Switching and saving is easier than ever

There are many different ways to try and save money on your monthly outgoings these days. You can go through your income and expenditure, and try and cut back on luxuries and money spent on social events. You can also go through and cancel any unused subscriptions, such as gym or magazine subscriptions that you don’t really make use of. Read more

Tags: home, pet, Loans, Mortgages, Utilities, cards, Insurance, credit, car, electricity

‘Simple steps’ to save money on premiums

There are simple ways of reducing the money paid out on insurance premiums, an industry expert has explained.

According to LifeSearch, there are five principal steps in cutting back on unnecessary spending on life cover.

It lists these as, shopping around, switching existing insurer, acting early, quitting smoking and considering family income benefit.

LifeSearch suggests that now is an excellent time to buy life insurance, as premiums are at their lowest for several years, with the price of cover falling by over 40 per cent in the past five years.

“If you can decide which product you should have on the grounds of one factor, such as price, then websites which compare that factor must be a good thing…So if you know exactly what you want, and you are right, comparison sites and aggregators can be useful, ” said Tom Baigrie, managing director of LifeSearch.

One particularly useful piece of advice for those considering life cover could be to buy it as soon as possible, as the price goes up the older you are.

Tags: product, finance, Financial services, Insurance, life insurance

Huge difference in car insurance premiums based on jobs

A recent survey has shown that there is a huge difference in the amount of money drivers have to pay for their car insurance based on their job – even in cases where their jobs do not involve driving in many cases.

As part of the research thirteen insurance companies were used and quotes compared for 465 different professions. The results of the research showed that there was a difference of around £850 between the premiums paid by those in the highest bracket professions and the amount paid by those in the lowest bracket professions.

At the top of the league tables and paying the highest in terms of insurance premiums are footballers, who are charged an average of £1348 a year for fully comprehensive car insurance. Other professions in the top ten included comedians, who were charged the second highest premiums, stuntmen, circus employees, cab drivers, fortune tellers, builders, and national press journalists. Other professions made up the top fifteen highest paying policyholders, including bin men, driving instructors, mechanics, telephone salesmen, and bizarrely beekeepers.

Amongst those paying the lowest premiums on their car insurance cover were secretaries, who enjoyed the lowest premiums of all the professions included in the research, police officers, paramedics, doctors, lawyers, bank managers, teachers, firemen, and computer consultants. One insurance professional stated: “Insurers assess risk in many different ways — one of which is profession.”

However, she added that it was still important for people to compare quotes despite their profession, as many insurance companies also base premiums on their own claims experience of different professions.

The research was carried out by insurance price comparison website confused.com, and in order to get the different quotes the company used the character of a man aged 32, living in the London area, driving a Ford Mondeo, and enjoying maximum no claims bonus.

Tom Smith
5th November 2007

Tags: car, vehicle, Insurance, depending, price

FSA to publish new PPI guidelines

The UK’s financial regulator, the Financial Services Authority, is to publish new guidelines in relation to Payment Protection Insurance on its website next year.

Payment Protection Insurance, or PPI, has been at the centre of controversy over the past year, with many claims that this type of insurance was being forced onto borrowers, mis-sold, and in some cases added onto finance deals without the consumers even knowing about it. Banks and lenders make a lot of profit on the sale of PPI, but in many cases customers end up with expensive policies that they cannot even benefit from.

Payment Protection Insurance is designed to help those taking out finance, such as credit cards, loans, and other forms of credit. The idea behind the cover is that consumers will be covered for a specified period in the event that they are unable to work and therefore make repayments due to redundancy, illness, or accidents. However, research was carried out by various agencies, and the industry came under severe criticism for the inappropriate sale of policies amongst other things.

Many people have ended up purchasing PPI that is not suited to their needs as a result of this mis-selling, and the FSA aims to steer customers towards suitable plans based on their needs via the website. Customers will be asked a number of questions on the site, and will then be able to view a choice of suitable policies so that they do not end up purchasing inappropriate PPI.

In addition to helping consumers to find the right PPI policies for their needs, the FSA has also promised that it will be taking far more stringent action and imposing far higher fines on companies that are found to be mis-selling Payment Protection Insurance in the future.

Tom Smith
4th November 2007

Tags: ppi, protection, Insurance, misselling, payment, credit, finance

Make sure your kids’ belongings are insured

Parents in the UK are being urged to ensure that their children’s belongings are insured after research showed that kids today carry around an array of expensive gadgets and items when going to school or college.

This includes mobile phones, MP3 players, iPods, handheld games consoles, digital cameras, and even expensive jewellery in some cases. Industry experts state that the cost of replacing the items should they be lost, stolen, or damaged could be very high, and therefore parents should make sure that there is adequate insurance in place.

In addition to a range of expensive gadgets and jewellery, many kids also carry costly sports equipment or musical instruments to school or college, and again the cost of replacement in the event of loss, damage, or theft can be very high.

Parents are urged to ensure that the insurance cover in place covers all of these items, so that there is no financial loss in the event of a loss, theft, or damage to the items.

According to a recent survey around three in five school and college kids carry a mobile phone, and around one in five carry a handheld games console. As an increasing number of mobile gadgets comes on to the market, kids today are going to school laden with an array of expensive items making them targets for thieves. The average student now carries around £250 worth of items according to reports.

Insurance experts advise parents to contact their insurance companies and ensure that the goods carried around by their children are covered under personal possessions.

Parents may want to shop around to compare the cost of this cover, as it can vary from one provider to another. Parents should also make sure that they disclose all expensive items that their child carries to ensure that the cover provided is adequate.

Tom Smith
3rd November 2007

Tags: children, stolen, mp3, Insurance, electrical, lost, broken, expesive

Consumers can enjoy new home insurance deal from bank

One of the nation’s leading building societies, the Nationwide, has recently launched a new home insurance package that offers a number of benefits to consumers.

Home insurance is a popular and important form of insurance cover, and is designed to protect consumers from the financial losses associated with their home and their belongings. Many people claim on their home insurance each year for anything from flood damage and accidental damage to theft or loss.

According to recent reports the Nationwide is offering a special deal where consumers can enjoy substantial savings when they sign up for home and contents insurance cover as a bundle package. Although these insurance types are available as separate products most insurance companies offer s discount to consumers taking both as a bundle, which enables the consumer to enjoy increased convenience and lower premiums.

Officials from the Nationwide have stated that consumers that opt for this new home insurance cover will be able to enjoy improved customer services and well as better cover. The cover can include unlimited cover on buildings cover and cover for items in the garden.

Consumers are advised to familiarise themselves with what the policy covers before they sign up, as this will enable them to check that the cover is suited to their needs before they make a commitment.

Nationwide is so confident about this insurance product that it if offering up to £100 refund on the difference of better cover can be found for the same premium elsewhere.

The cover offered by the building society will also cover students in the family that are living in student accommodations. Customers that pay by monthly instalments will not incur fees for the privilege of paying on a monthly basis.

Tom Smith
3rd November 2007

Tags: Insurance, home, bank, cover, deal

Consumers can enjoy new home insurance deal from bank

One of the nation’s leading building societies, the Nationwide, has recently launched a new home insurance package that offers a number of benefits to consumers.

Home insurance is a popular and important form of insurance cover, and is designed to protect consumers from the financial losses associated with their home and their belongings. Many people claim on their home insurance each year for anything from flood damage and accidental damage to theft or loss.

According to recent reports the Nationwide is offering a special deal where consumers can enjoy substantial savings when they sign up for home and contents insurance cover as a bundle package. Although these insurance types are available as separate products most insurance companies offer s discount to consumers taking both as a bundle, which enables the consumer to enjoy increased convenience and lower premiums.

Officials from the Nationwide have stated that consumers that opt for this new insurance cover will be able to enjoy improved customer services and well as better cover. The cover can include unlimited cover on buildings cover and cover for items in the garden. Consumers are advised to familiarise themselves with what the policy covers before they sign up, as this will enable them to check that the cover is suited to their needs before they make a commitment.

Nationwide is so confident about this insurance product that it if offering up to £100 refund on the difference of better cover can be found for the same premium elsewhere. The cover offered by the building society will also cover students in the family that are living in student accommodations. Customers that pay by monthly instalments will not incur fees for the privilege of paying on a monthly basis.

Tom Smith
31st October 2007

Tags: savings, benefits, Insurance, cover, nationwide, home

Insurance company to receive training from Samaritans

The leading insurance company Legal and General is to receive training from the Samaritans according to recent reports.

Samaritans is a group that is trained to deal with sensitive situations in a sympathetic and understanding way, and it is known that insurance company staff members often have to deal with such sensitive situations yet do not receive the actual training to do this properly. It is thought that training from the Samaritans could enable Legal and General employees to adopt a far more understanding attitude.

According to officials from the insurance company many of the people that make contact with regards to making a claim are in a situation that requires sensitive handling. Both consumers claiming for themselves and those claiming with regards to another party can be in extremely sensitive situations, such as those ringing the insurance company after a loved one has passed away.

The Samaritans will be aiming to teach Legal and General employees how to handle sensitive situations such as the ones faced by insurance companies everyday, yet remain professional and friendly throughout. Many of those contacting insurance companies are going through a very tough time, and it is thought that the sensitive handling and manner of the employees at the insurance company could help to ease the situation somewhat.

An insurance official stated that those contacting insurance companies to make a claim often had enough on their plates without having to be dealt with by people that were neither sympathetic nor understanding. He said that this training can help employees to be more sensitive and understating whilst still dealing with the claim in a speedy and efficient manner.

Tom Smith
29th October 2007

Tags: company, good, sympathy, Insurance, samartatins, employees

Consumer fail to shop around for car insurance

According to a recent survey carried out by Sainsbury’s, many consumers in the UK are failing to take the time to shop around for their car insurance, and in many cases end up paying considerably more than they have to for their vehicle insurance by going with the first quote that the get.

Sainsbury’s officials state that the cost of insuring a vehicle has been rising over the years, but an alarming number of consumers still won’t take the time to compare premiums in order to cut back on the cost of car insurance.

According to the research carried out by Sainsbury’s 20% of drivers in the UK obtained just one quote when they last bought vehicle insurance. It is advisable for consumers to obtain at least three quotes before making a decision on car insurance, as the cost of cover can vary dramatically from one insurance provider to another, and can make a big difference to drivers’ monthly instalments or total premium costs.

There are also a number of other factors that affect the cost of vehicle insurance, and some insurance professionals have been offering advice to consumers on how they can cut the cost of cover. In addition to shopping around for insurance cover, consumers can save money by opting for a smaller engine size and by cutting down on mileage.

For younger drivers the Pass Plus scheme is a good way to cut back on the cost of cover – car insurance for younger drivers has rocketed in price over recent years and can be extremely expensive, even at the more basic levels.

According to officials from Direct Line younger drivers that take the Pass Plus course after passing their initial driving test could benefit from around 35% off the cost of their insurance premiums, which could amount to a substantial sum based on the average premium for a younger make driver of £2000.

Tom Smith
25th October 2007

Tags: pass, cover, quote, car, Insurance

Bank highlights major UK protection deficit

There is a £2.3 trillion protection gap in Britain, Sainsbury’s Bank said yesterday.

According to the high street bank, many people do not take out life cover with their mortgages and this is largely contributing to the deficit.

Clare Moyles, a spokesperson for the bank, said: “Anybody aged 18 plus with a family really needs to be thinking about protecting their family and protecting their mortgage.”

She added that it was not a priority on many people’s “agenda”.

The Association of British Insurers recently found that one in every three Brits is without life insurance and the same figure are uninsured through not renewing life cover for five years.

Furthermore, it revealed that between 2005 and 2006 people paid £41,168 million on life insurance premiums and £45,469 million on life insurance benefits.

Sainsbury’s Bank recently advised young people to shop around beyond their mortgage lender for a better deal on life insurance to avoid losing out on significant savings.

Tags: Association, Sainsbury, Types of insurance, Sainsbury's Bank, Insurance, lender, Bank highlights, mortgage lender

Insurers discover increased cases of fraud

British insurance companies are uncovering greater numbers of frauds every day.

According to the Association of British Insurers (ABI) in excess of £1 million worth of fraudulent insurance claims are made every day.

This number of claims uncovered and prevented rises to a total yearly claims figure of £480 million which represents three times the amount found in 2003.

Nick Starling, Director of General Insurance and Health at the ABI, said: “Fraudulent insurance claims cost £1.6 billion, and add £40 a year to the premiums paid by honest customers.

“But the industry is fighting back. Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain”

The majority of fraudulent claims (85 per cent) involve the claimant exaggerating the value of the loss of money or possessions, with over half of falsified claims regarding household insurance.

One example of a fraudulent claim concerns a man who asked for “recovery expenses” after allegedly suffering a heart attack on holiday in West Africa. He in fact used the money for visits to local brothels.

Tags: fraudulent insurance claims, value, general insurance, Insurance, price, three times, man, fraud

Young people should ‘consider insurance options’

Young people should shop around more for life insurance providers, an industry expert has said.

According to Clare Moyles of Sainsbury’s Bank, younger people are often inclined to use the same provider for life insurance as they have to take out a mortgage.

