Car insurance premiums increase by up to 50 percent

It has been revealed that drivers are facing huge financial burdens, with the news that in some cases car insurance premiums have soared by up to a massive 50 percent in the space of one year. This could see some motorists now paying hundreds of pound a year extra in car insurance premiums at a time when many are already struggling to keep their vehicles on the roads due to high petrol prices and other financial commitments.

Annual renewal costs on car insurance are now said to be at an all time high, and according to some industry experts part of the blame for the soaring cost in cover lies with ‘crash for cash’ fraudsters, who are swindling insurance firms out of huge sums of cash by staging crashes and then claiming. Fronting, which is where parents are including their kids on their own cover due to the cost of insurance for a younger driver, has also been blamed for the surge in car insurance costs.

The cost of cover for male drivers aged between seventeen and twenty two years of age has soared by around 51 percent, taking the average price of cover to £2500. For female drivers of the same age the average cost of cover is around £1400 according to figures released by the motoring group, the AA.

The AA commented on the fact that many parents were engaging in fronting, stating: ‘This is actually fraud and it is driving up premiums for everyone. Insurance companies are getting much better at detecting this.’

The company added: ‘There has also been an escalation in our compensation culture, imported from America. In the past, if you had a knock or a bump and were left with a sore neck, you would take a paracetamol. Now personal injury lawyers encourage you to sue. Personal injury claim rates in Britain are four times those of any other European country – yet we have fewer accidents.”

Tags: car insurance costs, pound, country, paracetamol, driver, insurance costs, compensation culture

Drivers breathe sigh of relief over petrol prices

Over the past six months things have become more and more difficult financially for households in the UK, with a range of soaring costs making it harder and harder to make ends meet. Amongst the rising costs that consumers have had to put up with are rising energy bills, soaring food prices, and rocketing petrol prices. However, there is a little bit of good news on the horizon for drivers, and this is that petrol prices are at last starting to come down. Read more

Tags: bit, tough time, relief, food, petrol prices, past year, oil company giants, country

MP claimed consumers were wealthier than ever

Most consumers are now feeling the pinch to put it mildly with household budgets stretched to their limits due to rising living costs, soaring petrol prices, increased food costs, and high borrowing costs. Yet, according to a recent report one Labour MP has branded the British public as being miserable and has said that consumers in the UK are actually wealthier than ever. Transport Minister, Tom Harris, made the comments some weeks ago, and was slated by other officials given the financial crisis that many households are suffering. Read more

Tags: prime minister, borrowing, country, Household, MP

Gazundering becoming more commonplace

With property prices falling, mortgages becoming more difficult to obtain, and homeowners experiencing increased difficulties in selling their homes, the housing sector is already experiencing its fair share of problems. However, a new problem has recently reared up for sellers, and this comes in the form of gazundering, which is an unethical but not illegal practice that some buyers are engaging in. The practice involves putting in an offer on a property, and then dropping the offer right before contracts are exchanged. Read more

Tags: double gazunder, sector, recent additions, unethical, illegal practice, country, gazundering, predicament

Insure yourself even for a short trip, says expert

Anyone planning on booking a last minute getaway this summer should make sure they are properly covered by their travel insurance policy, even if they are only going away for a few days, Norwich Union has said.

Sally Leeman, the media relations manager at the company, said that the cost of paying for medical emergencies when in another country, particularly if they are serious and warrant a hospital stay or being taken back to the UK, can run into thousands of pounds.

Despite these risks, Sainsbury’s Travel Insurance found that not everyone who booked a trip last summer made the effort to get the right travel insurance.

Nearly one in five people who bought their holiday at the last minute last year travelled without insurance.

“If you are likely to travel a few times a year consider taking out annual insurance – it can save you money and mean you are covered for the whole year which is ideal for those ’spur of the minute’ trips away,” Ms Leeman advised travellers.

Tags: Travellers, Anyone planning, short trip, Insurance, minute getaway, few days, Hospitality Recreation, country

Euro Doing Better Than Expected

The European Union witnessed a not insignificant amount of economic growth during the first fiscal quarter of 2008. Experts predicted dismal growth for the Euro, in light of the recent slowdown in the global economy. Yet, the vigorous gross domestic product (GDP) figures in European Union countries kept the value of the Euro relatively high, constituting “a last hurrah for the eurozone econonmy,” in the words of economist Nick Kounis.  Read more

Tags: first three months, light, rate, country, government, economy, gdp, growth rate

Lloyds TSB: Islamic mortgage demands ‘through the roof’

The amount of people taking out Sharia-compliant mortgages has risen dramatically in recent years, according to Lloyds TSB.

