Car Insurance Guide Blog

Number of drivers without insurance falling

Mon, 23 Aug 2010 16:19:49 BST

The MIB (Motor Insurers' Bureau) has reported a 20% drop in the number of people driving without valid car insurance over the past four years.

In 2005 the figure stood at 1.8 million, but in 2009 that figure was reduced to 1.5 million.

Although the drop is significant, the problem of uninsured drivers on our streets is still large. MIB warns that 4% of drivers in the UK don’t have cover, the highest rate in the whole of Western Europe.

Every year, 23,000 people are injured in accidents involving uninsured drivers, and a total of 160 people are killed. The resulting payouts from the insurance companies add up to a bill of £500 million every year. But it is the rest of the driving population that has to pay for this in the form of an extra £30 on top of every premium.

The chief executive of the MIB, Ashton West, said that the reduction is a “significant step” that shows that uninsured drivers are “consistently being caught and removed from the road”. He reminded drivers that, although times are tough, car insurance is not something you can choose to avoid paying as it is a legal requirement. He also highlighted the fact that the costs are too high for the rest of motorists who have to foot the bill.

The punishment for driving without insurance can be severe, constituting a £200 fine and six penalty points on the licence. The vehicle can also be seized, requiring a £150 recovery charge to collect it.

Most car-friendly towns revealed

Fri, 13 Aug 2010 14:34:25 BST

Virgin Money Car Insurance has released results of its annual report into the most car-friendly towns in the UK.

The report looks into different aspects of each town and how these relate to the driving experience. Parking costs, petrol prices, the number of speed cameras, car parks and the levels of car crime are all taken into account to come up with the list of the most car-friendly places.

The most car-friendly town overall was revealed as St Helens in Merseyside. This knocked Telford in Shropshire off the top spot, (a position that it had held for the last two years) and into second place.

As might be expected, the worst place in the UK was London. This was partly due to the fact that London boasts 600 speed cameras. It is a position that London is used to as it has also held the worst spot for the last three years in a row.

Third place in the table was Blackburn, in fourth was Dudley in the West Midlands, and Derby came in fifth.

At the other end of the table, but better than London, were Manchester, Reading, Glasgow and Watford.

In all, the 65 biggest towns and cities in the UK were researched in order to find out the results.

Grant Bather from Virgin Money said that although the 24 million drivers in the country are often “driven to distraction” by all the frustrations of driving, “many local authorities do their best to ensure drivers aren't treated like second-class citizens”. He admitted that everyone would have a different idea about what constituted “driving hell”, and that the research aimed to show the best and worst towns and cities for drivers.

London is motor-fine capital

Thu, 05 Aug 2010 13:34:41 BST

London has been revealed as the motor-fine capital of the UK following research from Esure.

The car-insurance firm released results of a survey claiming that drivers in the capital pay a staggering £680 in driving fines throughout their lifetimes. This was way above the other geographic regions of the country.

The survey questioned 1,107 motorists across the UK on how many fines they have had to pay. Here are some of the results:

drivers in the northeast pay an average of £352 in fines throughout their lifetimes
drivers in the southeast pay an average of £303
drivers in Northern Ireland pay the least at £90 on average
drivers in Scotland pay £198 on average

There was also a discrepancy between the fines paid by men and by women. On average, men pay a total of £344 throughout their lives on driving fines, with women only paying out £210.

On top of that, 46% of men said they had been caught speeding, compared to just a quarter of women.

The results also show that the vast majority of fines are generated by speeding and parking offences. When it came to parking, 36% of respondents said that they disobey parking rules deliberately and 34% admitted that they get confused by the rules.

The head of risk and underwriting at Esure, Mike Pickard, said that running a car can be a costly business, but it is made more so by picking up fines for driving offences. He also warned that offences are there “for a reason”, adding that “they are actions that put drivers and other road-users at risk.”

