Adequate insurance needs to be arranged by winter sports fans

With winter now here there may be many people that are planning on heading out for a break to enjoy the exhilarating thrill of winter sports. This is the type of holiday that is hugely popular with many people, but is also the type of break that comes with increased risks due to the higher risk of injury. There are also higher risks posed because of the costly equipment that holidaymakers on winter breaks have to take with them, which can cost a fortune in the event of loss, theft or damage.

Officials are now urging consumers to ensure that if they do decide to take a break involving winter sports they take the time to take out the right level and type of travel insurance. Whilst some people may already have travel insurance or may take out a standard policy it is necessary to take out a special policy when participating in winter sports. Without this, the holidaymaker may find that they are not covered and in the event of an accident, injury or issue with equipment this could prove to be extremely costly.

When arranging travel insurance for winter sports holidaymakers need to make sure that not only are they covered against the increased medical and health risks that come with winter sports but that they also ensure that their costly equipment is also covered. With standard travel insurance a large percentage do not provide cover for any type of winter sports, which is why travellers need to check their policy before they head off on a winter holiday.

One official stated: “To ensure they get the right type and level of cover for their trip, people need to focus first and foremost on pinpointing the features they need.”

Tags: winter holiday, theft, whilst, policy, event, health

Pressure on interest rates stems from inflation

Many borrowers with variable rate mortgages or loans could see their monthly repayments rise over the course of this year, as the pressure is piled on for the Bank of England and the Monetary Policy Committee to increase the base rate in order to keep a lid on inflation. The level of inflation has now soared to 3.7 percent, which is close to double the target level of 2 percent as set by the government.

There are now concerns that the MPC will have to make the difficult decision to increase the base rate so that inflation can be brought back under control. The base rate has been at an all time low of just 0.5 percent for nearly two years now, and this has brought welcome relief to many people with variable rate loans and mortgages, as it has resulted in their repayments coming down.

It is thought that inflation could continue to soar, and this rise in inflation will not be helped by the increase in VAT, which rose to 20 percent at the start of this year reflecting an increase of 2.5 percent. A number of other things were blamed for the increase in inflation, including food costs,  higher utility bills, soaring fuel prices, and air transport.

One economist said: “Despite the undeniably significant risk to growth coming from the fiscal tightening that is now increasingly kicking in, there is mounting pressure on the Bank of England to enact at least a token near-term interest rate hike to send out the message that it has not taken its eye off the inflation ball.”

The British Chambers of Commerce warned: “Raising rates at a time when fiscal policy is being tightened, while businesses and individuals are facing greater pressures, would be a mistake and should be avoided.”

Tags: inflation ball, relief, significant risk, air transport, variable rate loans, target, policy

Older consumers struggling to get travel cover

A recent report has highlighted how difficult it can be for older consumers to find affordable travel insurance cover, with many finding the cost of this cover too high to afford. Many older people aged sixty five and above find themselves in a difficult situation where they suddenly have more time to travel following retirement but then discover that their age is making it difficult or impossible to get insurance for their travel.

Figures have shown that the average cost of cover for someone in their thirties is under twenty pounds for a single trip cover policy. However, for someone that is eighty years of age the cost can be around five times that amount, and that’s only if the older traveller is fit and healthy. For those that have past and existing medical problems the cost can be too much to afford.

Older people often struggle to get travel insurance cover, and this is because insurance firms see them as a higher risk and a liability become of their age and frailty. The amount charged for travel insurance for someone aged sixty five can more than double for someone aged sixty six who is going to the same destination for the same period of time.

The amount of choice that older travellers have is also limited, as there are some firms that will not provide cover for anyone aged over sixty five. The cost and availability of travel insurance cover for older people has resulted in some people being unable to enjoy the plans to travel following retirement because they simply cannot afford the cost of the cover.

One industry official said: “It can be very difficult for people of retirement age to get affordable travel insurance cover, and it is vital that they take time to compare because some insurance firms will charge a fortune.”

