Online PR News – 03-November-2010 – New site, Insurance Buffs, enters the online insurance fray with auto insurance coverage geared towards those who need coverage on a budget. The site offers a variety of insurance types, “with a key focus on making auto insurance affordable for the average working guy or gal,” says the chief marketing officer for the site.
“With car insurance no longer being an option in many states, a lot of people are struggling to keep at least a minimum amount of coverage in place. We have taken this into account in constructing this site, but we took it a bit further by working with providers that would not only provide our clients the cheapest car insurance, but make sure that they are fairly covered as well. We want to get people past the days of just having no-fault insurance; so we made it our mission to get folks value for their money.”
The Insurance Buffs site provides a single point of contact for shopping out insurance quotes through their network of insurers. By filling out a short application form, the consumer is able to be returned competing quotes from a number of insurance companies.
About InsuranceBuffs.com:
Meeting the insurance needs of the consumer is our goal; we offer insurance for several facets of life. Our offerings include life insurance for the security of the entire family, home insurance for your most valuable asset and auto insurance to keep you safe on the road.
InsuranceBuffs.com
4497, Flynn Street
Cleveland, OH 44114
http://www.insurancebuffs.com
Thursday, November 4, 2010
Sunday, October 10, 2010
As A Young Driver Or New Driver – You Can Save On Car Insurance!
Are you a young driver or are you a new driver? Getting car insurance can be something that can cost a lot of money. If you want to find better car insurance quotes, then this article will help a lot!
The first thing to remember is that as a new driver or a young driver, the insurance you pay is going to be expensive. And when it comes to car insurance, the price will start very high, but over time, will get cheaper!
This is a good thing, but when you look at the first insurance prices that you will have to pay, you will find that they can be like the insurance company pulled the figure out of a hat!
There needs to be some other solutions, solutions that can save a lot of money on car insurance.
The good news is that it is fully possible, but where do you start?
Doing the research is basically a process to find a few options. For example, finding 3 different insurance quotes for young drivers, will help you better than going through one company.
There are now specialist companies who deal with young drivers, and this can be a route to consider. Most insurance companies are actually a general kind of organization that deals with everyone.
Try comparing both, and seeing which is really the best price for you.
The first thing to remember is that as a new driver or a young driver, the insurance you pay is going to be expensive. And when it comes to car insurance, the price will start very high, but over time, will get cheaper!
This is a good thing, but when you look at the first insurance prices that you will have to pay, you will find that they can be like the insurance company pulled the figure out of a hat!
There needs to be some other solutions, solutions that can save a lot of money on car insurance.
The good news is that it is fully possible, but where do you start?
Doing the research is basically a process to find a few options. For example, finding 3 different insurance quotes for young drivers, will help you better than going through one company.
There are now specialist companies who deal with young drivers, and this can be a route to consider. Most insurance companies are actually a general kind of organization that deals with everyone.
Try comparing both, and seeing which is really the best price for you.
Credit Life Insurance for Bad Credit Car Loans
Weighing the pros and cons of credit life insurance as part of a bad credit auto loan
Now what?
Once you’ve picked out a car and received the final approval for a bad credit car loan, there are a number of decisions you may still have to make. We know, because at Auto Credit Express we’ve been working with poor credit car buyers for over two decades.
Having seen the embarrassment and frustration that many customers with bad credit often face, we even created a web site to accept applications and match these people up with local dealers that specialize in customers with credit issues.
The alternative – buying a vehicle from a tote the note, we finance anyone car dealer – can be a problem because normally these dealers don’t report your payments to the credit bureaus. But even taking out a loan through a dealer with a legitimate national bad credit lender can end up badly simply by choosing the wrong kind of vehicle. Both situations can create problems and either one might even result in repossession.
The car loans with bad credit process can also be confusing, because in addition to the loan itself, the special finance manager who helped to arrange the loan is bound to offer you a number of “back end” products that you may never have heard of, one of which is bound to be credit life insurance.
Credit life insurance explained
Credit life insurance is a form of term life insurance. Term insurance refers to an insurance policy that, unlike whole life insurance, is in force for a fixed period of time and cannot be renewed. And, also unlike a whole life policy, a term insurance policy builds no cash value.
In addition to being a form of term insurance, credit life insurance is also considered to be a “decreasing” term policy. This means that the payout on the policy is designed to match whatever the loan balance happens to be at any point throughout the loan term. As the loan is paid off, the loan balance decreases and the amount of life insurance covering the loan balance also decreases to match the amount owed on the loan contract.
Buying credit life insurance
If you decide to buy credit life insurance, you usually have to do it at the time you sign the loan contract. The monthly insurance premium is based upon the original loan balance and the cost is added to the finance contract and becomes part of your monthly car payment. This means that because it is part of the finance contract and not paid in a lump sum, you will be paying interest on the life insurance premium as well as on the vehicle loan.
Is it worth the cost?
Whether or not it’s worth the cost is a decision that you’ll have to make. Here are a few of the facts:
Advantages:
1. Peace of mind – credit life insurance will pay off your car if you should die before the loan contract is paid off.
2. A single payment – the insurance payment becomes part of your monthly car payment, so there is no separate insurance premium you’ll need to pay.
3. If the loan is covered by credit life insurance, your estate won’t be responsible for the loan balance or loan payments if you die before the car is paid off.
Disadvantages:
1. Generally speaking, credit life insurance is usually more costly than if you were to take out a separate term life insurance policy for the loan amount.
2. In addition to paying insurance premium, you are also paying the interest expense on the balance of the policy cost every month.
3. If there is no co-signer on the loan and you are single, even if the loan isn’t paid off before you die your family is not legally responsible for the loan balance.
