Different Sources Cite Difference Changes

The RAC, in a new press release, has announced that the cost of motoring for British drivers has fallen by 5% in 2009, with an average reduction of £123. However, according to Sainsbury’s Finance, this is not so.

According to Sainsbury’s Car Insurance, the average annual cost of running a car has increased by 2.68% when compared to the year before, with the figures rising to 11% when compared to 2007.

The leading insurance provider says that the most noticeable cost increase has arisen due to car insurance. This is an area that the RAC and Sainsbury’s can at least agree on, with the RAC seeing an average rise of £385 in 2008 to £409 in 2009. This compares to figures from Sainsbury’s which estimates the average annual cost of car insurance per motorist has risen from £488.48 in 2008 to £551.74 in 2009. The Sainsbury’s figures amount to an increase of 13% compared to 2008 and when compared to 2007, it demonstrates an increase of 23%.

Whatever the situation, the RAC cites various changes in the habits of those running cars in their day to day lives, such as the return to the one car family and downsizing the size of the vehicle (with the RAC citing more women doing this than men).

 2009 did see a decrease in fuel costs despite rises and falls all year round and the RAC cites figures that claim a fall of 10% in the last 12 months, a fall to £1,184 for the motorist per year, whilst diesel has fallen by 14%.

Sainsbury’s Finance comments on their figures, with Ben Tyte saying “While certain costs of running a car have fallen during the past year, compared to 2007, the cost of motoring has still increased fairly significantly with road taxes and insurance premiums both on the rise. The cost of driving a car can be kept better in check by shopping around, particularly for car insurance and servicing.”

The RAC, whilst clearly disagreeing over the news that the costs have risen, points to motorists still feeling financial pressure and acting accordingly, with Adrian Tink pointing out: “We’re seeing motorists really question how they use their cars. The trend towards the one car family shows how people are prepared to make fundemental lifestyle changes for the benefit of themselves, their families and their pockets.”

Sources: RAC Press Release and Sainsbury’s Finance Press Release Nov 2009

Aviva Announces New Insurance Policy to Help Small Firms

When thinking of motor insurance it can be easy to dwell on the policies sought by individuals looking for cheaper car insurance for the family car. However, there are other forms of insurance out there suited to various needs.

One such area is small motor traders, whose practices involving the use of cars clearly differs from that of the individual and Aviva Insurance has announced a new offering for such companies.

The offering goes out to all motor traders who have up to six named drivers, with the offer allowing them to choose between a Combined or a Road Risks only contract. This means that small businesses will be given more leeway that might make it easier when it comes to insurance.

In addition to a requirement being up to six name drivers, the named driver option covers businesses with one recovery vehicle (below a certain weight), one vehicle of carrying goods, a private hire vehicle, a single set of trade plates and five ‘other’ vehicles. Those that opt for the option offered by Aviva will benefit from a range of services.

Barry Hogg of Aviva commented on the news: “While many motor traders have struggled to survive the effects of the recession, we recognised the need, particularly for the smaller motor trade businesses, to offer even more choice.

“In times like this flexibility is crucial as customers seek affordable solutions to their insurance needs and by offering this named driver alternative we believe we have achieved just that.”

He also refers to the reasons for the offer: “We recognise that many small businesses simply want the essential covers to start with, or may have some cover arranged elsewhere, so our new offering allows motor traders to select Road Risks only, and then add other covers as and when required.”

The announcement is good news for those with a small business, who are often seen as victims in the current economic crisis as they struggle to stay afloat during the recession. Aviva cites the economic crisis as another reason for the move.

Anyone considering policies should shop around and read the small print of any policy they consider, ensuring that they get the best deal they can. Full details of Aviva’s new offer can be found on their website

Source: Aviva Press Release

2009 Study Highlights Thieves Targeting top-end Cars

Thieves targeting motor vehicles are stepping up their efforts to steal top of the range motor vehicles, according to LV= Car Insurance.

Their study also highlights the areas of the country that are most likely to see people becoming the victims of car theft. These are, perhaps unsurprisingly, all large cities.

In the last five years, there has been a decrease in the age of the car that is most likely to be stolen, with thieves targeting eight years old cars as opposed to ten year old vehicles five years ago.

LV= sourced their data from claims made by people with motor insurance, with other figures relating to the British Crime Survey of 2007 and 2008, which showed that less cars were stolen during this period than the one before, with an 11% decrease shown.

However, in general, LV= claims that their data shows an increase in the size of the claims made between January and May 2009 in comparison to the same time span in 2008. The increase amounted to 38%, which rose to 44% when compared to 2007.

As a result, John O’Rourke, Managing Director of LV= Car Insurance issued some advice: “Our data indicates that motorists need to take extra care if they drive a car that may be particularly attractive to thieves.

“Having an immobiliser or tracker device fitted, and ensuring the car is kept in a locked garage will not only keep your insurance premium down but will help towards keeping the car safe.”

He also highlights one of the reasons why such top of the line cars are being targeted: “It would appear that the cars that are being stolen are specifically targeted by thieves who will often break into the owners property to steal the keys.  Many of these cars are then exported to be sold overseas.  Owners of top-end vehicles, like Porsches, BMWs and Jaguars need to be even more vigilant to keep their cars safe.”

Car owners are most likely to have their car stolen in cities such as London, which came out as the most likely city to experience such crime, followed by Manchester, then Cardiff, Leeds and Birmingham.

It shows that people need to take greater steps to protect their cars, or else face the consequences of an increased motor insurance premium.

Source: LV= Press Release July 2009

Motorists are Demonstrating a Lack of Knowledge in Even the Most Basic of Techniques

When someone owns a car, there are various tasks that they should be aware of; ones that could make the difference between a safe car and a potentially dangerous one.

Motorists should know how to change a tyre, charge the battery and check the oil levels (topping them up if necessary). However, a study by Britannia Rescue, highlighted by LV= Friendly Society, suggests that the majority of car owners are clueless in these areas.

From the period between July 2008 and July 2009, many of the call outs by Britannia Rescue were said to be the result of driver error, such as failing to grasp basic car maintenance and inserting the wrong type of fuel into the engine.

Obviously not all of these can lead to a claim on the driver’s motor insurance, but in some cases these problems could easily lead to an accident. Failing to check tyre pressure, for example, might have an effect on the performance of the car and if a damaged tyre causes a collision then the consequences could be severe. For example, if a car is over-inflated then this can cause problems in steering and driving the car in a safe manner, whilst under-inflated tyres can overheat.

So if the car owner is involved in a crash then as well as the major problems this could cause, it may also lead to a rise in their motor insurance premium if they are forced to make a claim.

Of those surveyed 70% of motorists were unable to perform various basic tasks, whilst 42% were clueless in changing a tyre. Some people were  unable to tell if their tyres have adequate tread and, perhaps most surprising, some motorists did not have any idea how to even open their bonnet.

Simon Stevens, the General Manager of Britannia Rescue commented on the findings: “Some tasks such as checking the tyre tread and pressure regularly, and checking the oil level, are vital for ensuring a car is safe to drive. They could also save your life in an emergency.

“These basics are now part of today’s driving test and we’d urge all drivers, however long they’ve been driving, to brush up on their car maintenance to improve reliability and also road safety for everyone.”

Source: LV= Press Release July 2009.