Reducing car insurance costs

Recent reports and figures have recently shown how the cost of vehicle insurance cover in the UK is soaring, with premiums now thought to be a massive 30.8 percent higher than they were a year ago. This is especially troubling for drivers in the current climate because of the soaring cost of fuel, which is already financially crippling many drivers. The rocketing cost of insurance is an added problem to the many drivers who are now struggling to keep their cars on the road.

For many people these costs are unavoidable, because they need to use their cars to get to and from work in order to earn money but at the same time they are struggling to earn enough money to pay for the cost of running their cars. With many having their pay frozen and having to cope with other living cost increases too the financial pressure it getting too tough to handle.

For those that have seen their car insurance costs soar there are a number steps that they can take to try and reduce these costs. This includes:

Comparing cover: The key part of getting cheaper cover for your insurance is to compare cover from a range of providers as the cost of cover can vary from one provider to another. Get online and see what sorts of prices the different providers can offer – you can use an insurance price comparison site but do bear in mind that not all insurance providers will be included on these sites.

Drop you level cover: Of course you do need to have insurance cover in place in order to legally be able to drive your car on the road. However, there are different levels of cover available so you may want to consider dropping the level of cover that you have if there is a big difference between your current level of cover and the next one down.

Change your car: If you have a car that is eating petrol and costs more in tax then it may be worth considering changing your car to a more economical model to cut costs in a range of areas, which would include lower insurance bracket, less petrol, and lower tax. Some people have vehicles that are much larger than they actually need so now might be a good time to trade this in and opt for a cheaper, more economical model.

 

Tags: Driving, order, part, Vehicle insurance, different levels, vehicle

Insurance hikes hit over 50s

The results of a recent survey have revealed that vehicle insurance hikes have been hitting people aged fifty and over in the UK. A number of surveys that have been released recently have shown that the cost of insurance cover has rocketed for younger drivers but it seems that the price of insuring a vehicle is also resulting in older drivers struggling.

Figures released recently have shown that over the past twelve months motorists aged fifty and over have seen a huge hike in the cost of car insurance, leaving many struggling to keep their vehicles on the road. In the space of just twelve months the cost of motor insurance for those aged fifty and over is said to have increased by a massive 26 percent.

The survey was carried out by the firm ConsumerIntelligence.com, and involved polling more than six hundred thousand people. The results of the study showed that for motorists aged fifty and over the cost of insurance increased from just over £355 in June of last year to just under £450 in June of this year.

It was also revealed that there was a vast different in prices being quoted by insurance firms that specialised in motor insurance for those aged fifty and over, with the cheapest being £378 and the most expensive being £563, which reflected a different of 49 percent.

It is thought that part of the reason why motor insurance firms are upping the cost of cover for this age group is because many do not expect older drivers to remain loyal. This is reflected in the number of older people that are prepared to switch motor insurance providers, with 81 percent of drivers in this age group shopping around for more competitive quotes when it comes time to renew their cover.

Tags: Vehicle insurance, June, Insurance, firm consumerintelligence.com, insurance cover, massive 26 percent, fifty, ConsumerIntelligence.com

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

Slowdown in insurance price increases

Over the past year many drivers in the UK have been hit hard by the rising cost of petrol, and to add to their misery huge increases in vehicle insurance have also been put into place as motor insurance firms struggle to recoup losses resulting from increased claims and investment losses. This has made it increasingly difficult for drivers to keep their vehicles on the road.

However, it has been reported recently that whilst the cost of vehicle insurance is still on the up the price increases have started to slow down, which will come as a relief to many drivers who are due to renew their policies and have been concerned about how much more this will cost.

In the third quarter of this year the cost of insurance is said to have increased by 8.6 percent, taking the average cost of comprehensive cover to £650. The increase during the previous quarter came to 14.2 percent, which was much higher than the increase for the three months to the end of September. However, whilst the increase in the cost of cover has slowed down the average cost of cover is still around 37.5 percent higher than a year ago, with the increase for younger drivers taking out third party, fire, and theft cover coming in at over 54 percent.