As we see it
The decision to carry credit life insurance on your loan contract is one that you will have to make. If you have a family or a co-signer and you’re worried that they might not be able to make payments on your car if you die, you might want to first look at the costs of a term life policy before you sign on the dotted line making credit life insurance a part of your car loan.
At Auto Credit Express we have helped thousands of people with bad credit buy cars and reestablish their credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.
So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.
Now what?
Once you’ve picked out a car and received the final approval for a bad credit car loan, there are a number of decisions you may still have to make. We know, because at Auto Credit Express we’ve been working with poor credit car buyers for over two decades.
Having seen the embarrassment and frustration that many customers with bad credit often face, we even created a web site to accept applications and match these people up with local dealers that specialize in customers with credit issues.
The alternative – buying a vehicle from a tote the note, we finance anyone car dealer – can be a problem because normally these dealers don’t report your payments to the credit bureaus. But even taking out a loan through a dealer with a legitimate national bad credit lender can end up badly simply by choosing the wrong kind of vehicle. Both situations can create problems and either one might even result in repossession.
The car loans with bad credit process can also be confusing, because in addition to the loan itself, the special finance manager who helped to arrange the loan is bound to offer you a number of “back end” products that you may never have heard of, one of which is bound to be credit life insurance.
Credit life insurance explained
Credit life insurance is a form of term life insurance. Term insurance refers to an insurance policy that, unlike whole life insurance, is in force for a fixed period of time and cannot be renewed. And, also unlike a whole life policy, a term insurance policy builds no cash value.
In addition to being a form of term insurance, credit life insurance is also considered to be a “decreasing” term policy. This means that the payout on the policy is designed to match whatever the loan balance happens to be at any point throughout the loan term. As the loan is paid off, the loan balance decreases and the amount of life insurance covering the loan balance also decreases to match the amount owed on the loan contract.
Buying credit life insurance
If you decide to buy credit life insurance, you usually have to do it at the time you sign the loan contract. The monthly insurance premium is based upon the original loan balance and the cost is added to the finance contract and becomes part of your monthly car payment. This means that because it is part of the finance contract and not paid in a lump sum, you will be paying interest on the life insurance premium as well as on the vehicle loan.
Is it worth the cost?
Whether or not it’s worth the cost is a decision that you’ll have to make. Here are a few of the facts:
Advantages:
1. Peace of mind – credit life insurance will pay off your car if you should die before the loan contract is paid off.
2. A single payment – the insurance payment becomes part of your monthly car payment, so there is no separate insurance premium you’ll need to pay.
3. If the loan is covered by credit life insurance, your estate won’t be responsible for the loan balance or loan payments if you die before the car is paid off.
Disadvantages:
1. Generally speaking, credit life insurance is usually more costly than if you were to take out a separate term life insurance policy for the loan amount.
2. In addition to paying insurance premium, you are also paying the interest expense on the balance of the policy cost every month.
3. If there is no co-signer on the loan and you are single, even if the loan isn’t paid off before you die your family is not legally responsible for the loan balance.
As we see it
The decision to carry credit life insurance on your loan contract is one that you will have to make. If you have a family or a co-signer and you’re worried that they might not be able to make payments on your car if you die, you might want to first look at the costs of a term life policy before you sign on the dotted line making credit life insurance a part of your car loan.
At Auto Credit Express we have helped thousands of people with bad credit buy cars and reestablish their credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.
So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.
Fuel-efficient Volkswagen might appeal to car insurance seekers
Car insurance for the Volkswagen Passat BlueMotion could be set to grow in popularity after it was revealed the vehicle has set a new Guinness World Record.
According to the motor manufacturer, the model travelled the longest distance - 1,526.63 miles - on a single tank of fuel ever recorded by a standard production passenger car, taking its driver from Kent to the south of France and back to Calais.
The attempt was carried out by a team from the Sunday Times, with the participants driving on French autoroutes and through towns. This left the average speed at just more than 45 mph during the whole trip.
Commenting on the milestone, driver Gavin Conway told the Daily Mirror: "It shows how good modern cars really are."
And the feat might be of interest to consumers who are thinking about purchasing a new eco-friendly vehicle and obtaining suitable car insurance in the process.
According to the motor manufacturer, the model travelled the longest distance - 1,526.63 miles - on a single tank of fuel ever recorded by a standard production passenger car, taking its driver from Kent to the south of France and back to Calais.
The attempt was carried out by a team from the Sunday Times, with the participants driving on French autoroutes and through towns. This left the average speed at just more than 45 mph during the whole trip.
Commenting on the milestone, driver Gavin Conway told the Daily Mirror: "It shows how good modern cars really are."
And the feat might be of interest to consumers who are thinking about purchasing a new eco-friendly vehicle and obtaining suitable car insurance in the process.
Consumers advised on hidden car insurance costs
Consumers have been advised to check for hidden car insurance costs before committing to a policy.
With the cost of such insurance rising, many drivers in the UK are looking for the most competitive premium on the market.
However, recent research from Which? Money indicated that around 80 per cent of insurers charge some form of administration fee on top of the initial cost.
Some 105 of the 151 companies surveyed charge for policy amendments, which include adding a named driver or changing your address with a cost of up to £55.
Furthermore, the study revealed that more than 60 per cent of car insurance firms apply an average cancellation fee of £40, but this can soar to £85 with some insurers.
Prospective customers should also ensure they are aware of interest rates added to insurance premiums, as this can be as much as 37 per cent APR for direct debits payments.
Graeme Trudgill, of the British Insurance Brokers' Association, said it is crucial to find out exactly how much an overall policy costs with interest added.
"Some comparison sites don't display the rate and instead advise the customer to check with the insurer," he said.
With the cost of such insurance rising, many drivers in the UK are looking for the most competitive premium on the market.
