Uninsured drivers add to drivers’ premium misery

When it comes to vehicle insurance costs, many drivers are already facing huge hikes due to the general soaring prices of car insurance. For many, the combination of high insurance costs and rocketing petrol prices is making it more and more difficult to keep their vehicles on the roads, which in turn impacts on other areas of their lives such as getting the kids to school, getting to work, etc.

A recent report has shown that uninsured drivers across the UK are simply adding to the premium misery that bona fide drivers with insurance cover are experiencing, with the average amount being added to car insurance policies because of uninsured drivers coming in at around £30. In total, uninsured drivers are costing the car insurance industry around £500 million a year and this is then passed on to drivers who do pay for their vehicle insurance.

The report showed that around one in six motorists in the UK has broken the law by driving a car that they were not insured on, which could have had serious repercussions in the event of an accident. Around 8 percent of drivers polled said that they had driven their own vehicle without insurance cover whilst another 6 percent admitted to driving someone else’s vehicle without having any insurance cover in place. Around 2 percent said that they had driven their own car without cover whilst they were in between policies at renewal time whilst one in five uninsured drivers even said that they did not know they needed insurance cover to drive their car!

One insurance expert said: “Should you be involved in a crash when not insured, you could face thousands of pounds in liability, a conviction, including six points on your licence, as well as fines of up to £5,000.”

Tags: Social Issues, expert, Business and Economy, Vehicle insurance, six points, bona fide, costing, insurance cover

Motor insurance continues to rise

A recent survey has shown that motor insurance is continuing to increase, leaving many drivers who are already struggling to keep up with the cost of running their vehicle in an even worse situation in terms of their finances. The cost of vehicle insurance has been soaring recently and is much higher now than it was a year ago. On top of this drivers have had to deal with vast increases in petrol costs, leaving many financially crippled.

According to the results of the survey the cost of insuring a vehicle is now nearly 31 percent higher than it was a year ago. Compared to March the cost of vehicle insurance cover in April increased by 4 percent, showing that car insurance costs are continuing to increase. Many drivers are now being forced to abandon their vehicles and look at other modes of transport because of the high costs involved with running their vehicle.

An official from one insurance monitoring group, Tiger.co.uk, said: “Our analysis shows that car insurance inflation continues to be a major financial issue for the majority of UK drivers. Within our analysis inflation in the last month has been particularly prevalent for younger female drivers and we may well be seeing here the early impact of the recent EU gender ruling that, from December 2012, will outlaw the use as gender as an insurance risk factor in its own right.”

For the many people who are already struggling experts are advising considering a switch in insurance, as the cost of cover can vary from one provider to another. Drivers can compare the cost and levels of cover with ease using the Internet and can look at finding a more appropriate level of cover at a more affordable price.

Tags: group, Many drivers, vast increases, factor, Business and Economy, year, risk factor

Property Ombudsman reports on estate agent complaint figures

Estate agents have never been known as one of the best loved professions in the UK, and many people joke about how wary they are of estate agents. However, is seems that many people actually are not huge fans of people in this profession and this has been reflected in recent complaints figures that have been released by the Financial Ombudsman, Christopher Hamer.

According to Hamer the number of complaints that were made last year against estate agents in the UK soared to their highest level since records began two decades ago. The previous peak when it came to complaints about estate agents was seen during the peak of the financial crisis and recession back in 2008, but last year’s levels surpassed even this by a massive 28 percent according to the figures.

There were a number of main reasons why people were complaining and in total there were 1338 official complaints that were made against estate agents last year. These related to matter such as lack of communication from the estate agent, marketing and advertising used by the estate agent, and the way in which estate agents had handled complaints made by consumers. Hamer said that the level of complaints was unacceptable and that people were simply not willing to put up with poor service, bad communication, etc. any longer when they were having to shell out a lot of money in the difficult financial climate.

Hamer said: “People are less ready to be satisfied in times of economic stress to accept less than perfect service, especially when they are spending a lot of money.”

The figures showed that the vast majority of complaints related to lack of communications between the estate agents and the consumer. The highest levels of complaints were made against estate agents in the South East.