She said: “Younger people tend to go with their mortgage lender because they might be a first time buyer and that tends to be the easiest thing to do.

“Not shopping around is a disadvantage for them because with life insurance your premiums do stay the same.”

For those who are “younger and healthier”, she added, premiums will cost less. By sticking with one lender without looking at the other options, people are missing out on possible savings.

Information from the Association of British Insurers this year showed that £160 million per day was paid out in Britain in 2005 by the UK insurance industry.

This figure comprises £17 million in death benefits and £144 million paid to pensioners and long term savers.

Tags: United Kingdom, Types of insurance, time, shopping, Title insurance in the United States, economics

Parents urged to insure kids’ belongings

Parents in the UK are being urged to insure the belongings of their children, as they head off to school and college armed with everything from their text books and pencils to their mobile phones and games consoles.

Children these days, particularly secondary school and college students, carry a range of valuable items with them, and the cost of replacement if the items get accidentally damaged, or are lost or stolen, can be extortionate.

According to recent research the value of items that the average secondary school student now carried around is about £250. Parents of secondary school and college kids are therefore being advised to make sure that their children’s more expensive belongings, such as hand held consoles and mobile phones, are insured to avoid the financial implications of loss, damage, or theft.

Research shows that around 20% of secondary school students carry a hand held games console, and around three in five have a mobile phone that they carry with them. Additional cover may be needed for items such as ipods, MP2 players, and even musical instruments, which can prove to be very costly to replace if they are accidentally damaged or stolen. Sports equipment also needs to be covered wherever possible, as this can also prove costly to replace. Parents are urged to contact their insurance companies and ask for the items to be covered under personal possessions.

There are a number of insurance companies that can offer this type of cover, and parents are advised to shop around to make sure that they get affordable cover that offers competitive prices without compromising on the level of cover provided.

Tom Smith
17th October 2007

Tags: personal, companies, belongings, kids, claim, valuable, lost, cover

Don’t DIY before checking your insurance

Brits are being advised to check their home insurance before undertaking home repairs or DIY projects.

New figures released today show that three quarters of a million people have inflicted £350 million of damage to their homes attempting to recreate improvements they have seen on home makeover TV shows.

While many household accidents – such as cracking a bath or smashing the glass in doors – are usually covered by standard buildings and contents policies, extensive remodelling can put DIY enthusiasts at risk of causing damage they are not covered for.

Damage such as drilling through pipes or falling through a ceiling are rarely covered in standard policies, according to Halifax Home Insurance.

“It all looks so simple on TV, making it easy to forget that the work on makeover shows is being carried out by highly trained and skilled professionals. But if you don’t know what you’re doing we’d advise anyone planning any major improvements that DIY should really stand for Don’t Involve Yourself,” said Vicky Emmott, Halifax Home Insurance.

“Indeed trying to tackle certain areas that you are not qualified for, such as electrics or plumbing could invalidate your home insurance and leave you liable for the cost of any subsequent damage. It’s far better to employ a reputable tradesman than to risk damaging your home by going it alone.”

Tags: improvements, today, Insurance, Household, tradesman, invalidate, GBP, electrics

ABI: Security measures help lower premiums

Taking measures to reduce the risk to property will not only improve security but will lower insurance premiums.

According to the Association of British Insurers (ABI), factors such as security lights and gravel contribute to much-needed security that will keep home insurance to a minimum.

Kelly Ostler, a spokesperson for the ABI, said: “Having gravel pathways can help because they make a noise so you can hear intruders. Keeping your perimeters secure, so if you’ve got a garden gate, keeping it locked.

“Security lights combined with gravel tends to be quite good. Different insurance companies will ask different things but you can give them extra information.”

She added that crime levels in the area will also affect premiums but, aside from joining the neighbourhood watch, there is little that can be done about that.

Furthermore, making sure the property is well maintained is a necessary duty and it may help avoid the possibility of any claims being declined, Ms Ostler advised.

According to the Home Office’s crime reduction website, in two out of ten burglaries entry to the property is not forced with the majority of thefts executed by opportunistic thieves.

Tags: crime reduction website, Insurance, office, crime levels, different things, duty, gravel, Home Office

Life Direct: Despite whole of life safety most choose term insurance

The majority of people decide to take out term insurance rather than whole of life insurance, even though the latter offers guaranteed security.

According to a spokesperson for Life Direct, Steve Wroe, many people are unaware that nowadays whole of life insurance offers assured premiums which is why they are choosing term life insurance.

Mr Wroe said: “Life insurance is just about peace of mind and the trouble with a term policy is that one day that policy is going to stop working for you.

“You might still be living, but you might not be insurable if you try replacing it because you might be too old or you might have come down with some medical issue since you took your term policy out that prevents you getting life cover.”

He added that people who are younger often opt for term insurance whereas the older generation are more likely to choose whole of life policies for funeral expenses and to “leave a little bit of extra money”.

The Motley Fool explains that with a term policy, a payout is offered if you perish within the term specified, getting the largest sum possible.

Whereas, with whole of life insurance offers a fixed payout upon death as long as premium payments are kept up. This provides “investment for your heirs” and requires you to take a “gamble” on your life expectancy.

Tags: term life insurance, policy, Permanent life insurance, term insurance, cover, Insurance

Make sure your kids’ belongings are insured

Parents in the UK are being urged to ensure that their children’s belongings are insured after research showed that kids today carry around an array of expensive gadgets and items when going to school or college.

This includes mobile phones, MP3 players, iPods, handheld games consoles, digital cameras, and even expensive jewellery in some cases. Industry experts state that the cost of replacing the items should they be lost, stolen, or damaged could be very high, and therefore parents should make sure that there is adequate insurance in place.

In addition to a range of expensive gadgets and jewellery, many kids also carry costly sports equipment or musical instruments to school or college, and again the cost of replacement in the event of loss, damage, or theft can be very high. Parents are urged to ensure that the insurance cover in place covers all of these items, so that there is no financial loss in the event of a loss, theft, or damage to the items.

According to a recent survey around three in five school and college kids carry a mobile phone, and around one in five carry a handheld games console. As an increasing number of mobile gadgets comes on to the market, kids today are going to school laden with an array of expensive items making them targets for thieves. The average student now carries around £250 worth of items according to reports.

Insurance experts advise parents to contact their insurance companies and ensure that the goods carried around by their children are covered under personal possessions. Parents may want to shop around to compare the cost of this cover, as it can vary from one provider to another. Parents should also make sure that they disclose all expensive items that their child carries to ensure that the cover provided is adequate.

Tom Smith
9th October 2007

Tags: personal, items, kids, belongings, companies, Insurance, children, home

Benefit from low cost home insurance cover from Sainsbury’s

Supermarket giant Sainsbury’s recently announced changes to its credit cards that meant consumers would be able to enjoy longer interest free periods on purchases in addition to a low life of balance transfer interest rate, as well as other benefits.

The supermarket giant has now announced that it has some good news for homeowners that want to enjoy the peace of mind and security of having comprehensive home insurance cover in place without having to pay over the odds on this type of cover.

Sainsbury’s has announced a special deal that will be available for consumers that wish to purchase both buildings and contents insurance cover as a bundle package. These consumers will be able to get twelve months of cover for the cost of just nine months, saving them 25% on the cost of their premiums right away.

Furthermore, consumers that make the purchase online will be able to save a further 10% on the cost of their cover, which means that some consumers could save a whopping 35% on the cost of their cover for a year.

The offer is open to consumers that take out cover before the 27th November, and could attract many customers who are taking out cover for the first time or are due to renew their cover. As a special bonus consumers that take out this cover before 27th November will also enjoy being in with a chance to earn one million Nectar points. The cover includes protection against accidental damage, and customers are able to pay conveniently and easily by direct debit.

Officials from the company state that although insurance premiums on home and contents cover has risen recently, particularly after the flooding problems that hit the country in June, there are still affordable policies and deals available.

Tom Smith
9th October 2007

Tags: buildings, cover, supermarket, Insurance, financial

ABI calls for increased help with flooding problems

June and July of this year saw heavy rains and bad weather really take their toll in some areas of the UK, causing billions of pounds worth of damage to home and resulting in rocketing numbers of insurance claims that have cost the insurance companies dearly.

Claims for damage to home have been flooding in since June, and insurance companies have had to pay out millions of pounds each in some cases to cover the cost of the claims.

The Association of British Insurers is now calling on the government to provide increased protection against future flooding, stating that although the government has planned to put aside funding for this problem around £150 million more is needed to minimize the risk of this situation arising again in the future.

Stephen Hadrill, director-general of the ABI, stated: “The scale and impact of the floods has been massive. The cost to the industry of over 60,000 claims is approaching £3bn and more claims continue to come in.”

In a letter to the Environment Secretary, Hillary Benn, the Association of British Insurers stated that some drains and watercourses were blocked as the result of poor maintenance.

The letter stated: “Some defences will have been put under great pressure in recent events and will need to be checked and possibly strengthened.”

The ABI also stated that “an urgent review is needed of how best to maintain urban and rural drainage”. 

Mr Hadrill said that this should include “whether expenditure is adequate, and how to co-ordinate better modelling of flood risk and planning of alleviation measures.” A number of areas of England were particularly hard hit in June and July as torrential rain caused major flooding across the country. As a result of the claim levels from the flooding insurance companies have had to hike up rate by up to 10% in some cases.

More info: www.abi.org.uk/floodinfo

Tom Smith
5th September 2007

Tags: downfall, Insurance, british, flood, rain, torrential, abi

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: cancelled, hastings, car, traffic, vehicle, blunder, policy

High number of claims over lost luggage

Insurance companies in the UK have reported that the level of claims coming in over lost luggage has soared over the first half of this year, increasing by a huge amount compared to the same period last year.

One leading travel insurer reported that between January and June there were nearly three thousand claims made over lost luggage to the company, which reflected an increase of 85% on the same period in 2006. The average claim was for over £200 according to the insurance company.

The travel insurance company also reported that there was a 22% rise in the number of bags lost across Europe in the same period, despite the level of passengers travelling only rising by 1.4%. The figures have been compiled by the Association of European Airlines. However, some budget airlines such as EasyJet were not included when these figures were put together, and therefore the actually number and level of lost luggage could be even higher.

A spokesman for the insurance company stated: “We have seen an enormous rise in claims for lost luggage. With the summer holiday season now in full swing, we can unfortunately expect more families’ holidays to be ruined by lost baggage.”

Another leading insurance company, Norwich Union, reported a rise of 40% in claims over lost luggage in the first half of this year. The figures from the Association of European Airlines also showed that in 2006 British Airways lost more luggage than any other European airline following a variety of problems that resulted in luggage problems. The reports also highlight the importance of having adequate travel insurance in place when going on holiday or even travelling on business, as loss of all of your luggage can prove very costly.

Tom Smith
28th September 2007

Tags: lost, Insurance, airline, company, increase, policy, travel, luggage, premium, claims

Does your critical illness policy cover breast cancer?

Every year many women in the UK take out critical illness insurance cover, and most think that this will cover them if they are diagnosed with critical illnesses such as breast cancer, which could result in them being unable to work or earn an income.

However, recent research has revealed that critical illness policies do not provide cover or protection if the policyholder is diagnosed with a specific – and common – form of breast cancer known as ‘ductal carcinoma in situ’.

According to insurance providers, this is a form of breast cancer that is usually caught in its early stages and can therefore be treated, hence cannot really be construed as critical. Insurance companies also claim that the diagnosis of this form of breast cancer is so common that it would simply cost them too much to cover this particular form of cancer. However, for those with critical illness policies, who are then diagnosed with this cancer and unable to work, this is of no help at all.

One woman explained that she was diagnosed with the cancer, which is normally treated through major surgery or a mastectomy, and ended up having to sell her home and downsize in order to pay off her debts after being unable to work and earn money. She stated that when she tried to claim on her policy she was told that this form of breast cancer was not covered, but stated that she was never told this when policy was sold to her by NatWest.

An official from NatWest stated: ‘ Unfortunately, this policyholder’s illness is not covered by her policy. The brochures which she admits she received when she first took out the policy clearly state that there are exclusions to the type of cover the policy provides. They also emphasise the importance of checking the accompanying guide to serious illness cover for more detailed definitions of the cover.’

Tom Smith
28th September 2007

Tags: critical, breast, cancer, natwest, Insurance, cover, illness, serious, policy

Pet insurance could save you a fortune

According to a major UK pet insurance company having some form of pet insurance in place could help some pet owners to save a fortune on the cost of caring for their beloved pets over the course of their lifetime.

Britain is known to be a nation of animal lovers, and most pet owners want the best for their pets, particularly when it comes to their health. However, those with no form of insurance cover in place could face crippling costs or a heartbreaking decision if their pet is injured or falls ill and required surgery or expensive treatment.

According to the UK pet insurance specialists Petplan, a dog, with a typical lifespan of twelve years, could cost around £14,750 over its lifetime, and a cat, with a typical lifespan of sixteen years, could cost around £14,230. The insurance company goes on to state that the rising cost of veterinary consultations and treatments is why many decide to take out pet insurance cover, and for many this acts as a real life saver – literally in some cases – when their pets need surgery or treatments following accidents, injuries, and illness.

