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

Insurance claims to rise due to bad weather

The motoring group, the AA, has recently said that vehicle insurance claims are set to soar as a result of damage caused by bad weather. During the winter months there are usually increases in vehicle insurance claims, as many people are involved in accidents due to the ice and snow on the roads. 

However, the AA says that further increases in insurance claims are set to result from the damage caused to the roads in the bad weather. Over recent weeks, where temperatures have fallen to their lowest in December for over a century, the roads in the UK have sustained severe damage, with many areas having to cope with huge potholes on the roads.

The potholes have come about due to water seeping under the road surface and then freezing, which then loosens the tarmac. This is then made worse by traffic driving over the loosened tarmac, which turns it into a pothole. These potholes have resulted in many drivers sustaining huge amounts of damage to their vehicles.

Often the damage sustained to vehicles involves the suspension, the bodywork, and the wheels, and one driver had to put in a claim for £14,000 after hitting a pothole, losing control of his car, and then crashing it. According to the AA drivers need to be very careful at present, as local authorities are still in the process of trying to repair the potholes.

The AA said: “It is really important that drivers keep a sharp eye out for potholes and keep their speed down, particularly on secondary roads, remembering that in wet weather deep potholes may be obscured by water. Cuts in road maintenance budgets of 20% mean that local authorities face very difficult choices on the roads they prioritise for repair. While they may fix the dangerous potholes, many are likely to go unrepaired.”

Tags: AA drivers, group, pothole, insurance claims, motoring group, Depressions, maintenance budgets, surface

Increase in insurance claims from gap year students

According to a recent report there has been a marked increase in the number of insurance claims being made by gap year students. One insurance firm has reported that the number of claims that are being made by gap year students on their travel insurance policies has leapt by more than half compared to a year earlier.

EssentialTravel.co.uk. which provides travel insurance, said that from December of last year and May of this year the number of claims on its backpacker insurance policy had increased by over 61 percent compared to the same period a year earlier. Just over 52 percent of claims were down to medical expenses, and over 18 percent were for personal effects according to the insurance firm’s figures.

More than half of the claims that were made originated in Asia and Australia, and officials said that this was due to the fact that regulations in these destinations regarding dangerous sports was more relaxed than in many other destinations. The higher claims for personal effects were put down to backpackers often travelling with costly items such as cameras, laptops, and similar high value gadgets.

The group also pointed out that the value of the claims being made by gap year travellers had increased over the past year, rocketing from £77 per claim to £584 per claim, which reflected an increase of 658 percent.

Stuart Bensusan, of EssentialTravel.co.uk, said: “It is unnerving, particularly for parents, to hear that claims from backpackers encountering mishaps abroad are on the rise, but it goes to show how important it is for them to take out adequate insurance before they leave. Preparing for a gap year abroad is arguably the most exciting time in a young person’s life and nobody wants to think about the potential pitfalls.”

Tags: fact, finance, Insurance, gap year, dangerous sports, group, travel insurance, insurance claims

AA report huge hike in car insurance costs

Figures that have been recently released have shown that there has been a huge rise in the cost of vehicle insurance, and the cost of cover could continue to rise. The research was carried out by the AA and showed that the average cost of car insurance has rocketed by a record 14 percent, and it could rise higher still. Read more

Tags: hike, car insurance costs, group, car insurance, United Kingdom, better car

Many homeowners could have worthless insurance

It has been revealed that millions of homeowners in the UK could be hanging on to insurance policies that are actually worthless as a result of a loophole relating to past convictions, according to a recent report. Read more

Tags: policy, home, homeowners insurance, home insurance, Household, economics, tiny fine, group

Credit crunch results in loss of sleep for many

A recent report has suggested that the effects of the ongoing global credit crunch is resulting in many of us losing sleep through worries over our finances and our futures. Read more

Tags: heating bills, worse nights, credit, group, credit crunch, finanicial stress, age

Barclays makes prediction on house prices and unemployment

The chief executive of the Barclays Group, John Varley, has recently spoken out about his predictions for both house price movement and unemployment in the UK over the course of this year.

There have been a number of predictions made by a variety of industry groups and professionals with regards to how quickly and by how much house prices will fall, as well as with regards to how fast and aggressively unemployment levels will rise.

