Car Insurance Guide Blog

23% of policies don't cover misfuelling

Thu, 21 Oct 2010 16:44:25 BST

It has emerged that motorists who make the mistake of filling their vehicles with the wrong type of fuel might not be covered by their car insurance policies.

New research from Defaqto has just been released that suggests 23% of car insurance policies don’t provide cover for so-called "misfuelling". The research analysed 288 policies to come up with the results, which will be bad news for many of the over 100,000 motorists who make this mistake every year, according to figures from the AA.

The research also revealed that 14% of breakdown policies don’t provide cover for the driver if they run out of fuel. This can quite easily happen if you fail to check your fuel levels before setting out, and the news may well surprise a few drivers across the UK.

The insight analyst for general insurance at Defaqto, Mike Powell, said that drivers who put the wrong fuel into their vehicles “not only face a huge repair bill but may also find that their breakdown policy doesn’t provide cover for their vehicle to be towed to a garage”. He added that even the breakdown policies that do provide cover will only tow the vehicle to a garage or its destination.

Aside from checking carefully that you have enough fuel and that it is the right type of fuel, especially if you are a new driver, you should also be fully aware of what you are covered for on your insurance policy in case you experience any problems.

Consumers paying hefty fee to change policy details

Fri, 15 Oct 2010 14:31:05 BST

A new report released by Which? has revealed that car insurance companies are charging up to £55 for customers to make minor changes to their policies. With consumers already feeling the pinch resulting from a tough economic climate, the British public are being warned to check carefully the fine print of any potential insurance policies before they make the decision to sign up.

This advice comes as Which? magazine revealed that two thirds of car insurance companies are charging an average of £21 to customers who wish to make small changes to their policies, including vital alterations such as marital status or change of address. However, motorists are not alone in being punished by insurance companies for unavoidable changes occurring in their lives, with home insurance customers receiving an average charge of £18 for making similar alterations.

Despite these statistics providing serious food for thought for consumers looking to purchase insurance, the main thing to look out for is the cancellation fees for deciding to end cover midway through a policy term. The decision to cancel a policy costs an average of £40 for those individuals unlucky enough to be covered by one of the two thirds of car insurance companies that charge hefty cancellation fees.

The findings of the report led a spokesperson for Which? to state: “It's about time insurance companies start treating their customers fairly and make administrative charges proportionate and transparent”. Such a viewpoint is likely to ring true with consumers who are perhaps paying the price for the fact that they are looking to slash the initial cost of their insurance premiums at such a difficult financial moment, even at the cost of not checking the details of the policy that they end up purchasing.

British motorists fleeing parked car crashes

Fri, 08 Oct 2010 14:35:26 BST

Almost one fifth of British motorists who hit a parked car are failing to leave their details behind for the victim of the incident. This has left unfortunate motorists having to foot a massive £169 million annual bill to pay for the often extensive repairs their vehicles require after being struck.

With motorists across the UK increasingly looking to find the cheapest deals on their car insurance given the current economic climate, the need to keep insurance costs as low as possible may have helped to fuel a culture in which motorists are now prepared to flee the scene of an accident rather than admit responsibility for any given incident and see their insurance premiums rise as a result by losing that all important no claims discount.

The report that uncovered these startling statistics was released by Accident Exchange, with spokesperson Lee Woodley stating that “parked car prangs cost the insurance industry more than £1.2bn annually in repairs. It’s therefore appalling to think that £169m of that figure has to be picked up by the innocent motorist's own insurance policy”.

With safe and reasonably priced off-road parking in British cities increasingly at a premium, motorists are finding themselves having to risk parking their car (or cars) on the street more frequently, leaving themselves far more susceptible to being on the losing end of a prang. As a result of this, inner city motorists could see their insurance premiums rise through no fault of their own if motorists are forced to continue claiming for third party damage on their own vehicles.

Should this happen, it is likely that motorists will increase calls for surveillance of cars that are parked on the road.

Make sure you shop around

Fri, 01 Oct 2010 14:27:03 BST

When we get our motor insurance renewal through the post, it’s all too easy to accept it blindly and pay up. After all, we’re probably being rewarded for being a loyal customer and anyway it takes ages to shop around, filling in endless details online or hanging on the phone trying to get through to a human being rather than listening to Greensleeves. But are we right to have this attitude?

After all the financial doom and gloom, we are all trying to tighten our belts and yet, according to moneysupermarket.com, we could save an average of £233 by shopping around for a better quote (an increase of £100 on last year’s figures) but we don’t bother! A shocking 25% of us automatically renew, either because we can’t be bothered looking for a better quote or because we don’t truly believe that we can save money.