Tags: vast majority, The Property Ombudsman, property, Business and Economy, percent, Business Finance, United Kingdom, advertising

House prices still set to fall in 2011

According to recent figures the property market in the UK did edge up a little over the course of 2010, and the average property price in December was up by around 0.4 percent compared to the same month a year earlier. The figures were released by High Street lender, Nationwide, with officials from the building society stating that despite this year’s slight increase property prices were still set to drop in the first half of next year.

Nationwide said that property prices in 2010 had declined in the second half of the year compared to the first half, and that in the first half of 2011 prices would continue to fall. Nationwide said that demand for property remained weak, which would contribute to the slump in property prices. One economist from the building society said that there were two few buyers interested in property and too many properties available.

The lender also said that although property prices had edged up in December, prices had fallen in four of the last six months and were likely to continue doing so. Property prices have been falling as a result of lack of mortgage availability, increased caution from potential buyers who are steering clear of the market at present, and an over-supply of properties for sale.

An official from Nationwide said: ‘At the moment, there are probably still too few buyers chasing too many properties. As a result, the slow drift down in house prices is likely to persist in 2011, at least for the first half of the year. Whether it continues into the second half will depend on the flow of new property on to the market.’

He added: ‘Despite December’s increase, house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures.’

Tags: mortgage, result, Business and Economy, Irish property bubble, economics, Mortgage loan

Consumers want warmer approach from insurance firms

According to a recent report insurance customers in the UK are looking for a warmer, friendlier approach from insurance companies, with many stating that they would show more loyalty to insurance firms who demonstrated that they knew who they were and knew something of their insurance related history.

The survey was carried out by YouGov and was performed on behalf of Pegasystems. A number of areas of insurance were looked at as part of the survey including how consumers felt about their insurance companies and how consumers tended to contact insurance firms. The results of the survey showed that many insurance customers were looking for what was described as a ‘corner shop’ approach from their insurance providers, making them feel more like a valued customer rather than another number on a long list of clients.

The results also showed that the most common and popular way for consumers to contact their insurance firm was to contact them by telephone. The figures showed that 42 percent contacted their insurance providers by telephone. The survey also showed that there appeared to be growing confidence in using the internet to make contact with such firms, with 22 percent stating that they used email to contact their insurance provider, making this the second most popular method of contact.

The third popular means of contacting an insurance company amongst consumers in the UK was to go and see someone at the insurance firm face to face, but the results showed that most people prefer phone or email to communicate with these companies.

Jeremy Payne, senior director of international marketing at Pegasystems, said: “The Pegasystems research confirms the view that, in a world of increasing commoditisation and mass marketing, many consumers want a return to a ‘corner shop’ approach in which the provider knows who they are, the challenges they face and can provide an individualised solution that demonstrably meets their needs.”

Tags: loyalty, view, Pegasystems, Insurance, Business and Economy, consumers, insurance providers, insurance customers

Property prices increase again

According to data released by a High Street lender property prices have increased again in May, and the average property price is now closing in on the peak achieved in 2007 before the inset of the global credit crisis sent property prices tumbling. The data has been released by the Nationwide Building Society, which has reported a 0.5 percent increase in May, taking the average house price to £169,162.

Despite the increase in property prices the lender did warn that there was a shortage of properties on the market for sale, which meant a low level of property transactions that was affecting property prices. Since February of last year average house prices have increased by 12.2 percent according to the lender, and the average house price is now only 9.5 percent lower than the peak in 2007.

In terms of monthly increases the level of the increase seen in May was lower than those seen in March and April, with the May increase coming in at 0.5 percent compare to 1 percent in March and 1.1 percent in April. Officials have said that whilst the news of rising property prices will be welcomed by homeowners the lack of transactions in the housing market had remained relatively low since the end of last year.

One industry official said that stock shortages and low interest rates had been lifting house prices, but added that it was likely that more properties would come onto the market as a result of the government getting rid of Home Information Packs.

An economist from the Nationwide said: ‘Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months. The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.’

