Latest Car Insurance News

Posted April 2006

All safe drivers welcome says Privilege

Their marketing has been so successful to date that Privilege car insurance has decided to launch a further campaign of TV advertising. They quite blatantly advertise that they are interested in the 75% of drivers that have built up a no claims bonus of 4 years and more.

Privilege began selling car insurance in 1994 providing niche motor products to drivers of executive and performance cars and those drivers who had unusual occupations or convictions. In 2004 they repositioned themselves as the champion of the safe driver with a unique promise to beat the renewal quote of any driver who had accumulated 4 or more years no claim discount, regardless of age.

The Joanna Lumley series of prime time TV adverts using the strapline 'You don’t have to be posh to be privileged' has raised the brand awareness and the public's memory of the main selling point of the company. According to their managing director making safety the main attracting factor sets Privilege apart from other insurers because they are not targeting a specific age range or geographic population.

Historically drivers that manage to build up 4 years no claims bonus cost less to service in terms of cost of claims, both in terms of the number of accidents they have and the severity of the damage caused in those incidents. So it makes excellent business sense to pursue this large target population that has such a low maintenance cost.

Privilege is underwritten by Direct Line Insurance and is a wholly owned subsidiary of Royal Bank of Scotland Group.

Posted April 2006

Uninsured drivers beware, MID is getting better

The Motor Insurance Database (MID) is the tool that the police use to check if a suspect car and driver is insured.

Recommendations by the Greenaway report into uninsured driving published in August 2004 and endorsed by the Association of British Insurers (ABI) and the Motor Insurers Bureau (MIB) are to reduce the lead time from a car insurance policy being in force and the data being available on the Motor Insurance Database from 14 days to just 7 days. The timescale set under the recommendation is the end of 2006. This improvement in the time delay moves the desire to have a real time car insurance data source by the end of 2008 one large step nearer.

The uninsured car driver is a menace on today’s roads and according to the Department of Transport (9/11/2005) there are around 2 million vehicles being driven without car insurance, which costs the law-abiding car owner an average £30 per annum in extra premium.

The eventual desire is to use the automatic number plate recognition (ANPR) system together with the MID potentially to allow the police to target and prosecute any uninsured driver passing an ANPR camera. The numbers of cameras nationwide is growing fast since their large scale introduction as part of the London Congestion Charge system.

Although the move to a 7 day delay was backed by the British Insurance Brokers Association, Highway Insurance have recently published a survey of UK brokers reporting that they still believe this improvement will help reduce the number of drivers without car insurance. Although commitment to the system was not without detractors, amongst national and Lloyds brokers a positive response was recorded from 75% of those surveyed, believing that they were doing their bit in helping to achieve the deadline in December 2006.

Posted April 2006

Car damaged by bad road is all a matter of Pothole luck

In the last 3 years 10% of drivers have received damage to their cars after driving over a pothole and repairs for the damage cost an estimated £700 million! Further to a survey by esure.com one in three motorists believe that the condition of our roads is getting worse, with residential roads that get heavy commuter traffic and country roads that are rural rat runs reported the worst for potholes.

Potholes are so numerous that 20% of those surveyed said they had reported roads to their local council specifically for potholes. They aren’t just a nuisance giving an uneven ride they can, and do, cause considerable damage to cars, even making them un-roadworthy. Damage incurred can vary from misalignment of steering geometry (tracking) which can cost around £200 to fix, to steering rack, front or rear suspension or rear axle damage costing up to £1000.

Potholes are often impossible to miss because by their nature they occur in the heavily used part of the road, and it happens so regularly that over 60% of drivers don’t check their car after falling into one. This can be a mistake because if damage is eventually found at an MOT or a service, attempting to prove it was due to the pothole is likely to be impossible, meaning you have to foot the bill or claim on your car insurance policy.

For drivers with comprehensive car insurance it is possible to submit a claim to cover the damage but they would have to pay the excess and may loose their no claims discount. They can of course approach the applicable local highway authority to claim reimbursement for the damage and one in ten of motorists receiving damage from potholes already do.

After hitting a pothole, if in doubt whether your car has sustained damage, get it checked out by a qualified mechanic as soon as practical having recorded the location and time of the incident. The telltale signs of damage are: heavier steering, the steering wheel ‘pulling’ to one side (especially during breaking), uneven tyre wear or feathering on one edge and any ‘unusual’ noises when going over bumps or round corners.

Posted April 2006

Transfer your existing No Claims Discount from your car to your new van policy.

A common problem for drivers taking on their own van insurance policy for the first time is that they have to pay the full premium until they have built up a fresh no claim discount because most commercial insurers will not offer a discount based on an existing private car insurance policy.

Mirror No Claims Bonus Scheme is an exclusive new facility introduced by Gladiator Commercial, a top van insurance broker, which does exactly what it suggests. It allows motorists that have already built a proven safety record driving their own car to ‘mirror’ their no claims bonus to a new van policy. And your car policy no claims bonus is not affected by any claims you may have on the van policy.

Gladiator also applies the same logic to individuals who have been driving a company van as an employee and never had their own car. They will take evidence from the company’s commercial policy just as some car insurers will make a no claim bonus allowance against a company car driving record. This makes the scheme unique for individuals taking out their first van insurance, being able to take advantage of immediate discounts.

Gladiator’s managing director said that they believe in judging every application on its merits and that it makes good commercial sense to recognize a driver’s experience and safety record. If a driver has gained that record in a car or in a company van it doesn’t make them a worse risk, on the contrary they should be rewarded and that is exactly what the Mirror No Claims Bonus Scheme does.

Privilege pride themselves on their service and car insurance pricing for safer drivers with a promise to beat any renewal quote for drivers with 4 or more years NCB. Their managing director said of the findings, that drivers that have invested in their no claims discount with years of careful driving, should benefit from the bonus they have conscientiously earned but it was concerning that so many were missing the opportunity to save considerable amounts on their premiums.

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