Tags: policy, Types of insurance, consumers, industry official, travel, cost, finding

What the economists think of the Quantitive Easing programme

The quantitative easing scheme is something that the government has been relying on to help pull the UK out of recession over the course of this year, but although the scheme has been extended on a number of occasions there are mixed reactions from industry officials with regards to just how well – if at all – this programme is working in terms of improvement to the economy. Read more

Tags: number, Fiscal policy, stimulus effort, bank of england, policy, bias, statement, Quantitive Easing

Many homeowners could have worthless insurance

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

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

Negotiating a Settlement When Your Job Has Become Redundant

Job losses have occurred in all sectors of the economy in recent months due to the global recession which is taking its toll on companies of all sizes. Read more

Tags: job losses, redundancies, job settlement, policy, good idea, employer, Britain

Drop in interest rates causes surprise for consumers

Struggling homeowners trying to cope with high mortgage repayments welcomed a surprise earlier this month after the Bank of England slashed the base rate by 1.5% just a month after applying a surprise 0.5% cut a day ahead of the scheduled Monetary Policy Committee meeting. The slash in interest rates has now taken the base rate down to just 3%. Just a year ago the base rate stood at 5.75%, so it is now nearly half of what it was a year ago. Read more

Tags: chancellor, policy, order, bank of england, CBI, interest rates, Business Finance

Central banks cut interest rates in unprecedented move

Just a day ahead of the scheduled Monetary Policy Committee meeting, the Bank of England followed other global central banks by slashing the base interest rate by 0.5% in an unprecedented move. The interest rate in the UK has dropped from 5%, where is has stood since April, to 4.5%. Many lenders also reduced their borrowing interest rates right away upon hearing the news. Other global central banks have also shaved half a percentage point from their base rates, including Sweden, Switzerland, Canada, the United States, and Europe. Read more

Tags: committee, financial markets, Monetary Policy Committee, potential slide, policy

Adventure-lovers should check the small print

Holidaymakers heading off on an adventurous trip abroad this year should make sure their travel insurance policy adequately covers them by checking the small print, esure has advised.

The insurer has revealed that more than a third of Brits do not bother to have a look over their insurance plans before they jet off for an action-packed holiday.

Mike Pickard, Head of Travel Insurance at esure, said: “With a surge in the popularity of…more adventurous sports…it’s crucial for holidaymakers to take out travel insurance and check they’re covered before they try out the likes of white water rafting in Australia or shark-feeding in the Bahamas.”

Travellers who neglect to take out the proper insurance can quickly see their holiday turn into “a nightmare” if they are injured and end up facing costly medical bills.

In related news, Lonely Planet has advised backpackers not to take expensive technological devices with them if they “can’t bear to lose” them.

Tags: policy, holiday turn, Travellers, costly medical bills.In, travel insurance, white water rafting, action-packed holiday.mike pickard, Esure

Brits spend over £200 replacing damaged contents

A quarter of Brits are spending in excess of £200 annually replacing damaged items in their homes, it has emerged.

Research conducted by Direct Line highlights that more than 30 per cent of accident-prone individuals have spilt red wine on their carpets, while more than a third admit to breaking ornaments, vases and photo frames.

Furthermore, 40 per cent of respondents said they had damaged furniture as the result of an accident.

Andrew Lowe, head of home insurance at Direct Line, says: “We all accidentally damage contents in our homes at some point. While these items are often small objects such as crockery or ornaments, the cost and inconvenience of damaging something with sentimental and material value is extremely frustrating.”

The insurer asserts that accidental damage cover can give homeowners “peace of mind” as they will know they are covered for spills and breakages.

In related news, the British Insurance Brokers’ Association recently urged people to seek advice from a broker before taking out a policy.

The association advised that this will help avoid over insuring and wasting money.

Tags: excess, Insurance, damaged items, policy, furniture

AA: More people choosing small cars for cheaper insurance

More drivers are opting for smaller cars in an effort to secure cheaper car insurance premiums, AA Insurance has said.