Figures indicate that there are many more claims made on pet insurance each year in the UK compared to other types of insurance cover. Around 34% of pet insurance policyholders make a claim each year compared with around 9% of other types of insurance policyholders. However, it is important for pet owners to ensure that the cover that they take out is comprehensive and will provide them with the necessary protection for their pet.

Premiums can vary based upon the type of pet, its health and medical history, and its age, so consumers are urged to shop around and check the cost of cover as well as the level of protection provided.

Tom Smith
27th September 2007

Related links:

• Insurance : Do You Care More About Your Pet Than Yourself?
• How Do Insurance Companies Work Out Premiums?

Tags: animal, cover, pet, accident, claim

Nationwide stops PPI sales

The largest building society in Britain, the Nationwide, has stopped sales of Payment Protection Insurance with its financial products, after admitting that customers were not being properly advised with regards to PPI by staff members.

Payment Protection Insurance has been at the centre of controversy for some months after it was found that customers were being pushed into purchasing this non-compulsory cover, and that the cover was often being mis-sold inappropriately so that customers ended up purchasing a costly policy that they would never be able to benefit from.

The Financial Services Authority has been running a long term investigation into the sales of Payment Protection Insurance for two years, and is in the final phase of its review and investigation. The cover is designed to assist those that cannot keep up with repayments on their financial commitments due to accidents, illness, or redundancy, and is sold with products such as credit cards, loans, and other financial products that may need protection.

However, the review revealed that in many cases sales staff were mis-selling this policies, making the customer think that they cover was compulsory, and in some cases even adding PPI without the customers’ knowledge. This has led to a real crackdown on the sales of PPI after many people ended up purchasing policies that they were either not eligible to claim benefits on or that they were not even aware that they had purchased.

A Nationwide spokesman stated that the halt in sales of PPI is a temporary one, adding: ‘We did some mystery shopping and weren’t satisfied the sales processes were as robust as they should be, so they have been halted temporarily.’

Tom Smith
27th September 2007

Tags: cost, cover, policy, protection, fsa, payment, Insurance

Travel insurance a must for holidaymakers

Travel insurance is an absolute must when taking holiday time overseas, specialists have claimed.

InsureandGo, an online broker, claim that trips abroad without the necessary cover are incredibly risky and should be avoided.

Strongly urging all travellers to invest in some sort of cover, Perry Wilson, a spokesperson for InsureandGo, said: “Travel insurance should not be considered a luxury – it is essential for anyone going on holiday.

“We know people lead busy lives and sometimes things are left to the last minute and that’s why we have tried to make travel insurance as easy to buy as possible.”

He added: “Travelling without insurance simply isn’t worth the risk and we hope there is no excuse for not getting round to it.”

Meanwhile Sainsbury’s Bank, also concerned by holidaymakers shunning overseas cover, claimed that the situation was worsened by the strong surge in last minute deals.

Tags: Perry Wilson, Types of insurance, claim, overseas cover, finance, Insurance, sainsburys

Could supermarkets soon take over current accounts market?

There was a time when supermarkets were only used for the purchase of groceries and household goods, but all of this has changed over recent years.

Many leading supermarkets in the UK have really branched out over recent years, and have started offering an array of financial products and services, such as insurance services, loans, and credit cards, amongst others. Many offer savings accounts as well as banking services, providing the consumer with far more choice when it comes to finding the best financial products and services.

A recent survey has revealed just how popular supermarket financial services have become in the UK, indicating that one in every ten consumers has a supermarket savings account, and one in every five shoppers holds a supermarket credit card. The figures show just how much business supermarket giants such as Asda, Tesco, and Sainsbury’s have taken away from the major banks in the UK. Figures also indicate that if supermarkets decide to branch out further they could take away far more business from banks.

According to the results of the survey around half of consumers in the UK would like to see supermarkets branch out and offer more in the way of financial products, as most think that supermarkets can offer far better value and service on such services and products. Current accounts seemed to be of particular interest, and although only one in every two hundred consumers has a supermarket current account at present, if more supermarkets offer this facility they could end up with close to half of the 40 million current accounts in operation in the UK today.

One industry expert stated: “This is a massive unpicked cherry for supermarkets to target. With their low running costs, supermarkets can easily undercut other providers. They are already pinching customers from banks and in time could steal even more.”

Tom Smith
25th September 2007

Tags: accounts, current, savings, financial, consumers

Stay within drink drive limit when on holiday

Every year many Brits head off on their holidays, with a large number of singles, couples, and groups heading to lively destination where they plan to drink themselves into oblivion.

However, anyone that is planning a drink fuelled holiday should bear in mind that even if they have travel insurance cover they may have their claim invalidated in the event that they suffer an injury as a result of being intoxicated.

Most insurance companies that offer travel insurance already have this stipulation in place, where if the accident is found to be the result of intoxication the claim could well be invalidated. American Express insurance is taking it one step further, and has stated that they will conduct an ‘acid test’ in cases where claimants have been injured on a drink fuelled holiday.

These regulations do not mean that holidaymakers cannot drink at all, but in order for the claim to be valid injured parties must prove that they are within the drink drive limits that apply in that particular destination, even if they are not actually driving. Officials from American Express Insurance services have warned that holidaymakers need to ensure that they look after themselves and do not drink to excess when they go away, otherwise it could end up costing them dearly.

Having travel insurance in place when you travel abroad is vital, as the cost of treatment and emergencies can prove extremely costly. However, if you take out insurance and then drink to excess you could risk having to shell out thousands of pounds anyway as the result of being injured whilst under the influence.

Tom Smith
21st September 2007

Tags: drive, alcohol, drink, law, Insurance, foreign, accident, break

Supermarkets branch out to car insurance

Over recent years supermarket giants in the UK have branched out enormously and in addition to offering groceries and household goods many have also been offering a wide range of financial products, such as loans, credit cards, insurance products and even banking facilities.

According to a recent report, Tesco has now gone a step further and has launched a price comparison website for those looking for deals on car insurance in the UK.

There are already a rising number of price comparison websites in operation for car insurance, and Tesco will be joining this long line of comparison sites with its news venture Tesco Compare.com, which has been launched in conjunction with the Royal Bank of Scotland. The site will be launched in mid-September, but consumers should be aware that there will be a limited number of insurance companies that are used in the comparison, which totals around twenty in all.

As has been the trend in other sectors, this move by Tesco could result in other supermarket giants also setting up similar sites, which means that the huge number of price comparison sites could balloon even further in the near future. As with other price comparison sites customers will be able to enter their details into the Tesco website in order to search for the best deal on car insurance, but this will be from between the companies listed by Tesco.

Amongst the insurance companies that will be listed are some RBS ones, including Churchill, and consumers are reminded that because of the limited number of insurance companies that will be listed there could be better deals available from other insurance companies that are not listed on the Tesco site. 

Tom Smith
20th September 2007

Tags: finance, site, personal, comparisons, Insurance, car, brokers, compare

PMI customers can enjoy hefty discounts by staying fit

A recent report has shown that there has been a rise in the number of people taking out private medical insurance this year compared to last year.

The rise of around 1.5% is thought to be because many PMI providers are offering huge discounts to those that are prepared to try and stay fit and healthy, which means that many consumers can enjoy far lower premiums. In the past the level of interest in this type of cover had fallen due to increased costs on premiums.

Some PMI providers are now offering discounts of up to 75% to consumers that have no serious health problems, do not smoke, go to the gym, and lead a healthy lifestyle, as these factors all reduce the risk of claims. In addition, many PMI providers are now also offering no claims discounts to consumers, much in the same way as car insurance companies do, and in some cases these discounts can be transferred if the consumers switches provider.

In some cases insurance companies are allowing consumers to pay larger excesses, which helps to keep the cost of premiums down further. One industry official stated: ‘We found many people were prepared to pay a much higher excess in return for lower monthly premiums. This is especially true of the elderly, who often have more savings in place than younger policyholders. It gives customers more options.’

In addition to leading healthier lifestyles and paying higher excesses, consumers that want to enjoy the protection of private medical insurance should also shop around for the most competitive deals, as this can also help to ensure that the cost of cover is kept down. One official stated: ‘Savings can be made by switching insurer to a more competitive policy, even for the over-60s. The advantage of many of the policies offered by smaller companies is that premiums do not rise so sharply. This is because they have fewer claims.’

Tom Smith
20th September 2007

Tags: healthy, fit, disease, claim, lifestyle, work, train, Insurance, out

Veggies can now get great deal on life insurance

Life insurance premiums can vary from one insurance company to another, but the cost of premiums is based upon your circumstances, medical history, and lifestyle.

In the past, we have all learned that those that smoke, those that are morbidly overweight, and those with certain medical conditions will pay more for life insurance because it makes them high risk. Healthy individuals that do not smoke, do not drink to excess, and are not overweight, however, can enjoy lower premiums.

There is now an insurance policy that takes it one step further, and offers discounted premiums to those that do not eat meat. Vegetarians and those that eat only fish and no meat can enjoy lower premiums with the life insurance cover that is available through Animal Friends Insurance. The company, which is a non-profit organization that deals with pet insurance, has got together with Liverpool Victoria in order to offer the special life insurance deal.

According to the company there are around 3.5 million people in the UK that are either vegetarian already or are planning to give up meat in the next year or so. The term life insurance on offer from Animal Friends and Liverpool Victoria will offer a 6% discount on premiums to vegetarians and fish eaters.

One official from the company stated: “The risk of vegetarians suffering from some cancers is reduced by up to 40 percent and from heart disease by up to 30 percent, but despite this they have to pay the same life insurance premiums as meat eaters. We believe this is unfair and the life insurance industry needs to acknowledge the fact that being a vegetarian can have a very positive impact on life expectancy and reduce premiums accordingly.”

Tom Smith
19th September 2007

Tags: disease, Insurance, life, vegetarians, eat, good, vegetables, lifestyle

Flooding costs to affect insurance premiums

The UK has seen some of the worst rain and floods in years over the past few weeks, and for many this has resulted in severe damage to their property and huge insurance claims.

Many insurance companies have been inundated with claims following the flood damage, and millions of pounds worth of claims have had to be processed and paid out. Insurance companies have stated that the level of claims coming in has been high and the payouts have made a big dent.

The recent flooding is said to have been the worst in the UK for around sixty years, with many households devastated by the damage caused. A number of leading insurance companies are now stating that they will have to push the cost of premiums up because of the level of claims that have had to be paid out as a result of the flood damage. Both contents and buildings insurance cover is now expected to rise as a result of the situation.

One of the leading insurance companies in the UK, Norwich Union, has confirmed that its premiums will be going up. From next week those taking out cover with the insurance giant can expect to pay around 10% more than previously. All customers will be affected by this price increase and not just those that were hit by flood damage and had to therefore make a claim on their policies.

One insurance company official stated: “People are spending more on home improvements. When things go wrong they’ve got flat-screen televisions and expensive flooring. So, when the do damage, it’s costing us more.”

An official from Direct Line insurance stated: “We do recognise that premiums will rise, and that goes for all RBS brands.”

Tom Smith
19th September 2007

Tags: flood, premiums, cover, cost, increase, payments

Norwich Union tried to catch out insurance customers

One of the UK’s leading insurance companies, Norwich Union, is targeting customers that hold critical illness insurance policies in order to try and find out whether they have withheld information in the past that could in effect mean that their policies are null and void.

The insurance giant is writing to five thousand critical illness policyholders to try and find out whether they withheld information when they initially took out their critical illness cover.

This is a pilot scheme being trailed by the insurance company, and the policyholders being questioned have been selected at random. However, if the scheme does prove successful then the insurance company is looking to widen the scheme to all two million of its critical illness policyholders. Critical illness cover has already been at the centre of controversy over recent years, as statistics show that around 20% of critical illness claims from customers end up getting rejected due to either incorrect claims on diseases that are no covered, or due to lack of information from the policyholder when the insurance was first taken out.

Critical illness cover is designed to pay out a lump sum to the policyholder in the event that he or she is diagnosed with one of the critical illnesses that are specified on the policy. The policyholder gets to keep the money even in the event that he or she goes on to make a full recovery from the critical illness. However, the level of rejected claims with this sort of cover has resulted in a great deal of negative publicity for critical illness insurance cover.

Norwich Union states that the exercise is to try and update all customer information before any claim needs to be made. One official from the insurance company stated:  ‘We want to be able to clearly advise people . . . how to proceed if they believe they may have missed something off their application form. We feel this is the right approach to try to help customers prevent non-disclosure in the event of a claim.’

Tom Smith
17th September 2007

Tags: house, illness, Insurance, norwich, cover, protection

Younger drivers ‘pay more for insurance’

Revealing that one in three male drivers writes off a car in the first year after passing their test, car insurance provider Direct Line has warned young males that they will always have to pay higher premiums because they pose a greater risk.

A spokeswoman for the insurer explained: “Young drivers present a greater risk than experienced drivers, and, as insurance is based on risk, they will pay a higher premium. They are much more likely to have an accident. Those who present higher risk pay a higher premium.”

