Court Rules in Favour of Asbestos Victims After Insurance Firms Challenge Previous Legal Decision

It was looking like it could be one of the many examples of particular conditions not being covered by insurance – highlighting, as ever, the need to shop around and find a policy that is right for you, should it exist – but according to numerous news sources today victims of asbestos suffering from pleural plaques will be able to claim compensation from their insurance companies. read more »

With Icy Weather Gripping the Country, Insurance Claims are on the Rise

It will come as news to no-one that the icy conditions across the country will have led to a rise in accidents, subsequently leading to a rise in the amount of claims on car insurance. However, what exactly is going on in the UK? What kind of problems are motorists currently facing? read more »

AA Insurance Leads the Call for a Clampdown on ‘Crash for Cash’ Collisions

We all require car insurance to legally drive on British roads and many of us will only use it in the unfortunate incident of being involved in a car accident. However, a large number of people are staging collisions with the aim of collecting insurance payouts.

It is a practice that involves causing an accident at junctions, roundabouts or other busy areas, with some drivers disabling rear lights so that the driver behind might collide at low speed with the vehicle.

The practice encouraged the Metropolitan Police to target such ‘crash for cash’ insurance scams and now AA Car Insurance is calling on other police forces around the country to follow suit.

In 2008, fraudulent car insurance claims amounted to a total of £730 million and when the additional £1.9 billion that slips through the system is taken into account this is an enormous sum. In fact, it is adding £44 to the average cost of all insurance policies.

Simon Douglas, of AA Car Insurance relays the story of a man from the North West of England who indulged in a frenzy of ‘crash for cash’ collisions, which resulted in £1.9 million of fraudulent insurance claims.

“I’m certain that with better surveillance and co-ordination between insurers and police, that orgy of crime could have been stopped earlier,” he adds.

They cite Detective Chief Inspector Nick Chalmers of the Metropolitan Police, who points out that pretty soon someone could be killed by the activity.

However, the manner in which the scams are carried out means that there are inevitable victims even if no-one is killed. After a staged collision: “The fraudster subsequently makes claims for personal injury (usually whiplash) from his passengers who may not have been in the vehicle at all,” Douglas says, “The hapless victim, meanwhile, has to suffer the inconvenience of getting his car repaired and is likely to lose his excess and no-claim bonus.”

2009 has seen a 30% rise in the amount of fraudulent insurance claims in the last year, according to AA Car Insurance. As a result, it warns drivers to be vigilant and to keep a safe distance from the vehicle in front to avoid becoming involved in such a scam.

Source: AA Press Release Dec 2009

Sainsbury’s Home Insurance Warns People Against ‘Dumming Down’ Their Policies

 Over the last year or so, we have all been feeling the burden of the global financial crisis and in times of financial hardship it is not uncommon for people to cut back in certain areas to make ends meet.

However, Sainsbury’s Finance is warning against the current trend of cutting back on Home Insurance and other important areas as this might lead to greater financial hardship in the future.

Whilst it might seem desirable to cut out the cost of home insurance altogether, particularly if a person has not had to make a claim for a long time, the costs of putting things right should something occur without cover outweighs any such benefits.

The leading insurance provider cites figures that demonstrate how many people have cancelled or failed to renew they home insurance policy over the last year. According to the figures from ABI, 1 in 4 people fall into this category.

Ben Tyte, the Home Insurance Manager for Sainsbury’s Finance warns of the false economy associated with insurance cancellation, “In the current economic environment many people are looking to dumb down on their insurance or do away with it completely in order to save money.

“However, this is a false economy because if disaster strikes they could be left in ruin.  Rather than risk inadequate cover, they should shop around for better deals – it is possible to find quality cover at a competitive price – and find a policy that does not penalise them for paying on a monthly basis.”

As a direct result of this Sainsbury’s Home Insurance is offering a no claims discount of 30%, unlimited buildings cover and the chance to spread out the costs over a year without cost.