Ian Crowder, public relations manager at the insurer, said that smaller cars are also becoming popular because they are more fuel-efficient and environmentally-friendly.

Drivers thinking about buying car insurance have been advised to check that it covers them for driving in a foreign, country, especially with the summer holidays coming up and people planning road trips to Europe.

Research company Defaqto found that more than one in five policies do not provide cover for driving in another country.

Mike Powell, consultant for General Insurance at Defaqto, said: “You need to check with your insurer to confirm cover is provided before you travel. Even if cover is given, policyholders should always inform their insurer of a trip abroad as this often forms part of the policy terms and conditions”.

However, the study also found that 46 per cent of policies do provide insurance abroad for up to 90 days at no extra cost.

Tags: General, Financial economics, public relations, cheaper car insurance premiums, policy, More people, Types of insurance, trip

ABTA: Travel insurance is very good value

With the travel insurance market more competitive than ever, insurance policies are currently “very good value”, an expert has said.

The Association of British Travel Agents (ABTA) has said that “travel insurance is probably the cheapest it’s ever been”. Despite this, people often do not bother or forget to take out a policy, particularly if they are going on short trips, according to the organisation.

A recent report from the Association of British Insurers revealed that the group most likely to make an insurance claim are those aged over 65.

In fact, over 65-year-olds are three times as likely to make a claim as those aged over 35 and the costs are on average three and a half times more expensive than those of under 50-year-olds.

ABTA says people who travel at least twice a year, particularly if they take short or last minute holidays, should consider an annual policy as this will cover them in case they forget to take out insurance.

“If you’re the kind of person who is fairly spontaneous and takes advantage of last-minute cheap deals then the easiest thing to do is take up an annual policy,” advises Sean Tipton, a spokesman for the ABTA.

Tags: travel insurance market, tipton, organisation.A recent report, Association of British Travel Agents, policy, Association of British Insurers, insurance market, report

Travel insurance “very important” for tourists

With winter sports holidays becoming increasingly popular, it is essential that British tourists make sure they have the right travel insurance policy to protect them in the event of a sporting injury, Direct Line Travel Insurance has said.

Chris Price, head of Direct Line Travel Insurance, said tourists should seek advice to be sure they get a policy suitable for their plans prior to travelling.

With a fifth of British people taking to the slopes for winter sports holidays, there is concern that many people are taking part in high-risk activities without the right preparation.

According to a Foreign & Commonwealth Office report, one in ten British travellers suffer an injury while skiing or snowboarding and 31 per cent neglect to take out insurance that covers the sports they intend to take part in.


“The best way to ensure you have the appropriate policy is to contact your insurer and discuss the cover you need for the activities and equipment you are likely to use,” said Mr Price.

Tags: winter sports holidays, policy, preparation, slopes, British travellers, British tourists

Legal cover on home insurance may help avoid costly bills, claims expert

Home owners are being advised to take out legal cover on their house insurance to safeguard them in the event of a dispute with neighbours.

The Association of British Insurers (ABI) says that legal expenses can be very pricey if people get into a dispute and with research showing that a third of people have argued with their neighbours, insurance may be a sensible option.

According to a recent survey by Allianz Insurance, more than 1.1 million households have argued with their neighbours about noise and one in three of the 3,000 homeowners questioned have had a disagreement.

Kelly Ostler-Coyle, spokesperson for ABI, said: “The thing with insurance is you never know if you need it till you need it, so it’s always there to protect against the unexpected.”

If people think they would not be able to pay the legal fees in the event of a dispute, they should consider getting legal cover when they take out their home insurance policy, Ms Ostler-Coyle concluded.

Tags: option, Financial economics, noise, policy, home insurance, British Insurers, Coyle, spokesperson

One in 20 do not tell the truth in insurance applications

One in 20 consumers admit to having lied when filling out a life insurance application, according to new research.