However, recent research from Which? Money indicated that around 80 per cent of insurers charge some form of administration fee on top of the initial cost.
Some 105 of the 151 companies surveyed charge for policy amendments, which include adding a named driver or changing your address with a cost of up to £55.
Furthermore, the study revealed that more than 60 per cent of car insurance firms apply an average cancellation fee of £40, but this can soar to £85 with some insurers.
Prospective customers should also ensure they are aware of interest rates added to insurance premiums, as this can be as much as 37 per cent APR for direct debits payments.
Graeme Trudgill, of the British Insurance Brokers' Association, said it is crucial to find out exactly how much an overall policy costs with interest added.
"Some comparison sites don't display the rate and instead advise the customer to check with the insurer," he said.
Saturday, September 18, 2010
Don't let the myths about car insurance drive you off the road
It's leading to more people than ever illegally driving without insurance, risking having their car seized by police and crushed or sold if it is not claimed within 14 days. Uninsured drivers also face a £200 fixed penalty, six penalty points and £150 car recovery charges. And they will only be able to get their car back if they can prove they have bought valid insurance.
With some 160 people killed every year by uninsured drivers, police are cracking down on them. By using Automatic Number Plate Recognition (ANPR) technology, which is linked to information on the Motor Insurance Database (MID) – the central record of 34 million insured vehicles in the UK – police are able to detect and seize uninsured vehicles at the roadside.
In fact police report that 180,000 vehicles were seized last year, taking the total to more than 600,000 since laws were introduced in 2005. Even more good news is the fact that last year 194,000 people were convicted in court for uninsured driving – that is one conviction every three minutes.
But the insurance industry says that some people fail to get adequate cover because they're put off by some of the insurance myths floating around. Some are ridiculous, while others sound plausible. Here we examine the most common misconceptions people have about car insurance.
Red cars cost more to insure
Many people believe that insurers automatically associate red with youth and aggressive driving but there really is no truth in that. In fact the AA says that there is no statistical evidence at all that a red car will increase your insurance premium.
Insurers use a variety of factors to calculate the cost of cover – such as the make and model of the car and its age and engine size, as well as taking into account your driving record and location. They don't take into account the colour of the car.
I will be covered if my car is stolen or vandalised
You will be covered, but only if you have fully-comprehensive insurance. Some third-party, fire and theft insurances do offer an element of cover for stolen vehicles or damage caused to a stolen vehicle that is subsequently recovered, but not all. You need to examine the policy's small print to discover what level of cover you have.
The police did not charge me so my no-claims is unaffected
Sorry, this is not always true. The police may not have been called, or have not deemed you criminally responsible for an accident, but it's your insurer which has the final decision as to whether your no-claims discount is affected or not. The accident will go on your permanent record and could become a factor on your rating.
If I get a speeding ticket my insurance rates will go up
Not necessarily. A first minor speeding ticket may not affect your insurance rate. However, the speed you were travelling will be noted and – if excessive – could lead to higher premiums. A second or third ticket will suggest you're a bit of a racer and premiums could start to rise steeply.
Anyone can drive my car as I have comprehensive cover
Not true. Insurers cover the driver, not the vehicle so anyone who drives your car must have their own comprehensive insurance in their own name or they will be uninsured. Even then, they will only be covered on a third-party basis so if anything happens to your car while they are driving it, you will not be covered for the damage.
My vehicle is worth what I paid for it
If your car is damaged beyond repair, vandalised or stolen, your insurer will only pay what it costs to replace it with a similar model that is on the market today, not what you paid for it. It doesn't matter if you splashed out £10,000 for it, your insurance only pays for a replacement vehicle, not a new one.
With some 160 people killed every year by uninsured drivers, police are cracking down on them. By using Automatic Number Plate Recognition (ANPR) technology, which is linked to information on the Motor Insurance Database (MID) – the central record of 34 million insured vehicles in the UK – police are able to detect and seize uninsured vehicles at the roadside.
In fact police report that 180,000 vehicles were seized last year, taking the total to more than 600,000 since laws were introduced in 2005. Even more good news is the fact that last year 194,000 people were convicted in court for uninsured driving – that is one conviction every three minutes.
But the insurance industry says that some people fail to get adequate cover because they're put off by some of the insurance myths floating around. Some are ridiculous, while others sound plausible. Here we examine the most common misconceptions people have about car insurance.
Red cars cost more to insure
Many people believe that insurers automatically associate red with youth and aggressive driving but there really is no truth in that. In fact the AA says that there is no statistical evidence at all that a red car will increase your insurance premium.
Insurers use a variety of factors to calculate the cost of cover – such as the make and model of the car and its age and engine size, as well as taking into account your driving record and location. They don't take into account the colour of the car.
I will be covered if my car is stolen or vandalised
You will be covered, but only if you have fully-comprehensive insurance. Some third-party, fire and theft insurances do offer an element of cover for stolen vehicles or damage caused to a stolen vehicle that is subsequently recovered, but not all. You need to examine the policy's small print to discover what level of cover you have.
The police did not charge me so my no-claims is unaffected
Sorry, this is not always true. The police may not have been called, or have not deemed you criminally responsible for an accident, but it's your insurer which has the final decision as to whether your no-claims discount is affected or not. The accident will go on your permanent record and could become a factor on your rating.
If I get a speeding ticket my insurance rates will go up
Not necessarily. A first minor speeding ticket may not affect your insurance rate. However, the speed you were travelling will be noted and – if excessive – could lead to higher premiums. A second or third ticket will suggest you're a bit of a racer and premiums could start to rise steeply.