She explained that newer drivers would always suffer higher premiums because of their inexperience on the road, but advised those looking to minimise the financial damages to invest in a smaller car and take advantage of the Pass Plus advanced driving scheme.

“It is a government run initiative and it is six one-hour sessions and it costs around £100 to take and you can do this and get 35 per cent off,” she added.

A recent survey from Churchill Car Insurance revealed it is not just new drivers who pose a risk on the roads. More than one million infrequent drivers suffer from “rusty driver syndrome” and forget basic rules of the road, the insurer found.

Tags: risk, finance, government run initiative, insurer, Types of insurance, greater risk.A spokeswoman, Insurance, insurance provider

Students forgetting to take out insurance cover

It has become traditional for many students in the UK to take a year out after graduating from university to travel the world or get some work experience abroad before settling down to handle ‘real life’.

For many students this is a hugely exciting prospect, and is their first taste of freedom and independence. However, some get so carried away with their plans for taking time out abroad, that they forget about the basics – the vital protection of travel insurance cover.

Travel insurance is vital for those going abroad for any length of time, and even more so for students that are intending to spend long periods of time abroad. Without this the student could really run into problems when it comes to anything from lost and damaged belongings to medical and emergency treatment. Experts are now urging parents to ensure that their children have taken out an adequate travel insurance policy before their head off on their travels.

One official stated: ‘Most parents wouldn’t dream of allowing their child to drive a car without insurance. Yet as many as one in four gap year travellers sets off without travel insurance. Parents could be putting their home at risk because if their child suffers an illness or accident and needs hospital treatment or repatriation, the costs can run into tens of thousands of pounds.’

One student explained how travel insurance cover had helped her when she ran into problems and her belongings were taken: ‘After such a bad experience, I wouldn’t now dream of going away without travel insurance. I have also fallen off a moped in Thailand, which required hospital treatment. Thankfully, my insurance covered me.’

Tom Smith
13th September 2007

Tags: medical, travel, vacation, students, accident, Insurance

School holidays could mean more insurance claims

With the long stretch that is known as the school summer holidays, many parents are trying to think of ways to keep their children amused for the six week break, which any parent knows is not always easy.

Many children spend a great deal of time in the house over the school summer break, and particularly in the case of younger kids this can often lead to boredom and mischief. There is also an increased risk of accidents occurring when the kids are in the house all day every day, and according to a leading insurer this tends to result in an increased number of insurance claims.

According to officials from Halifax Home Insurance 20% of all claims for accidental damage are made during the months of July and August, when the kids are off school, and are often running amok in the house. These two summer months see claims for accident damage rocket by around 23% according to the insurance company, with claims for accidents ranging from smashed windows and damaged carpets to broken equipment and more.

Officials from the Halifax have been urging parents to make sure that they have accident damage as part of their home insurance policy, and also to ensure that they have an adequate level of cover in case of costly accidents. Without this type of cover parents could find that the summer holidays turn into a far more expensive time than they ever imagined, as they will have to foot the bill for accidental damage themselves.

One Halifax Insurance spokesperson stated: “It’s particularly important at this time of year for parents to check their home insurance policies and make sure they are covered for accidental damage to the home and contents. This summer’s heavy rains show little sign of abating, meaning children may well find themselves cooped up indoors for hours on end when they want to be outside playing, so they may get restless and find mischievous ways to amuse themselves.”

Tom Smith
13th September 2007

Tags: home, claim, holidays, accidents, cover, damage, school

Quarter of Brits ‘hide insurance info’

More than one fifth of British motorists admit they have intentionally kept quiet about motoring convictions and license points to their car insurance provider, to avoid premium hikes following policy renewals.

Confused.com has found that although 96 per cent of motorists are aware that lying to the insurance company could result in invalidated claims, 21 per cent of drivers would be happy to take the risk and hope that they don’t get caught.

Debra Williams, managing director of the comparison site, warned drivers: “Insurers take a dim view of people who don’t update them immediately should their circumstances change.

“Changes in job title or annual mileage may seem insignificant to most drives, but this can significantly affect your premiums. If you are caught lying about your details, your insurer can reduce your pay out and may even refuse to pay at all.”

A report commissioned by the Association of British Insurers earlier this year revealed that fraudulent claims on car insurance, something one in ten (five million) drivers admitted to, push up average premiums by £40 a year.

Tags: Association, car insurance, Insurance, GBP, mileage, circumstances change."Changes, something, car insurance provider

Insurance ‘essential’ for even short trips

No matter how far they are planning to travel, anyone heading overseas should ensure they have adequate travel insurance.

That is according to a spokesperson for the Association of British Insurers, who said that regardless of where an individual is travelling to, they could end up needing medical help.

“Even if you’re only in France, there’s always the possibility that you may need emergency treatment,” the spokesperson said. “So it’s worth considering for that reason alone.”

A recent survey carried out by swiftcover and YouGov found that of more than 2,000 travellers, 37 per cent had been robbed in Spain, 19 per cent had something stolen in France and nine per cent experienced theft in the UK.

The ABI spokesperson pointed out that fans travelling to watch the Rugby World Cup in France ought to get cover, as losing personal effects “can ruin any holiday or any visit or any break. It doesn’t matter what you’re doing”.

Tags: emergency, Cup, spain, British Insurers, world

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: Index, Insurance, furniture sets, plants, summer, group, bird tables, risk

Cats of any age ’should be covered by insurance”

Cat owners have been advised that they should purchase insurance no matter how old their pet is.

Maggie Roberts, head of veterinary services for feline welfare charity Cats Protection, argues that vets’ bills can “soon mount up” and that “even the most well looked after cats can develop unexpected illnesses”.

Ms Roberts also said that having a pet undergo treatment or surgery can be emotionally draining. She said that having to worry about treatment costs can be an “added burden” for cat owners who have an ill animal.

The head of veterinary services continued that costs can be generated in a number of areas, listing that pet owners could find that their animal has to undergo surgery, hospitalisation or be referred to a specialist.

In its latest report on pet insurance in the UK, market research consultancy Defaqto found that less than one in five cats (17 per cent) in the UK are covered by pet insurance.

Tags: specialist, pet, insurance policy, Retroviruses, pet insurance

The importance of honesty for insurance customers

Many consumers in the UK take out life insurance policies each year, and taking out this type of policy usually involves providing the insurance company with a variety of details about your health and lifestyle.

The cost of this type of insurance cover can vary depending on the company that you go through, as well as on the details that you provide to the insurance company with regards to your health and lifestyle. It is thought that a certain percentage of shoppers may miss out or change vital information in a bid to get cheaper premiums, but experts warn that this could end up being a waste of money as the information that they provide – or fail to provide – could invalidate their cover in the event that a claim needs to be made.

One independent financial adviser has warned that consumers must ensure that they provide up to date information that is accurate and honest when they are applying for life insurance to ensure that their premiums are not wasted altogether.

This includes providing accurate information on their lifestyle, such as their smoking and drinking habits and also any dangerous pastimes or hobbies that they may have. He added that if a claim is made and the insurance company discovers that important information was withheld, or that the applicant was not truthful, then the company is not obliged to make a payout despite receipt of insurance premiums.

He said: “All life insurance policies are underwritten at outset. So if you don’t partake in, say, climbing or mountaineering when you apply for your policy, but then subsequently you do, then that’s fine, nothing wrong with that. But whatever the situation is when you apply for your policy, you must be totally honest, otherwise you may invalidate your claim. The insurance company won’t pay your claim if they found out you lied to them when you filled the form in. People have got to be totally honest when they fill their applications in.”

Tom Smith
28th August 2007

Tags: cover, life, accident, car, company, Insurance

Is international medical insurance something that you need?

Most people in the UK are well aware of the benefits of having medical insurance, and many enjoy peace of mind thanks to the protection that this type of cover provides for them and their loved ones.

However, the needs of consumers looking for medical insurance cover have changed over recent years according to some industry experts, and this has also impacted on the type of cover that medical insurance companies are now able to offer to consumers.

Recent reports suggest that more and more consumers in the UK are opting to go abroad on a long term or even a permanent basis, with many deciding to head abroad to enjoy their retirement. Some younger people decide to head off abroad to enjoy some travelling experience and even to live and work abroad for a while. Many others travel abroad on a regular basis as a result of their work or business, again often spending extended periods of time in another country.

As a result of these lifestyle changes an increasing number of medical insurance firms are now offering international cover according to recent research, enabling those that intend to live or move abroad, or spend longer periods of time abroad, to enjoy the peace of mind of having cover even when they are away from home.

One industry professional stated: “We have done research that shows that the number of internationally mobile employees will continue to grow over the next five years. Add to this an extra 2.3 million Brits who are set to retire abroad and by 2020, and one in five older people who will be living outside the UK. So, naturally the number of companies providing international medical insurance has increased.”

Tom Smith
27th August 2007

Tags: treatment, cost, cover, medical, Insurance, international, surgery, accident

Homebuyers might be paying over the odds for Hips

The government’s beleaguered Home Insurance Packs (Hips), which will cover all UK homes by next year, have apparently hit yet another setback.

It emerged today that several of the biggest mortgage lenders do not see the new packs as sufficiently authoritative on issues such as determining whether the property faces any outstanding planning approvals or enforcement orders, and are telling home buyers to conduct their own checks.

As a result, people are being forced to pay for what is essentially the same service twice over, along with purchasing their mortgages.

A spokesperson for HSBC said: “If someone wants to buy a house from someone who has a Hip containing a personal local search, we would tell their solicitor we would not lend to them unless they commissioned their own search.”

The bank’s comments came after it emerged that Hips providers – which charge around £500 for their services – were using “personal” searches rather than more expensive “full” searches from local councils.

Hips were originally brought in by the government in an attempt to speed up and simplify the home buying process.

Tags: mortgages.A spokesperson, personal searches, someone, process, odds, house, Insurance, Insurance Packs

Lib Dems attack government over car insurance

The Liberal Democrats have attacked the government’s fines for those drivers who have not taken out car insurance as not going far enough.

Government figures unearthed by the party appear to show that the price of taking out the cover is on average twice as high as the fine levied for not having it.

Furthermore, of the estimated 2.1 million Britons who do not drive with the appropriate cover, just one fifth are caught by police.

Shadow transport secretary Susan Kramer said: “This demonstrates the inadequacy of fines for uninsured drivers. By fining offenders significantly less than the cost of insurance, the Government are hardly sending out the right message.

“Much more needs to be done. Unless the Government can reverse this trend all drivers will pay the price.”

The Liberal Democrats also picked out wide regional variations in the fines, which might be said to further undermine their credibility: while an average of £116 was levied in Durham, this swelled to £367 in Derby.

Tags: Insurance, wide regional variations, cover, GBP, Vehicle insurance

Is your caravan insured for your holiday?

If you are planning to take a caravanning holiday this year, as many Brits tend to do, it is important to ensure that you have adequate insurance cover in place, state experts.

According to many industry professionals many consumers forget to insure their caravan and contents before heading off on their holidays, and although not compulsory as with car insurance, not having caravan insurance in place could cost some holiday makers a fortune in the event of unforeseen circumstances or accidents.

According to recent figures just over 25% of caravan owners have taken out adequate insurance cover, and with around two million Brits likely to be heading off on caravanning holidays over the next couple of months this reflects a serious deficit in the number of consumers that have protection for their caravans. A good caravan can be a costly investment, and without the benefit of insurance cover can end up costing the owners a fortune.

Many people with lower value caravans fail to take out cover because they may feel that it is not worth it. Reports suggest that the same goes for those that have caravans but rarely use them. However, insurance experts are warning caravan owners of the serious financial implications that can stem from lack of adequate insurance on their caravan, no matter what the age of the caravan or now much it is used.

One industry expert stated: “We were alarmed to see from our research how many people were not taking out insurance. Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous.”

Tom Smith
1st August 2007

Tags: accident, damage, cover, uk, car, caravan, Insurance

Consumer group warns on insurance for music downloads

A consumer group has issued a warning relating to insurance cover for music downloads. Downloading music has become a hugely popular way for younger generations in their teens, twenties, and thirties to enjoy listening to their favourite music.

However, Which? has carried out a survey into insurance cover for music downloads and is urging consumers to be aware of exclusions relating to these policies.

According to the result of the survey carried out by Which? music downloads will not be covered by insurance if they are lost as a result of a computer virus – these music collections are often worth hundreds of pounds in total, and therefore can cause considerable financial loss to consumers. Many insurance firms also did not cover music downloads if they were lost as a result of hard drive failure.

As part of the survey 46 insurance firms were reviewed by the consumer group, and out of these only 22 actually offered insurance cover for music and digital downloads. The cover is offered when the downloads are lost as the result of fire, weather conditions, or theft. However, out of the insurance companies surveyed none of the policies offered provided protection against loss of music through virus or computer failure.

One spokesperson from Which? stated: ‘Downloading music online is widely accepted now as being the easiest and most convenient way to buy music. Music lovers know it, the music companies know it – but it seems insurance companies are determined to stay behind the times.” Consumers that do take out this type of cover for their music and digital downloads should ensure that they know what is excluded from the policy, and therefore consider whether the cover is actually worth the cost.

