Latest Car Insurance News
Welcome to Expert Car Insurance News. Here you will find all the latest information concerning the motor insurance industry.
Posted March 2007
More cost savings for the eco-motorist thanks to the Chancellor
The Chancellor has signalled the intent to lighten the burden on the greener car owner by stating his aim to review the vehicle excise duty. The stated desire is to make cars with heavy emissions more expensive to own and run. In his budget speech he made firm suggestions that the VED burden on lower emitting cars would be reduced and that this would be compensated by an increase on the car tax for less efficient vehicles.
Insurance companies such as More Than have started to reflect the same eco-responsible attitude by reducing the premiums for owners of greener cars, this adds an official seal of approval to the need to reduce the carbon footprint of our motoring travel.
It is clear that car manufacturers will need a lead time to the introduction of this form of differential taxing policy in order to change their propulsion systems, either by amending the existing engines or installing different alternatives, but such a move is broadly encouraged by RAC Foundation. They inform us that there is even a large difference in the running costs and potential VED between the most and least efficient cars within the same category. Mondeos for instance, a 3 Litre Ghia has a carbon emission of just under 250 grams of CO2/km as against the 2 Litre TDCi Zetec at less than 160 grams, and fuel consumption of 28 MPG against 49MPG. Clearly with the accumulating savings on tax, insurance and fuel for cleaner cars it will be considerably cheaper to run a greener car in future.
Posted March 2007
Points don’t mean prizes when using a mobile
Penalties just introduced mean that for motorists caught using a hand-held mobile phone whilst driving are now liable for stiffer automatic penalties. They can expect to receive a £60 fine and have 3 penalty points recorded against their license. Accumulating points can result in heavier car insurance premiums.
This continues the Government’s crack-down on the dangerous practice of using a mobile whilst driving. Although the law is penalizing the use of hand-held mobiles, there is mounting evidence that any use of a phone whilst driving is highly distracting and should be kept to an absolute minimum, even hands-free!
RAC Foundation has found that drivers are not receiving full advice from retailers when they purchase hands-free kits for car use. They found that less than 30% of retailers were likely to advise that the reason that hands-free kits are a legal requirement is due to the distracting nature of taking or making a call, at the wheel. Just 20% informed purchasers that the risk of having an accident was increased whilst using (receiving, dialling and making calls) and only 5% explained that just talking on a mobile is sufficiently off-putting to significantly increase the likelihood of having an accident.
The Foundation reports that some ½ million drivers still use hand-held mobiles whilst driving and warns them that the police don’t have to stop you in order to hand out the penalty, it can be done by post. Stern measures are rightly being taken to reduce the number of accidents caused by misuse of mobiles which in 2005 amounted to 13 people killed and in excess of 400 injured in accidents where drivers were using mobiles at the time of the incident.
Posted March 2007
More Than backs the drive towards the green car
At a time when More Than’s marketing advantage of lifetime no claim bonus protection is being copied by the likes of Norwich Union car insurance, they have hit back by extending the range of vehicles that can benefit from their alternative fuel discount.
Since introducing a discount for hybrid cars in May 2006, the first insurer in the British market to do so, More Than now offer a full 15% reduction for both new and existing car insurance policyholders where the insured vehicle is powered by certain combined or non-fossil fuels such as electric, LPG or dual fuel cars. This stems from a background of 48% of motorists who believe that motoring under its present means of propulsion damages the environment and 80% who are concerned about the continuing rise of fuel costs, and that a more effective means of power must be found. More Than report that the numbers of ecologically concerned motorists is showing a steady and consistent rise.
The insurer is keen to point out that the car insurance discount is available not only on originally manufactured alternative fuelled vehicles but also those that have been professionally converted to FFV (Flexible Fuel Vehicles), LPG (Liquefied Petroleum Gas), fossil-free bio ethanol fuel, dual-fuel and electric cars, provided they are acceptably certified.
The discount adds to the other benefits currently being offered to the eco-motorist. There is a reduced vehicle excise duty and full exemption from the Capital’s congestion charge (which has nearly doubled in size in the recent past). Putting these advantages together means that the concerned motorist not only benefits the environment but also gains in reduced running costs into the bargain.
Posted March 2007
MORE THAN Business has detailed in its update report that damage carried out on business vehicles by small time criminals and hooligans remains at a high level, costing the insurer in the region of £10 million pounds per year in the West Midlands area alone. Figures from the Home Office support this; nearly one crime in four has vandalism in its various forms at its root, even though the disincentives can range from on-the-spot fine to arrest or ASBO (anti-social behaviour order).
This mindless damage and theft is a high cost for the van insurance companies, at around 5% of all van claims, but can have a serious and damaging effect on the small business that is operating the vehicle. The cost of lost business whilst the vehicle is off the road or the hire cost of a replacement van, the cost of lost tools (that can run to £3000 to £4000) can affect the cash flow of small business or sole traders dramatically. The disruption to normal business can also harm the reputation of a small trader and add to the stress already caused by the damage to or loss of vehicle and contents.
This sort of criminal behaviour is becoming endemic in today’s society costing in excess of £2 billion pounds a year. But the situation is worse than it appears because small businesses are reporting cases of vandalism in only half the occurrences and they will not claim on their van insurance for minor damage because of the excess and the effect on their no claim bonus.
MORE THAN Business is offering a £50 fuel voucher to all van customers that sign up to a new insurance policy with them prior to 30 April 2007.
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