Car Insurance Guide Blog

Most claims from five-year-old vehicles

Fri, 12 Mar 2010 14:17:37 UTC

Virgin Money Car Insurance has revealed a surprising statistic regarding car insurance claims. It has studied all the claims made on cars for its insurance service, and has discovered that the highest number of claims comes from vehicles that are five years old.

Five-year-old cars make up 9.6% of the total number of claims on Virgin’s database, the highest number for any vehicles. Virgin also revealed that cars between three and six years old make up 37% of claims, despite only accounting for 24% of the total number of cars in use.

Other results from the research show that cars which are 10 years old make up 6% of claims, and cars that are less than one year old make up just 2% of the total number of claims.

This has prompted Virgin to issue a reminder to people purchasing a second-hand car that they must check that it is in good condition first. A spokesperson said that “drivers tend to change their car every three to five years and on this evidence they have some justification”, and that people buying a second-hand car should take necessary action “to ensure that the car meets all of the road standards”.

But Virgin was also keen to reassure drivers that just because a car is five years old, it does not mean that it is necessarily more dangerous. It is just that cars of this age seem to be the most prone to being involved in an incident which results in a claim. The important thing is that people should always check that a second-hand car is in good order before purchasing it.

Most drivers don't check oil

Fri, 05 Mar 2010 13:59:50 UTC

Swinton Car Insurance has just carried out a survey of drivers’ car maintenance habits and revealed that a shocking 70% of drivers in the UK never check their oil.

The online survey was completed by more than 1,300 drivers, and the results paint a worrying picture of car maintenance habits across the country. It is understandable that a small proportion of people will never get around to checking the oil, but 70% is quite a shocking figure.

Oil is essential to the health of the engine, lubricating it and keeping it cool, as well as keeping it free from rust. As vehicles get older, they tend to use up more oil, so it is especially important to keep the oil levels topped up if you are driving an older car.

The problems that can be caused by a lack of oil are quite serious. In the very worst cases, careless drivers who have not bothered to check their oil level run the risk of ending up forking out for a completely new engine. And to make matters worse, engine damage is not usually covered by car insurance policies.

According to the research, women are the worst offenders with 83% confirming that they never check their oil levels. Men fared better, with 52% claiming to check the oil levels.

The insurer development manager for the car insurance provider, Steve Chelton, said that they advise people to check their oil “at least every two weeks” and that they should also “carry a spare canister in the car at all times.”

Areas with most uninsured drivers exposed

Fri, 26 Feb 2010 14:55:49 UTC

Driving without insurance is not only illegal, but can lead to both the driver and anyone affected in a collision losing out when it comes to paying for repairs or compensation.

Now moneysupermarket.com has unveiled the locations where you are most likely to find uninsured drivers. It analysed nearly 3 million quotes for car insurance over the past year to look for profiles of people who stated that they had convictions for driving without insurance.

Top of the list was Sanquhar, a town in Dumfriesshire, Scotland, where 28% of young male drivers had convictions for driving without insurance.

The next two spots on the list were Hebden Bridge in West Yorkshire with 24% of young male drivers possessing a conviction, and Glasgow with 20%.

Overall, half of all the top 10 uninsured-driver profiles that moneysupermarket.com uncovered were males under the age of 25. This is not such a surprise seeing as this is the group that has to pay the most for car insurance.

Within the top 10 profiles of people failing to buy car insurance, only one of them was for female drivers. The profile was for females in their early 20s living in Dunstable in Bedfordshire.

Steve Sweeney, who is the head of car insurance at the comparison site, reminded drivers that "whatever the distance, driving without insurance is illegal” and that drivers caught without insurance could face a “£200 on-the-spot fine and six points on their licence.” Not only this but the driver’s car could be impounded, costing £150 to release the vehicle and £20 for each day of storage.

Pothole claims already rising

Fri, 19 Feb 2010 15:43:58 UTC

Car damage insurance claims as a result of potholes on the roads are already soaring, according to AA Insurance.

The company disclosed that it has been receiving an average of seven pothole-related claims a day since the middle of January. It also revealed that last year the total amount it paid out in claims related to pothole damage was £47 million.

The AA has long criticised the quality of the UK’s roads and the problems that are faced by drivers when they encounter potholes.

Although only the really big holes will lead to direct claims for damage, the smaller potholes are dangerous because they lead to damage through other means. For example, drivers may swerve to miss a hole and hit something else instead. Potholes can also lead to a loss of control. The most affected parts of the vehicle are the tyres, steering, suspension and the wheels.

Simon Douglas, the director of AA Insurance, said that they were “seeing a fourfold increase in the number of claims for pothole damage compared with the same period last year”. He warned drivers that if they notice any vibration in the vehicle, or the steering wheel pulling to one side after hitting a pothole then they should check it out as soon as possible as it could lead to further damage or the possibility of an accident.

Drivers should also check for bulges on the walls of the tyres. This points to internal damage and should be dealt with immediately because if the tyre blows up while driving it can be catastrophic.

Drivers can now report any potholes they find to the AA Pothole Watch scheme here.

Car insurance premiums up 20%

Fri, 12 Feb 2010 16:04:30 UTC

According to research from Consumer Intelligence, car insurance premiums have just seen their biggest ever annual rise over the last 12 months, going up by an astonishing 19.6%.

This means that the average premium for drivers has rocketed to the hefty sum of £564.69, which is enough to make anybody think twice before buying a car.

As ever, it’s young drivers who face the biggest increases. Over the last 12 months the 17-24 age group has seen the average premium shoot up by 24.87%. So when someone first starts to drive they can now be expected to pay a massive £1,489, up from an already enormous £1,275 last year.

The smallest rise in premiums was witnessed in the over-65s group of drivers, who have only seen a rise of half of that which younger drivers have to pay. Men saw a rise of 20% throughout the year to £599, and women saw a rise of 19% up to £523.

This all adds up to a massive £2.1 billion extra in car insurance premiums over the last 12 months.

The rise is due in part to the increase in personal injury claims. As claims go up, the money has to come from somewhere, and insurance companies can only turn to their customers to make up the difference. Increasing levels of fraud are also being blamed for the rises.

The fear now is that more drivers, especially young ones, will take one look at the insurance premiums and be tempted to drive without insurance, which could have terrible consequences.

Insurance warning over unattended vehicles on icy mornings

Fri, 05 Feb 2010 14:39:44 UTC

Icy mornings are the curse of the driver during the freezing winter weather, especially if that driver is in a rush to get to work. One common practice to reduce the time spent sitting in a cold car as it slowly defrosts is to turn the car ignition on and leave it running whilst getting ready for work.

But now a warning has been issued by Post Office Car Insurance, which claims that there is an increased risk of theft when leaving a car running unattended, and that this could have dire consequences when it comes to making a claim on your car insurance.

If a car is left unattended, unlocked and with the keys in the ignition then it is almost certain that the car insurance policy will become void should the vehicle be stolen. If the claim is rejected on these grounds, there is not a lot that the owner can do about it.

The advice being issued by Post Office Car Insurance is never to leave a car running without supervision. This is going to come as a frustration to many drivers during these cold winter months, but it’s better than paying for a new car.

To make matters even worse for drivers, leaving a car running whilst unattended could actually be a criminal offence. The practice is known as ‘quitting’ in the industry and could lead to drivers receiving a fixed fine of £30 under the Road Traffic Act. And that would certainly not be a good way to start the working day.