Tom Smith
31st July 2007

Tags: sites, free, music, Insurance, pc, failure

Insurance cover could become fairer

New regulations and changes to the law could result in greater fairness for consumers that have various types of health insurance cover, as it means that there will be less of a chance of the insurance company being able to deny the claim.

In the past a number of insurance companies have been slated for denying claims from policyholders because of information that was or was not given at the time that the policy was taken out, leaving the policyholder with no way to claim on his or her policy.

Plans have been proposed by the Law Commission, which looks at the way that laws are applied in cases such as these, and if everything goes through successfully it means that insurance companies will not be able to refuse to payout on a claim because of lack of information provided when the policy was taken out by the claimant. Life and critical illness insurance policyholders may benefit the most, as the level of denied claims in these areas is quite high.

One spokesman from the Law Commission stated: ‘We have sought to bring insurance law up-to-date to reflect the reasonable expectations of insurers, policyholders and intermediaries. Our overriding objective has been to achieve fairness between both parties to an insurance contract, while recognising different levels of information about the insured risk and different bargaining strengths.’

However, insurance companies plan to fight against the changes. According to an official from the Association of British Insurers: ‘In effect, our members are operating to these standards anyway and are not forcing claimants to go to the Ombudsman needlessly. Many insurers have already made clear that they will not decline critical illness or life claims when the information that was not disclosed has nothing to do with the final claim.’

Tom Smith
26th July 2007

Tags: consumer, Insurance, holders, policy, companies, health, changes

Life insurance customers must be honest

Customer honesty is imperative when taking out a life insurance policy, an Independent Financial Advisor (IFA) said today.

While customers might be tempted to try to keep premiums as low as possible through selective disclosure of facts, this might well prove costly in the long run.

Kieran Platt, who also co-founded the website Life Direct, strongly recommends that “whatever the situation is when you apply for your policy, you must be totally honest”, with the possibility of claims being invalidated otherwise.

Giving the example of a claimant going wreck diving – “perceived to be high risk” – he pointed out that dangerous hobbies must be declared at the outset.

However, Mr Platt said that taking up a potentially premium-boosting activity such as a high risk hobby after filling the form in would not affect life insurance, provided it could be proved that at the time of taking the cover out it was not being practiced.

“Life policies are underwritten at outset: it’s the complete opposite of income protection insurance, where you have to go back to the insurance company anytime anything changes… With a life policy you don’t, it’s all done at the outset”, he surmised.

Recent figures from life insurers Bright Grey show that around one in three British families do not have life insurance, critical illness or income protection cover.

Tags: premiums, activity, income, claimant going wreck, life insurers, Insurance

Urban vehicles “less likely” to be insured

The Motor Insurers’ Bureau (MIB) has pointed out big regional variations in the number of uninsured vehicles on the road.

MIB records show that the “hotspots” for this illegality occur almost exclusively in urban centres, with London alone accounting for around a quarter of the nationwide total.

Head of communications at the MIB, Susan Beck, said that the higher urban rates were “probably a reflection of inner city life where if you look across all levels of crime – not just those who drive without insurance – you would probably see higher incidents in large cities than in smaller towns”.

She also slammed those drivers who remained illegally uninsured, calling them irresponsible and selfish in the extreme.

“Uninsured drivers are putting their own life at risk and also the lives of other road users ,” she said.

The Association of Chief Police Officers (ACPO) also revealed this week that 78,000 uninsured vehicles were seized by the police last year for not having insurance.

Tags: week, hotspots, big regional variations, police, number, Insurance, Vehicle insurance, association of chief police officers

Insurance law might be reformed

An insurance law which has been on the books since 1906 might be changed to make claims easier for policy holders, it emerged today.

The Law Commission has put forward proposals which would make the refusal of claims due to errors or omissions in disclosure sections of the proposal forms more difficult.

Currently, insurers can use discrepancies between the claim and information given when the policy was taken out to deny funds.

The leader of the project, David Hertzel, said that the insurance law concerning errors in proposal forms, which is based on the Marine Insurance Act of 1906, needed to be amended thanks to the changing claims market. “Private insurance as we know it now was the preserve of the wealthy few”, he claimed. “Today the insurance industry is a huge business.”

He added that many claimants did not realise that “they have a duty to disclose information that they have never been asked for, but which could influence an underwriter’s judgement of the risk”, therefore leading honest claims being thrown out.

The Association of British Insurers said in a statement that claimants must not be priced out by any change to the law, and that they would make “a full and robust response” in the autumn. The proposals have been put out for consultation until November 16th.

Tags: Insurance, claimants, proposal, Association of British Insurers, huge business."He, underwriter, underwriter's judgement

Insurers warn of premiums rise due to floods

Home insurers warned yesterday that premiums might increase across the board due to their being hit by claims from the recent floods in the North.

People living in homes which have been flooded before will be hardest hit by the increases, although most will have to pay slightly more as the industry responds to the apparently quickening frequency of extreme weather in the UK.

The recent floods follow the flooding in Eastern England in 1998 and the deluge at Bocastle in the west country three years ago. Most policies are currently calculated on a once-in-75 year risk.

David Ross at Norwich Union said that “modest” premium increases would take effect, although he also pointed out that, in a competitive market, the cost of home insurance “has remained level” over the previous decade.

A spokesperson for the AA said that “extreme weather conditions” will “become more common” due to climate change.

A price comparison website reported earlier this week that the number of people taking out home insurance cover had risen by 300 per cent in flood-affected areas this summer.

The Association of British Insurers (ABI) also announced that it would work more closely with councils to help plan emergency responses to natural disasters in the UK and lobby for extra government money for flood defences.

Tags: home insurance cover, flood defences, Insurance, price comparison website, risk

Middle classes fiddle insurance claims

Although many of us are led to believe that fraudulent activities are usually conducted by those from lower income families, a recent report has suggested that many illegal activities in this field are actually committed by middle classes, particularly fraud such as inflated insurance claims.

The results from the survey suggested that a high number of middle class policyholders inflated insurance claims in order to improve their homes or simply to get back at the insurance companies for having to pay high premiums.

The survey was conducting using nearly 2000 respondents from across England and Wales. The report was compiled by Professor Susanne Karstedt and Dr Stephen Farrall of Keele University. Although other types of ‘white collar crime’ were also highlighted in the report, one of the significant types of crime that middle classes admitted to was fiddling insurance claims.

One official stated: ‘Politicians from across the political spectrum regularly claim that most crime is committed by a hard core of offenders, largely drawn from low-income groups. This research demonstrates that volume crime is far more widespread, with the middle class being responsible for a wide range of illegal activities. The reasons for this are complex, and relate to the fundamental social changes in British society over the past 30 years.’

One professor involved with the study added: ‘Contempt for the law is as widespread in the centre of society as it is assumed to be rampant at the margins and among specific marginal groups. Anti-social behaviour by the few is mirrored by anti-civil behaviour by the many. Neither greed nor need can explain why respectable citizens cheat on insurance claims or in second-hand sales, and do not hesitate to discuss their exploits with friends in pubs.’

Tom Smith
15th July 2007

Tags: working, class, Insurance, claim, premiums

Flood claims could hit £1 billion

According to industry professionals the cost of flood related insurance claims in the UK could top the £1 billion marks, after thousands of people were left to deal with the horrific damage caused by the torrential rain and storms over the past week or so.

Many areas of the UK have been particularly hard hit by the weather, with consumers suffering the misery of seeing their homes and belongings wrecked as a result of serious flooding. With more bad weather to come it is thought that the estimated cost of claims could still keep on rising.

The average claim for flood related damage in the UK is likely to be between £15,000 and £20,000 according to analysts, and with thousands of people submitting claims for such high amount, insurance companies are going to have to deal with huge payouts.

Ultimately, this is likely to push up the cost of insurance premiums for the future state some experts, which means that all consumers with home insurance will end up suffering financially.

Another factor that claimants should take into account apart from the rise in premiums is that the time taken to process their claims is likely to be far longer than normal simply due to the sheer level of claims currently pouring into insurance offices.

The Association of British Insurers has been offering advice on its website for those affected by flood damage to enable them to make their claim as quickly as possible. One ABI official stated: ‘If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

Each year there are, on average, just over 13,500 claims to insurance companies as a result of flooding. However, last week there were nearly 9,000 claims made in one day alone according to report estimations.

Tom Smith
13th July 2007

Tags: companies, flood, home, consumers, weather, cost, car, damage

Insurance claims expected to flood due to flooding

The recent wet weather in Britain has devastated many homeowners all around the country, causing millions of pounds worth of damage collectively and causing untold stress and inconvenience.

According to officials the level of insurance claims is set to soar as homeowners assess the level of damage that the flooding has caused. This June has been reported as the wettest on record, and many areas throughout the country have suffered huge levels of damage.

A spokesman from the Association of British Insurers: ‘These events highlight just how important insurance protection is. If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

The Association of British Insurers has called upon the government to increase the funding for its defenses against flooding.

In the meantime, many of those without insurance cover or with inadequate levels of cover will be suffering the financial costs of the flooding, as they will have to foot the bill for the damages caused by the weather themselves, which could costs thousands upon thousands of pounds.

Even those with insurance cover have to now go through the laborious task of assessing the damage and making a claim with their insurer, which could take time to sort out given the number of claims that are likely to be flooding in.

More unpredictable weather is expected over the next few weeks, and this means that the number of claims being made could rise, which could mean further costs to insurance companies and a higher level of claims from customers. 

Tom Smith
10th July 2007

Tags: cover, Insurance, claim, weather, cost, flood, water, home

Financial advisers now under scrutiny

UK regulators have been cracking down on all sorts of services and sectors over the past year, from bank and credit card charges to travel insurance and payment protection cover. Read more

Tags: free, personal. mortgages, charge, advisers, finance, recommend, Insurance, advice, products

Cost of comprehensive car cover at its highest in two years

According to recent reports those purchasing comprehensive vehicle insurance on the direct market are having to pay the most expensive premiums for two years.

The research was carried out by Experian, and indicates that in May of this year comprehensive vehicle insurance premiums rose by nearly 8 percent compared to the same period in 2006. There are a number of factors that can affect the cost of premiums, including age, past driving convictions and claims, and the make and model of the vehicle being insured.

The research also indicates that consumers could find it cheaper to get comprehensive cover on the intermediary market rather than through the direct market.

Even policies from the intermediary market are at their highest in nearly a year for those looking for comprehensive cover, but these are still likely to be a fair amount cheaper than direct market policies, with the average cost for a comprehensive policy in May of this year coming in at £530 compared to £560 through the direct market.

The report also showed that the cost of third party, fire, and theft cover was higher in both direct and intermediary markets, and it is thought that one of the reasons for this is because this type of policy is typically taken out by younger drivers due to affordability of comprehensive cover, which pushes up the cost of premiums.

Those looking for car insurance cover in either market are advised to shop around, as the cost of cover can vary quite widely from one insurer to another. This can be done through a price comparison website as well as by searching through individual insurers online, although the latter is likely to take more time.

Tom Smith
7th July 2007

Tags: third, theft, party, car, cover, prices, Insurance, comprehensive

How Do Insurance Companies Work Out Premiums?

The winning number is…

As you wait for the insurance sales person on the other end of the phone or over the counter to come back to you with how much your insurance premium is going to be it’s rather like entering an unfortunate lottery. Quite how they work out the cost of insurance sometimes seems like anybody’s guess. Read more

Tags: charge, level, cost, accident, cover, Insurance, car

Smokers lose money on insurance premiums

Most smokers realize that by kicking the habit they could save a fortune each year, with many smokers spending thousands of pounds each year on cigarettes.

However, many forget that in addition to saving money on the cost of cigarettes, which can then be used for anything from luxury holidays to investments for the future, they can also save money in areas, one of which is insurance.

There are many different types of insurance cover, and the main ones on which smokers can save money include medical or health insurance cover, life insurance cover, and home insurance cover.

Smokers are classed as an increased risk when it comes to these types of insurance cover, and as a result of this increased risk most smokers pay considerably larger premiums than non-smokers, which adds to the overall cost of being a smoker.

When it comes to medical and health insurance, smokers are more likely to make a claim because of the health risks and illnesses associated with smoking, and therefore have to pay higher premiums. With life insurance, smokers are more likely to contract a terminal illness such as cancer due to smoking, and again as a result of this the cost of premiums are pushed up.

And in terms of home insurance, smokers are classed as an increased risk when it comes to fires in the home, and this also pushes up the cost of insurance premiums.

It is also thought that the number of people in the UK smoking in their homes, and therefore being classed as an increased fire risk, will increase, as the smoking ban in public places has now come into force in the UK.

Although many smokers now aim to give up altogether, which could boost their finances in many areas, many others will resort to staying in and smoking in the home rather than going out to pubs and clubs where they can no longer smoke.

Tom Smith
5th July 2007

Tags: ban, finances, pubs, house, risk, life, more, Insurance

Government to crackdown on insurance cover from travel agents

According to a recent report the government in the UK plans to crackdown on travel insurance cover purchased from travel agents in a bid to provide consumers with higher levels of protection when they purchase this insurance.