One official involved in the research into price increases on motor insurance stated: “The price corrections that have been taking place over the past year or so have been essential to getting many private motor insurers back on an even keel after poor 2009 results. However, the level of increases is starting to slow down, with each month in the quarter showing flatter price rises than the previous one.”

Tags: Vehicle insurance, Auto insurance risk selection, struggle, road, price, Insurance, motor insurance firms, previous quarter

More sneaky charges from car insurers over last six years

A recent report has shown how more and more vehicle insurance companies in the UK have started applying sneaky charges to the policies of consumers, contributing to the soaring cost of vehicle insurance. Over the past six years the number of insurers applying these so called sneaky charges has soared, making it costly for consumers to take out and maintain their vehicle insurance policy.

Research was carried out to show how an increasing number of insurance firms were applying these charges. Since 2004 the average cost of making changes to policies has risen steeply, and the number of insurance firms that make these charges has rocketed since this time.

The figures show that six years ago around 22 percent of insurance firms charged a fee for an early cancellation, but this has now increased to 70 percent. In 2004 only 17 percent of insurance firms made a charge to change details on a policy but this has now leapt to 67 percent.

The cost of making charges to policies or cancelling them early can be very high these days, with some average fees thought to have doubled based on the figures, which were compiled by Defaqto. Some insurance firms now even charge set up fees and renewal fees to customers that want to take out cover.

Mike Powell, insight analyst for general insurance at Defaqto, said: ‘There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services. Many consumers will be unaware that they may actually be paying a set-up fee or a renewal fee for their motor insurance. Such fees will be detailed in the accompanying documentation or in the renewal quote.’

Tags: finance, fee, Insurance, insurance firms, Vehicle insurance

Cut back on your vehicle insurance costs

It was recently reported that the cost of car insurance in the UK has soared recently, with industry groups claiming that there has been a 14 percent rise in vehicle insurance related cost in the second quarter of this year. These increases are something that most drivers can ill afford, particularly considering the financial strains that most people are under due to the difficult financial climate, the after-effects of the recession, and the high price of essentials such as petrol and food.

Of course, having insurance cover in place is a legal requirement for drivers, and no driver should be on the road without having some form of cover in place. However, it is important to remember that there are different levels of insurance cover to choose from, and you may find that the vehicle that you have does not require the more comprehensive and costly cover.

If you have an older car that is not worth much in terms of monetary value there is little point opting for the fully comprehensive cover, as this will work out more expensive and you will get very little back for your car in the event that it is written off in an accident because of its low value. On the other hand if you have a newer, higher value vehicle it is best to opt for comprehensive cover as otherwise you would be shelling out a fortune in the event that you had an accident that was your fault.

It is also important to remember that the excess levels that you choose will affect the cost of your cover. This is the amount that you have to pay from your own pocket in the event of a claim, and insurance firms tend to offer a number of choices. If you go for the lower excess then you will not pay as much yourself in the event of a claim, but with the higher excess you can take a risk and cut the cost of the cover.

Comparing deals is vital in order to reduce the cost of your vehicle insurance, and this is something that can be quickly and easily done these days using the various comparison websites available online. You will be surprised at how much you can save simply by comparing deals. In some cases you can even reduce your insurance costs by phoning your insurance company and stating that you are considering going elsewhere. The competition amongst insurers is stiff, and many will negotiate a discount in order to keep your custom.

Tags: insurance costs, insurance cover, Insurance, car insurance, Vehicle insurance

Vehicle insurance related costs soar

It has been revealed in a recent report that costs relating to insuring cars and other vehicles have soared in the UK over recent months, resulting in many drivers who may already be struggling financially due to the cost of living and petrol prices finding it even more difficult to keep their vehicles on the road.

According to the report the costs associated with insuring a car or vehicle in the UK have increased by more than 14 percent in the second quarter of this year. The figures have come from the EMB Car Insurance Price Index and the online insurance comparison site Confused.