Islamic mortgages are designed for Muslims who would not want to take out a regular mortgage due to Sharia law restrictions.

According to media relations manager at Lloyds, Emile Abu-Shakra, up until recently, many Muslims have been obliged to rent “their whole lives”.

He said: “In the last couple of years, we’ve gone from offering services just in five branches – in Luton, Birmingham and London – to now offering them in every single branch around the country.

“So you can see that demand really has gone through the roof.”

Sharia Islamic Law states that making money from money is not permitted, therefore all forms of interest are forbidden.

Risk sharing is the basis of the Islamic financial model, whereby the bank and customer share any risk involved in an investment in an agreement that sees any profit divided between them.

The latest statistics from Datamonitor show the Islamic mortgage market will grow by 47 per cent per year and may be worth £1.4 billion by 2009.

Tags: year, offering services, Emile Abu-, Islamic, mortgage market, couple

Debt “now outweighs GDP” in UK

The debt mountain in the UK has now grown so high that it is now bigger than the country’s entire gross domestic product (GDP).

This is the shocking new claim from consultants Grant Morgan, whose research on debt, published today, lays bare the true scale of the problem in Britain.

The figures show a total debt – made up of mortgages and unsecured loans, among other debts – of £1,345 billion, which slightly outweighs a national GDP of £1,330 billion.

Stephen Gifford, chief economist at Grant Thornton, said: “Britain’s huge level of consumer debt is symptomatic of the country’s well established ‘buy now, pay later’ culture.”

He added: “Fortunately, most consumer debt is secured and can be repaid over several years otherwise we would be technically bankrupt.”

The implications of the research is stark. Extrapolating from national consumer debt as it currently stands, 2007 debt levels would now take until January 5th next year to be covered by GDP.

By contrast, just ten years ago, debt would already have been swallowed up by August.

Tags: product, shocking new claim, consultants grant morgan, country, Gross domestic product

Holidaymakers miss home within 10 days

Brits holidaying abroad begin to miss home within nine to ten days of arriving at their destination.

That is according to new research by Halifax Travel Insurance which shows that holidaying Britons often take a number of ‘British’ items abroad with them to remind them of home.

The top items include teabags, British beer, cornflakes, ketchup and biscuits but many holidaymakers also pack DVDs of British shows as they are not keen on the prospect of foreign TV.

According to Halifax, this could potentially lead to financial loss for many if their travel insurance policy does not cover the loss or damage of these things.

In addition, many travellers could get themselves into trouble by not checking regulations in particular countries regarding the importation of specific items.

“Holidaymakers who do not check regulations regarding the importation of food and drink into a country could find items being confiscated and destroyed,” said Vicky Emmott from Halifax Travel Insurance.

“Visiting the FCO [Foreign and Commonwealth Office] website before departure can help travellers avoid delays and incidents when taking consumables abroad.

“Travellers taking expensive DVDs and music abroad should also ensure that it is adequately covered should it be damaged in transit or stolen,” she added.

The research showed that people from Wales, the Midlands and eastern England are the most likely to miss home while abroad.

Tags: country, foreign, DVDs, Halifax Travel Insurance, foreign tv.according, Commonwealth Office, vicky, economics

DIYers hope to add £5k to property value

More and more of us are carrying out home improvements, with the majority doing so to increase the value of our property.

New research by Halifax shows that people with a mortgage are becoming more active when it comes to DIY and over a quarter of us believe that the work we have carried out in the past 12 months will add £5,000 to the price of our homes.

Home improvements have increased in popularity in the last year, with 58 per cent of homeowners having carried out some work – 12 per cent higher than the previous year.

In addition, young homeowners are doing more work, with redecorating still the most popular improvement in the country.

Gardens have become the second most popular area to focus our DIY skills on, with 41 per cent of mortgage-holders doing some kind of work in the yard.

The kitchen is the area most people would like to change in their home, however, the work does not often get done with finances and lack of know-how being touted as the most common restricting factors.

The cost of home improvements can be stifling and many people are forced to take out a loan in order to be able to afford the work.

Halifax found that 11 per cent of homeowners have spent over £10,000 on improving their property in the last 12 months.

A further 33 per cent spent between £2,500 and £10,000, while 51 per cent forked out anything up to £2,500.

Homeowners are encouraged to ensure that they can realistically afford any home improvements that they may be planning before starting the work.

Tags: country, work, 12 months, quarter, year, Mortgages, home improvements, homes.Home improvements

Carry on insuring

With Bank Holiday approaching many people in the UK will be considering a caravan holiday.