Findings from a survey by Friends Provident showed that 95 per cent of people said they always tell the truth when completing forms for insurance.

Mark Jones, protection products and actuarial manager at Friends Provident, said: “It’s good to see many people recognise the importance of advice when buying insurance, and they take the time to answer all questions truthfully when applying for insurance.”

Over half of the respondents said that those who did not tell the truth deliberately on the forms should be punished by not being allowed any benefits

Under half said they would do research online before taking out insurance while 20 per cent would take advice from a financial expert and a further 15 per cent would rely on information from family and friends.

A further one in five admit to not reading the terms and conditions in a policy before signing up.

Meanwhile, research from Nationwide has revealed that a fifth of homeowners do not have buildings insurance.

Tags: benefitsUnder half, Provident, actuarial manager, Financial services, respondents, Types of insurance, family

Financial websites increased awareness of need for life insurance

Financial websites have helped raise awareness of the need for consumers to take out life insurance, according to insurance experts.

The Association of British Insurers (ABI) said that websites are useful for those consumers who know what sort of life insurance policy they need.

Those that are not aware of the products available should speak to a financial advisor says the body.

However, Nick Kirwan, head of health and protection insurance for the ABI, said: “Anything that helps to spread the message among consumers and provide choice to people… has to have contributed in some way to helping raise awareness.”

The ABI estimated that one in three Britons have no life insurance – and a further one in three have not renewed their life insurance cover for five years, so may be underinsured.

Meanwhile, back in 2005 the Telegraph reported that Swiss Re, the world’s largest life and health reinsurer, estimated that there was a £2.3 trillion ‘protection gap’ between the expenses of UK families and what was actually covered by life insurance policies.

Tags: advisor, abi, business, Association of British Insurers, message, websites increased awareness, trillion

Predictions of further interest rate rises fall

Earlier this year, following July’s 0.25% interest rate rise in the UK, many economists and analysts in the UK predicted that there would be another interest rate rise before the end of the year.

Interest rates have gone up five times since August of last year, with the series of 0.25% interest rate rises taking the base rate from 4.5% to 5.75%. Another 0.25% rise, as predicted by these industry experts, would have taken the base rate to 6% – it is already at its highest in over six years.

However, many industry experts appear to have changed their minds in light of the current turmoil that is hitting the mortgage markets, and following the credit crunch that is having global repercussions the number of analysts predicting a further interest rate rise has fallen. According to reports only one fifth of economists and analysts now believe that the interest rates will rise again this year.

The drop in the number of experts predicting another rise is in part the result of a recent statement that was released by the Monetary Policy Committee following its last meeting early in September, where it was decided that interest rates would remain on hold. The MPC claimed in its statement that its two main reasons for leaving interest rates on hold were that CPI inflation was now within government targets, and also because of the effect that the credit crunch could have upon the industry.

Howard Archer, an economist at Global Insight, stated: “We now no longer expect interest rates to rise to 6 percent in the fourth quarter, but instead anticipate that the Bank of England will sit tight for an extended period. We suspect that growth will lose momentum over the coming months, and that underlying inflationary pressures will gradually abate. This will become even more likely the longer that the current financial market turmoil continues.”

Tom Smith
16th October 2007

Tags: england, interest, bank, rates, fall, monetary, committee, policy

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: policy, term life insurance, Permanent life insurance, fixed payout, premium, cover

Homeowners urged to prepare for winter

With Britain’s wettest ever summer confirming that people are no longer safe from “extreme weather” at any time of the year, Defaqto has urged homeowners to check that their buildings and contents policies offer adequate levels of cover.

The independent financial research company warned policy holders to pay particular attention of exclusions incorporated into their buildings and contents policies, particularly those which might concern storm damage or flooding.

Although storm and flood damage is usually standard in most contents policies, they do not all include “contents in the open” such as garden furniture, Defaqto warned, revealing also that nearly all buildings policies exclude cover for weather damage to fences, gates and hedges.