The government has announced plans to regulate the sector, and this means that travellers could look forward to increased levels of protection when they purchase their travel cover from travel agents.

The government has announced that the Financial Services Authority will now be regulating travel insurance sold alongside holidays by travel agents. Travel agents that plan to sell this type of insurance with holidays will therefore have to make sure that it is designed to fit the needs of customers.

Customers will have to be treated fairly in line with Financial Services Authority regulations when buying these policies, and in the even that the customer of dissatisfied with an aspect of the sale of the policy he or she can go through the Financial Ombudsman Service.

Ed Balls, economic secretary to the Treasury, stated: ‘Evidence shows that companies regulated by the FSA are better at getting consumers to make an informed choice because they are better at explaining the key features and exclusions of the product and guiding the customer through the sales process.’

The crackdown results from complaints from consumers groups with regards to unsuitable and expensive policies being sold to customers in the past – a problem that this move will help to reduce. The new regulations are set to come into force in 2009, although many officials from the travel agents industry are not happy about the move.

The travel agency industry had asked for the opportunity to make changes without these new regulations being put in place, but were not granted this opportunity.

Tom Smith
4th July 2007

Tags: cost, Insurance, travel, cover, changes, price, crackdown, agency

Are insurance company customers happy?

Insurance companies have been under fire for various reasons over recent months, and many have expressed dissatisfaction with their insurance provider.

However, it is increasingly difficult to determine just how unhappy customer actually are with their insurance providers because many providers now refuse to provide information on their customer satisfaction levels, making it difficult to determine how effective their services are.

According to recent reports around fifty percent of the leading insurance companies in the UK will not provide information relating to how satisfied or dissatisfied their customers are.

However, these companies had already agreed to provide the results as part of a survey that was being carried out by Association of British Insurers. The nationwide survey was designed to evaluate customer satisfaction levels within the insurance industry.

Amongst the insurance companies that have refused to provide these details so that their customer satisfaction levels can be compared to rival insurance companies are Norwich Union, Standard Life, and Friends Provident.

The customer satisfaction survey was designed to try and improve services within the insurance sector. Around 85 percent of insurance companies in the UK signed up to the survey, but despite their agreement many have not provided the necessary details relating to customer satisfaction levels.

A Friends Provident spokesperson stated: ‘We do not believe it is helpful to look at the highlevel results in any sort of league table form as we recognise that there are many reasons why results can vary.’

A spokesman for Zurich Insurance stated: ‘The results are intended to help companies understand their progress against commitments they have made. They are not intended as an accurate measure of benchmarking.’

An official from consumer group Which? said: ‘We think results for each company should be published in a standardised way with individual firms’ scores disclosed.’

Tom Smith
3rd July 2007

Tags: customer, home, service, company, cost, Insurance, car, happy

Direct Line launches campaign against price comparison services

One of the UK’s best known car insurance companies, Direct Line Insurance, has launched a campaign against price comparison websites that help consumers to find that they claim is the cheapest insurance for their needs.

Price comparison websites require consumers to input a number of details, and then use these details to find the cheapest deal on car insurance cover. However, this is only from their database of insurers and not from every major insurance company in the UK.

According to research carried out by Direct Line over 40 percent of consumers that had used price comparison services to find cheaper vehicle insurance had thought that all major insurance companies would be included in the search.

The research also goes on to indicate that over 90 percent of those that have bought their vehicle insurance cover through a price comparison site feel that there should be some sort of warning so that consumers know right away that not all insurance companies are part of the database.

The Royal Bank of Scotland owns Direct Line, as well as Churchill and Privilege, and will not provide any quotes for customers through price comparison websites. An advertising campaign has now been launched by Direct Line to make consumers aware that price comparison sites do not represent all leading insurance companies in the UK.

One Direct Line spokesperson stated: ‘Consumers are confused about price comparison websites and our research shows many believe they provide an independent, public service designed to ensure consumers get the best deal on their insurance. Unfortunately this is not the case, as these websites are really just on-line middlemen who make money out of commissions on insurance sales, just like a traditional high street broker.’

Tom Smith
1st July 2007

Tags: consumers, home, comparison, cheaper, all, market, search

Motor insurance at 2yr high

Comprehensive motor insurance premiums are at their highest level for two years.

Figures from Experian show that premiums in the direct market peaked in May, sitting 7.9 per cent higher than they were in the same month in 2006.

Experian has developed a Motor Insurance Benchmark to accurately measure insurance premium movements and this shows that the current average in the direct market is £560.

The intermediary market also saw the average premium rise to £529, the highest level for 11 months.

“The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market,” said David Murby from Experian.

“Traditionally, premiums in the intermediary market have been higher, but after peaking in February 2006 [reaching £557], they started falling significantly. They passed each other in July 2006, when intermediary premiums were at their lowest.

“The whole motor insurance industry is going through a period of transition and it is not as clear-cut as it was 15 years ago,” he added.

At present, it would seem that people looking for motor insurance are better off going through an intermediary but buyers should always shop around for the best deal and remember that things can change very quickly.

Tags: transition, increase, direct market increase, Insurance, comprehensive motor insurance, rise, current average, GBP

Medical insurance popular with Brits

More and more of us are choosing to take out private medical insurance (PMI).

The latest figures from the Association of British Insurers (ABI) show that 2006 saw a 1.8 per cent increase in PMI subscriptions compared to the year before.

In 2005, 1,012,000 people signed up to PMI, while in 2006 this number jumped to 1,030,000.

The ABI points out that this means 5.9 million adults and children in the UK are now covered by PMI and says that the benefits are clear to see.

“Private medical insurance offers people greater choice of treatment and other services for a wide range of medical conditions and injuries,” said Nick Starling, director of general health and insurance at the ABI.

“It also takes pressure off the NHS, so by buying PMI, people are effectively reducing the burden on Britain’s hard-pressed health service.

“It is encouraging that more individuals are choosing to buy PMI for themselves and their families. PMI bought by companies on behalf of their employees has continued to increase in popularity too, helping to ensure that people can get back to work sooner after illness or injury,” he added.

Tags: director, increase, United States, PMI subscriptions, greater choice, subscriptions

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

Tired driving warning

Motorists are being warned of the dangers of driving while tired, following new research from insurance firm esure.com.

The company has published a report, entitled ‘Yawning Nation’ and found that driving a long distance is the most likely everyday activity to make you yawn.

A total of 44.2 per cent said that sitting behind the wheel for a long time leads to them feeling quite sleepy and an astonishing eight per cent admit to having fallen asleep while driving.

The dangers associated with this are massive and well publicised and many drivers say that they try to take action to counteract the effects of tiredness.

The majority of people, 81 per cent, open the window in order to remain awake, while a further 64 per cent turn on the air conditioning.

Music is often used, with 50 per cent singing along to the radio or a CD and 43 per cent playing loud music.

Despite this, experts point out that most people are simply wasting their time with these ’stimulating’ methods.

“The methods that drivers say they are using to keep themselves awake in the car are all ineffective. They will not stop people from falling asleep unintentionally or fend off a distracting yawn,” warned Dr Chris Idzikowski from the Edinburgh Sleep Centre.

“The only thing to counteract tiredness behind the wheel of the car and fully recharge the human battery is having caffeine followed by two closely spaced 20 to 30 minute naps before setting out.”

Tags: Insurance, cent admit, new research, recharge, loud music

Check your garden is protected against theft

Although the British summertime is a pleasant period for green fingered people and garden lovers, it is also a time that can increase the risk of theft from outside your actual house – from your back garden.

Many people are looking forward to spending time sprucing up their gardens, adding plants, and enjoying barbeques with families, and the popularity of garden programmes on television has seen more and more people invest in their gardens, often spending huge amounts of money on their pride and joy.

However, as summertime approaches insurers are warning consumers to check that they have adequate cover to protect the items on their gardens. Summertime thieves will target everything from expensive plants and shrubs to barbeques, lawnmowers, decorative ornaments, furniture, tools, and just about anything else that could be of value in your garden. And without adequate cover this could mean financial losses as well as a ruined garden.

According to the Halifax the average claim for garden based theft last year was around £400. Claims tripled between March and August last year according to the Halifax, and there were total claims of around £1 million last year relating to garden based theft. Some of the items may be covered under the regular home insurance cover, but many do not cover plants and therefore additional cover may be required.

Consumers should contact their home insurance providers to see what sort of garden items and equipment are already covered, and can then arrange additional cover if required. Cover on garden items can vary from one insurance provider to another, and terms and conditions for making a claim can also vary, so this is something else that consumers will need to check.

Tom Smith
7th June 2007

Tags: Insurance, home, policy, damage, plants, lawns, claim, halifax, theft

Do you have European breakdown cover?

Most motorists in Britain are well aware of what their insurance policy covers in the UK depending on the level of cover that they have, but according to recent research an alarming level have no idea that they may not be covered for driving in other European destinations.

A large number of Brits take their cars along to various European destinations each year, but only a percentage of these have actually got adequate cover that will protect them in the event of breakdowns and accidents whilst driving abroad.

The recent research was carried out by Marks and Spencer Money. The results indicated that only twenty percent of drivers were insured against breakdowns last summer when taking their vehicle to Europe, and only a third of drivers taking their vehicles to Europe were covered in the events of an accident or the theft of their vehicle. This means that the majority of people that take their vehicles to European destinations each year actually have no cover in the event of accidents, theft, or breakdowns.

According to research only ten percent of fully comprehensive motor vehicle insurance policies automatically include European cover; however, many motorists simply assume that if they have fully comprehensive cover on their car then they must be insured for driving in other European destinations – this is not the case. Drivers that intend to take their cars to Europe are warned to check with their insurer first, and to make sure that they add on the additional cover if it does not already exist.

Experts state that it does not tend to be very expensive to add this cover. One spokesperson from insuresupermarket.com stated: ‘It’s worth considering as thieves often target cars with foreign number plates. There’s also a greater risk of having an accident when you’re driving in unfamiliar places on the wrong side of the road.’

Tom Smith
4th June 2007

Tags: cover, motor, car, european, Insurance, breakdown, travel, foreign, vehicle

Insurance premiums could fall for those with penalty points

In the past UK motorists that have clocked up penalty points on their driving licences have seen the cost of their vehicle insurance premiums rise quite considerably as a result of this.

However, according to recent reports from insurance companies points that have been accrued through speeding will no longer result in rising premiums, as speeding will no longer be viewed by insurance companies as signifying that the driver is a greater risk on the roads.

Insurance companies have revealed that points accrued through speeding have become so common that there is little point viewing these drivers as a greater risk on the roads. This means that many UK drivers with points on their licence as a result of speeding may find that their insurance premiums start to fall. Some insurance companies have announced that those drivers with up to nine points on their licences will now be treated as those without any points in terms of insurance premiums.

In the past, these drivers could have seen their car insurance premiums rise to four times the amount of standard premiums. Swinton Insurance has been the first to make the announcement about the fall in insurance premiums for those with points, and it is expected that other insurance firms are set to follow in the footsteps of the insurance giant.

An official from Swinton Insurance stated: ‘Penalty points used to be the yardstick for dangerous drivers, but with up to 10million drivers collecting them, they are so common place that they have almost become pointless. We will be looking at each driver as an individual and not automatically upping the cost of their premium if they have six penalty points on their licence.’

Tom Smith
4th June 2007

Tags: Insurance, speeding, cheaper, premiums, collect, penalty, fall, car

Protect your expensive wedding gifts

A new report has highlighted the importance of home insurance for newly weds, citing the cost of ever extravagant wedding gifts as the main reason for needing to get home insurance cover pretty much right away following the wedding.

According to reports wedding gifts are getting more and more extravagant, and with gifts as expensive and luxurious as plasma screen TVs and the like being purchased as wedding gifts in some cases, home insurance cover is more important than ever for newly weds with thousands of pounds worth of presents.

Research was carried out by NFU Mutual, which showed that under ten percent of newlywed couples actually check their insurance policies immediately after the wedding, which means that millions of pounds worth of extravagant wedding gifts could be at risk, as it could be left in the new homes of newlyweds as they jet off to enjoy their honeymoon still caught up in the excitement of the wedding.

Research also showed that many newlyweds couldn’t remember whether they had checked their policies or not following the wedding. Officials reports that millions of pounds are spent on wedding gifts each year in the UK, and those gifts could be at risk from damage or theft – particularly if they are being left in the house whilst the couple go on honeymoon – which could mean huge financial losses for the newlyweds just as they embark upon their married life together.

One official from NFU Mutual stated: “There is a great deal of excitement in the run up to a wedding and naturally, the practicalities of checking your home insurance can sometimes be forgotten.”

Tom Smith
31st May 2007

Tags: wedding, Insurance, in, break, gifts, house, value, steal, honeymoon, increase

Neighbours cost homeowners £93.4m

Brits spend more than £93.4 million each year on damage caused by their neighbours.

New research by Abbey has found that around 543,000 of us have to endure household damage by our neighbours every year.

Londoners are the worst affected, with ten per cent encountering damage, while people in Wales are the least affected.