Anyone can drive my car as I have comprehensive cover
Not true. Insurers cover the driver, not the vehicle so anyone who drives your car must have their own comprehensive insurance in their own name or they will be uninsured. Even then, they will only be covered on a third-party basis so if anything happens to your car while they are driving it, you will not be covered for the damage.
My vehicle is worth what I paid for it
If your car is damaged beyond repair, vandalised or stolen, your insurer will only pay what it costs to replace it with a similar model that is on the market today, not what you paid for it. It doesn't matter if you splashed out £10,000 for it, your insurance only pays for a replacement vehicle, not a new one.
Car insurance policyholders told to check registration plates
Car insurance policyholders have been reminded about the legislation surrounding number plates and how they are displayed.
Drivers in Essex might find they are pulled over for showing alternative fonts, spacing or colours instead of the regulation figures that are bold on a plain background.
Adam Pipe, casualty reduction manager for Essex Police said: "The main problem with misrepresented number plates is that we cannot quickly identify a car or its owner if it is stolen or used in crime."
Indeed, he added that the issue is compounded by the fact that automatic number plate recognition technology does not work when a non-regulation item is in place.
Motorists could also do well to fit anti-tamper screws to their registration plates, as criminals have been known to fit them to stolen cars to change their identity - a practice which sees them get away with speeding fines and driving off from petrol stations without paying.
Drivers in Essex might find they are pulled over for showing alternative fonts, spacing or colours instead of the regulation figures that are bold on a plain background.
Adam Pipe, casualty reduction manager for Essex Police said: "The main problem with misrepresented number plates is that we cannot quickly identify a car or its owner if it is stolen or used in crime."
Indeed, he added that the issue is compounded by the fact that automatic number plate recognition technology does not work when a non-regulation item is in place.
Motorists could also do well to fit anti-tamper screws to their registration plates, as criminals have been known to fit them to stolen cars to change their identity - a practice which sees them get away with speeding fines and driving off from petrol stations without paying.
Car insurance costs pushed up by administration fees
Motorists are paying more for car insurance as a result of rising administration fees, according to Defaqto.
The independent financial research company found providers are frequently adding these fees to their products and that the scale of administration fees imposed on consumers has also risen dramatically since 2004.
In the past six years, the percentage of car insurance policies charging setup fees has increased from two per cent to seven per cent, while the number adding adjustment fees has shot up from 17.3 per cent to 67.1 per cent.
Mike Powell, insight analyst for general insurance at Defaqto, said: "There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services. Many consumers will be unaware that they may actually be paying a set up fee or a renewal fee for their motor insurance . Such fees will be detailed in the accompanying documentation or in the renewal quote ."
The independent financial research company found providers are frequently adding these fees to their products and that the scale of administration fees imposed on consumers has also risen dramatically since 2004.
In the past six years, the percentage of car insurance policies charging setup fees has increased from two per cent to seven per cent, while the number adding adjustment fees has shot up from 17.3 per cent to 67.1 per cent.
Mike Powell, insight analyst for general insurance at Defaqto, said: "There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services. Many consumers will be unaware that they may actually be paying a set up fee or a renewal fee for their motor insurance . Such fees will be detailed in the accompanying documentation or in the renewal quote ."
Saturday, August 14, 2010
Auto Insurance Subsidy Introduced
The state of California is telling unemployed residents there are auto insurance options if you have been hit hard by the recession or are unemployed. State official are trying to warn residents of the dangers of driving without insurance and the financial implications should an accident happen for people without auto insurance coverage.
Many people across the country have allowed their auto insurance policies to expire and do not have the financial means to activate them. California authorities and officials are warning residents that this can have serious repercussions should an accident happen. Being responsible for the cost of car repairs after an accident can financially ruin people without auto insurance.
The California Department of Insurance has recently started offering assistance to unemployed or low income drivers. To qualify for the program drivers must be in a specified low income bracket, drive a car valued below 20 thousand dollars and has held a valid drivers license for 3 years.
This program has allowed some drivers to afford auto insurance instead of just allowing their policies to expire.
Many people across the country have allowed their auto insurance policies to expire and do not have the financial means to activate them. California authorities and officials are warning residents that this can have serious repercussions should an accident happen. Being responsible for the cost of car repairs after an accident can financially ruin people without auto insurance.
The California Department of Insurance has recently started offering assistance to unemployed or low income drivers. To qualify for the program drivers must be in a specified low income bracket, drive a car valued below 20 thousand dollars and has held a valid drivers license for 3 years.
This program has allowed some drivers to afford auto insurance instead of just allowing their policies to expire.
5 Useful Tips for a Cheap Car Insurance
A third-party car insurance is the minimum that a car owner needs to have as far as the Indian law goes. Purchasing a comprehensive insurance policy is left to the owner to decide. However, the bottom line remains that getting any of these is expensive. But, what if your car meets with an accident or gets stolen? It’s not always someone else who faces these situations. It could happen to anyone including you. You need to have your car insured. This article offers 5 useful tips on how to obtain a cheap auto insurance policy.
1. Compare and Save
With the increased number of automobiles in the country, the number of auto insurance sellers has also increased. With plenty of these providers, the competition has been getting stronger with one company trying its best to outdo the rest with attractive offers. With a little research, a judicious customer will be able to judge which car insurance provider offers the best policy at a low rate with great coverage. Remember, no insurance company is a non-profit organization. Just as you would have done while purchasing your new car, or while applying for the car loan, negotiate, collect car insurance quotes from multiple providers, compare some of the best deals and save.
2. Choice of Vehicle
The insurance amount also depends on your vehicle and the risk involved with the car. A very expensive car, say a sports car, will certainly bear a higher insurance premium. Then, there are certain cars shortlisted by companies as the most stolen cars. These cars too come attached with higher risk, and so, with a greater insurance amount too. On the other hand, vintage cars are driven by the more careful drivers and everybody knows this fact. They are likely to draw a lower premium. If you have a car with parts that are too expensive to replace expect a slightly expensive premium. Meanwhile, owning a rather safe package with plenty of safety features pre-installed in the new car also means that your insurance premium is going to be lower.