Mel Gray, senior researcher at Defaqto, said: “A lightning strike could set your property on fire, resulting in your home and all your possessions being destroyed.

“So it’s essential that people check that the sums insured under their buildings and contents policies are adequate to cover such a catastrophic event.”

Last week, Lloyds TSB Insurance urged people to act quickly if they need to make a claim for damaged properties, following the tornadoes that wreaked havoc in Hampshire, Warwickshire, Bedfordshire and Derbyshire.

Tags: event, tornadoes, Insurance urged people, lloyds tsb, home insurance, policy, claim

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: act, road, drivers, vehicle, car

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

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

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: payment, benefit, protection, fsa, cover, Insurance

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: out, lifestyle, Insurance, work, fit, disease

Parents ‘running risks’ when insuring cars

Parents are risking getting in trouble with the law by insuring their offspring in their name in order to save money.

Research carried out by Gocompare found that more than 66 per cent of parents would consider ‘fronting’ – insuring the car with themselves as the ‘main driver’ when their child will really be doing most of the driving.

“With car insurance premiums reaching their highest ever levels, it’s only natural that parents would want to help their children get on the road,” said Hayley Parsons from the comparison site.

“Parents shouldn’t be tempted to hide a young motorist as a named driver on a policy,” she added. “As well as being illegal, fronting is a false economy. Insurers are wise to the practice and many now set the price according to the age of the youngest driver on the policy.”

A spokesperson from Direct Line said recently that one in three male drivers writes off a car in their first year on the road. “Young drivers present a greater risk than experienced drivers, and, as insurance is based on risk, they will pay a higher premium,” she added.

Tags: car insurance premiums, young drivers, main driver, Admiral Group, youngest driver, hayley parsons, young motorist, policy

Eight million Britons have five-figure debts

Britain’s debt crisis is worsening, new figures released today show.

According to debt consultancy firm Thomas Charles, eight million Britons – one fifth of the entire adult population – hold debts of over £10,000.

The firm largely blamed heavily advertised store cards and credit cards for the growth of the problem.

Director of Thomas Charles, James Falla, said that the figures show a “sharp increase” in debt holders over the last year.

“These high levels of debt are linked to the rise in interest rates over the year”, he added.

The Bank of England’s monetary policy committee has also announced today that it will not be increasing interest rates for August.

Rates had been raised five times in the previous twelve months to 5.75 per cent, putting the squeeze still further on indebted Britons.

The chief economist at the Institute of Directors, Graeme Leach, termed the decision “a pause for thought”, and said that a further rate rise to six per cent would likely come in the autumn.

Tags: fifth, increase, interest, cent, britons, Thomas Charles, Britain, policy

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, policy, changes, companies, health

Ex-smokers pay less for insurance

England is set to go smoke free by the end of this week (July 1st) and many smokers may find that kicking the habit will benefit them in more ways than one.

As well as the money saved on not stumping up for cigarettes, ex-smokers will also see the premiums they pay for life insurance plummet.

The average 35-year-old male who regularly lights up can expect to pay around £13.50 per month for a £100,000 term assurance policy providing cover for 20 years.

However, if the same person were to quit smoking, within a year he would see his monthly payments fall to around £7.90.

“This shows just how important it is to shop around for an annuity which meets your individual needs and also takes into account lifestyle or health issues,” commented Matt Ward from financial research company Defaqto.

Insurance firms require applicants to have been smoke free for at least a year before they can be considered an ex-smoker and it is not easy to pull the wool over their eyes.

Many insurance firms carry out a cotinine test which detects nicotine in blood, urine and saliva.

Tags: smoke, cotinine, Human behavior, premiums, life insurance plummet.The, United Kingdom, policy, plummet

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: damage, halifax, claim, garden, Insurance, plants

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: annual, value, cost, policy, cover

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: car, theft, one, policy, permission, all, comprehensive, anyone

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: Insurance, holiday, employee, accident, cover, damage, policy, claim, travel

Thieves get on your bike

Britain’s shift towards being a nation of green-minded individuals is being exploited by thieves.