Tags: property, Business and Economy, prices, finance, building, global credit, low interest rates, Nationwide Building Society

Property classed as pension for millions

According to the results of recent research there are millions of homeowners in Britain who are relying on their properties to provide them with income with which to retire. Read more

Tags: housing marketus, property prices, adults, sufficient funds, personal finance, expert

Huge depreciation in new cars in three years

Industry officials have recently said that the depreciation seen in new cars in the space of just three years could mean that for many consumers the £2000 car scrappage scheme introduced by the government may actually leave them worse off. Read more

Tags: scrap cars, industry officials, consumers, car depreciation, Business and Economy, residuals, Honda Jazz, shortage

An increasing number of privately renting tenants are getting evicted

A recent report has shown that there has been a rise in the number of privately renting tenants that are being evicted from their rented homes, and this is causing concern amongst many industry officials. Read more

Tags: shelter, tenant evictions, Business and Economy, unfairness, industry, home, buy-to-let, Real estate

Couples that get married need to advise their car insurance company

Industry experts have recently urged couples that get married to let their car insurance companies know, stating that if they fail to do this they could be missing out on significant savings on their car insurance premiums. Read more

Tags: Business and Economy, car insurance premiums, marriage and car insurance, significant savings, vehicle, car insurance, economics, Usage based insurance

London rents fall faster than house prices

Recently released figures have indicated that rents in the London area have been falling faster than property prices, and this has occurred since the collapse of Lehman Bros earlier this year. Read more

Tags: Business and Economy, Lehman Bros, Renting, house, right time, london house prices, property, house prices

Try before you buy housing could prove effective

A recent report has shown how some housing developers are now trialling a scheme where a potential property buyer can try out the property that they are thinking of buying for a day or two before they make a decision or commitment. With house sales falling as a result of right credit conditions, falling house prices, and the global credit crunch, those that are able to purchase often need more persuasion and it seems that this try before you buy method could help developers to increase sales and buyers to enjoy increased peace of mind when it comes to making a purchase. Read more

Tags: Business and Economy, day, age bracket, inflation uk economy, households, potential buyers

Homeowners flock to try and sell homes

According to a recent report many homeowners are panicking because of the ongoing drop in property values in the UK, and this has resulted in a million homes being up for sale recently. Property values have been falling for some months, and many industry officials believe that they could fall by in excess of 10% by the end of the year. Many homeowners are worried that if they wait to sell their homes they could end up losing thousand of pounds more on the value of the property. Read more

Tags: Business and Economy, remortgage, homeowners, consumers, property, May, report

Fraudulent motor insurance claims come to five million a week

According to a recent report motor insurance bodies have discovered fraudulent motor insurance claims that are amounting to around £5 million a week in terms of value. Officials from the Association of British Insurers said that last year around twenty four thousand fraudulent motor insurance claims were uncovered, and these amounted to £260 million, which equates to £5 million a week. This reflects the level of the problem when it comes to fraudulent insurance claims, both in the motor insurance sector and other insurance sectors. Read more

Tags: motor, vehicle, fraud, insurance industry faces, Business and Economy, risk, level, criminal record

Credit squeeze hitting savers

Consumers are increasingly feeling that they are unable to save as much as they might like to due to the current economic downturn, according to Nationwide Building Society.

Matthew Carter, Nationwide director for savings, said that although three in four people believe it is important to put money away in a savings account, some do not feel “they can afford to save as much as they need to” because their finances are being squeezed by the credit crunch.

New research from the building society has revealed that 57 per cent of people would like to be able to save more than they are currently doing.

Mr Carter pointed out that it is a good time to save at the moment because there are a number of accounts with attractive rates.

“The products available mean it’s a good time for savers so it’s incredibly unfortunate that would-be savers haven’t the spare money to put aside.”

Meanwhile uSwitch.com has said that the credit crunch and rising inflation are making life “tougher” for many people.

Tags: Business and Economy, Business Finance, consumers, economics, time, matthew carter, moment

Endsleigh: We won’t pay for loss from poor workmanship

Homeowners planning any big changes to their houses should make sure they employ reliable and skilled workmen because their insurance may not cover loss or damage if the design or materials used are faulty, according to insurance provider Endsleigh.

Rhiannon Harris, a spokesperson for Endsleigh, said the company’s insurance policy would not cover loss or damage that was the result of poor workmanship or that came about from mechanical or electrical equipment breaking down or from people not following the instruction guide when using the equipment.