3. Go for the Basic Level of Coverage
Anything can happen on the road, but what’s the probability of fatalities? Very low, right? Insurance companies are intelligent enough to calculate the number of accidents or thefts associated with cars during the course of the year. Surveys are conducted to calculate this and the insurance amount is planned. However, these companies make huge profits and many a times the amount goes unclaimed. So, go for the basic level of coverage. This would be an intelligent and cheaper move. Set aside the amount you would have spent on the comprehensive insurance; save it in case of an eventuality.
4. Making Lump Sum Payments
Many insurance providers agree for monthly car insurance premium payments. However, it is advisable to pay it all at once as many companies offer discounts for lump sums paid on premiums. This needs to be checked while making the auto insurance deal. It is of course easier to pay the amount in monthly instalments, but if funds are available, paying the entire amount is intelligent and cheap.
5. Improving Safety
Insurance providers are usually lenient it comes to offering auto insurance to security-conscious car owners. Having security items installed in your car like alarms and immobilizers could get you a good discount on your insurance policy or the premium. And yes, nobody expects you to install airbags in your car if they do not have them. That can cost you a lot more. Instead, choose a variant of the car you like to buy that has airbags already installed. To that, add a clean driving record and the insurance provider will most likely decrease the premium.
1. Compare and Save
With the increased number of automobiles in the country, the number of auto insurance sellers has also increased. With plenty of these providers, the competition has been getting stronger with one company trying its best to outdo the rest with attractive offers. With a little research, a judicious customer will be able to judge which car insurance provider offers the best policy at a low rate with great coverage. Remember, no insurance company is a non-profit organization. Just as you would have done while purchasing your new car, or while applying for the car loan, negotiate, collect car insurance quotes from multiple providers, compare some of the best deals and save.
2. Choice of Vehicle
The insurance amount also depends on your vehicle and the risk involved with the car. A very expensive car, say a sports car, will certainly bear a higher insurance premium. Then, there are certain cars shortlisted by companies as the most stolen cars. These cars too come attached with higher risk, and so, with a greater insurance amount too. On the other hand, vintage cars are driven by the more careful drivers and everybody knows this fact. They are likely to draw a lower premium. If you have a car with parts that are too expensive to replace expect a slightly expensive premium. Meanwhile, owning a rather safe package with plenty of safety features pre-installed in the new car also means that your insurance premium is going to be lower.
3. Go for the Basic Level of Coverage
Anything can happen on the road, but what’s the probability of fatalities? Very low, right? Insurance companies are intelligent enough to calculate the number of accidents or thefts associated with cars during the course of the year. Surveys are conducted to calculate this and the insurance amount is planned. However, these companies make huge profits and many a times the amount goes unclaimed. So, go for the basic level of coverage. This would be an intelligent and cheaper move. Set aside the amount you would have spent on the comprehensive insurance; save it in case of an eventuality.
4. Making Lump Sum Payments
Many insurance providers agree for monthly car insurance premium payments. However, it is advisable to pay it all at once as many companies offer discounts for lump sums paid on premiums. This needs to be checked while making the auto insurance deal. It is of course easier to pay the amount in monthly instalments, but if funds are available, paying the entire amount is intelligent and cheap.
5. Improving Safety
Insurance providers are usually lenient it comes to offering auto insurance to security-conscious car owners. Having security items installed in your car like alarms and immobilizers could get you a good discount on your insurance policy or the premium. And yes, nobody expects you to install airbags in your car if they do not have them. That can cost you a lot more. Instead, choose a variant of the car you like to buy that has airbags already installed. To that, add a clean driving record and the insurance provider will most likely decrease the premium.
Saturday, March 20, 2010
Cost of car insurance going up, says Admiral
You may be a safe driver, have no points on your licence and have never had an accident, but the chances are your car insurance still went up by about 12 per cent last year.
And, according to Henry Engelhardt, chief executive of Admiral, the price of insuring the average British vehicle will increase again this year.
“We put through premium hikes of about 12 per cent over 2009, mostly in the second half. It is certain to carry on rising. I can’t say exactly how much — it depends on how much pressure our competitors are under,” Mr Engelhardt said yesterday.
With annual premiums having held steady for the past two years, insurers are facing a rise in claim sizes and cases of fraud. They need to increase premiums to generate profits, he said.
Admiral insures about two million cars in the UK, equivalent to about one in every fourteen policies and a market share of 7 per cent. Admiral also operates the Confused.com “aggregating” website, which pools quotes from a number of insurers. Confused, which offers prices on cover from life policies to household and pet insurance, claims a share of about a third of that market.
The record rise in premiums — Admiral’s rate increases last year were the biggest in a decade — helped the insurer to report a 7 per cent rise in annual pre-tax profits to £215.8 million for the 12 months to December 31. Almost all of that, or £206.9 million, was generated by the British car insurance business, a 15 per cent increase on the previous year.
Annual profits at Confused.com remained at £25.7 million, but Mr Engelhardt said that it had done well to keep its position under an advertising offensive from Gocompare.com and Comparethemarket.com.
Mr Engelhardt said that it would take time for the increase in premiums to filter down into a sharp rise in the rates that consumers pay. That is partly because websites such as Confused.com help to maintain fierce competition. However, the rise will be reflected in next year’s results, he said.
According to the AA, premiums for car insurance rose by 7 per cent during the final three months of last year, the fastest rise since it began compiling records in 1994 — and in a period when insurers traditionally limit price rises. The average annual premium for comprehensive car cover increased over the full year by 18 per cent to more than £1,000, the AA said. It also predicted that car insurance would rise this year.
