Drivers warned against munching at the wheel

Although many drivers would not think twice about eating a snack whilst driving or taking a drink of water or pop, a recent report has revealed that actions such as these could be construed as driving without due care and attention by insurance firms, and as such drivers that are caught doing this could face insurance premium increases of up to 40 percent. Read more

Tags: driving safety, road accident, drivers, car insurance, Financial economics, eating while driving, insurance premium increases

Drivers affected by insurance company blunder

A payment blunder made by a popular vehicle insurance company has resulted in many drivers being stranded without insurance cover and having their insurance policies cancelled.

The blunder was made by Hastings Direct, and due to a mistake that the company made with regards to its charges and premiums over 2500 drivers were left with no insurance cover after their policies were cancelled by the insurance giant.

The drivers that have been affected by the problem were contacted in writing recently by the insurance company. The payment error that was the fault of the insurance company meant that the consumers in question had been paying too little for their cover. Policyholders are being offered refunds on a pro rata basis following the blunder, and the insurance company claims that it has kept the Financial Services Authority up to date on what is going on.

In a letter that was sent to the affected policyholders Hastings Direct stated: ‘You have seven days from the date of this letter in which to make alternative insurance arrangements. No cover under the existing policy will be in force after this period and no further notice of cancellation will be issued. May we take this opportunity to remind you that it is an offence under the Road Traffic Act to keep a motor vehicle on the public highway without valid insurance cover being in force.’

This has left customers of the insurance company angry and upset, and with the problem arising in the peak of the summer it is thought that many could be away on holiday and therefore not even realize that they are no longer insured.

Tom Smith
29th September 2007

Tags: car, blunder, cancelled, Insurance, policy, drivers, traffic, vehicle

Drivers swapping points to avoid ban

British motorists are prepared to go to extreme lengths in order to avoid the possibility of losing their licence and paying higher car insurance premiums.

With more and more speed cameras cropping up across the UK, drivers are willingly swapping penalty points with their loved ones to avoid having ‘too many’ on one licence.

Insurance firm Churchill has found that 495,000 people have swapped points in the past and a further 9.5 million (29 per cent) would be prepared to do so.

Aside from having to pay increased car insurance premiums, most drivers admitted that they simply could not bear for their loved one to lose his or her licence.

The reasons for this vary, with 21 per cent claiming it would prevent their partner from working, nine per cent saying it would make getting the children to school too difficult and ten per cent not wanting to be the only driver in the house.

Most of the drivers questioned said that they were aware that swapping points is illegal but nine per cent think that it is acceptable.

“This research shows the lengths that some drivers will go to in order to stay on the roads despite committing driving offences such as speeding,” said Frances Browning from Churchill.

“Trying to escape convictions by swapping points with another person is highly illegal and can lead to prosecution. The way to avoid a speeding ban in the first place is simple – drive responsibly.”

Churchill has given its support to government proposals which would see driving convictions graduated, meaning someone who drives only a little over the speed limit receives fewer points than someone who drives well over the limit.

Tags: uk, car insurance premiums, churchill, uk drivers, government, 5 million

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

Car Insurance Terms and Conditions

Most people will realise that car insurance comes attached with a range of terms and conditions. Having a policy does not allow you to claim under all circumstances possible, and should you break the terms and conditions given out by your insurer you may not be eligible should you need to make a claim. Read more

Tags: car insurance terms and conditions, life insurance, Insurance, drivers, trade, company deals, perfect sense, anyone