Recent research shows that caravanning is quickly reaching popularity levels not seen in the country for decades and is being given an extra injection of cool with a number of high-profile celebrities choosing to spend their holidays this way.

The likes of Kate Moss, Robbie Williams and Jamie Oliver have been spotted enjoying a caravan holiday and the rest of the UK seems to be following suit.

However, Co-operative Insurance (CIS) is warning first-time caravanners to ensure that they have adequate insurance to cover a break of this kind.

“Many people take caravan breaks to escape the pressures of everyday life but it is important that holidaymakers are aware of the potential dangers and keep a watchful eye on their caravan and belongings to ensure that their trip remains stress free,” said David Neave from CIS.

According to the insurance firm, the average caravan claim sits at £1,826, with the most common problem being theft.

This is closely followed by storm damage, a crash, vandalism and accidental damage to contents.

CIS warns carvanners to take precautions such as immobilising the mobile home whenever they stop, fitting an alarm and locking doors and windows.

Tags: belongings, break, bank, GBP, cool, popularity levels, caravan holiday.Recent research, country

Carbon neutral targets looking ambitious

The government’s plans to make all new homes carbon neutral by 2016 have been given a huge vote of no confidence.

A survey of mortgage intermediaries, published by UCB Home Loans, has found that two thirds believe the target will not be achieved.

With just nine years remaining until the government’s target has to be achieved, the intermediaries pointed to the fact that fewer than 30 homes in the UK are currently carbon neutral.

This makes the 2016 target seem laughable and intermediaries were just as damming when asked if they thought the country would reach its carbon emission targets.

The government has set itself the task of reducing emissions by 60 per cent by the year 2050 but 44 per cent of intermediaries think that a target of 50 per cent would be ambitious.

“The views of intermediaries are important, because they are responsible for arranging a large proportion of all home loans – including new build developments,” said Keith Astill, managing director of UCB Homes Loans. “They deal directly with homebuyers and so are ideally placed to make a judgment.

“Whilst part of the reduction in carbon emissions will need to come from industry, the research indicates that most people are not yet aware of the actions that they will need to take if the UK is to meet its targets on carbon emissions.”

The research found that 98 per cent of intermediaries believe homeowners do not know the size of their carbon footprint even though the 21 million homes in the UK are responsible for 27 per cent of the country’s emissions.

Tags: environment, carbon emissions, ucb homes, nine years, country, director

Rics urges Hips postponement

The Royal Institution of Chartered Surveyors (Rics) has called for the introduction of home information packs (Hips) to be postponed.

The information packs, due to launch in 100 days, will give future buyers information estate agents might not see fit to disclose at the point of sale, such as local searches, sales statements and leasehold documentation as well as an energy performance certificate revealing their future home’s level of energy efficiency.

They are intended to encourage greater transparency in the selling process and slash the high number of sales which fall through each year.

Under current government plans, the information packs will become mandatory from June.

But Rics spokesman Jeremy Leaf insists comprehensive reform measures are needed to “sweep up all the problems with home buying and selling”, not just stop-gap solutions.

More seriously, Hips in their current form are irredeemably “depleted”, with “most of the stuffing removed”, he claims.

Meanwhile, the director general of the Association of Home Information Pack Providers (AHIPP) Mike Ockenden has staunchly defended the information packs, arguing that they would “greatly reduce the needless stress associated with buying and selling homes in this country”.

Tags: buying, sale, government, point, home buying

£300m cost of severe weather

The extreme weather we have been experiencing here in the UK in recent months is estimated to have cost us a whopping £300 million.

Damage suffered by our homes during the severe storms has left many people counting the cost of repairs, particularly if they do not have home insurance.

Barclays Insurance has revealed that the number of households suffering storm damage increased by 158 per cent in January 2007, compared to the same period last year.

The bank has revealed that 60 per cent of all home insurance claims currently being logged are weather-related, with the average claim being for around £500.

Although people with insurance have to endure going through the process of having their house repaired, the real victims are those who are not insured and must fork out for repairs themselves.

“This [storm damage] is devastating enough for a family so it is some comfort to know that they have adequate insurance and will get the assistance they need to get things repaired and back to normal as quickly as possible,” said Mark Till from Barclays Insurance.

“The extremes we have experienced in the last two months have kept everyone on their toes. From an unseasonably mild Christmas to snow across the country in the last few weeks and everything in between… it’s no surprise that we have seen a huge increase in the number of claims being made for weather-related damage.”

It seems that the severe weather we have been seeing lately may become a part of life in the UK in future years so taking out a home insurance policy may be a wise move.

Tags: betweenâ, country, surprise, Mark, Vehicle insurance, policy, barclays, Mark Till