That is according to new research which shows that bicycle thefts have grown by ten per cent in the last 12 months.

As more and more of us try to do our bit for the environment by ditching the car and peddling to and from work, thieves are capitalising.

Halifax Home Insurance has revealed that a bike is stolen every 71 seconds in the UK, with their being a total of 439,000 bike thefts every year.

Bike owners are now being advised to check their home insurance policy to ensure that their wheels are covered should they be stolen from a public place.

Figures from Halifax show that in 2006, 89 per cent of bike thefts occurred in a public place when the bike had been locked up.

“One bicycle theft occurring every 71 seconds is an astounding figure and should certainly make cyclists think more carefully about the level of security they use to keep their bike safe,” said Vicky Emmott from Halifax Home Insurance.

“With the majority of thefts coming from bikes that have been placed under lock and key, it may be worth considering spending a little more money for a high security lock that might stand a better chance of deterring a thief.”

London has been named as the UK’s bike theft hotspot and the average claim in the capital is for around £340.

Tags: uk, bike theft, policy, bicycle theft, United Kingdom, bicycle, lock and key

Travellers told to pack sensibly

We are being warned not to take too many valuables with us as we set off on our holidays.

The warning comes from American Express Travel Insurance which claims many of us run the risk of losing a host of valuable items every time we go abroad.

The firm is urging holidaymakers to think before they pack and make sure that they are not taking items which have a combined total higher than that which their travel insurance covers.

“It is… important to consider the accumulative value of items. Our recent survey results4 reveal nearly half [43 per cent] of respondents had packed clothing, jewellery and watches worth more than £250,” said Joanne Field from American Express.

“Many travellers do not read their policy terms and conditions before travelling and are unaware that insurers impose a single item limit and a valuables total limit.”

American Express’ words of warning come as new excess baggage policies are due to be introduced at airports around the UK.

Tags: ISA, policy terms, travel insurance covers."It, item, watches, Express

Understanding Buildings Insurance

Home owners’ insurance varies depending on the type of residence they are living in. A four bedroom home on an acre of property can obviously cost higher than a two bedroom home on a smaller property. Comparing a flat or apartment in the middle of an expensive city, this might actually cost the same as the four bedroom home (if not more money) to insure. Wherever you live, it is always a smart idea to have a sizable amount of insurance for your property. Read more

Tags: buildings insurance, major items, policy, home owner, insurance policy, occupier, premium cost

£300m cost of severe weather

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

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

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

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

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

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

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

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

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

Debt problems to continue in 2007?

The Citizens Advice Bureau has voiced concerns that 2007 will lead to more debt for consumers.

The warning comes on the back of figures released by the British Bankers’ Association which show that mortgage lending rose during December 2006.

Statistics show that there was a £5.8 billion increase during December, slightly down on the record £6.7 billion growth seen in November, but still very high.

Citizens Advice says that during 2006, housing debt was one of the fastest growing problem areas and the figures from the BBA mean that this trend may well continue.

“The increase in loans and overdraft borrowing reflects the evidence from Citizens Advice bureaux that debt enquiries continue to rise in 2007 and will exceed the 1.4 million debt enquires we dealt with in the last financial year,” said Sue Edwards, senior policy officer at Citizens Advice.

BBA’s data also shows that credit card lending fell in 2006, in stark contrast to the huge growth seen in 2005. However, Ms Edwards does not believe that this is anything to get too excited about.

“The decrease in credit card borrowing simply indicates that people are borrowing in different ways,” she stated.

Consumer debt, which includes credit cards and other unsecured personal loans, was the biggest problem area for people seeking help from Citizens Advice.

Tags: senior policy officer, ms edwards, housing, consumer, policy, Sue Edwards, consumers, year

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Tags: cards, protection, cover, credit, Loans, fair, Mortgages, trading

Is travel insurance more important than life cover?

