Posts Tagged ‘car’
Friday, April 22nd, 2011
With cars having always been a generally expensive commodity anyway, the economic downturn has really seen drivers suffer. The last few years have also seen the price of pretty much everything grow, not only has car insurance risen over the last year, having increased at a rate of 40 pence per day, but we have seen a significant increase in the price of fuel as well, paying an average of 15.8p per litre more than we were only a year ago. But why?
It’s likely that you will have heard about the European Court of Justice’s new ruling that sex discrimination is no longer an acceptable means of calculating the cost of insurance, which is going to have a significant impact on the insurance industry practice and premiums across the board – especially when it comes to car insurance.
Women are set to pay an average of 25 per-cent more than they do now, and men seeing an average 10 per-cent reduction on their insurance, it’s more important than ever to make sure you find the most competitive insurance company in business.
When it comes to companies like car insurance comparison websites like moneysupermarket.com, they can provide help and info about any price hikes in the industry by using their car insurance comparison tool – the great thing about it is that you just have to enter your details once and they do all the searching and hard work for you by obtaining quotes from over 50 car insurance companies, relieving you of that arduous task of obtaining quotes from lots of different companies. When the time comes for you to renew your policy then – there’s absolutely no excuse for just remaining with your current insurer and paying the hefty price.
Peter Harrison, an insurance expert for the comparison site, believes that we’re an apathetic nation when shopping around for car insurance: “Insurers count on customer apathy to reap the profits, so it is alarming so many motorists are prepared to waste their hard-earned cash by not looking for a better deal”. MoneySuperMarket estimates the UK’s 6.3 million drivers lose around 1.7bn per year collectively because consumers don’t shop around for their car insurance.
Another contributing factor to the rising cost of our car insurance is the problem of uninsured driver accidents. The British Insurance Brokers’ Association (BIBA), who has itself been lobbying for a regulatory system since 2004, calculates that it costs policyholders an average of 30 a year, and that 160 are killed and 22,000 injured every year, all at the hands of uninsured drivers.
Additionally, the UK has one of the worst records in Europe for uninsured driving, according to the MID. An estimated 1 in 20 cars on the road is driven either completely without or incorrect (and therefore invalid) insurance, costing the nation’s drivers an incredible 500m per year.
Fortunately, though, a new Act aiming to deal with the problem is due to come into effect in April 2011. The Continuous Insurance Enforcement Act will mean that cars may no longer be owned without either registering their vehicles with a Statutory Off Road Notice (SORN) or insuring them. This means that even those owners whose vehicle remains physically off the road on the drive or in the garage (even if it’s jacked up on bricks and without vital components), will be breaking the law if they haven’t either insured it or applied for a SORN.
While the Act has been welcomed by many, concerns that it doesn’t quite go far enough have been voiced by some. Direct Line’s Andy Goldby, director of motor underwriting for example has commented: “We welcome this initiative, but with uninsured drivers costing British society around 500m each year, the severity of penalties must act as a deterrent to those considering driving without insurance.”
After all, what’s the point of imposing a 300 fine to someone who would otherwise have had to pay over 2,000 for their insurance in the first place? It remains to be seen, then, whether or not this act will have a positive effect on the cost of our car insurance.
Another big cost incurred by car insurance policyholders is that generated by accident claims and the growing personal injury lawyer business.
Insurers claim they are paying out more than they are taking in, with a survey carried out by industry experts EMB and actuarial consultancy revealing that in 2009, for every 1 the retail motor industry received in premiums, it had to pay out 1.20 in costs and claims, making 2009 one of the industry’s most costly years on record.
A different report, again from EMB, presented to the Commons Transport Select Committee in 2010, said: “Over 40 per cent of personal injury lawyers pay referral fees to receive work from insurers or claims management firms. Fees range from 200 to 1,000 per referral.”
The report also posited: “In our view, the biggest single factor driving price increases is the burgeoning cost of bodily injury claims… We estimate that twenty years ago bodily injury claims accounted for around 20 per cent of UK motor insurance claims costs. In 2010 we now estimate that proportion to be 50 per cent.”
Data shows that 341,592 people were killed or injured in 1989, compared with 222,146 people who were killed or injured on Britain’s roads in 2009, highlighting that the increase in costs just doesn’t add up.
The Jackson Report, published in January 2011, found that personal injury claims now account for an astonishing 50 per cent of the cost of our car insurance premiums. Insurance premiums increased by 40 per cent in 2010 and are set to see a further increase of 20 per cent in the year ahead.
