nationwide revealed that one in ten savers topped up their Isa by more than £3,000 while only 8 per cent of Isa holders increased their limit by over £3,000.

Up to half of those questioned in a recent survey said they would like to save more money in Isas but do not have the funds to do so.

Matthew Carter, director for savings at Nationwide, said that with just over a week to go before the new Isa limits come into force, more needs to be done to encourage people to take advantage of their Isa allowance.

“With one in ten ISA holders opting to save in a regular savings account instead of their ISA, it’s essential that consumers are educated about the benefits of tax-efficient savings and how most Isas allow instant withdrawals,” he added.

The deadline for submitting an application for an Isa is April 5th.

Tags: allowance, Banking, research, application, Rob Fisher

Consumers need to ‘understand the whole product’ when buying a credit card

Spenders need to know what they are getting when they shop for a credit card, one financial advisor has claimed.

Credit Action said consumers need to take some time and effort when choosing a credit card, just as when choosing a car.

Chris Tapp, director of Credit Action, stated that people need to understand the principle behind cards, which is to make sure that the amount borrowed on it can be paid off the following month.

“That is the way to avoid getting hit with all kinds of charges, to make sure you are only borrowing as much as you can pay back,” he said.

He added that the main thing to look for is the headline rate and to compare this rate of the interest between card providers to ensure the best deal is found.

Meanwhile, MoneyExpert.com research released at the beginning of the month shows that 3.2 million spenders own five or more credit cards and 28 per cent of us applied for more plastic last year.

Tags: interest rates, financial advisor, headline rate, rate, Credit Action, choosing

Stag and hen parties should remember travel insurance this weekend

Those embarking on a stag and hen party this weekend need to remember to book travel insurance, one financial expert has warned.

Fairinvestment.co.uk says many brides and grooms-to-be celebrate this weekend due to the Bank Holidays – but revellers travelling abroad need to remember their insurance as the chances of illness and accidents are high.

According to the company, new statistics from Egg reveal that one in five travellers will lose valuable items and without travel insurance these items will not be replaced.

James Caldwell, director of Fairinvestment.co.uk, said that travelling anywhere without insurance “is a risky business”, never mind on a hen or stag do.

“I strongly advise the best man or bridesmaid in charge to make insurance a priority,” he continued.

According to the company, it could cost up to £3,000 to be returned to the UK in an emergency from any of the most popular stag and hen destinations such as, Spain, the Netherlands or France.

Meanwhile, further research from Sainsbury’s Bank said that up to one in ten of Easter holiday makers are expected to travel without insurance.

Tags: travel, new statistics, company, Bank Holidays, hen, Insurance, The Netherlands, further research

SSE raises energy tariffs for consumers

Scottish & Southern Energy (SSE), the UK’s second biggest supplier, has announced it is to join the likes of British Gas and Npower in increasing its energy and gas tariffs.

The firm has raised its tariffs by 14.2 per cent (£50) for electricity and 15.8 per cent for gas (£85) while its Dual Fuel tariff has risen by 15 per cent to £131.

According to uSwitch.com, this takes the annual fuel bill for an SSE customer to £1,006 from April 1st.

A spokesman for uSwitch.com said that the SSE should be applauded for ensuring its customers were not impacted by price increases over the winter months.

“Unfortunately, it should come as no surprise to their customers that bills are increasing as where others lead, it was sure to follow,” he said.

In January, Npower became the first of the ‘big six’ to hike costs and was soon followed by the likes of EDF and British Gas which both announced rises for utility bills in the same month.

Tags: uswitch, dual fuel, biggest supplier, big six, winter months, electricity, Scottish, british gas

More consumers concerned about safety of personal details

More consumers are concerned about the safety and security of their personal details than ever before, an information body has claimed.

The Information Commissioner’s Office (ICO) said this fear of identity theft is driven by various factors including the recent data losses, particularly by the government, as well as the rise in the number of incidences of identity theft being recorded.

David Smith, deputy commissioner at the ICO, said: “As we all give more and more information out to all sorts of organisations, they build up bigger and bigger databases with pictures of our lives and the risks get greater all the time.”

He added that consumers should not panic, but should question organisations as to why they may need personal information.

Research carried out by consumer advisers CPP found that London is the top worst location for credit and debt card fraud theft, with 20 per cent of Londoners say that they have had their cards stolen before.

Tags: identity theft, debt card, information, body, location, number, london, deputy commissioner

« Previous Page — Next Page »