Varley stated recently that over the course of this year he expected house prices to slide by around 10-15 percent, with Barclays having predicted a total slide of between 25-30 percent between 2007 and 2009.

He stated: “We’re probably about halfway through that period, so in other words we’ve got another 10-15 percent to fall between now and the end of next year.”

He also said that he expected unemployment levels to rise by over 7 percent over the course of this year.

With regards to unemployment levels he stated: “I think an additional 700,000 people unemployed over the course of the next 12 months is certainly possible to contemplate.”

He said that banks, central banks, and the government were partly to blame for the recession and the financial problems being experienced in the UK.

He also said that Barclays had refused a government bailout because it wanted to remain independent so that its growth overseas would not be marred, stating: “If British taxpayers’ money is going to be deployed in a bank as a result of the government owning shares in that bank, then a big part of the agenda of that bank and a lot of that incremental capital has to be directed at the UK. Our UK business is extremely important to us, but we employ more people outside the UK than inside the UK, we have more customers outside the UK than inside the UK, and it’s very important to me that that agenda of growth outside the UK is unimpaired.”

Tags: Business Finance, Central bank, house, group, Barclays Group, unemployment, barclays house prices

MPs state loss of personal data should be classed as an offence

Instances of data loss and security breaches by banks, financial institutions and even government agencies have been at the forefront of the financial headlines over recent months, with one of the most major instances of sensitive data loss resulting from the loss of two discs containing the banks details of 25 million customers, which was lost by HM Revenue and Customs last year. Read more

Tags: Instances, Select, lottery winners, hidden problems, forefront, Driver and Vehicle Licensing Agency

Credit card users ‘want online services’

Most credit card users want the option of managing their account online, although it is not a key consideration when choosing a credit card.

Eighty per cent of respondents in a survey conducted by consumer research group Global Reviews said they would research cards online and 68 per cent said they would like to be able to manage their cards through the internet.

However only 40 per cent of those surveyed said being able to manage their cards online was an important consideration when choosing a card.

“As household budgets tighten across the UK, many credit card customers will start to notice the rates they have been paying on their credit cards and begin to look around for better deals,” Adam Goodvach, director of Global Reviews, told the Press Association.

Consumers using their credit or debit cards for online shopping were recently warned that their card details may not be as secure as expected. A test conducted by security consultancy SecureTest found that UK online businesses make “fundamental flaws” when handling their customers’ information.

Tags: online services, Visa Debit, Press Association, card, business, group global reviews, Eighty

Identity theft victims older than fraudsters

Consumers who are victims of identity theft are older than the fraudsters they are conned by, shows new research.

Findings from CIFAS, the UK’s Fraud Prevention Service, revealed that males in their 40s are the most likely to become victims of identity fraud than any other age group.

Peter Hurst, chief executive with CIFAS, said: “While our research into fraudsters revealed that the typical fraudster seems to be getting younger, this displays a quite different picture.”

He added that the CIFAS research shows that that the more tech-savvy, younger, sections of society are more aware of the need to protect their data, and therefore take greater care.

Those in their 40s, who may be seen as more resource rich and burden light compared with younger spenders, are supposedly a particular niche group to exploit, said the service.

Instances of identity theft are thought to be on the rise with nearly 30 per cent of Brits falling victim to identity theft within the last 3 years, according to a poll of UK credit professionals, by the Credit Show.

Tags: Social Issues, younger spenders, picture, group, Cifas, credit, shows new research, rise

Online shopping more popular than ever with consumers

Latest research has revealed that online sales rose by more than 50 per cent in the three months leading up to Christmas.

Internet sales for 2007 totalled £46.6 billion which equates to 15p in every pound spent on retail in the UK was online, according to figures from the Interactive Media in Retail Group (IMRG) study.

James Roper, the chief executive of the e-retail organisation, said: “Virtually all the growth in retail is now online.”

“There is no growth anywhere else and it is taking more and more business from the high street to online channels. Internet has become the dynamo of retail. It is where all the growth is now,” he added.

Online consumers splashed out £15.2billion between October and December alone, the report showed.

Sales of electronic goods increased by 60 per cent compared with December 2006, proving to be the most popular items to buy over the internet.

Meanwhile, reports from Argos claimed that the Nintendo Wii was one of the most popular products with consumers at Christmas.

