Crackdown Moves Step Closer as AA Warns That Many Will be Caught Out

It is no secret that there is an abundance of uninsured drivers out there and whilst the cost of injuring someone on the road is naturally bad enough there is also the added burden of rising premiums to counteract it. But a new system is on the way to crack down on uninsured drivers, one that will see the vehicles themselves targeted, whether they are being driven or not. read more »

Changes Required to Help Consumer Awareness, According to Watchdog

It’s something that many people might not even consider when they take out car insurance, though it is often bundled in as part of the deal, but if watchdogs get their way legal expenses insurance will be overhauled, allowing great consumer awareness. Up to now, watchdogs have argued, many people in the country are unaware of what is covered if they need to make a claim on such a policy. read more »

It seems that Men Are Easily Distracted by an Attractive Woman

It is no secret that women generally pay less for their car insurance. There are plenty of sources that point out that though women are not involved in fewer accidents, they do seem to be involved in a lower number of accidents that require a large sum of money to rectify. As a result, the claims that women tend to file on their car insurance are usually of a lower amount than a man. But why might this be the case? Are men doing something wrong? read more »

Churchill Car Insurance Encourages a Spring Clean

There are various different items that car owners might leave lying around in their vehicles, with typical examples included an mp3 players or sat nav – today’s equivalents of CDs and road atlases – but there are plenty of drivers with more unusual belongings in their automobiles, according to a press release from Churchill Car Insurance. read more »

Budget Cuts Lead to More Call-Outs and Damage to Vehicles

Everyone strives to avoid increasing the premiums on their car insurance, whether it is by driving more carefully in general or taking advance driving courses, but in some cases all the care in the world could still lead to a claim and a subsequent premium-rise. read more »

Same Job, Different Title, But One Could Save You Money on Car Insurance

So you have shopped around for the right car insurance; you’ve decided on your insurance provider, the type of cover you will be needing and all of this amounts to an lower price than you would have settled on if you had not carried out the groundwork. But if you choose the wrong words to describe your employment situation then you might just find that you are paying more anyway – according to a report by BBC News. read more »

The Reform of No Win No Fee Scenarios Could See a Reduction in Car Insurance Premiums

We’ve all heard of the ‘no win, no fee’ advertisements that appear during every ad break on daytime television. There has been a debate surrounding these proclamations and arrangements since they first emerged and now it looks like action will be undertaken to be rid of them. According to Ken Clarke, the Justice Secretary, reforming the legal system and clamping down on such scenarios will lead to lower insurance premiums for vehicle users. It will certainly be good news for the millions of motorists in the United Kingdom. read more »

Study Reveals Large Numbers Faking Injuries for Compensation

There have often been references to the rising ‘blame’ culture in the UK, which has been linked with the various adverts cropping up on our television screens advertising services to help people claim compensation on personal injuries.

However, one area that this could be affecting is car insurance; that is if we take the rise in faking injuries into account. According to research from the insurer LV= Car Insurance, GPs have reported an increase in the numbers of people faking injuries or illnesses in a simple effort to claim compensation. As many as 98% of General Practitioners that were asked said they had seen a patient at some point who was exaggerating their injury for compensatory purposes.

In addition to this figure, 85% of GPs said that they had seen someone they felt was completely making up their story for the same reasons.

Whilst the ongoing recession has been cited as the cause of this rise, the UK’s ‘blame’ culture has also been drawn on as a source for the problem, with 70% of doctors feeling that this is the reason.

But how does this relate to car insurance? 88% of GPs have claimed that whiplash is the most likely form of injury for someone to ‘try on’. However, this does not just affect the insurance companies, or the person if they are caught; this has a knock on effect for the consumer as well, with whiplash compensation estimated to account for around 20% of everyone’s car insurance premium.

For the individuals that are felt to be making a fraudulent claim, they could land themselves a criminal record, with other consequences including the possible loss of their job or the threat of a three year prison sentence.