Most Brits are well aware of the complications that can arise without the protection of life insurance cover. Nobody knows what lies around the corner, and an accident, sudden illness, or unexpected event could change everything in one fell swoop for our loved ones. Although nobody likes to dwell on the prospect of death it seems that many Brits are simply burying their heads in the sand when it comes to providing their loved ones with protection and peace of mind through life insurance cover, and a survey has revealed that an alarming percentage of Britons do not insure their lives.

A recent survey was carried out by Bright Grey, and a sample group of two thousand Brits was used in the survey in order to determine average figures relating to insurance cover. The results from the survey indicated that Britons considered life insurance cover to be the most important form of protective insurance, with thirty eight percent of those surveyed stating that they felt that it was most important to insure their lives. Home contents insurance and mortgage insurance cover were ranked next in line when it came to importance by the group surveyed.

However, despite the fact that the survey revealed the majority think that life insurance cover is the most important cover to have, it seems that Brits are more interested in protecting their travel than they are their lives. The most popular insurance cover, according to the report statistics, was home content cover, with seventy four percent of people having this type of protection. Hot on its heels was travel insurance cover, with sixty one percent taking out this type of policy.

According to the results of the survey life insurance cover came in third, with only fifty three percent enjoying the protection of this type of cover. Mortgage protection figures were also alarmingly low, with only twenty three percent having this type of cover. Bright Grey products director, Roger Edwards, stated: “This is a real worry. Less than a quarter of people protect their mortgage – over three times more people insure their home contents. And although people seem to know how important life insurance can be, many simply aren’t taking out cover.”

Tags: cover, Insurance, life, travel, policy

Fierce Competition Likely to Push Car Insurance Premiums Down

Despite the recent announcement by Norwich Union that it is to increase premiums on its UK motor insurance policies by up to 16 per cent. in the coming year, recent research undertaken by Defaqto indicates that fierce competition among UK car insurance providers is likely going to result in car insurance premiums falling in the coming months.

According to the findings in Defaqto’s recently released report, “Motor Insurance in the UK – Adapting to Survive”, many of the UK’ leading car insurance providers are either electing to keep their car insurance premiums frozen this year or are looking to reduce premium burdens on their customers.  With UK car insurance premiums constituting £7.4 billion in sector revenues for 2006, many of the UK’s leading car insurance policy providers now acknowledge that intense market competition is stopping them from following Norwich Union’s lead and increasing premiums.

To a large extent, most of the competitive pressure on car insurance premiums in the UK is coming from savvy motorist who have now learnt that looking online for discounted car insurance is the easiest and quickest way of finding cheap UK car insurance.  Brian Brown, Defaqto’s head of general insurance research commented that “With the Internet, it is now easy for customers to shop around and so many insurers are still giving introductory discounts, cash-back or guarantees to beat other quotes, that there is little, if any, need for customers to stick with their existing insurer when faced with premium increases”.

The question of whether or not UK motorist can look forward to reduced car insurance premiums is still, however, subject to whether or not large UK motor insurance providers, such as the Royal Bank of Scotland, decide on price freezes.  If RBS were to decide that now is not the right time to push through a price hike, then joint competition from RBS and alternative discount UK car insurance available on the Internet will almost certainly result in premium freezes or reductions in the coming year.

Nonetheless, UK motorist still need to be careful they read their UK motor insurance policy carefully as over 60 per cent. of motor insurance providers in the UK now recoup lost revenue from premium reductions in the form of policy adjustment charges.  Here, Defaqto’s report found that the fee to cancel a UK car insurance policy can cost the policyholder as much as £75.  However, Defaqto are also quick to point out that following the Office of Fair Trading move to reduce late payment fees on UK credit cards, it is likely that these high additional fees will not be round for long – with or without the OFT’s intervention. 

Tags: cost, policy, less, motor, uk

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