Is it time to switch your insurance provider?

A number of recent reports have shown how the cost of vehicle insurance in the UK has soared over the past year, and whilst the increase in cost is said to have slowed down it is still rising nevertheless. The cost of cover now is considerably higher than it was a year ago, and with petrol prices also sky high it has become very difficult for some drivers to keep their vehicles on the road due to the cost.

With this in mind it is important for anyone whose insurance is due for renewal to consider whether they should look for another provider –even those whose insurance cover is not yet up for renewal may find that they are better off paying any cancellation fees to their existing insurer and switching to another company that offers cheaper cover.

Whilst the cost of cover in general has been increasing it is important to remember that the cost of insurance can still vary from one provider to another. Therefore, it is vital to make sure that you look at cover from a number of different companies to see which one can offer the best value for money. The amount that you can save can be considerable, so this would be time well spent if you want to cut back on your outgoings.

In addition to switching your cover you may also want to consider whether it is worth downgrading the cover in order to save money. Obviously, if you have a pricey, new vehicle then it’s not worth taking the risk of downgrading. However, if you have an older vehicle and the cost of a downgraded policy is considerably lower then it may be something that you want to consider.

One thing to remember is that the world of vehicle insurance is still highly competitive, and your insurance company will want to retain your custom if possible. It is therefore worth speaking to your existing insurance firm and informing them that you are thinking of switching for financial reasons. In some cases the insurance firm will find a way to reduce the cost of your cover – sometimes without even changing or downgrading your policy.

Fortunately the internet makes it far easier to compare and find vehicle insurance cover, so if you do want to switch and save some money you won’t have to go to any undue hassle, and you could even use of the various insurance comparison sites in operation to speed things up.

Tags: vehicle insurance cover, insurance cover, Insurance, finance, new vehicle, Vehicle insurance, General, insurance comparison sites

Singles ’spending more than couples’

Singletons are flashing more cash than those in relationships, a new study has revealed.

Research conducted by Legal & General has shown that six per cent more Britons managed to make some savings during April than was the case in the same month 2007.

However, six out of ten of the people still in the mood to spend their hard-earned cash on entertainment and fun are single, which Legal & General suggests is not surprising.

Julia Clayworth, the organisation’s wealth management head of marketing, commented that the findings show it is not “all gloom and doom” for Britons.

“It is reassuring that people’s saving habits are gradually changing despite the reported economic downturn and that they are still managing to have some fun as well,” she added.

A recent study by egg warned that just half of all workers in the UK could manage for four months on their existing savings, despite this being the average length of time people are out of work following redundancy.

Tags: General, Relationships, britons, half, surprising.julia clayworth

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: policy, General, More people, public relations, Types of insurance

Mortgage figures fall in July

July saw a decrease in the amount of mortgages being taken out, according to figures released recently by the Council Mortgage Lenders (CML).

The value of those mortgages that were given also fell, the CML statistics showed.

However, when not accounting for lending for house purchase or remortgages, lending overall actually grew to £7.8 billion in July, its highest-ever figure.

Michael Coogan, CML director general, commented: “A slight fall in lending between June and July has emerged for the third year in a row, so of course we cannot read too much into a single month’s figures.

“But the long-anticipated slowdown in the housing and mortgage markets may now be beginning to materialise.”

Affordability is “ever more stretched” he added, but Britons will not see any let up in the financial troubles they face soon.

Meanwhile, Halifax’s latest house price index has shown that the average price of a house in England and Wales has risen to nearly £200,000.

Tags: United States Department of Housing and Urban Development, slight fall, Council Mortgage Lenders, General, single month, mortgage markets

Rics: House rise growth ‘weak’ after rate rise

House price growth is slowing, figures released today suggest.

The monthly housing activity report of the Royal Institute of Chartered Surveyors (Rics) shows overall rates of inflation being cut in half across much of England and Wales, although significant increases in prices were recorded elsewhere.

Nevertheless, new buyer enquiries – an excellent predictor for future developments in the market – also declined at a pace unmatched since early 2006, signalling that buyers feel that homes are becoming increasingly difficult to afford.

General confidence in the sales outlook from surveyors, also polled for the report, showed a significant drop. Ian Perry of Rics said that prices “have finally started to cool significantly”.

A major factor behind this apparent cooling off of the market might be the Bank of England’s decision to raise interest rates last week, with Mr Perry adding that “interest rate hikes have begun to affect the psychology of the market with potential new buyers starting to think twice before buying a home.”

However, sceptical voices were raised in the city today. Malcolm Barr at JP Morgan told Reuters that the Rics report was not a failsafe indicator of the market: “The signals coming out of housing are not strong enough to point to a marked slowing in spending in the near term”, he counselled.