The rise in costs associated with insuring a car are much higher than the increases that were seen in the final quarter of last year and the first quarter of this year. In the last three months of 2009 costs relating to insuring a car increased by 4.3 percent, and in the first three months of this year the costs relating to insuring a car increased by 6.3 percent.

The massive increase in costs of over 14 percent seen in the second quarter of this year has resulted in around £74 being added to the average cost of car insurance for drivers. This reflects a total increase of 31 percent according to figures, and brings the average annual cost of car insurance to £599.

Some areas saw costs relating to car insurance rise more than others, and amongst those to be hardest hit were inner London and Manchester. Insurance officials have also said that this is not the end of the bad news for drivers, as many believe that the cost of vehicle insurance could continue to increase, which would mean even higher premiums for many cash strapped drivers.

Tags: Insurance, second quarter, end, car insurance, Vehicle insurance

Many older people getting a raw deal with insurance

According to a recent report many older people in Britain are getting a raw deal with it comes to their insurance cover, with many insurers that target older age groups failing to give these consumers a fair deal. Read more

Tags: senior car insurance, report, Vehicle insurance, car insurance, British Insurance Brokers Association

Fully comprehensive insurance is no longer fully comp

Motorists in the UK have always enjoyed a choice of insurance policies to match their needs and their pockets, and those able to afford higher premiums and who want increased protection have often opted for fully comprehensive insurance cover, which provides the highest level of protection and cover. However, according to a recent report fully comprehensive cover has been modified and changed so much over recent years that it is now fully comprehensive in name only, and consumers are often not getting the protection that they may think they are. Read more

Tags: comprehensive insurance, insurance policies, motorists, Financial services, arrangement fees, Vehicle insurance, party, car insurance

Drivers urged to tell the truth when applying for insurance

Despite car insurance being at highest recorded levels, drivers need to avoid the temptation to lie to acquire cheaper premiums, one financial expert has urged.

According to Gocompare.com, some drivers will look to cut insurance costs by withholding information to insurers which, if they get caught out, could increase costs later on.

Providing incorrect information is a “false economy” as it can invalidate a policy and mean it is more difficult to get insurance in the future.

Hayley Parsons, Gocompare’s managing director, said that insurance represents a large proportion of the money drivers spend on their vehicles so they are always on the lookout for savings.

“One of the best ways to save money on your insurance is not to just accept your renewal quote, the best company for you 12 months ago, may not be the best today,” she added.

Meanwhile, research from uSwitch revealed that UK motorists pay £333 million per year in fees to car insurers to make changes to amendments to their policy.

Tags: business, research, Insurance, Vehicle insurance, renewal

Number of drivers caught without insurance ‘doubled’

The number of drivers caught behind the wheel without insurance has doubled over the last year, according one industry expert.

Graeme Trudgill, technical and corporate affairs executive for British Insurance Brokers Association, said in 2007, approximately 150,000 were seized by the police while in 2006 this number was 78,000.

Police now have access to the motor insurance database and the “power to seize uninsured vehicles”, which are both factors helping the authorities to solve other crimes.

“Usually criminals use a vehicle to aid in their criminal activity and it’s quite likely that, being the type of people that they are, they don’t bother to buy insurance, said Mr Trudgill.

According to the Motor Insurers’ Bureau, uninsured driving costs law-abiding motorists in excess of £500m each year or around £30 on their insurance premium.

Uninsured drivers are also responsible for causing an estimated 160 deaths on the road each year in the UK.

Tags: Uninsured in the United States, Law Crime, Mr Trudgill, database, activity, Vehicle insurance, executive

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: GBP, Dems, Vehicle insurance, uninsured drivers, Insurance, wide regional variations, cover

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

Holidaying Britons need ‘comprehensive insurance packages’

Holidaymakers planning to take their car overseas this summer should make sure they are comprehensively covered, M&S Money claims.

The group believes that with the holiday season gearing up to get into full swing, motorists need to make sure their insurance packages cover them to drive in the EU.

M&S Money’s figures show that last year over two-fifths of Britons had no idea whether they were insured to drive in Europe.

The group claims that while a quarter of other policies in the market charge extra for the addition of cover in the EU, M&S insurance includes full policy cover in the EU as standard.