So now, more than ever, it’s essential that you make sure your insurance provider is giving you the best value on the market.
For additional info about young drivers insurance at moneysupermarket.com, head over to their website now!
Tags: car, car insurance, crashes, insurance, insurance premiums, law, men, premiums, women
Posted in insurance premiums | 1 Comment »
Thursday, April 21st, 2011
The European Court of Justice’s ruling that prevents insurers from using gender as a risk calculation factor is already reshaping the insurance industry. Many have predicted rising costs across the board for women buying life, car and health insurance. But what will be the real implications of the new ruling? Are women going to be hit in their wallets?
Car insurance for women at moneysupermarket.com have benefited from cheaper insurance premiums than men for a long time now. In calculations for health insurance, life insurance, car insurance and annuities, the fact that women are seen statistically as a lower-risk group than men has meant women benefit from lower costs.
“In all studies, without exception, men have been shown to have a higher rate of crashes than women. This gender difference is most marked in the population under the age of 26 years, but is also evident in older drivers.”
Early reaction from across the industry led to warnings that women’s premiums would shoot up as soon as the ruling took effect. But some commentators feel the issue is not quite as black and white as that.
Maggie Craig, Director General of the Association of British Insurers, spoke out to cool the fears of women who might be worried about their insurance costs skyrocketing.
The price of an insurance premium for a woman under the age of 24 is expected to rise by an average of 24 per cent, with the youngest female drivers facing a 60 per cent price hike.
Annuity
Another area of society where gender has long been used as a discriminating factor is annuities. When people reach retirement, they often buy an annuity to guarantee them a fixed income for the rest of their life. Because women statistically live longer than men, their annuity rates have always been lower than those offered to men with the same sized pension fund.
She said: “Not all customers will be equally affected as the use of gender can vary significantly between products and different companies. Each company will have to respond to the ban in the way they feel is in their customers’ interests.”
George Ladds, Head of Pensions at Fair Investment Company, said: “Either rates for men and women will be brought in line to create ‘unisex’ annuity rate, which will probably see men’s rates go down more than women’s go up – or annuity providers will have to start looking at each case individually, which is more expensive, and that cost will be passed onto the consumer.
“Either way, the consumer loses out on both choice and value. Annuity rates are already low, and this could be the excuse providers need to pull them even lower.”
ECJ’s ruling extends to this area of insurance, too. From December 2011, women are highly likely to see an increase in the cost of their life insurance, because the statistics that favoured them over men in terms of life longevity are no longer a valid factor. Men are therefore expected to enjoy a 17 per cent saving on their cover, and women to suffer a 20 per cent increase.
She said: “Not all customers will be equally affected as the use of gender can vary significantly between products and different companies. Each company will have to respond to the ban in a way they feel is in their customers’ interests.”
But the news is not all in the favour of females. Annuities have favoured men in the past, as their life expectancy is statistically lower, meaning they would receive a higher pay out based on the same retirement fund as a woman. However, the ECJ’s ruling will prevent annuity providers from differentiating in this way and annuity rates for men are expected to drop by eight per cent.
Life insurance premiums could rise by a fifth when the ruling takes effect, while men are expected to benefit from a 10 per cent saving on their cover.
She said: “Not all the customers will be equally affected as the use of gender could vary significantly between products and different companies. Each company will have to respond to the ban in a way they feel is in their customers’ interests.”
However, only time will tell how British insurers will manage these monumental and historic changes, and the public can only wait in hope that they have enough time between now and December 2011 to level out insurance rates across all areas of the industry, making the insurance industry a truly fairer, more customer-friendly one.
More top car insurance tips including a list of the top womens car insurance can be found at moneysupermarket.com
Tags: car, crashes, Europe, financial, insurance, insurance premiums, law, premiums, women
Posted in insurance premiums | 1 Comment »
Friday, April 15th, 2011
What does it mean for men and women across the UK with the ECJ’s historic ban on gender discrimination in the insurance industry? Britain’s insurance industry now has the colossal task of completely changing the way it works.
The case challenges the EU Gender Directive’s Article 5 and is brought about by the Belgium Consumers Association. The article in question allows insurers to charge men and women differently based on their sex where it is a “relevant and accurate actuarial and statistical data” and “determining factor” in risk assessment.
This change has been given a lot of media attention as this evening-out of the playing field means that the cost of car insurance policies will significantly increase for women and decrease for men. But what about the rest of Britain’s insurance industry?