Tags: General, Reuters, significantly".A major factor, house, home, england and wales

Mortgage lending may be easing

Mortgage lending has continued to grow, with figures for May breaking records for the month.

The Council of Mortgage Lenders (CML) says that May lending figures reached £30.6 billion, a 12 per cent increase on the £27.4 billion that was lent in April.

The figure was also a five per cent increase on the £29 billion that was lent in May 2006 but the CML says that this shows that the market is easing.

Despite breaking records, the year-on-year growth of five per cent is well below the typical 12-15 per cent increase we are used to seeing.

Although this is a clear sign of the market easing up, the CML says that May’s figures remain very strong.

“While today’s lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year,” said Michael Coogan, director general of the CML.

“Going forward we expect lending to ease as we progress through the year, but the market will remain in good shape.

“Although further interest rate rises will continue to dampen demand, we are still on course to meet our prediction of a record £360 billion of lending during 2007,” he added.

Some experts are expecting the introduction of Home Information Packs into the property market from August of this year to help boost house prices.

Tags: month, good shape, sustained growth, home, council of mortgage lenders

Critical illness payouts grow

The number of critical illness claims that were rejected by a leading insurer fell dramatically between 2006 and 2007.

Legal & General has revealed that the rejection rate for critical illness claims was down 19 per cent on the previous year, something the firm says is good for consumers and the industry as a whole.

The reasons behind the falling rejection rate are varied but Legal & General believes that a number of key factors have had the largest impact.

Tele-medical interviewing, which sees a nurse or underwriter speaking to the customer about their medical history, is said to have gone a long way to reducing the number of claims which are thrown out for non-disclosure.

Figures for 2006 show that claims declined for non-disclosure fell by 15 per cent, with the insurance firm paying out £92.1 million in critical illness claims in that time.

“We didn’t go into the business of critical illness to reject claims and so our latest experience is good for customers and good for the industry as a whole,” said Russell Whitworth from Legal & General. “It shows that people can have confidence in critical illness cover.

“Our claims figures demonstrate that the time and effort that we have invested in our underwriting systems to reduce non-disclosure and improve the clarity of policy definitions is paying off.”

Critical illness insurance is designed to help people financially if they are struck down with a life-changing illness or disability.

Tags: critical illness, way, cover, underwriter, disclosure, policy definitions

100 days until mandatory Hips

People considering taking out a mortgage on a home are eagerly awaiting the introduction of a law which makes the provision of Home Information Packs (Hips) mandatory.

It is now just 100 days until the law comes into effect and, although the road to this point has not been smooth, it is hoped that the buying and selling process will be revolutionised.

The Association of Home Information Pack Providers (AHIPP) believes that around £1 million will be saved every day as a result of Hips.

This is due to the extra information meaning that the number of transactions which fail to go through each year should fall.

“Hips are being introduced to help improve the house buying and selling process for all involved – bringing more information about a property to the front of the process, allowing buyers to make more informed decisions,” said Mike Ockenden, director general of AHIPP.

“In the locations where packs are being rolled out already we have received a positive response from industry, with many agents taking the opportunity to ensure they are prepared for when packs become mandatory.”

Hips are due to become mandatory from June 1st 2007, with anyone who intends to sell a property on or after that date required to get a pack before advertising the property.

Tags: positive response, Mike Ockenden, Property Information Questionnaire, property, General

2006 lending hit record levels

Lending in the UK reached record levels during 2006, with the Council of Mortgage Lenders (CML) saying there was a 20 per cent rise on 2005.

In total, £346 billion was lent, with November proving to be the year’s most popular month for borrowing.

In fact, November was a record-breaker itself, recording the highest lending figures ever at £33.1 billion.

The huge lending figures have been attributed to a number of factors, including annual house price growth (around seven per cent) and increased house sales (14 per cent).

“The commentators who thought the housing market would crash in 2006 were wrong,” said Michael Coogan, director general of the CML.

“Last year the market proved itself to be in robust shape and we expect it to remain so during 2007.

“Going forward, many of the key drivers of the market remain positive. The economy is healthy, demand for housing is strong, and house prices continue to rise. As a result, mortgage lending this year is expected to be even higher than in 2006.”

Despite Mr Coogan’s positive outlook for the housing market during 2007, he does have a word of warning in light of the recent interest rate rises.

“The recent increases in interest rates might make many aspiring home-owners think twice about getting on to the property ladder, and we expect to see levels of activity dampen as the year progresses,” he added.

Tags: Council, activity, house price, cent rise, fact, council of mortgage lenders, Economic history of the United States, General