Ms Harris went on to say that the following would also not be covered by the company’s policy: “Emollition or structural repairs or alterations to your home or outbuildings, structural alteration, repair maintenance, decoration, restoration, dismantling, demolition, renovation or breakdown, or process of cleaning, drying, dyeing, heating, or washing.”

According to figures from Zurich, 73 per cent of homeowners do not know whether their home insurance policy provides cover for any DIY mistakes they might make.

Tags: skilled workmen, insurance policy, insurance provider endsleigh.rhiannon, Business and Economy, Financial economics, home insurance, structural alteration, dyeing

Britannia: Beware headline-grabbing rates

Britannia building society has warned consumers to be wary of “headline-grabbing rates” on savings accounts as they may not be a good long-term option.

Jayne Dono, a spokesperson for Britannia, said that a number of organisations have been attracting new savers with high initial rates on their savings.

“There’s no doubt that there are some great deals available for savers at the moment, with organisations competing against each other for business,” said Ms Dono.

However, she warned that although people may benefit in the short term, “they should also be aware of the long-term prospects and whether these organisations really have their best interests at heart”.

Recent research from the Building Societies Association (BSA) shows that the majority of building society bosses are optimistic about the year ahead, despite the credit crunch.

Building societies have experienced record savings inflows over the last eight months and they expect the trend to continue as consumers seek safer saving options, according to the BSA.

Tags: new savers, year, Business and Economy, number, record

ABI: Don’t just go for the cheapest home insurance

With one in three households getting into arguments with their neighbours, people should not simply choose the cheapest home insurance policy as it may not cover the legal cots of a dispute, says the Association of British Insurers (ABI).

Kelly Ostler-Coyle, spokesperson for the ABI, advises people to consider what is covered in the insurance policy rather than simply choosing one based on cost.

Ms Ostler-Coyle, says that when shopping for insurance, people should ask themselves “Does it include legal cover? Does it have all risk extension fees so you’re covered for your items when you’re outside the home and how much [in terms of] belongings am I covered for?”

Yet people often take what they believe is a good deal without taking any advice and later find their claims rejected since the insurance policy they chose does not cover issues such as disputes, says an expert.

Over a million people say they have argued with their neighbours over noise, according to a new survey from Allianz Insurance.

Tags: Financial economics, British Insurers, Social Issues, Business and Economy, Allianz Insurance, advice, abi, expert

Some areas are at risk of negative equity, claims expert

There are concerns that certain areas of the country may be prone to negative equity over the next two years, according to the UK property market information provider Mouseprice.

A survey published this month found that 23 per cent of 24 to 34-year-olds are worried about having negative equity and 13 per cent of respondents said they had decided to delay their plans to move until the situation in the housing market situation improves.

Jonathan Upton, business development director at Mouseprice, said: “The conditions that are required for negative equity are present in some areas,” adding that the situation will depend on the level of deposit that people took out, when they bought their house and the profile of the housing market where they live.

However, Mr Upton also commented that it is difficult to tell whether first-time buyers will be particularly hard hit.

In their favour, people who are not yet on the housing ladder may benefit from falling house prices, giving them a stronger hand in negotiations.

Tags: favour, business development, house, equity, business

One million Brits cannot claim as they did not read the small print

Up to one million Brits have not been able to claim on a travel, home or car insurance policy in the last year because they weren’t covered, despite believing that they were shows new research.

According to findings from Tescocompare.com, neglecting to check the small print has cost UK consumers up to £736.

Of these, 82 per cent say it has altered the way they will go about dealing with this sort of purchase in the future.

Paul Baxter of Tescocompare.com, said insurance policies are complicated and “it is not surprising that so many people find themselves in a situation where they thought they were covered when in fact they weren’t”.

Meanwhile, when it comes to understanding what they are purchasing women are much more aware of what it is, claims a new study.

Further findings from Tescocompare.com shows that female consumers are much more likely to have read the description and detail of what it is they are buying, with the exception of traditional male items such as cars.

Tags: print, description, Business and Economy, business, com, Paul Baxter, findings, traditional male items

Home insurance market remains competitive

Prices in the home insurance market are still competitive despite predictions that flood damage claims earlier this year would inflate premiums, according to the British Insurance Brokers’ Association (BIBA).