And, according to Henry Engelhardt, chief executive of Admiral, the price of insuring the average British vehicle will increase again this year.
“We put through premium hikes of about 12 per cent over 2009, mostly in the second half. It is certain to carry on rising. I can’t say exactly how much — it depends on how much pressure our competitors are under,” Mr Engelhardt said yesterday.
With annual premiums having held steady for the past two years, insurers are facing a rise in claim sizes and cases of fraud. They need to increase premiums to generate profits, he said.
Admiral insures about two million cars in the UK, equivalent to about one in every fourteen policies and a market share of 7 per cent. Admiral also operates the Confused.com “aggregating” website, which pools quotes from a number of insurers. Confused, which offers prices on cover from life policies to household and pet insurance, claims a share of about a third of that market.
The record rise in premiums — Admiral’s rate increases last year were the biggest in a decade — helped the insurer to report a 7 per cent rise in annual pre-tax profits to £215.8 million for the 12 months to December 31. Almost all of that, or £206.9 million, was generated by the British car insurance business, a 15 per cent increase on the previous year.
Annual profits at Confused.com remained at £25.7 million, but Mr Engelhardt said that it had done well to keep its position under an advertising offensive from Gocompare.com and Comparethemarket.com.
Mr Engelhardt said that it would take time for the increase in premiums to filter down into a sharp rise in the rates that consumers pay. That is partly because websites such as Confused.com help to maintain fierce competition. However, the rise will be reflected in next year’s results, he said.
According to the AA, premiums for car insurance rose by 7 per cent during the final three months of last year, the fastest rise since it began compiling records in 1994 — and in a period when insurers traditionally limit price rises. The average annual premium for comprehensive car cover increased over the full year by 18 per cent to more than £1,000, the AA said. It also predicted that car insurance would rise this year.
Warning on car insurance 'fronting'
As many as 10% of parents are breaking the law regarding their children's car insurance, with mothers the main offenders, a survey has shown.
One in 10 motoring families has insured their child's car in their own name, putting their son or daughter down as the second driver, the poll by moneysupermarket.com found.
This practice - known as "fronting" - is more likely to be followed by women than men, while, overall, a further 30% of families would consider fronting.
One in 10 motoring families has insured their child's car in their own name, putting their son or daughter down as the second driver, the poll by moneysupermarket.com found.
This practice - known as "fronting" - is more likely to be followed by women than men, while, overall, a further 30% of families would consider fronting.
Friday, January 29, 2010
2010 ushers in 15% hike in car premiums
A 2009 rise of almost 20% in car insurance premiums could be followed by a further hike of 15% in 2010, according to Consumer Intelligence.
The market research firm puts the current average annual premium at £564.19, with 17 to 24-year-olds bearing the brunt of last year’s increase, at almost 25%.
For this age group a typical annual premium stands at £1,489 while for the 65s and over the rise has been around 15% to £423.
Best placed are 55 to 64-year-olds who pay around £376 a year to insure their vehicles.
Consumer Intelligence spokesman, Ian Hughes, believes upward pressure on pricing has “well and truly broken through”, despite the influence of price comparison websites.
He is concerned that the trend could encourage more motorists to drive uninsured and with an estimated 1.6 million uninsured drivers already on UK roads, the £30 per year penalty paid by legal car owners to compensate the victims of uninsured drivers may not be enough.
Earlier this month, Zurich announced that it will be increasing motor insurance premiums by up to one-fifth from March because of a rise in third party and personal injury claims.
The insurer said the current market is unsustainable.
In addition, EMB recently reported that motor insurer results for 2009 are even worse than feared.
Research by the actuarial firm revealed that combined loss ratios for the private and commercial motor insurance market are set to exceed 115%.
The market research firm puts the current average annual premium at £564.19, with 17 to 24-year-olds bearing the brunt of last year’s increase, at almost 25%.
For this age group a typical annual premium stands at £1,489 while for the 65s and over the rise has been around 15% to £423.
Best placed are 55 to 64-year-olds who pay around £376 a year to insure their vehicles.
Consumer Intelligence spokesman, Ian Hughes, believes upward pressure on pricing has “well and truly broken through”, despite the influence of price comparison websites.
He is concerned that the trend could encourage more motorists to drive uninsured and with an estimated 1.6 million uninsured drivers already on UK roads, the £30 per year penalty paid by legal car owners to compensate the victims of uninsured drivers may not be enough.
Earlier this month, Zurich announced that it will be increasing motor insurance premiums by up to one-fifth from March because of a rise in third party and personal injury claims.
The insurer said the current market is unsustainable.
In addition, EMB recently reported that motor insurer results for 2009 are even worse than feared.
Research by the actuarial firm revealed that combined loss ratios for the private and commercial motor insurance market are set to exceed 115%.
Prepare for a shock if it's time to renew your car insurance
Car insurance costs climbed 7.2 per cent in the last three months of 2009, their biggest-ever quarterly rise, according to the AA's British Insurance Premium Index. Over the year, average motor premiums soared 18 per cent. The rise left the average comprehensive policy above £1,000 for the first time.
"There is no sign of premiums easing," warns Simon Douglas, director of AA Insurance. "We will continue to see increases over the coming year."
Last week Zurich said it will be increasing the cost of its premiums by a fifth in 2010 and there is likely to be more bad news for motorists ahead.
"Other insurers will follow Zurich's lead," says Will Thomas, head of car insurance at Confused.com. "Pricing has had to change due to a number of factors, not least the year-on-year increase in personal injury claims brought on by the new breed of litigation-savvy motorists assailed by ambulance-chasing injury lawyer adverts on the television."