The over 55s are the worst culprits, with the 18 to 34s the most likely to shop around. As regards geographical differences, those in London and the North East are the least likely to seek out a bargain.

Steve Sweeney of moneysupermarket.com makes the point that insurance companies are always eager to tempt new customers with special introductory discounts but, having got your business, they are unlikely to continue to offer a good deal in subsequent years.

With insurance premiums rising at an alarming rate this year, due to increased fraudulent claims and uninsured drivers, this is definitely the time to realise that this is one area of life where loyalty does not pay and spend a few minutes seeing if you can save yourself some money.

The AA claims car insurance premiums rising at fastest ever rate

Fri, 24 Sep 2010 13:33:26 BST

Car insurance premiums have risen by 11.5% in the last three months alone. This has been mainly fuelled, according to the AA, by an increase in fraud. The average price for a comprehensive insurance premium now stands at £704.

Over the last year the prices of car insurance premiums have risen by 30.9%. But it is in the last three months that things have really started to get serious for Britain’s motorists.

The AA says that premiums are now rising at the fastest rate ever. The company has been tracking premiums across the UK for the past 16 years, so the fact that it has made such a bold statement cannot be taken lightly.

The worst hit has been for drivers under 30, for whom premiums rose by a massive 13.4% to £1,128 in the same three-month period.

The director of the AA, Simon Douglas, sparked controversy by claiming that price comparison websites were partly to blame for the increases in fraud because they make it easier for people obtaining quotes to provide false details. He claimed that this is possible because “it is much easier to manipulate information on a computer screen to find the cheapest price” than it would be face to face with sales staff.

However, Paul Lawler from Moneysupermarket.com disagreed with the suggestion, blaming instead the higher number of claims that are being made through personal injury firms. He said that fraud could just as easily be committed through an insurance company’s own website.

Whatever the reasons for the rising premiums, the AA warned of the consequences for those who are found to be attempting insurance fraud, stating that it will be very difficult for them to find insurance in the future, and will be much more expensive.
Battery recycling rates seem to have been given a boost as a result of new EU legislation, according to recent figures from the Environment Agency.

The agency revealed that there has been a 7% rise in battery recycling rates over the last three months. In total, 16.5% of portable batteries were recycled in the second quarter of 2010, compared to just 9.15% in the first quarter.

In terms of volume, that equates to nearly 1,500 tonnes of batteries being sent for recycling between April and June of this year, and 2,320 tonnes being sent for recycling over the first half of the year.

It is likely that this sudden rise is linked to the new EU rules surrounding the recycling of batteries that came into force back in February 2010. The new laws made it a legal obligation for shops selling over 32kg of batteries a year to provide free battery collection points for batteries to be sent for recycling.

It is all good news for the government which has specific targets it has to reach over the course of the next few years. The target for this year is 10%, and it looks like this will be met as recycling rates are predicted to rise in the lead-up to Christmas. Indeed, the recycling rate for the first half of the year stands at 12.58%.

The next target is an 18% recycling rate for 2011, followed by the first legally binding rate of 25% the following year. Following that, a target of 45% has to be hit by 2016, so the government will hope that the rate continues to rise over the next few years.

Warning to motorists breaking the law abroad

Fri, 17 Sep 2010 15:53:25 BST

Sainsbury’s Car Insurance has suggested that millions of motorists could be at risk of breaking the law whilst they are driving abroad, without even knowing it.

The insurer carried out a survey regarding driving habits abroad and discovered that:

One in three Brits heading to France were not planning on taking a reflective jacket (which is required by French law)
15% were not going to take a warning triangle (something again required by law in the event of a breakdown, which is also the case in Spain and Holland)
30% of motorists were not planning on taking proof of ownership, which is legally required in a number of European countries

The insurer also warned that radar detectors, which are used to detect speed traps, are not allowed in several countries, including Switzerland and Belgium, even if the devices are turned off.

Drivers who use glasses are also required by law to carry a spare pair in the car when driving in a number of countries including Switzerland and Spain.

The car insurance manager at Sainsbury’s, Ben Tyte, said that drivers need to prepare themselves for more than driving on the other side of the road due to the different laws in each country.

Sainsbury’s also issued a warning over fully-comprehensive insurance policies, stating that if car owners fail to inform their insurer that they are going abroad, their policies could automatically be reduced to third-party insurance.

So, if you are heading abroad, always inform your insurer and always carefully check the driving laws of the country you are heading to so that you can make a few simple arrangements to avoid getting into trouble.