With statistical evidence having shown concretely over the years that women are safer drivers than men, the ruling has been met with a great deal of trepidation.
As of the end of 2012, insurers will no longer be allowed to evaluate risk based on a person’s sex, and as a result, premiums for women are expected to rise greatly, while premiums for men are set to reduce.
However, it’s not all good news when it comes to insurance for men. The ruling applies not only to car insurance but across the entire insurance industry, so the ruling will carry some negative implications for them, too.
Annuities
An annuity is usually bought with a pension fund when a person approaches retirement, and with this they are guaranteed an income for life.
Data such as gender, age and health are all used to decide the annual income they can buy with their retirement pot – estimating how long they are likely to live.
According to statistics, women usually live longer than men, and have always generally been offered lower annuity payouts than a men with exactly the same pension fund.
However, the new ruling has changed all this, and will inevitably see men paying more. The Association of British Insurers (ABI) estimates that men approaching retirement will see an 8% decrease in annuity rates, while women will benefit from an increase of about 6%.
In addition, joint annuities, usually purchased by men, are also set to see a price increase, so women who rely on their husband’s pension fund will also suffer a lower retirement income.
George Ladds, head of pensions at Fair Investment Company, has warned that if annuities are to continue to be attractive, the industry will have to rethink how it prices annuities: “Either rates for men and women will be brought in line to create ‘unisex’ annuity rate, which will probably see men’s rates go down more than women’s go up – or annuity providers will have to start looking at each case individually, which is more expensive, and that cost will be passed onto the consumer.” He added: “Either way, the consumer loses out on both choice and value. Annuity rates are already low, and this could be the excuse providers need to pull them even lower.”
Life insurance
Men are more likely to die earlier than women according to statistics, paying higher premiums than women for their life insurance.
The ABI assesses that women will see their premiums rise by as much as a 20%, while men will see an estimated 10% fall on the cost of their cover.
ABI’s acting director general, Maggie Craig, warned women not to reconsider buying cover that they need. “Not all customers will be equally affected as the use of gender can vary significantly between products and different companies. Each company will have to respond to the ban in the way they feel is in their customers’ interests.”
Health insurance
Health insurances such as payment protection policies and critical illness cover, unlike life insurance, cost men less, because statistics say that they’re less likely to suffer illness and claim. This will not be the case, as of December 2012.
Car insurance
The AA and the British Insurance Brokers’ Association both approximate that this will see women paying around one quarter more than they currently do for their car insurance, while younger female drivers will see an even bigger increase.
Describing the ruling as “flying in the face of common sense”, insurance group RSA argued: “It is completely disadvantageous to the very people it was intended to protect and prevents insurers from using a legitimate rating factor.”
MoneySupermarket have more top insurance tips including a list of the top MoneySupermarket.com short term car insurance deals.
Tags: car, car insurance, crashes, financial, insurance, insurance premiums, law, men, premiums, women
Posted in insurance premiums | 1 Comment »
Tuesday, December 14th, 2010
Many insurance providers offer different insurance packages nowadays. With so many providers now existing, it is important to be careful to choose the right company and the insurance cover you need. Paying for insurance is an additional burden on the budget, but you can save a lot by having cheap insurance without compromising on the insurance cover you need.
When looking for cheap car insurance, you can find many insurance providers on the internet. Searching on the web is a very convenient way for searching for insurance companies. You don’t have to visit each office or call them to inquire about the services they offer. With the numerous companies out there, it is important to do some prior research in order to get the bet deal.
The insurance provider should have a good reputation. Do some research by asking someone about the company or finding feedback from other customers on the web. There are some companies that make you go through a long and complicated procedure before you can make a claim.
A high rate of insurance is usually charged to high risk drivers and cars. So if you are looking for ways to have cheaper car insurance, you must be a safe driver and that your car is not prone to significant damage when it in an accident or is not the type of car that car thieves like to steal.
Some companies require some driving course certificate to lower the rate of insurance, such as a safe driving course, which you can enroll at in a driving school. Before signing into an insurance contract, it is important to be aware of important details such as ways on how you can lessen the rate.
There are many things you need to consider and do before purchasing any type of insurance. If you want a cheap car insurance rate, ample research and preparation must be undertaken to get the best deal.