Esure says it has experienced a notable increase in the number of drivers making false or exaggerated insurance claims. It says there has been a marked increase in people simply making up a theft or deliberately writing off a car to get a cash settlement. Others have been caught inflating claims by repairing completely unrelated damage on a vehicle such as repairs to expensive gear box systems or ad hoc electrical faults as part of a minor, unrelated collision. In short, people yielding to the temptation to cheat their insurer are costing us all in higher premiums.
There's another factor forcing up the cost of cover, according to Thomas. He says the trend of recent times when motor insurers were happy to cut profits to attract customers is over. "With increasing costs, that tactic is proving unsustainable, and many insurers are now looking for a new, more profitable way to do business which is being seen in an increase in premiums."
January and February are the most popular months for people to renew their car cover but with increased premiums across the board, playing different insurers off against each other is essential if you don't want to pay more than you need to.
Emboldend by our case study below – Sharon Alston saved two-thirds of the cost of cover – I decided to challenge my insurer's renewal charge of around £360. Five minutes on an insurance comparison site yielded a quote of £220, a third less. When I reported this to my insurer, it immediately agreed to match the lower rate.
"Anyone automatically renewing could be in for a shock when their quote comes through," says Thomas. "The only defence against this is to get online and shop around for the best price. Apathy is not an option for those looking for a good deal."
How else can you cut the cost of insurance? Cutting your mileage will reduce the price. "If you limit your mileage you can reduce your premiums," says Lana Clements of More Than. "It's even worth thinking about investing in a bicycle and using it for the shorter journeys that you have previously been making by car."
The next step is keeping your car safe. "Insurers look at the risk every driver presents, so you'll get a better deal if you can reduce that risk," explains Steve Sweeney, head of motor insurance at moneysupermarket.com. "By keeping your car off the road at night in a garage or on a drive you make it safer, meaning your premiums will come down."
By the same token, ensuring you have an alarm and immobiliser on your motor will help. Changing the terms of your cover can also reduce the bill. Agreeing to pay a higher excess – the amount of any claim you agree to pay – will reduce your premiums, although agreeing too high an excess will hit your pocket hard if you're forced to splash out hundreds after an accident.
Keeping an eye out for good deals is also worthwhile. On Monday, for instance, a new insurer – AXA Car Insurance – will offer up to 90 per cent no claims discount. "At a time when prices are rising sharply we felt that drivers with a proven track record deserved more," says Tina Shortle of AXA. However, you'll need to have been claim-free for eight years to qualify for the top rate of discount. Meanwhile, BMW Car Insurance is giving 52 days' worth of free cover with its annual comprehensive policies until the end of March.
"There is no sign of premiums easing," warns Simon Douglas, director of AA Insurance. "We will continue to see increases over the coming year."Last week Zurich said it will be increasing the cost of its premiums by a fifth in 2010 and there is likely to be more bad news for motorists ahead.
"Other insurers will follow Zurich's lead," says Will Thomas, head of car insurance at Confused.com. "Pricing has had to change due to a number of factors, not least the year-on-year increase in personal injury claims brought on by the new breed of litigation-savvy motorists assailed by ambulance-chasing injury lawyer adverts on the television."
Esure says it has experienced a notable increase in the number of drivers making false or exaggerated insurance claims. It says there has been a marked increase in people simply making up a theft or deliberately writing off a car to get a cash settlement. Others have been caught inflating claims by repairing completely unrelated damage on a vehicle such as repairs to expensive gear box systems or ad hoc electrical faults as part of a minor, unrelated collision. In short, people yielding to the temptation to cheat their insurer are costing us all in higher premiums.
There's another factor forcing up the cost of cover, according to Thomas. He says the trend of recent times when motor insurers were happy to cut profits to attract customers is over. "With increasing costs, that tactic is proving unsustainable, and many insurers are now looking for a new, more profitable way to do business which is being seen in an increase in premiums."
January and February are the most popular months for people to renew their car cover but with increased premiums across the board, playing different insurers off against each other is essential if you don't want to pay more than you need to.
Emboldend by our case study below – Sharon Alston saved two-thirds of the cost of cover – I decided to challenge my insurer's renewal charge of around £360. Five minutes on an insurance comparison site yielded a quote of £220, a third less. When I reported this to my insurer, it immediately agreed to match the lower rate.
"Anyone automatically renewing could be in for a shock when their quote comes through," says Thomas. "The only defence against this is to get online and shop around for the best price. Apathy is not an option for those looking for a good deal."
How else can you cut the cost of insurance? Cutting your mileage will reduce the price. "If you limit your mileage you can reduce your premiums," says Lana Clements of More Than. "It's even worth thinking about investing in a bicycle and using it for the shorter journeys that you have previously been making by car."
The next step is keeping your car safe. "Insurers look at the risk every driver presents, so you'll get a better deal if you can reduce that risk," explains Steve Sweeney, head of motor insurance at moneysupermarket.com. "By keeping your car off the road at night in a garage or on a drive you make it safer, meaning your premiums will come down."
By the same token, ensuring you have an alarm and immobiliser on your motor will help. Changing the terms of your cover can also reduce the bill. Agreeing to pay a higher excess – the amount of any claim you agree to pay – will reduce your premiums, although agreeing too high an excess will hit your pocket hard if you're forced to splash out hundreds after an accident.
Keeping an eye out for good deals is also worthwhile. On Monday, for instance, a new insurer – AXA Car Insurance – will offer up to 90 per cent no claims discount. "At a time when prices are rising sharply we felt that drivers with a proven track record deserved more," says Tina Shortle of AXA. However, you'll need to have been claim-free for eight years to qualify for the top rate of discount. Meanwhile, BMW Car Insurance is giving 52 days' worth of free cover with its annual comprehensive policies until the end of March.
