Gap insurance ‘more relevant’ for new cars

Guaranteed Asset Protection (Gap) insurance is more “relevant” for people who are buying a new car as opposed to a second-hand one, Auto Trader magazine has said.

Tom White, a spokesperson for the magazine, said that people considering buying a new car should look around for the most competitive Gap insurance deal.

“We’d always recommend some element of price comparison, but also benefits comparison – there are a number of different Gap type products so cover will vary considerably,” he commented.

Mr White noted that this type of insurance is more important for new and expensive cars, adding that it is therefore not an important consideration for all drivers.

According to the AA, the average car loses around 40 per cent of its value by the end of the first year.

By the end of the third year the average car will have lost around 60 per cent of its value if its owner drives about 10,000 miles a year.

Tags: owner, auto trader magazine, Gap, new cars, car

Thoresen Review set to give consumers financial guidance

The government has announced details of new guidance designed to help consumers make more financially aware decisions.

According to the British Bankers Association (BBA), the proposals are designed to deal with the core problems of a public lack of understanding and awareness of financial services and how banks can help.

Otto Thoresen has been appointed by the economic secretary to the Treasury to undertake the review.

Angela Knight, BBA chief executive, said: “The BBA believes better financial education is key to ensuring people can make sensible plans for the future and provides us with the best hope of addressing the problem of financial literacy at a national level.”

She added that the Thoresen Review has identified a real gap in the financial knowledge among the population.

The recommendations included the implementation of a national money guidance service to be governed by the principles of impartiality, supportiveness, crisis prevention and universality.

Budgeting, saving and borrowing, protection, retirement planning, tax and welfare benefits are some of the topics covered by the new guidance.

Tags: proposals, level, real gap, Alumni of the University of Bristol, economic secretary, financial, money, Gap

Travel insurance ‘particularly important’ for gap year students

Buying travel insurance can become “particularly important” when taking part in a learning holiday on a gap year, one financial expert has claimed.

STA Travel said that ensuring that the appropriate cover is in place can ensure a traveller is well protected against the unexpected.

A spokesperson for the firm said that learning holidays can be life changing but the initial costs quite high.

“It is imperative that the passenger covers themselves against potential costs if they were forced to cancel due to circumstances outside their control,” she added.

Insurance can help protect a traveller from the expenses of having to return to home in the event of an illness of accident occurring.

STA Travel also said that some sports such as kite-surfing can be dangerous so it is important for a traveller to make sure they are covered for any activity they take part in.

Up to 25 per cent of young travellers travel uninsured or underinsured, putting their parents’ homes and financial security at risk.

Tags: potential costs, place, illness, year one, security

Travellers need to remember European Health Insurance Card

Travellers need to remember to take their European Health Insurance Card (EHIC) with them when they go to Europe, warn insurance experts.

According to the AA, the card, previously known as the E111 form, offers health insurance which is always a “good idea” when travelling.

Ian Crowder, public relations manager for the AA, said that the EHIC is a reciprocal agreement with the NHS should allow holidaymakers to receive treatment in EU countries free or at low cost should it be required.

“[However], depending where you are may depend on the standard of service you get,” he added.

Research from gapyear.com states that a quarter of those who go travelling do so uninsured or underinsured which can put their parents’ homes and financial security at risk.

Up to 230,000 people take a gap year between the ages of 18-24 who have an average spend between £3-4,000.

A further 90,000 people take a gap year between the ages of 25 and 35 and spend an average sum between £6-9,000.

Tags: Ian Crowder, risk, Gap, eu countries, standard, security

Increasing numbers of students preferring to save over travel

Increasing numbers of students are foregoing a gap year to go travelling, preferring to put money away for property, according to new statistics.

Findings from Abbey revealed that 42 per cent of respondents are opting to save towards a deposit on a first home.

This is twice the number of students saving up to go travelling or for a new car after they have graduated.

Nici Audhlam-Gardiner, head of Abbey Mortgages said: “House prices have brought in a harsh new reality for students.”

“They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get onto the property ladder,” he added.

A further 21 per cent of past graduates thought they could definitely have saved more money while at university, while 2.9 million (17 per cent) wished that they had worked harder and played less, according to the figures.

Recent research from Abbey showed that up to 15 million Brits suffered financially as a result of being unprepared for big life changes.

Tags: result, Mortgage loan, Nici Audhlam Gardiner, gap year, property ladder, Gap, life changes, Nici

Gapyear travellers “don’t understand insurance”

People taking a gap year do not understand travel insurance and see taking it out as an obligation, according to one industry figure.

Tony Griffiths, the founder of gapyear.com, states that although gapyear travellers are becoming more aware of the importance of taking out insurance, they do not understand “what it is or what it does”.

Mr Griffiths also said that some travellers feed they are “indestructible”, particularly males who are aged between 18 and 24. He also added that many people have a “it won’t happen to me” attitude.

“The reality is most of the claims are for things like people falling off a curb. We had an example of someone who fell off a curb in Barcelona and broke their ankle.”

Gapyear.com is part of the Gapyear Company, which is an organisation that provides free information and advice to people considering taking a year out.

It states that 25 per cent of people on a gapyear have either no or inadequate insurance, and that the average spend of 18 to 24-year-olds while travelling is between £3,000 and £4,000.

Tags: cent, Financial economics, com, reality, Gap, Australia, figure, advice

Nationwide is fined

The Nationwide Building Society has received a huge fine after security flaws at the firm were exposed.

A laptop, belonging to a Nationwide employee, was stolen last year, potentially exposing around eleven million customers’ details.

The Financial Services Authority (FSA) says that the bank did not act quickly enough, not launching an investigation until three weeks after the laptop was taken.

The firm even allowed the employee to go away on holiday without asking what information was contained on the hard drive.

In response, the FSA has fined Nationwide for £980,000, even though no money was lost by any customer as a result of the theft.

“We have extensive security procedures in place, but in this isolated incident our systems of control were found wanting,” said Philip Williamson, Nationwide’s chief executive.

“We have made changes to fill the gap and improve our procedures further.”

Both the police and the FSA have said that they believe the laptop was stolen purely for computing reasons and the thieves were probably unaware of the information that it contained.

We can at least ensure that we do our bit to ensure we are banking safely by shredding any unwanted documents which have our details on them.

Tags: fine, exposed.A laptop, hard drive, holiday, executive, Gap, year, money