Games sales were reportedly up by 40 per cent said the retailer.

Tags: report, Nintendo, interactive media, online channels, retailer, group, popular items

Insurance claimants to have sincerity tested by new technology

Insurance providers are to test the sincerity of claimants by using Voice Risk Analysis (VRA) software, according to new reports.

The software measures the level of stress in a caller’s voice sending messages such as ’stress’, ‘excitement’, and ‘high tension’ to diagnose the truth of a claim.

Digilog, the company behind the technology, has 16 insurance clients, including esure, Halifax, Provident and Highway, but has been criticised by human rights group Liberty for being unreliable.

Speaking to the Observer, Gareth Crossman, Liberty’s policy director, said: “It assumes that stress is indicative of fraudulent behaviour [but it] should only be used to indicate where further questioning might be appropriate.”

The Association of British Insurers (ABI) has also been sceptical about the new technology being able to cure insurance fraud.

According to the ABI it costs £1.6 billion a year and adds an extra five per cent to premiums.

ABI spokesman Malcolm Tarling said that no insurers are going to rely on it solely because it measures stress patterns – and “when you claim, you have a certain degree of stress anyway”.

Tags: sincerity, Liberty's policy director, Insurance, crossman, tension, group, tarling, caller

Millions of Brits miss credit card payments

Approximately 5.5 million credit card customers missed payments in the last year according to research from Moneysupermarket.com.

The findings revealed that 13 per cent of spenders skipped a bill payment while credit card payments are the most likely to be missed with seven per cent going unpaid.

Steve Willey, head of credit cards at moneysupermarket.com, said: “Close to three million credit card holders will have paid out over £35 million between them in penalty fees.”

“But it is the damage to their credit rating that is more costly to them and to the other 2.5 million consumers who have missed payments elsewhere,” he added.

Credit card bills are the most likely debts to be missed by those aged 25, while the 25 and 34 age group also proved the worst at repaying with 12 per cent of respondents not keeping up to date.

The 18 to 24 age-group are most likely to miss mobile phone payments.

Meanwhile Moneysupermarket.com has also warned that specialist insurers can be the most expensive insurance agents.

Tags: bill, Credit Cards, Steve Willey, percentage, Credit card holders, Mobile phone, cellular telephone

Banks crack down on credit cards for Christmas

The amount of time allowed for one to pay off a credit card is to be cut substantially by some banks over the holiday season.

Both NatWest and the Royal Bank of Scotland have given their customers just ten days after January 2nd to pay off their balances before late payment and interest charges are levied.

The change in rules has caused an outcry from consumer groups who claim that it is a deliberate move to charge customers at the time of year when they use their credit cards the most.

A spokesman for the consumer group Which? said: “Many people will use their credit cards over the festive period and wait until they get paid in January before paying off this balance.

“But this shorter interest-free period may not give cardholders the same flexibility and many will incur charges.”

All the banks that have slashed the time given to pay off credit cards are owned by the Royal Bank of Scotland.

Tags: which, time, credit, Many people, bank of scotland, festive period, Royal Bank of Scotland, group

Garden goodies ‘attract thieves’

People in the UK should ensure that the contents of their gardens are adequately insured as opportunistic thieves may be tempted to help themselves.

That is according to John Potter, the director of Saga, who has advised Britons to check that their policies cover items like garden furniture.

“Even the more modest garden furniture sets can cost hundreds and whilst many policies, like Saga’s, do provide cover as standard it is important for people to check to ensure their cover truly reflects the value of their set,” he said.

Research from the Target Group Index showed recently that more than a million people in the UK spend £150 each year just on plants.

“Add to that the cost of a barbecue, patio heater, garden ornaments, garden furniture sets and even bird tables and bird baths and the cost of a garden can soon run into thousands,” Mr Potter added.

A recent report from Halifax warned that during the summer months, many homeowners risk invalidating their home insurance by leaving windows open.

Tags: summer, Index, Insurance, plants, risk

New car loans figures from Halifax

New research from Halifax has shown that January and August are the most popular months for applying for a car loan.

According to Halifax Unsecured Personal Loans, the most popular age group for taking out such a loan – forming around half of total applicants – was the 30-49 group.