Graeme Trugdill, technical services manager at the organisation, commented: “Home insurance is still ultra-competitive and you see during any advert break on TV, companies saying we will be your cheapest home insurance option. It is still very competitive.”

Although many thought the flooding would hit home insurance consumers hard, he insists there are still some good deals out there.

He advises those looking for cover to seek advice from an independent source to compare the best ones available.

According to a BBC Panorama programme, in the three months up to July 23rd this year, rainfall was over double the average for that time of year.

Furthermore, it reported that 60,000 homes were hit by the summer’s floods, with the environment agency stating that the chance of London’s flood barriers being overwhelmed by flood is currently at 0.05 per cent.

Tags: cover, London's flood barriers, flood, Financial economics, British Insurance Brokers, environment agency, Business and Economy, weather

Students urged to cover contents

A significant number of the UK’s students could be starting the year’s learning with inadequate home contents insurance, putting them at risk of financial loss.

That is according to new research from Abbey, which found that around 30 per cent of undergraduates will probably start the academic year without protecting their belongings.

Despite the fact that 95 per cent own a computer, some 14 per cent of students have not thought about insuring their possessions or think they are not of a high enough value to warrant cover.

Some seven per cent said they would not afford the cost, while nine per cent didn’t get around to arranging it or spent the money for it on something else.

“Over 60,000 students believe the value of their belongings does not justify buying insurance, but we find many people are shocked with how much their belongings are actually worth,” said Abbey’s head of insurance marketing, Prasad Shastri.

The study also found that students will take around £3,300 on average worth of items with them to university this year.

A separate report from Cornhill Direct encouraged parents recently to check their own home insurance policies to ensure they cover student offspring’s belongings.

Tags: Business and Economy, student, home, home insurance, money

Home insurance customers ‘pay more when loyal’

Loyal customers to home insurance companies are being penalised as firms battle out to cheapen prices rather then to extend services, according to a new report.

Defaqto, a data collection company, has found that rather than retaining established customers through extending cover or offering new and improved services to customers, firms would rather lower prices to attract new business.

This means that newer customers pay far less than loyal customers through various cash back deals, which have risen in frequency by 60 per cent in the last 12 months.

“It hardly seems in keeping with the Financial Services Authority’s rules for Treating Customers Fairly that two customers with exactly the same risks should pay markedly differing amounts for their policies,” said Brian Brown from Defaqto.

“It would appear that increasing loyalty never goes unpunished and rewards are only available for the disloyal.”

He recommends that consumers double-check their home insurance deals to see that any new purchases are still covered and that they still have a competitively-priced deal.

Tags: company, customer, competitively-priced deal, home insurance, data collection company, Business and Economy, Insurance

Internet banking needs innovation

Internet banking recently turned ten but one of its pioneers says the current crop of sites lack innovation and direction.

Jim Spowart, chairman of peopleschampion.com, who created the UK’s first bespoke internet banking site, has criticised the current market.

He says that banks appear to be unsure of where to go next with their online banking websites and wants to see them doing more to offer customers something different.

“The banks have been concentrating on profitability. All they have done is use the technology to update their traditional banking methods,” commented Mr Spowart.

“There’s been very little thinking about how they can offer the customer something brand new. Internet banking is just an add-on convenience for many – but it hasn’t changed banking. That’s why the banks are having to hit the customers with extra hidden charges.

“In every way, the internet has changed the way we all look for products and services. The poor old traditional bankers are still scratching their heads looking for ways of gaining customers, yet the whole game has changed,” he added.

Internet banking in the UK celebrated its tenth anniversary on May 27th 2007, a decade after Nationwide launched the first site.

Tags: site, online, internet banking, old traditional bankers, way, thinking, internet

We want tougher punishments, say drivers

Increased police patrols and tougher penalties for illegal drivers are just two of the measures that motorists want to see introduced on the UK’s roads.

Drivers were asked what they would do to improve driving if they were Prime Minister for a day and it seems that most people want to see stricter enforcement of laws.

The second most popular suggestion was to improve public transport so that fewer cars are on the road.

American Express Motor Insurance carried out the research, asking 10,000 of its customers for their opinions.

Joanne Field, marketing manager at the firm, said that one of the biggest problems on the UK’s roads, according to those surveyed, is people driving without car insurance.

