‘Featured’ News
Uninsured Drivers Costing £500m
Posted 2008-05-6
It is estimated that uninsured drivers are costing over £500m a year, according to the Motor Insurers’Bureau, which pays compensation to the victims of uninsured drivers involved in accidents.
And the cost of the compensation, the bureau claims, is adding in the region of £30 extra onto the insurance premium of every legally insured motorist.
Recent figures now reveal that the UK has one of the highest levels of uninsured drivers in western Europe, with a staggering one in 20 cars and vans on British roads now being used illegally, without motor insurance.
The growing problem has recently been highlighted by the British Brokers’ Association (BIBA), who have approached the government requesting that more awareness is brought to the obvious dangers of driving whilst uninsured, and requesting the government bring greater enforcement to tackling the unacceptable situation.
Commenting that the government had been dragging its feet in dealing with the current blight of uninsured motorists, BIBA Chief Executive Eric Galbraith said that new regulations are urgently needed in order to resolve the problem.
Towards this end, BIBA will be calling on Transport Minister, Ruth Kelly, to urge the transport department to push forward regulations to address the unsatisfactory trend at the earliest opportunity.
Only recently the government had already introduced laws giving the police access to the national motor insurance database, and the right to seize any uninsured vehicles and even crush them.
It’s estimated that since the introduction of the new powers in 2006, uninsured driving has been reduced by around 10%. But BIBA would like to see the figures reduced even more substantially.
Increased risk taking may also be one more effect of the recent credit crunch, which has seen ever greater numbers of consumers struggling with the repayments on secured loans and homeowner loans, as a combination of increased interest rates, more restrictive lending criteria and the withdrawal of many former financial products, which until very recently were readily and abundantly available.
Apart from increased mortgage payments and higher interest charges on secured and homeowner loans, consumers have also been hit with a raft of price rises in other sectors, with overall living costs being further stretched by rising prices in fuel, utility bills and even food.
As a result there has been a massive increase in the numbers of consumers and business organisations seeking debt relief solutions, including bankruptcy, Debt Management Plans (DMPs) and Individual Voluntary Agreements (IVAs).
Recent reports from the UK Insolvency Helpline, which gives free financial advice to consumers and businesses concerned about debt levels, confirm that the number of applications for IVAs increased at a rate of 118% in 2006, and that the insolvencies in 2007 rose to 150,000, with the prediction that, for the first time ever, more of these insolvencies will be serviced by IVAs than bankruptcies.
The IVA is a formulated repayment plan, typically over a period of five years, which allows a debtor to negotiate an agreement with creditors to reduce some of the outstanding money owed by pledging to pay regular monthly payments. The increasing popularity of the IVA to consumers is largely based on the fact that they avoid the stigma associated with bankruptcy and often allow the debtor to retain assets, including a business or a home.
The alternative DMP is similarly constructed, but it is a programme by which affordable payments are negotiated with creditors by an independent company. Once an agreed monthly figure has been reached, this amount is then sent by the debtor to the debt management company, who pass it on directly to the creditor.
The UK Insolvency Helpline was set up in 1997, following recommendations from a national group of Insolvency lawyers and accountants, with a remit to supply an urgent need for debt and credit advice to consumers generally.
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Understanding Car Insurance Discounts
Posted 2008-04-24
Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.
Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.
Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.
First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.
Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.
Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.
Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.
You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.
In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.
Understanding how discounts affect your insurance rates is important to save you money.