The average insurance claim made after a neighbour has caused damage is around £172 but one in twenty is hit for £1,000 or more.

“Not all damage caused to people’s homes by their neighbours is malicious. In many cases this type of damage is accidental. However there are often misconceptions about whose insurance is to be used to claim for it,” explained Prasad Shastri from Abbey.

“It is always the policy holder of the damaged home that will need to submit a claim. For example, if your neighbour was to cut down a tree that accidentally breaks a window, it is only you that can claim for damage to your property, not your neighbour, highlighting how important it is for you to make sure your insurance covers you against accidental damage caused to your property by other people.”

Homeowners are also warned by Abbey that buying insurance on price alone can be dangerous as it is important to make sure that you have adequate cover for your home and its contents.

Tags: Wales, Household, misconceptions, accidental, price, Insurance, window, abbey

You could get a better deal with annual travel insurance

According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.

According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.

One MoneyExpert official stated: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money. You are certainly paying for a quick fix. As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.

According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”

Tom Smith
26th May 2007

Tags: cost, cover, annual, News, cheaper, Insurance, policy, single, money expert, travel

Drivers not going hands-free

Many British drovers continue to use their mobile phones while driving, despite recent changes to make punishments harsher.

A survey, carried out by Which?, found that 33 per cent of drivers are still making and receiving calls while behind the wheel.

In addition, 32 per cent admit to sending or reading text messages while driving, running the risk of prosecution or, even worse, having an accident.

New laws introduced in February state that drivers can be hit with a £60 fine and three penalty points on their licence if they are caught on their phone while driving.

This can have a big effect on insurance premiums for drivers and the fact that they continue to talk and drive cannot be put down to ignorance of the laws.

In a separate Which? survey, it was found that 90 per cent were aware of the penalty changes.

“Although people seem to be aware of the higher penalties for mobile phone use behind the wheel, many either don’t understand or don’t obey the revised law,” commented Richard Headland, motoring editor at Which?.

“The penalties for using a handheld phone when driving are now stiffer, but to be effective the government must change driver behaviour through better education as well as enforcement.”

The survey also highlighted that only one in ten drivers are aware that it is still legal to call the emergency services while behind the wheel.

Tags: accident, cannot, Insurance, editor at Which, prosecution

Am I Insured To Drive Anyone’s Car?

Confusion

Whether you have got fully comprehensive insurance and want to drive somebody else’s car or whether you have only third party insurance and want to do so, it’s a confusing mess – the simple question is, are you legal or not? Read more

Tags: comprehensive, anyone, Insurance, cover, third party

HSBC to improve insurance products

One of the UK’s leading banks, HSBC, has announced that it is extending its relationship with insurance underwriter Norwich Union in a bid to improve the insurance products and services that it provides.

Over ten million customers with HSBC can now opt for a range of general insurance products through HSBC that will be underwritten by Norwich Union. The bank and the insurance company have already been working together for over twenty years on certain insurance products, and their relationship will be strengthened as the bank increases the insurance products that will now be provided through Norwich Union.

HSBC hopes that this latest move will place it amongst the top ten providers of general insurance in the UK. Previously, HSBC offered a number of insurance products through Norwich Union, and this included travel, vehicle, and home insurance.

The bank also hopes that profits from its insurance products can be doubled through this improved joint venture, with the bank’s managing director of insurance stating: ‘Creating preferred strategic partnerships with leading general insurers is a key element of that plan. In the UK, an estimated £1 in every £5 of financial services expenditure is spent on insurance. That is why we have chosen Norwich Union, the leading UK insurer with whom we already have a strong working relationship, to help HSBC satisfy its customers’ insurance needs.’

The Chief Executive of HSBC stated: ‘It would be fair to say that HSBC has historically punched below its weight in insurance but we have shown before that our customers want to stay with us if we offer well serviced, good value products.’

Tom Smith
23rd May 2007

Tags: hsbc, contents, products, increase, norwich union, travel, Insurance, offers, car

Insurance policyholders could be paying out million to compensate for fraud

According to industry professionals holders of UK insurance policies could collectively be paying out millions upon million of pounds simply to compensate for fraud levels losses.

Experts claim that policyholders could be shelling out four million pounds everyday simply to make up for the financial losses that are caused by fraudulent claims that are made to insurance companies.

The data comes from the Association of British Insurers, and the ABI states that over one and a half billion pounds is paid out by honest policyholder each year to make up for the cost of fraudulent claims made by millions of others. Around five million people have admitted to making a fraudulent insurance claim in the past. This adds an average of forty pounds a year to the cost of cover according to the Association of British Insurers.

The insurance fraud relates to different types of claims. Some people cheat their insurance company by making a valid claim but inflating the amount that they are claiming for. Others actually take out insurance cover for the sole purpose of making a fraudulent claim so that they can cash in their cover – this is known as ‘planned’ insurance fraud.

Around £8M had to be paid out in extra premiums by honest policyholders last year to make up for claims where the amount had been inflated by the claimant. Around fifty percent of fraudulent claims relate to home and contents insurance cover.

One spokesperson from the ABI stated: “These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves.”

Tom Smith
23rd May 2007

More Information:

• What is Insurance?

Tags: claims, Insurance, fraudulent, police, cover, abi

The Great British insurance scam

Con-artists are costing the UK insurance industry £1.6 billion per year and we are suffering as a result.

The Association of British Insurers (ABI) claims that fraudulent insurance claims are rife in the country and innocent people are being penalised through increased premiums.

Research by the organisation shows that the average policy holder’s premium is £40 higher than it should be because £4 million worth of false claims are made every day.

The ABI carried out a survey which found that ten per cent of people have cheated their insurance company, either by completely fabricating a claim or exaggerating it.

Nick Starling, director of general insurance and health at the ABI, wants to see greater power given to the authorities to deal with the crime.

“Honest customers should not have to pay for cheats. These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud,” he said.

“This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves.”

The ABI says that around 50 per cent of all fraudulent claims centre on home contents and building insurance.

Tags: average policy holder, seriousness, power, Great, fraudulent insurance claims, Insurance

Insurers expect surge in DIY claims

The May Day Bank Holiday is expected to have led to a surge in insurance claims as the UK went DIY crazy.

Bank Holidays are traditionally a time when homeowners decide to carry out some work on their house and this one has been no different.

Lloyds TSB Insurance says that it is expecting the number of calls it receives to surge by around 60 per cent in the coming days.

The firm has revealed that it saw calls rise by 56 per cent following the 2006 May Day Bank Holiday and it predicts that accidental damage claims will also rise.

“May Day Bank Holiday can spell disaster for DIYers,” explained Phil Loney, managing director at Lloyds TSB Insurance.

“We’re urging anyone who’s getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it’s then that having the right insurance cover can prove invaluable.”

The firm says that their have been some quite interesting claims made in recent years. Among them is a toddler who wanted to follow his dad’s DIY lead and painted a newly-laid carpet.

One man accidentally drilled through a gas pipe and caused a leak, while another crashed through his ceiling as he tried to repair some floorboards.

Tags: disaster, director, accidental damage claims, Lloyds TSB Insurance, damage, toddler, time, Insurance

Garden items may not be covered

As the Bank Holiday weekend approaches, Nationwide is warning homeowners to ensure that their home insurance covers the theft of garden contents.

Not all policies cover items which are kept in the garden and people need to be sure that they are covered.

The firm points to the fact that evenings are getting longer and many people will be spending more time in their gardens as a result.

This inevitably leads to lawnmowers and garden furniture being brought out and often left in the garden over night.

Nationwide warns that these products become easy pickings for thieves and says that simply being certain that your home insurance covers garden contents can save you a lot of money.

“As we move further into spring we begin to see an increase in the number of home insurance claims we receive for items being stolen from gardens or vandalised, with garden furniture being the most popular item claimed for,” said Robin Bailey, Nationwide’s insurance director.

“Unfortunately we cannot secure our gardens as easily as our homes but, by finding a provider which offers garden cover as standard, people can help protect themselves should they ever need to make a claim.”

According to the firm, the most popular claims received for items stolen or damaged in gardens include furniture, bicycles, ornaments and children’s toys.

Tags: home insurance covers, result, home insurance claims, Nationwide's insurance, director, provider, Insurance, spring

Travel Insurance – Keep Your Holiday Protected!

Holidays aren’t exactly cheap these days. Gone are the years when you could pitch up at the English seaside and spend a couple of weeks with the kids paddling in a storm tossed grey sea at Scarborough or Blackpool. These days of sunshine abroad and quality children’s entertainments come at a price. Today, there’s no better reason to insure your holiday. Read more

Tags: employee, overseas, travel, policy, Insurance, accident, cancellation, cover

Brits ‘don’t haggle’ over new cars

British car buyers are wasting money on their personal loans by not haggling over the price of the car they are buying, according to a new report.

Research by Sainsbury’s Bank suggests that up to 386,000 people will not haggle on the price of their brand new car between March and August this year, despite allegedly being able to save up to £1,500.

The bank, which claims that around 16 per cent of people looking to buy a new car will use a personal loan as their main source of finance, has found that this overspend could add up to £611 million nationwide.

Steven Baillie, loans manager at Sainsbury’s Bank, said: “Once you have decided which new car you want, you then need to be prepared to haggle over the price you pay and if you are financing the purchase with a loan, you also need to make sure that you shop around to find the right option for you.”

Drivers are also encouraged to shop around for their personal loan in order to get the cheapest deal, meaning they can save money on the cash they borrow to pay for their new motor.

Tags: bank, home, Brits, brand, Bargaining, Sainsbury's Bank, Insurance

1m drivers on brink of ban

More than one million Brits are very close to losing their driving licence as the UK’s roads become more closely monitored.

Research by Direct Line Car Insurance shows that 4.5 million drivers have points of their licence for speeding, with 21 per cent of these being just one conviction away from a ban.

That is a four per cent increase compared to 12 months ago and the insurance firm is concerned that many people risk losing their livelihood as a result.

Direct Line claims that 14 per cent of drivers could see their livelihood seriously affected by a driving ban and with 6,000 speed cameras currently monitoring the UK’s roads this is a real issue.

Around 92 per cent of motoring convictions handed out in the last two years were for speeding, with a collective £300 million being paid out in speeding fines in the last three years.

“With the advent of speed cameras and the introduction of points for being caught for driving using a mobile phone, we urge motorists not to break the law as they could face numerous consequences such as killing or injuring themselves or others, disqualification, job loss and financial loss,” commented Emma Holyer, Direct Line’s motor spokesperson.

The government has proposed a new law which will see drivers who are caught travelling at 10mph or less over the speed limit receiving a less severe penalty.

This has received widespread support from drivers and motoring bodies, with Direct Line saying that it gives the proposals its full support.

Tags: Road transport, Insurance, insurance firm, loss, penalty, speed limit, UK's roads

Summertime brings garden danger

We are being warned to be extra vigilant this summer as thieves look to strike in our gardens.

Halifax Home Insurance says that incidents of garden theft increase dramatically between March and August every year as people begin spending more time outside.

With the clocks set to go forward on Sunday (March 25th), Britain is officially entering summertime and that inevitably means we will begin taking out our patio furniture.

The warning from the insurance firm however, is that we must all take precautions to keep out garden furniture safe and should be covered against theft.

“Homeowners can forget to pay as much attention to security outside the house as they do inside,” said Vicky Emmott, senior manager of underwriting at Halifax Home Insurance.

“With many people realising how much value they can add to their property by improving their gardens, there are now rich pickings for thieves, and now is the time to take steps to avoid becoming the next.”

According to the insurer, the average claim for garden theft is around £400, while those living in Stoke-on-Trent are the most at risk.

Doncaster and Southampton follow closely behind, with Halifax revealing that tools, barbecues, garden furniture and bikes are the most popular items to be taken.

Homeowners are advised to lock all valuable garden items away when they are not in use, while gates should remain locked when you are not sitting in the garden.

Tags: theft, year, March, home, Insurance, finance, Summertime brings garden, Britain

£2.6bn cost of DIY mishaps

DIY causes £2.6 billion worth of accidents in the UK every year, according to new research.

As millions of us gear up to spend the Easter weekend up a ladder for one reason or another, Churchill Insurance is warning us to make sure we take precautions.

According to the firm, one fifth of householders have managed to damage their home in the last year while trying to fix something in the building by themselves.

Ten per cent of people admit to have caused some damage at least once since they moved into their property and one in ten have managed to do damage on two or more occasions in the last year.

Causing damage to your home may well be annoying but it can also be very costly, with Churchill claiming that the average accidental damage claim is around £540.

“Householders who have elected to include accidental damage cover under their home insurance policy have the added reassurance that they are covered if a DIY accident causes damage in the home,” said Martin Scott, head of Churchill Home Insurance.

A poll carried out by the firm shows that over half (51 per cent) of Brits believe that they are no any good at DIY, while 79 per cent wish that they were better.

If you are planning some serious DIY this Easter it may be worth making sure that your home insurance policy covers accidental damage.

Tags: average accidental damage, Easter, GBP, home, good, Insurance, Churchill Insurance

Leaks cost Brits £1.8bn

Leaking water is causing billions of pounds worth of damage in our homes each and every year.