Over-80s refused car insurance
Motorists over 80 years old are being denied car insurance quotes, according to new research by Age Concern and Help the Aged.
Half of motor insurance companies will not provide car insurance to drivers aged over 80, their investigation found.
A significant number of insurers refused to provide quotes for any driver over the age of 65.
The offending companies include household names such as Zurich, AXA, and Aviva.
Age Concern and Help the Aged said denying insurance cover to older drivers irrespective of their health is age discrimination and puts unacceptable restrictions on people’s lives.
Being refused car insurance can mean people are prevented from visiting family and friends.
“It beggars belief that in 2010 a business is still able to refuse to deal with someone because of the date on their birth certificate,” said Andrew Harrop, head of public policy at Age Concern and Help the Aged.
“The insurance industry must wake up to the fact that more of us than ever are living longer, healthier and more active lives.
“Continuing to discriminate against our ageing population is not only bad for older people, it is bad for business.”
Half of motor insurance companies will not provide car insurance to drivers aged over 80, their investigation found.
A significant number of insurers refused to provide quotes for any driver over the age of 65.
The offending companies include household names such as Zurich, AXA, and Aviva.
Age Concern and Help the Aged said denying insurance cover to older drivers irrespective of their health is age discrimination and puts unacceptable restrictions on people’s lives.
Being refused car insurance can mean people are prevented from visiting family and friends.
“It beggars belief that in 2010 a business is still able to refuse to deal with someone because of the date on their birth certificate,” said Andrew Harrop, head of public policy at Age Concern and Help the Aged.
“The insurance industry must wake up to the fact that more of us than ever are living longer, healthier and more active lives.
“Continuing to discriminate against our ageing population is not only bad for older people, it is bad for business.”
Sunday, January 10, 2010
Car insurance and car tax on the increase
Sainsbury's Finance has released new figures which show that car insurance costs have increased by nearly 13% this year. With average driver spending up to £1,300 each year, UK motorists will now have to pay even more when it comes to covering the cost of running a car - something that many people just can't do without.
Car insurance can't be scrimped on, despite these cost-cutting times, as driving uninsured is not only illegal, but it can fuel big repair bills in the long term. As the recession bites, there has also been an increase in theft from vehicles, especially those that house pricey gadgets such as SatNav, so it's important to keep up-to-date on policy payments.
Unfortunately for drivers, insurance is only the start of the price increases – car tax is also sky rocketing too, rising by a hefty 8% in comparison to last year. It's recommended that motorists shop around when looking for car insurance, as there are good deals out there than can save money – some even come with additional savings and incentives on top. Using a comparison site is a great way to do this, making it even easier to get a great package suited to your personal needs while ensuring you don't miss out on other deals at the same time.
Car insurance can't be scrimped on, despite these cost-cutting times, as driving uninsured is not only illegal, but it can fuel big repair bills in the long term. As the recession bites, there has also been an increase in theft from vehicles, especially those that house pricey gadgets such as SatNav, so it's important to keep up-to-date on policy payments.
Unfortunately for drivers, insurance is only the start of the price increases – car tax is also sky rocketing too, rising by a hefty 8% in comparison to last year. It's recommended that motorists shop around when looking for car insurance, as there are good deals out there than can save money – some even come with additional savings and incentives on top. Using a comparison site is a great way to do this, making it even easier to get a great package suited to your personal needs while ensuring you don't miss out on other deals at the same time.
The good news about pricier car insurance
Auto insurance companies did not make a profit in New Jersey in 2008 as they battled for customers, one factor that is causing drivers to pay higher rates after several years of declines, according to state and industry sources.
After five years of double-digit profits, insurance companies here flatlined in 2008, down from a 10.1 percent profit in 2007, according to the Auto Insurance Report, released tomorrow.
After five years of double-digit profits, insurance companies here flatlined in 2008, down from a 10.1 percent profit in 2007, according to the Auto Insurance Report, released tomorrow.
Car Insurance firm advise motorists this Winter
As the big freeze grips the country, de-icing the car in the morning can become quite a chore which is why so many drivers leave their vehicle unattended and running while they nip back into the warm. The Association of British Insurers (ABI) has tapped into this and released new guidelines for motorists who are concerned about the safety of their cars.
One of the biggest problems during this time of year is opportunist thieves who spot unattended vehicles and take a chance. In order to avoid the loss of vehicles and belongings, the ABI has recommended that driver’s stay inside their cars while it warms up and the windows clear.
The latest information comes hot on the heels of the shocking revelation that 27 cars had been stolen in just two hours as drivers left their vehicles unattended in this manner. The sudden crimewave took place in Lancashire, but it’s a countrywide problem.
Nick Starling, Director of General Insurance, explained that while the cold weather may put motorists off when it comes to hanging around outside, it certainly doesn’t bother would-be thieves!
“It only takes seconds for thieves to strike. Stay with your vehicle while it warms up, so that it’s you that drives away in a warm car, not a thief” he said.
One of the biggest problems during this time of year is opportunist thieves who spot unattended vehicles and take a chance. In order to avoid the loss of vehicles and belongings, the ABI has recommended that driver’s stay inside their cars while it warms up and the windows clear.
The latest information comes hot on the heels of the shocking revelation that 27 cars had been stolen in just two hours as drivers left their vehicles unattended in this manner. The sudden crimewave took place in Lancashire, but it’s a countrywide problem.
Nick Starling, Director of General Insurance, explained that while the cold weather may put motorists off when it comes to hanging around outside, it certainly doesn’t bother would-be thieves!
“It only takes seconds for thieves to strike. Stay with your vehicle while it warms up, so that it’s you that drives away in a warm car, not a thief” he said.
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