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.
Saturday, September 18, 2010
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.
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