Its policies also include breakdown cover as standard for both the UK and Europe, with only one in ten packages from other insurers including this.

Steve Price, insurance manager for M&S, said: “It’s important to be aware of what’s required for driving in Europe as you may be caught out quite easily.”

He added: “Just as important is making sure you’re covered, which is why we designed M&S car insurance to enable people to carry on with their holiday or get home safely if there’s a problem with their car.”

Tags: Vehicle insurance, full swing, Types of insurance, policy cover, problem, standard, M&S car insurance, addition

Drivers scared to turn right

Millions of us make a special effort to avoid turning right when driving.

That is according to new research from Churchill which found that many motorists are also afraid of joining the motorway and going onto a roundabout.

The insurance firm asked drivers what they most fear about getting behind the wheel, with 34 per cent of women and 29 per cent of men saying that they do not enjoy turning right.

These drivers are so afraid of what might happen that they change their route to ensure that they avoid ’scary’ situations.

Parking is another issue for many, with 43 per cent saying that they do not feel confident enough to park where they want, leading to 13 per cent of people having to walk further than is necessary.

“When motorists pass their driving tests, it doesn’t necessarily qualify them as a confident driver,” commented Frances Browning from Churchill.

“As our research shows, there are those who actively avoid certain driving manoeuvres, sometimes to the extent that they don’t drive on specific roads or at specific times.

“It may be worth undertaking a refresher course now and again to increase driver confidence and make the roads safer for everyone,” she added.

Taking a refresher course may not only help to instil more confidence in a driver but can also reduce car insurance premiums for many.

Tags: driving tests, turn right, Driving, specific times, car insurance premiums, Education and Training, confident driver, Vehicle insurance

Roadside Breakdown Car Insurance

Regardless of how carefully we take care of our car, just when we least need it the car will breakdown in the middle of nowhere. If you do not have roadside breakdown car insurance, be prepared to pay a heft repair bill and to be personally billed for all the ancillary costs. Read more

Tags: car problems, roadside breakdown insurance, car insurance, call, registered address

£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: Vehicle insurance, barclays, policy, surprise, Mark Till

Advice On Choosing Car Insurance

Price? Well there are many more important features to remember when choosing your next policy. Here are a few of the main points. Read more

Tags: Types of insurance, sexist women, choosing car insurance, finance, Vehicle insurance

Car insurance premiums soar

Car insurance premiums have reached their highest ever level, according to new research.

The AA British Insurance Premium Index found that in the last quarter of 2006 the average premium rocketed by 4.35 per cent.

That took the average cost of car insurance to a massive £806, breaking all previous records since the index began in 1994.

Drivers buying third party, fire and theft (TPFT) cover saw their premiums rise by a smaller amount, but they are still paying the most for their insurance.

According to the index, the average TPFT premium is £999.45. This is largely because a typical TPFT buyer is young, meaning higher premiums and little no-claims bonus.

“Young drivers account for a quarter of all road fatalities and are five times more likely to have an accident than a driver aged 35-plus,” said Kevin Sinclair, managing director of AA Insurance.

“Premiums reflect this shocking record while many insurers will no longer cover young drivers.”

The Index also looked at home insurance premiums and found little change. However, some analysts believe that with an increasing number of freak weather incidents in the UK, we could soon see premiums rising.

“The recent north London tornado is an example and meteorologists are predicting more of the same,” commented Mr Sinclair.

“Insurers are taking note but it will take several such events to have a significant upward influence on premiums. However, I do believe that this year will start to see an upward trend.”

Tags: north London, upward influence, upward trend, Vehicle insurance, road fatalities, amount, change, record

Why Does Car Insurance Cost More For A Young Person?

Bright Young Things

Trying to second guess what your insurance is going to cost you is a nightmare. Despite all the insurance groupings, one thing you do know is it will cost a lot more for a young person than somebody of more advanced years. Why? Read more

Tags: Boy racer, driver, lamp post, repair, way, game players, Vehicle insurance, young person car insurance