The figures also show that 67 per cent of loan applications were made by men

Neil Chandler, head of Halifax Unsecured Personal Loans, said: “Purchasing a new car takes a lot of time and thought as it is a big financial commitment.

“It is important to choose a finance deal which suits you best, leaving you free to sit back and enjoy your new car.”

More generally, the new report says that there are currently around 31 million vehicles on Britain’s roads, with 2.3 million purchased last year.

The research was undertaken by Halifax Unsecured Personal Loans in anticipation of the new 57 licence plates, which are to hit British forecourts next month.

Tags: group, credit, report, car loan.According, new 57 licence, year, loan applications

Financial etiquette ‘needs tightening’

British consumers need to tighten up their financial etiquette, according to a new survey carried out by CreditExpert.co.uk.

A survey of 1,500 adults shows that over two-fifths of Britons would lend as much money as possible to a friend in financial difficulties.

CreditExpert’s research shows that Londoners display the greatest generosity to their friends, with nearly half (47 per cent) indicating that they would help out a friend in need.

When buying drinks at social occasions, almost half of people also say they would buy an entire group a round of drinks.

Dating Britons also appear reluctant for someone else to take care of a dinner bill, with four-fifths contending that the person who invited the date should pick up the bill.

Jim Hodgkins, managing director of Credit Expert.co.uk, said: “We’re regularly faced with financial etiquette dilemmas and as well as being important from a social standpoint, they’re also significant financially.”

He added: “It’s all well and good buying drinks for everyone at the bar – but it doesn’t always pay to be generous. If you’re running up debts that you can’t pay off, you could be damaging your credit rating.”

Tags: date, finance, group, social occasions, credit, buying drinks, cent, good

Hips hang in the balance

The future of Home Information Packs (Hips) hangs in the balance today (May 16th).

A vote is due to take place in the House of Commons to decide whether the packs should become a mandatory part of the home-selling process from June 1st.

The Conservative party is against their introduction and many industry figures have voiced their concerns of the effect they will have on the market.

The National Association of Estate Agents, the Royal Institution of Chartered Surveyors and the Law Society all oppose Hips in their current form.

Paul Smith, chief executive of estate agents Spicerhaart Group, has raised concerns that Hips could lead to a monumental housing market crash.

“The current legislation is in a mess and will prevent immediate marketing of homes affecting buyers and sellers alike,” he said. “The mandatory requirement to have a full EPC (Energy Performance Certificate) in place prior to marketing will delay the process by weeks, as there are simply not enough trained energy assessors.

“We are calling for the government to allow interim energy assessments to be used for all properties.”

However, the argument has been countered by the Association of Home Information Pack Providers (Ahipp) which says a delay in the introduction of Hips will have a negative effect on the UK’s climate.

“This week’s vote is a result of political game playing and could significantly impact the UK’s climate change over the next few years,” said Paul Broadhead from Ahipp.

“[The vote] will not just impact the future of Hips but the future of the EPC and our environment – the climate change agenda cannot wait, or be made to suffer as a result of political game playing.”

The introduction of Hips in just over two week’s time will be debated by MPs today.

Tags: Conservative Party, Environmental Issue, market.the national association, week, UK's climate."This week

FTBs benefit from landlords selling up

First-time buyers (FTBs) in the UK are benefiting from a trend which is seeing landlords selling their properties.

Statistics from Alliance and Leicester show that buy-to-let mortgage holders are beginning to sell some of their properties, with most making big profits.

According to the firm, ten per cent of landlords sold one property in the last two years, while 42 per cent of FTBs snapped up a landlord-owned house.

Head of specialist mortgages at Alliance and Leicester, Jeremy Claridge, is pleased that FTBs are taking their chance to get onto the property ladder.

“It is heartening to see that first time buyers are benefiting the most from the sale of buy-to-let properties with nearly half having bought from a landlord,” he said.

“With many believing the boom in buy-to-let has priced first time buyers out of the property market, the research highlights it is not all doom and gloom for first-time buyers. Instead, they are the group gaining the most.”

A quarter of landlords who sold their property in the last two years made a return of more than 30 per cent, with only two per cent reporting a loss.

This bodes well for the future of the buy-to-let market as does the fact that 29 per cent of landlord-owned properties sold since 2005 went to existing or new landlords.