“The uninsured driver poses a risk to every insured driver – not only is there the extra premium cost, but there is the risk of being involved in an accident with them,” she commented.

Motorists were also asked who they think are the most dangerous drivers on the road, with both men and women choosing youngsters and van drivers.

Despite this, almost everyone surveyed admitted to having some bad habits behind the wheel, with 90 per cent saying that they regularly drove in bead weather.

A further 81 per cent got behind the wheel when tired, 77 per cent when low on petrol, 59 per cent admitted to eating while driving and 47 per cent still use a mobile phone.

Drivers are advised to avoid any distractions when driving and the use of mobile phones while behind the wheel is not illegal and punishable with three points on your licence.

Tags: field marketing, tougher punishments, driver, Business and Economy, stricter enforcement

Safe packing ahead of holiday

The holiday season is fast approaching and many of us will soon be packing our bags and heading off to warmer climates.

However, travellers are being warned that they must take out insurance before setting off or potentially face a disaster.

As more and more people can afford to fly and more flights are taking to the air than ever before, Swiftcover.com says that the chances of an airline loosing your luggage have increased.

Figures from the insurer show that around 22 per cent of UK holidaymakers have arrived at their destination only to find that their luggage has not made it.

Over half of these people have had to wait over 24 hours for their bags to be returned, while six per cent did not see their possessions again during the trip.

Travellers are being warned that they should pack valuables such as travellers cheques, cash and jewellery in their hand luggage as these items are often not covered if they are checked into the hold.

“As long as you have adequate travel insurance, losing your suitcase should not hit you in the pocket, but, for the majority of people, it’s often the sentimental value of personal belongings and the lost time on holiday trying to locate your bags that cannot be replaced,” said Craig Staniland from Swiftcover.com.

Tags: Jewellery, cent, UK holidaymakers, disaster, Hand luggage, Business and Economy

Small drop in car insurance premiums

Despite a small dip in the last quarter, car insurance premiums remain high, new research shows.

Drivers taking out comprehensive insurance faced an average annual bill of £802, according to the AA’s benchmark British Insurance Premium Index.

Although this represents a £4 dip in yearly costs from the previous figures, it was falling from an all-time high after prices rocketed 4.35 per cent in the three months to the end of 2006.

Commenting on the results, Kevin Sinclair, managing director of AA Insurance, expressed surprise that premiums had dropped, saying: “I had expected premiums to continue rising and I think the underlying pressure is still upward.

“Most insurers continued to apply small increases in an effort to close the gap between premium income and claims costs.”

Third-party, fire and theft (TPFT) insurance saw a slightly higher drop in annual premiums to £993 at the start of the year, equivalent to a £6 saving.

But Mr Sinclair also doubted whether this downward trend would continue as most TPFT cover is bought by young people, who represent a five-time greater risk to insurers due to the higher accident rate among people under 21.

Tags: Mr Sinclair, fire, insurance premiums, previous figures, effort, drivers, premium, Business and Economy

Car keys still being left on display

Many of us are running the risk of having our car stolen because we leave the keys on display in our homes.

Research by Saga Motor Insurance shows that one in ten are still not heeding the advice of insurers and police by failing to properly conceal our keys.

The majority keep them on a key rack which can be seen from outside the property, meaning the chances of becoming the victim of an opportunistic thief are greatly enhanced.

People aged over 50 are more diligent than those younger than them, says Saga, with 19 per cent ensuring that their keys are well hidden, compared to just 13 per cent of under 50s.

It means that people aged 49 and under are more likely to have their car stolen and be forced to make a claim on their car insurance.

“It might not be the first thing on your mind when you come home, but drivers should get into the habit of putting their keys somewhere out of sight, leaving them on display makes them an easy target for the opportunistic thief,” commented Andrew Goodsell, chief executive at Saga.

House keys are another issue, although people appear to be improving their safety procedures when it comes to this.

Saga found that nobody leaves the spare key under the doormat anymore, with 29 per cent leaving it with a friend or relative and 19 per cent keeping them locked away inside the house.

Tags: keys, nobody, friend, Business and Economy, Financial economics, Admiral Group

Drivers will pay the price for calling

Drivers who flout the law regarding the use of handheld telephones while driving may find themselves paying for the act twice.