Journey to work most risky for motorists

Wed, 28 Jul 2010 12:39:42 BST

According to insurance firm Swinton, the most dangerous time to drive your car is on the way to work. The news comes after Swinton carried out research into the most common times of the day that drivers were involved in accidents. It polled 1,200 drivers in total, and the drive to work turned out to be the most risky period.

A massive 60% of the respondents confirmed that they had been involved in minor accidents with another vehicle whilst on their way to work.

Although the drive to work was revealed as the most dangerous time, it wasn’t the only period of the day highlighted. In addition, 9% of drivers said that they had been involved in accidents with other vehicles whilst dropping the kids off at school.

Parking accidents were also highlighted, with 8% of respondents saying they had damaged their vehicles in multi-storey car parks, and 20% doing the same in supermarket parking areas.

The real purpose of all this research was to remind drivers of the need to take out insurance for when the worst comes to the worst. However, the insurance development manager at Swinton, Steve Chelton, also suggested that for minor accidents, claiming on your insurance may not always be the wisest course of action.

He suggested that because claims “can also have a big impact on no-claims bonuses”, it could be a better idea for drivers to pay for minor repairs out of their own pockets as this could allow them actually to save money in the future.

Comprehensive insurance up 14.2%

Fri, 23 Jul 2010 15:42:59 BST

In yet another blow for motorists, Confused.com and EMB have just reported that car insurance premiums have gone up by 14% in the second quarter of the year.

Insurers have had to raise the premiums in order to return to profit. EMB quoted the FSA (Financial Services Authority) figures showing that the average insurer incurred costs of £122 for every £100 it received in premiums in 2009.

The increased costs faced by insurers are mainly due to increased payouts for personal injury claims and a rise in the level of insurance fraud. Insurers also paid £400 million to the MIB (Motor Insurance Bureau) in 2009 for accidents that involved uninsured drivers, which added an extra £30 to every premium.

Of the total premium rises, comprehensive insurance saw the biggest rise, increasing by 14.2% on average during the three months to the end of June. The average you can now expect to pay is £599, an increase of £74.

When this is compared to the comprehensive premium in July 2009, this means in one year there has been a rise of 31%, costing motorists £142 extra.

The product director at Confused.com, Simon Lamble, said that it is a “massive blow” for motorists, especially as they are already suffering from higher petrol prices and insurance premium tax increases.

The worst price hikes were seen for drivers aged between 41 and 55, especially if they paid extra to have their children added to their policies.

Manchester and Merseyside were the worst areas for drivers in terms of insurance increases, witnessing the biggest quarterly increase of 18.2%.

Third party cover may not be such a bargain

Fri, 16 Jul 2010 16:33:45 BST

For a long time it has been common practice for drivers trying to reduce the cost of insuring their cars to opt for third-party cover rather than fully comprehensive. After all, the less cover provided, the cheaper the premium will be - or so they think.

Recent research carried out by Moneysupermarket.com has, however, produced some surprising results, revealing that in fact third-party insurance is, in many instances, by far the most expensive type of insurance you can buy.

Steve Sweeney, motor insurance expert from Moneysupermarket.com, has explained the reasons behind this apparently illogical finding. Because those seeking to insure their vehicles for third party damage tend to be the younger more inexperienced drivers or, in some cases, those with motoring convictions, insurance companies have reacted accordingly and bumped the prices up to take account of the high element of risk.

Moneysupermarket.com’s research looked at the cost of 1.4 million motor policies and found that the average price of a fully-comprehensive policy was £922, less than half the price of a third-party policy which came in at a whopping £1,927. The average price of a third-party fire-and-theft policy was found to be £1,348, almost 50% higher than the fully-comprehensive cover.

Drivers who are seeking to reduce the cost of insuring their vehicles might like to consider the following instead:

Shop around, especially on the internet
Reduce your annual mileage
Choose a car with a small engine
Invest in an alarm and immobiliser
Take the Pass Plus test