Danny writes numerous articles on short term auto insurance and about getting short term car cover on the web
Tags: auto, auto accident, auto insurance, auto insurance policy, auto insurance premium, car, car insurance, finance, insurance, insurance policy, insurance premium, insurance premiums
Posted in insurance premiums | 23 Comments »
Thursday, September 16th, 2010
With the no-fault principle vehicle insurance, the insured is under an insurance contract which stipulates that indemnification is not based on who was at fault. This is possible because the insured gets compensation from his insurance company. This type of insurance was mainly introduced to deal with long litigation processes trying to determine who was at fault and reducing premiums. With the introduction of this principle, simplicity was introduced assuring motorists could get quick payment for injuries.
As you will realize, this type of insurance does not promise the involved parties, absolute justice as would be the case if they were defendants and plaintiffs in a common law practice. It provides average justice for everyone in motor vehicle accidents. The speedy justice is advantageous especially if you consider the economical angle.
It is important to note that no-fault insurance does not prevent a motorist from pursuing legal action against the defendant to recover additional compensation. However, the ability to sue is determined by different conditions such as the province in which the accident occurred. Some conditions have to be considered too in order to determine whether such an action will be fruitful. Theses conditions include total disfigurement, death and monetary thresholds. Some provinces also have regulations that only allow one to sue for economic loss and not pain and suffering.
One of the strong points of this form of insurance is the elimination of delays. However, this was not the main consideration when it was introduced in some parts of Canada including Saskatchewan. The main consideration at the time was the low percentage of drivers who had liability insurance.
Before one opts for this type of insurance, it is important to understand certain things. The first thing is that the term no-fault insurance does not mean that the insured will not be at-fault in case of accidents. Normally, insurance companies need find someone at-fault either partially or fully in all accident cases.
Another thing you should realize is that when you are found at-fault after the accident has occurred, it is added to your insurance record. The direct effect is increased policy costs as you are now considered a higher risk.
One good thing about no-fault principle vehicle insurance is that the rules are standard when it comes to assigning within a province hence all insurers have to abide by the set standards. The criteria however differ with different provinces. For instance a driver who rear-ends another car on an icy road in Ontario is at fault since Ontario fault determination rules require drivers to take road conditions into consideration.
Finally, the percentage of fault is used to determine the amount of deductible that you have to pay. It is also important to note that although not all provinces have No-Fault Principle auto Insurance, all provinces have a degree of no-fault accident benefits coverage. This means compensation for the driver, passengers and pedestrians injured or killed in the accident. Such compensation covers rehabilitation and medical expenses, loss of income due to disability, funeral expenses and death. With this information in mind, you will not longer be confused by the principle behind this type of Car Insurance.
Auto Club serving the South Central Ontario region in the areas of travel, Car Insurance Ontario, and Roadside Assistance. Include store locator and savings calculator
Tags: accident, automotive, car, insurance, insurance policy, insurance premiums, lawyer, legal, premium, travel
Posted in insurance premiums | 1 Comment »
Sunday, March 21st, 2010
Many people feel they do not get customer support from there car insurer or are paying far in excess of what they should be doing. This dissatisfaction causes a lot of people to look elsewhere. Before doing this, it is important to look at other factors about your policy to determine whether it is really time for a change. This article will take a look at these different factors and hopefully help you decide.
Most insurance companies are in fierce competition with each other and will provide different rates for different customers. Many feel comfortable with their insurer if they have been with them for years but could still get a considerable discount if they shop around. If you do shop around you will often find yourself getting a better rate and a better policy.
You will find that a lot of companies are only as good as their customer service. A friendly and helpful service is vital. It you find yourself dealing with an unhelpful or un-polite person when applying, you can be sure that their claims service will also be as disappointing.
In the unfortunate event that you have an accident or experience a moving violation, you could find that your insurance premiums have risen quite dramatically. With the advent of the internet competition between the companies is high and so it should be possible to find one that does not charge increases in such circumstances. If your rate has rise, it is a good reason to start looking elsewhere.
One way to reduce your premium is to combine your policy with a home owners insurance policy, get multiple car insurance or GAP insurance. This could see you saving quite a bit of money. If you current company does not provide different policies you can find one that does.
In the highly competitive car insurance market you should not see big rises in your premiums if you have not committed a violation or have been accident free. If you do, then it is time to switch companies. Insurance companies should be lowering your premium if you have been accident free for a period of time.
Leon likes to write numerous articles around short term car insurance and about finding good value car insurance cover on the internet.
Tags: auto, auto accident, auto insurance, auto insurance policy, auto insurance premium, car, car insurance, finance, insurance, insurance policy, insurance premium, insurance premiums
Posted in insurance premiums | 7 Comments »
|