Recently, Sainsbury’s released figures pointing out that whilst the amounts of burglaries have been on the rise, the number of people making claims on their insurance has in fact dropped, leading some to conclude that it demonstrates that some people are underinsured. It means that whilst everyone should take effort to ensure they have home insurance, they should also check that their current policy adequately covers their needs.

Source: Sainsbury’s Finance Press Release Nov 2009

CompareTheMarket.com Warns Policy Holders to Ensure Their Garden is Covered

There have been many stories in the news recently that directly tie in to home insurance and the consequences of not being covered. Whilst the recession has inevitably left some people cutting back on their home cover, the recent floods across the United Kingdom have highlighted the importance of home insurance once more. 

But whilst it is easy to dwell on our homes within the walls of the house, how many people are covered in case of damage to the garden?

According to research carried out by comparethemarket.com, Britons that fail to find adequate insurance for their gardens may incur significant financial hardship, with the total cost for people in this country amounting to £10 billion.

So home owners are urged to make sure that items within the garden are covered by their household insurance policies. It could make the difference in claiming back on damage to items such as barbeques, plants and event furniture.

However, it is not just flooding that can cause damage to gardens with comparethemarket.com warning home owners to be vigilant against vandals as well. This amounts to over 600,000 garden owners that might have been targeted, with a further 1.2 million affected by robberies.

“It’s important to remember that home insurance policies can cover garden plants and furniture as well,” says Jeremy Moll of comprethemarket.com, “Although the value attached to vandalism and theft is high, we know UK weather conditions can also wreak havoc on our homes. There are steps people can take to save themselves money.”

The recessions is often cited as the reason many people are not covered in the modern day and the comparison website addresses this as well,

“Even with money tight, it’s not worth taking any risks and not having your home totally covered.”

So whilst ensuring that people take particular steps to protect their garden (such as securing or storing vulnerable items, taking apart large objects, covering immovable plants, fitting locks on gates and fitting lights, and making sure fence ownership is known), people should take extra steps to make sure their garden is properly protected.

Source: Compare The Market Press Release

Only a 2.6% Rise Since 2007

Home owners going without home insurance to cut the costs of everyday life could breathe a sigh of relief this year as Sainsbury’s Finance releases figures showing only a small rise in the cost of running the average house since 2007.

The cost of running the household can hit unwanted highs and coupled with the ongoing recession it has meant that some people are cutting back on items such as home insurance. However, industry figures warn that such action could end up costing people more in the long run.

Sainsbury’s Home Insurance reveals that the average cost of running the home is around £11,455 annually according to sources such as the Office of National Statistics. This is around £220 a week and a rise of only 2.60% since 2007. Sainsbury’s cites the reduction of mortgage payments as the reason for the lower rise as other areas of the house have actually risen in costs.

One area that has risen is the cost of gas bills in the UK, which have risen on average by around 26.68% since 2007 from £651 to £812 (estimated), with electricity at £14.69%. This is according to figures from Ofgem.

So home owners should think twice about cancelling or failing to take out insurance policies, with a range of risks still facing the average home. Sainsbury’s has recently highlighted the reduction of home insurance claims in 2009, which compared against the increase in burglaries suggests a reduction in the number of people with home insurance. The insurer estimates that 946,000 people have cancelled or reduced their home insurance cover from 2008 to 2009, with 700,000 citing their financial situation.

“We spend thousands of pounds each year running our homes and have often invested even more money on furnishings and decorating,” said Joanne Mallon, Home Insurance Manager for Sainsbury’s Finance, “Yet, so many people are putting this investment at risk by cutting back on their home insurance.

“Good quality home insurance doesn’t have to be expensive.”

As ever, customers are encouraged to shop around for the best deal they can find in home insurance (as is the case with any form of insurance). It could make the difference between no insurance and finding a policy at the right price and an adequate level of protection.

Source: Sainsbury’s Finance Press Release July 2009

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