AA Insurance warns that offenders are likely to end up paying for the crime through their insurance policy as well as the increased fine.

As of February 27th anyone caught using their mobile phone while driving will be given a £60 penalty notice – double the current amount – and three points on their licence.

The AA says that this is likely to lead to more insurers taking their own action against offenders in a bid to protect themselves.

“While some insurers may ignore a first offence – as they may for a speeding endorsement – they are likely to significantly increase premiums for a second one,” said Janet Pell from AA Insurance.

“In addition, under the Rehabilitation of Offenders Act, the offence remains on your record for five years and insurers will take account of driving infringements over that period, even though endorsements can be removed from your driving licence after three years.”

The AA recently carried out a survey of eight insurers in which it found that half increased premiums by around 16 per cent for one speeding offence.

This number increased to seven for a second offence, while one insurer refused to offer cover.

AA Insurance is warning drivers that insurance firms are likely to adopt a similar approach to the use of mobiles while driving.

Tags: Insurance, cover, Business and Economy, Rehabilitation, licence.the aa, AA Insurance."In addition

£13bn worth of uninsured clothes

We are all buying more clothes, but research from Prudential Home Insurance shows that few of us are taking the time to insure them.

Around 25 per cent of us are said to own at least £2,000 worth of clothes, while six per cent of us have a wardrobe that holds over £5,000.

In spite of the growing value of the glad rags we own, Prudential has revealed that the majority of us do not take out insurance as protection, with £13 billion worth of shoes, clothes and accessories lying around uninsured in homes across the UK.

To make matters worse, Prudential points out that now is probably not the best time to be spending so much money on clothes, as the level of UK personal debt currently exceeds £1 trillion.

“It is concerning that despite the average Brit being in £27,455 worth of debt, many are still prepared to spend so much on fashion regardless of whether they have a steady income,” said Phil Southgate from Prudential Home Insurance.

“The increasing popularity of low-cost clothing shops means that people are encouraged to spend money on a regular basis with the growing trend for disposable clothing.”

One of the most surprising figures to come from the research is that those out of employment are more likely to own more shoes than those who work, with 38 per cent of unemployed people owning between six and ten pairs.

According to Prudential however, the most alarming thing is that so few of us insure our clothes.

“It’s amazing how so many people fail to insure the contents of their wardrobes, especially considering that a fifth own up to three expensive designer items,” said Mr Southgate.

“It is important that people assess the value of their wardrobes on a regular basis.”

Tags: Business and Economy, Prudential Home Insurance."The, wardrobe, life insurance, regular basis, designer, home insurance, American International Group

Types of UK Car Insurance

If you think that the UK car insurance policy is stringent enough, then keep in mind that it is so to secure your own interest. The UK car insurance policy is generally targeted for the protection of any innocent victims of accidents. It is obligatory by law to carry the UK car insurance certificate for a user of the road. Read more

Tags: commencement, Types of insurance, car insurance certificate, Business and Economy, lot, car insurance types

‘Misleading’ insurance firms slammed

A number of insurance firms have been slammed by the Financial Services Authority (FSA) for misleading customers.

A number of high-profile firms have been told that they must stop using savings claims in their advertising that could be misleading.

The FSA has threatened companies with regulatory action if the practice continues and it comes after a large-scale investigation into press advertisements from insurance firms.

It was found that more than half of all press advertisements from motor insurance companies were misleading or unclear.

Home insurance firms did not perform much better, with over a quarter said to be misleading, while travel insurance advertisements were found to be of a higher standard.

“Most people rely on some form of insurance to protect them and advertising is a major influence on what they choose to buy,” said Vernon Everitt, FSA’s retail themes director.

“So it must be clear, fair and not misleading, leaving people with a balanced picture of what’s on offer. This work demonstrates that firms in the home, travel and car insurance markets must shape up and ensure that the claims they make don’t mislead.

“We will be back in three months to assess progress and will then decide whether further regulatory action is needed,” he added.

The FSA says it has contacted the senior management of offending firms, but some industry experts are calling for the companies to be named and shamed.

Tags: FSA's retail themes, unclear.Home insurance firms, home, retail themes director, Financial services, progress, Business and Economy, high-profile firms