“People may see making up an injury as a result of a car accident as a harmless crime and a quick way to make money,” says Martin Milliner of LV= Car Insurance, “but if they are allowed to get away with it all car insurance premiums would be pushed up which is unfair on the honest motorist.”

However, before anyone with a genuine claim feels uncertain about their condition, he also adds “Clearly anyone who has a genuine injury as a result of an accident that wasn’t their fault, and loses out or can’t work as a result of it, is entitled to compensation.”

Are Private Clampers Fleecing Motorists? LV= Suspects That They Are

When people use the roads there are many things that can become aggravating, from the excessive amount of traffic on the motorway or city centre to the amount charged at car parks.

Another area that causes motorists concern is clamping, with many people being caught illegally parked on a regular basis. It is a growing problem and research that has been carried out by the car insurance company LV= indicates that around £58 million has been paid out to private clamping firms in the period from June 2008 to June 2009, a rise of 64% from the same period in the years previously.

The research was carried out on behalf of LV= by Opinium, who surveyed 500 drivers who had been clamped during the period. Of those, 123 had been clamped by private firms, which compares to 72 people between one and two years ago.

The news emerges during a time when the legality concerning private clampers is being debated, with Barrister Doctor Chris Elliot speaking out against the practice in July. In a press release by the RAC back then, he mentions that motorists are often punished with clamping when a vehicle is parked on private land, but the law does not sanction the idea of one person punishing another. His comments saw the RAC call for a review by the government.

LV= has worked out that in the last 12 months, the rise of clamping from private companies has soared from 292,023 to 486,705. It also cites figures demonstrating that 17% of motorists believe that they were clamped when they were in fact parked legally.

As a result, LV= is joining in the calls for the government to legislate further on private clamping companies, whilst also doing more to increase the amount of parking spaces available to the public.

“Private clampers make millions every year and in some cases are using intimidating and aggressive tactics to raise money from drivers who have unknowingly parked in the wrong place,” said John O’Roarke of LV= Car Insurance.

“We believe the clamping industry needs to be better regulated by the Government. This would help to put an end to heavy handed tactics and ensure that there’s a fair and consistent approach across the UK by all firms.”

Source: LV= Press Release Oct 2009 and RAC Press Release July 2009.

18% of Drivers Think They Deliberately Confuse

It is not uncommon to find insurance policies confusing; just like any form of financial transaction, they can be highly complex and encompass a range of different avenues and clauses.

However, a new survey has been released by SwiftCover.com that reveals some surprising feelings held by the British public in regards to car insurance.

Their study showed that 18% of British Drivers, amounting to almost 1 in 5, not only believe that car insurance is confusing, but that they are purposely designed to be so.

A similar number of people also said that they did not bother to check the small print on their car insurance, revealing one of many surprising practices undertaken by the British motorist.

Anyone seeking insurance is regularly encouraged to read the small print of insurance policies, particularly as such issues could make the difference between a good insurance policy that suits their needs, and a bad one that could leave someone out of pocket.

In response to the findings, SwiftCover.com has offered a new online service to help people make sense of policies people look at, with a jargon buster dealing with some difficult-to-interpret words.

As part of their study they asked people what they thought about certain words and found that a lot of people do not understand words or phrases such as ‘material fact’ (information you hand over to the insurer that might affect the policy). Another misunderstood term was ‘fully comprehensive’, with some believing this to mean that they can drive any car, with others thinking anyone could drive their car.

“Some drivers struggle with the terms used in their insurance,” said Tina Shortle of SwiftCover.com, “but it’s vital that they read and understand their insurance policies so they know exactly what they are covered for. SwiftCover.com’s online Jargonbuster makes insurance terms clearer and ensures drivers get the right cover and best value insurance for their needs.

“Car insurance is very complex, so this means that the wording used in policy terms and conditions can be fairly complicated.”

So anyone worried that they do not understand car insurance can at least know that they are not alone, though the advice is to always read the small print, so that everyone knows what they are covered for.

Source: SwiftCover.com Press Release