Car modifications can increase insurance by 139%
March 27, 2008 by admin
Filed under News, News-Insurance
Modifications to cars can increase insurance premiums by as much as 139 per cent, according to new research. 
Findings from Confused.com revealed that for a 20 year-old male driving a VW Golf GTI 1.5 litre with no claims or convictions, a quote could differ by up to £1026.42 – or 182 per cent – depending on whether the vehicle was modified or not.
Among the most common modifications are spoilers, alloy wheels, tinted windows, lower suspension and strip under-lighting.
Will Thomas, head of car insurance at Confused.com, said that as modifications become more popular with young drivers, it is important that they are made aware of the ensuing cost of car insurance.
“Adding spoilers and tinted windows, for example, can not only dramatically increase car insurance premiums, but they can render car insurance void in some instances, especially when the driver fails to inform the insurer of any changes,” he continued.
Meanwhile, research from swiftcover.com shows that 96 per cent of British motorists leave gadgets on display in their vehicles, making their cars targets for thieves.
Floods put insurance premiums ‘on the increase’
October 9, 2007 by admin
Filed under News, News-Insurance
Claims made due to extreme weather conditions this summer have pushed home insurance premiums up.
According to the AA’s British Insurance Premium Index, flood claims are blamed for a three per cent year-on-year rise in home buildings insurance which represents the biggest increase since 1994.
The flooding in July this year is estimated to have cost the insurance industry £3 billion, according the Association of British Insurers.
John Close, insurer relations director at AA Insurance, said: “Some predictions that premiums would rise by 15 per cent were overly pessimistic and, although I believe premiums will continue to rise as insurers dip into their reserves, I expect competitive pressure will keep increases affordable.”
He added that one advantage of the flooding was that people with no contents insurance are realising that it is a necessity leading to “many insurers reporting increasing business”.
Furthermore, he advised, there are variation in prices and “deals to be done” when organising cover. He emphasised the importance of comparing cover charges before deciding on an insurer.