Tags: group, Head of specialist, cent, landlord, benefit, half, United Kingdom, loss

Over 55s not ready for retirement

Millions of Britons aged 55 or over have not even begun to think about life after retirement.

That is according to new research by Abbey which found that around two million people in this age group have given it no thought at all.

In addition, 4.5 million people have not made plans for what they will do once they stop working.

This statistic is worrying many observers who say that many people are going to head into retirement and face a financial crisis due to their wayward banking.

The next generation is not looking much better either, with 1.8 million people between the ages of 45 and 54 not having considered retirement.

“This research shows the potential retirement time bomb that the 50 plus generation are facing,” warned Reza Attar-Zadeh, head of savings at Abbey.

According to Abbey’s study, one million people over the age of 55 feel that they will have to work through their retirement as they have little money put aside.

Added to this, 1.5 million in the same generation say that their home is their only form of financial insurance to see them through their twilight years.

Tags: Social Issues, one million, Financial services, group, head, crisis

John Charcol unveils buy-to-let mortgage brace

Mortgage broker John Charcol has launched two new tracker mortgages for buy-to-let investors, with rental cover requirements which are “not too onerous”.

One of the John Charcol mortgages possesses a 90 per cent loan-to-value (LTV) rate and will track the Bank of England base rate at plus 0.74 per cent for the term.

No early repayment charges apply and rental cover of 100 per cent is also applicable to the deal.

The group’s other package has a maximum LTV rate of 85 per cent and is available to both new purchasers and remortgagers.

Its rate is set at the Bank of England base rate plus 0.39 per cent, with the fee for the package set at £999.

Ray Boulger, senior technical manager at the broker, said that with gross rental yields on many other packages seriously restricting choice, the two mortgages “have been designed with rental cover requirements that are not too onerous”.

He added: “For most buy-to-let investors the choice for the best value mortgage tracker is now primarily between taking out a cheaper two-year tracker, with a view to continuing to take up a new deal every two years, or securing the convenience of a lifetime tracker at a slighter higher rate.”

Tags: base, cent, view, LTV, manager, package, Loan to value, group

Zurich launches anti-fraud team

A new investigation team has been established to deal with fraudulent motor insurance claims.

Zurich has set up the team in order to tackle the crime and the firm feels that having a group of professionals who are dedicated to fighting fraud is the way forward.

It means that there will now be motor fraud specialists who can focus completely on eliminating fraud and do not have to worry about dealing with other claims as well.

“The main objective of this scheme is to ensure we enable the teams to focus solely on the elimination of fraud,” said Scott Clayton, claims fraud and investigations manager at Zurich.

“The Insurance Fraud Bureau findings show that approximately 22,500 staged and induced motor accidents have taken place across the country since 1999 – this figure has increased year-on-year during that period.”

By cracking down on insurance fraud, Zurich believes that it will be able to offer benefits to its law-abiding customers by cutting premiums.

“By making it more difficult for individuals to commit fraud, we hope these new teams will act as a deterrent to would-be criminals and reduce the extra five per cent premium paid charged to honest customers to meet the cost of fraudulent claims,” said Tony Emms from Zurich.

The establishment of the anti-fraud team is good news for people looking to get car insurance, not only because of the potential financial benefits, but also as insurance fraud is often linked to other crime.

Tags: cent premium, investigation, emms, insurance fraud bureau, group, crime, Zurich Financial Services

Debts hitting the young

Debts are hitting the young, with over half of England’s teenagers having experienced debt by the time they are 17, according to a new survey.

The survey, by pfeg (Personal Finance Education Group), found that 90 per cent of teenagers worry about money and spending, and two thirds think about money on a daily basis.

When it comes to overdrafts and credit cards, 90 per cent view them as an easy way to spend more than they earn.

The survey was conducted as part of a schools initiative being mounted by the pfeg in a bid to deliver improved personal finance education to the young.

Wendy van den Hende, chief executive of pfeg, said: “We owe it to our young people to ensure that they have the financial acumen to deal with the responsibilities of being an adult.”

“We firmly believe that incorporating financial education into the existing school curriculum in a way that is relevant to young people’s lives is the best way to help them gain and retain the financial skills they need for the future.”

Consumer debt in the UK has now exceeded £1.25 trillion.

Tags: Wendy van den Hende, england, Credit card, teenagers, Youth, trillion, finance education, group