New research shows that around 3.3 million homes are affected by leaks on an annual basis with the costs running to £1.8 billion.

Halifax Home Insurance has carried out a study into the problem and found that the most common sources of a household leak are washing machines, dishwashers, burst water tanks, pipes, showers and baths.

Homeowners are being advised to make sure that they check appliances regularly to ensure that any potential problems are spotted early.

“Changing fashions in the housing market have increased the likelihood of homes being damaged by leaking water,” explained Vicky Emmott, senior underwriter at Halifax Home Insurance.

“The trend for homes with multiple bathrooms and the current vogue for wet rooms have significantly increased the risk of water leaks and damage in the home.

“Older properties are vulnerable as a result of corroding pipes, which face increasing strain as Britain endures ever more extreme fluctuations in temperature as a result of global warming,” she added.

Halifax says that 36 per cent of British homeowners are running the risk of losing out financially as they do not have building insurance that covers water damage.

It is vital that homeowners take out insurance to cover themselves against potential disasters, particularly with increasingly unpredictable weather affecting the UK.

Tags: pipes, water leaks, Insurance, homeowners, multiple bathrooms, Leaking

Yuppies spending cash on collectables

Today’s young professionals are choosing to invest their money in collectables rather than splashing out on flashy items.

That is according to research by Zurich Insurance which has found fewer people are spending money on expensive cars and champagne.

Its study found that the majority of us prefer to spend our cash on items such as books, comics, paintings, vinyl records and football programmes.

One in six collectors are said to do so purely for financial gain, waiting a few years before seeing their item increase in value.

The average collector has spent around £2,000 on their classic stash in the last five years, with men being the most likely to invest.

“It seems that old valuables are the new investments for modern professionals these days,” said Martin Hall from Zurich.

“Our research shows they’re more interested in and profiting more from antiques and collectibles than any other generation before them.”

Zurich has, however, highlighted that very few people (60 per cent) have taken the time to get their collectables insured, meaning a financial and personal disaster could be just around the corner.

Tags: valuables, collector, study, cash, item increase, yuppies, Today's young professionals, Insurance

Why Are Female Car Insurance Quotes Cheaper Than Men?

As every man likes to remind his woman, women cannot drive as well as men can. Call up a UK insurance company, or get a UK car insurance quote online, however, and the cost of the car insurance premium for exactly the same car is likely going to be cheaper for the woman than the man. So, if woman cannot drive as well as men, how can that be so? Read more

Tags: female car insurance, UK car insurance, driving ban, traffic, year, Insurance, cheaper car insurance

How Your UK Credit Rating Can Affect Your UK Car Insurance Premiums

So you’ve never had a parking ticket, speeding ticket, been picked up for drunk driving or had any points on your driving licence. In short, you are the model UK driver. And yet, when you compare your car premium payments with your friends, you find out that you are paying more them. How can that be so? Read more

Tags: UK car insurance, Types of insurance, Insurance, car insurance premiums, UK motor insurance, credit rating, licence, event

5 Ways To Reduce Your Car Insurance Premiums

Even with a competitive UK car insurance market bringing down the average cost of car insurance premiums in the UK, by following certain guidelines you can reduce your car insurance premiums even more! Read more

Tags: cheaper car insurance, reduce car insurance, premium, cheap car insurance, neighborhood, Insurance, crime, perfect excuse

Motor Insurance – What Is A No Claims Bonus?

It’s a term you hear bounded about often in the world of motor insurance, but it is also one of the least understood: the ‘no claims bonus‘. So, what is a ‘no claims bonus’ and how can it help me?

The basics

As you can probably work out, a no claims bonus is ‘gift’ given to a policyholder if they do not claim on their insurance during the period of the insurance. In effect what this means is that if you reinsure your motor car with the same car insurance provider, you’ll be given a good conduct discount on what would otherwise have been a full premium insurance policy.

The misconception

There are two fundamental flaws with the no claims bonus: one, the understanding that you are going to reinsure with the same car insurance provider. In effect, what the insurance provider is saying to you is “don’t look elsewhere for your car insurance, because we are giving you a discount for being a good driver”. Fine; however, this works on the assumption that you cannot find cheaper motor insurance elsewhere – such as on the internet. Unfortunately, this assumption can often be wrong, and in most cases motorists are reluctant to change motor car insurance provider because they have fallen into the trap of believing they cannot get a better deal elsewhere.

Second, there is a fundamental understanding that your renewal policy with a no claims bonus will be cheaper than your previous policy. Actually, considering you have made no claim on your insurance, not an unreasonable concept to arrive at. However, not always the case – although you may be given a no claims bonus, the premium is set by the amount of claims that were made, which you have no say in as you didn’t make a claim! So, it is very possible to have a good conduct no claims bonus and still be paying higher premiums in year two than you were in year one!

The 5-year limitation

Naturally with every year that you didn’t make a claim against your motor insurance provider you would expect to get an additional no claims bonus. In reality this is not the case. Most motor insurance policy providers limit the period of no claims bonuses to 5 years of no claims. Thereafter, not making a claim is not helping to reduce your insurance premium.

As such, although you can surely make substantial savings with a no claims bonus, don’t let this lull you into thinking you cannot find motor insurance cheaper elsewhere and check out some of the online car insurance quotes to find out if you can get a cheaper car insurance quote than you are currently getting – even with your no claims bonus. You never know, you might actually be pleasantly surprised.

Tags: motor insurance policy, Social Issues, no claims discount, claim, no claims bonus

Comparing Motor Insurance Policies

Although it is a legal requirement in the UK that you maintain at least a minimum level of motor insurance if you want to drive on the roads, there is no such legal requirement that you have to chose a certain insurance provider. Read more

Tags: internet, need, Insurance, recovery, motor insurance policies, motor insurance policy, motor insurance companies, phase

Do’s and Don’ts of Travel Insurance

Travel insurance is bought by many types of people in different industries. Because travel insurance has more rules and regulations than home or car insurance policies, there are many facts that need to be considered before purchasing travel insurance. Read more

Tags: role, medical coverage, medical care, Insurance, company

DIY – Does Your Home Insurance Cover Your Work?

Before spending your entire holiday time off doing renovations to your home by yourself, first check with your insurance company about coverage concerning accidental damage. If the insurance company does, the next step is to make sure it is enough coverage in case an emergency occurs in the middle of your home renovation project. Read more

Tags: renovations, huge jump, home insurance, renovation, diy, proper coverage, Insurance, DIY improvements

Shopaholics Should Include Insurance on the List

The average yearly UK car insurance premium is £460 with a difference of £110 from most expensive to least. This rate reflects a premium for the same make and model vehicle, driven by the same driver, living in the same towns and cities. Shopping around for insurance is worth the time. Read more

Tags: insurance carrier, average car, shop around, competitive insurers, Insurance, cheapest deal, shopaholics, premiums

Who makes The Most Insurance Claims

With all the drivers on the road, who actually makes the most car insurance claims?

Star sign Leo! Read more

Tags: side, anti-theft car alarm, garage, Leo, cancer, most insurance claims, Insurance

FSA launches crackdown on insurance fraud

The Financial Services Authority (FSA) is working to reduce the amount of financial crime in the insurance industry.

As part of a drive to crackdown on the crime it has launched a reporting system which will see insurance firms alerting the FSA whenever they suspect foul play.

From there the FSA will make a decision as to whether or not it will investigate the case further.

“We are looking to all insurance firms to participate in this scheme and help us beat criminal financial activity in their industry,” said Stephen Bland, director of small firms at the FSA.

“We want to know when a firm has suspicion or evidence of malpractice so that we can act on it where appropriate.

“We hope that by sharing intelligence in this way, we can work together to reduce financial crime,” he added.

Mr Bland went on to say that the new system is similar to the one introduced to combat mortgage fraud and he hopes that it will be just as successful.

The introduction of the system has been welcomed by the Association of British Insurers, praising it for providing a “simple point of contact to raise concerns”.

Tags: insurance fraud, Financial services, suspicion, intelligence, Stephen Bland, point of contact, Insurance, introduction

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: Business and Economy, Insurance, Financial economics, Rehabilitation, half increased premiums

Subsidence risk for 100,000 Londoners

Around 100,000 homes in London face an increased risk of subsidence due to the growing trend of turning front gardens into driveways.

That is according to esure home insurance, which carried out research including a report from the British Geological Society.

The report details how driveways cause rainfall to run off into drains rather than filtering down to the soil where tree roots lay waiting.

As the roots receive no water they move to seek some out, leading to changes in soil moisture beneath foundations.

“It is very appealing for homeowners in busy streets to create a bespoke parking space for their property,” said Nikki Sellers, head of home insurance at esure.

“Unfortunately, for houses with a street tree or large front garden tree nearby this can significantly increase the risk of subsidence.

“A dedicated space may increase the value of your home but subsidence damage will do quite the reverse,” she added.

Homeowners are being warned to do their research before installing a driveway or patio and are advised to take out adequate insurance if they are concerned about subsidence.

Tags: business, head, soil moisture, property, Insurance, report

Prepare your home for snow storm

The UK is about to be hit by a bout of severe weather, with homeowners being warned to properly prepare their houses.

The Met Office has forecast up to seven inches of snowfall in the country over the coming days and Halifax Home Insurance says that we should all be insulating our pipes.

If the weather predictions are correct, temperatures could drop to as low as -10 degrees Celsius, potentially leading to burst pipes.

The most common place for this kind of incident is said to be the loft, meaning that when the water thaws and begins leaking it causes maximum damage to the entire house.

“Water from a burst pipe within a loft space can very quickly cause damage to plaster ceilings, wall plaster, kitchen units, electrical wiring and decoration, as well as carpets, beds, electrical items and other contents within a property,” said Vicky Emmot from Halifax.

“So by simply insulating your pipes you can help to protect yourself from unwanted disasters this winter. It is also worth considering how prepared you would be if the worst was to happen.”

Halifax has some tips to avoid a burst pipe disaster, with insulating exposed pipes being the first action to take.

Homeowners are also told to ensure that the water tank is insulated, the loft door is open (if possible) and all external taps are switched off.

Tags: Insurance, pipes, unwanted disasters, electrical items, halifax, Physics

GECB fined over PPI

GE Capital Bank (GECB) has been fined by the Financial Services Authority (FSA) for failing to have adequate systems and controls in place for selling insurance.

The bank was hit with a £610,000 fine following an investigation into payment protection insurance (PPI) by the FSA.

GECB works in providing credit finance through store cards, credit cards and sales finance. The firm has been found guilty of treating customers unfairly.

“Millions of people take out store cards every year,” said Margaret Cole, director of enforcement at the FSA.

“They need to know that PPI is almost always optional and should consider whether they need it before signing up.”

GECB has been punished for failing to provide adequate information to consumers regarding PPI and failing to retrain staff after it was highlighted that they were not complying with sales procedures.

The FSA has warned that GECB will not be the last firm to come under scrutiny regarding PPI.

“Our focus on Payment Protection Insurance will remain very high this year,” warned Ms Cole.

“We are determined to see significantly better practice in PPI sales and will crack down where firms fail to treat their customers fairly.”

GECB has committed to taking action to redress the highlighted issues, which resulted in the fine being reduced from £870,000.

Tags: adequate information, payment protection insurance, consumers regarding ppi, fsa, sales procedures.the fsa

Winter will see more claims

Homeowners are likely to make more insurance claims in the coming months as a result of the bad weather.

That is according to Lloyds TSB, which says it is expecting to see a 15 per cent increase in burst pipe claims during the first quarter of this year.

The insurance provider is highlighting the fact that something as seemingly minor as a burst pipe can prove to be both a major headache and a real financial burden.

Lloyds has revealed that the average claim for a burst pipe is around £2,500, while the most expensive the firm has ever seen was £156,000 for a particularly troublesome problem.

Homeowners are being warned to take action to help keep damage from a burst pipe to a minimum, with advice such as locating the stopcock, gas valve and ball valves, in case the worst happens.

Lloyds also advises people to leave their heating on a low heat if they are going away on holiday, as this will prevent pipes from freezing, while outdoor pipes should be well insulated during the winter months.

“So far this winter we’ve had relatively mild weather so many homeowners were caught unprepared for this cold snap,” said Lloyds TSB’s Phil Loney.

“A little bit of effort now could save you a lot of wasted time and stress caused by problems such as burst pipes or broken boilers.

“To give yourself peace of mind, make sure you have adequate home insurance that will cover you if the icy conditions do take their toll,” he added.

Residents are also advised to leave their insurance details with a trusted neighbour when travelling in case there is an incident while the house is empty.

Tags: little bit, mind, Insurance, Valve, homeowners, peace of mind, tsb, weather

Appropriate Insurance Company

One of the most important contributors of the UK economy is the insurance industry. The insurance industry is among the top employers of UK and a significant source of overseas earnings. It helps businesses to protect themselves from risk and provides a wide range of services to ordinary people, from car and house insurance to pensions. Searching for an appropriate insurance company is an important task in present days where insurance companies are mushrooming at every corner. Read more

Tags: insurance companies, member, Insurance, claim insurance, industry, important contributors, world

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