Premiums always changing

Motorists are finding it more difficult to maintain vehicles with the rising cost of fuel and insurance premiums. This article discusses the statistics and ways of reducing your insurance costs.

Car insurance premiums have risen by 40% in the last 12 months which is bad news for motorists. According to the AA British Insurance Premium Index the typical comprehensive car insurance premium is now approximately £892.

While this premium is quite high, young drivers aged 17-22 have taken a bigger hit. Premiums for this age group have increased more than 64% over the last 12 months. A typical premium is now £2,430. Premiums for Third Party, Fire & Theft have also increased by a huge amount – 82% over the last 12 months. 

The fluctuation of premiums is recorded across the UK, by the index, for 2,800 car insurance customers. An increase in fraud and injury claims is cited as the reason behind the increase in premiums.

Car insurance premiums have been increasing for some time but industry experts say that insurers are still operating at a loss despite the large increase in premium rates.  

Driving is becoming more and more unaffordable due to record amounts in costs of fuel and rising premium rates. Higher driver costs are leading to more people withholding information when taking out a policy or exaggerating personal injury claims to try and reduce their costs. But this simply piles on costs for insurers and results in yet higher premiums for honest motorists, this has been quotes by a lot of experienced people in the field.

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Changes in insurance costs due to gender

Very soon it will be illegal for insurers to offer different premiums to men and women based on their gender alone.

Insurance companies have slowly been changing their prices in recent weeks, with new pricing required to be in place very soon.

As a result, prices for women will rise and mens premiums will drop. The changes will be most pronounced for young drivers, female drivers under 25 could see a 25% rise. Men could see a more of a drop in cost of around 10%.

The change is designed to make things fairer for the customer, however women have gotten used to cheaper premiums over the years  and the change in the law could potentially cost some young female drivers too much and could force them to stop driving.

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International student car insurance

If you plan on driving in the U.S and you are  an international student, you will definitely need to make sure you have some form of international student car insurance. It may seems confusing and overwhelming to deal with, but if you keep a few major tips in mind you’ll find it a lot easier to navigate the world of international student car insurance and get the protection that you need.

Look into collision and comprehensive coverage, not just liability – By going with liability insurance, you’re going with the bare, legal minimum, but it only covers passengers or property that you damage in an accident.

Collision will cover repairs to your vehicle if you’re involved in an accident and comprehensive will help you recover losses if your car is stolen or destroyed in some other way not related to a crash. Know the differences, as well as the area you’ll be living in, to determine the best coverage for you as an international student. Look for fixed rates. 

Have an updated international driver’s license – This will allow you to drive in the U.S. as well as at home with out having to register for just a U.S. license. And make sure that it is valid for at least six months after your stay ends so that you stand a better chance at getting reasonable international student car insurance rates and coverage. 

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Pot holes, costing people and insurance companies

The harsh weather in Britain has had a major impact on the country's roads with the AA reporting a four-fold increase in insurance claims this year compared to the same time last year.

Potholes are an unwelcome legacy of one of the harshest winters to hit the UK. The number of potholes is thought to have trebled after the heavy snowfalls this year and councils are struggling to foot the multi-billion pound bill to repair them. It costs around £70 to fill each hole.

But it's not just councils paying: the AA say more motorists than ever before are having to claim on their insurance for pothole damage.

Mechanics have reported seeing plenty of people with damaged cars.

Councils have already paid out £47 million in compensation for damaged cars in the last twelve months and many say they just don't have the money to even assess the problem, let alone begin to pay for it.

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Fake accidents causing high insurance prices

Car insurance premiums have been risen sharply due to fraud, according to MPs on the Commons Transport Select Committee.

They were informed by the police that there are as many as 30,000 staged accidents a year. The select committee is calling for a dedicated police unit to be set up which should be paid for by the insurance industry in order to tackle the escalating problem.

Labour MP Louise Ellman, Chair of Transport Committee and Nick Starling, director of General Insurance at the Association of British Insurers, debated the issue.

This is what they had to say:

Louise Ellman commented "The police told us that they knew of about 30,000 staged accidents last year and that's where accidents are contrived; a driver deliberately slams on the brakes, the car behind goes into them, a large number of people then make claims for injuries they may or may not have sustained. In some cases the whole incident is fictitious. This is done by criminal gangs costing a great deal of money and the police say that they don't have enough resources to really root that out but they could do more if they had closer working with the insurance industry. So that is one of the areas that we think should have more attention.

Nick Starling was asked why the insurance industry are you not working more closely with the authorities and the police in particular?

He responded "We do work extremely closely with the police. We set up something called the Insurance Fraud Bureau five years ago and it's the Insurance Fraud Bureau that's actually led on analysis of this problem, identifying it and going to the police with the issues and they've had some big successes round prosecutions. It's a big problem, but the biggest problem in motor insurance is in fact the ever escalating cost and number of personal injury claims fuelled by claims management companies and we think that the Committee has missed an opportunity to really tackle that as the central problem which is driving most premiums up.

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Discrimination and car insurance

Previously the Government and the insurance industry agreed that insurers will ‘signpost’ customers who are turned down because of their age – by referring them on to an insurance broker or another provider who might be able to offer coverage.

However, according to the mystery shopping survey conducted, 15% of people aged 85 or above are not given phone or online quotes for motor insurance because of their age. A further 80% of those are not directed on.

People believe that these results prove the new agreement introduced in April 2012 by the Association of British Insurers does not seem to work effectively.

The findings suggest that a lot of older people are being denied the right to drive and deprived of their independence, purely on the basis of age rather than actual risk.

As a result, age discrimination in insurance and other financial services is legally permitted to continue.

 Our experience have taught us that it is feasible to provide successful insurance products to the market without upper age limits or any hidden charges.

Research involved 175 older people aged 60 and over shopping for phone or online quotes from 39 leading insurance companies.

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Driving with safety, keeping your insurance down.

Driving is an essential part of everyday life around the country and the world; however, such a task comes with a risk. Not every person is thoughtful and attentive when inside of a car. In the year 2010, over 208,000 road casualties took place in the UK. Though this is less than the year 2009, it is still something to take under consideration. If a person wishes to remain safe, it is crucial to drive defensively. 

Try not to drive when emotional

It is important for a driver to stay away from the wheel of a car when he or she is emotional. A person may be unable to focus on the road if he or she is angry. The driver poses a risk to other drivers and pedestrians. Sadness and frustration are also common emotions that lead to accidents. Another individual should handle the driving until the other person is calm and fully ready. If a person feels tired, he or she should set time aside to sleep. This is the safer alternative for everybody in the long run.

Leave early for your destination 

Some people experience an accident because they want to get to a destination quickly. A driver may be late for a doctor’s appointment; if this is not the case, the driver may simply wish to go home. It is an awful idea to leave late for a meeting or other event. When a person is late, he or she is likely to make hasty and dangerous mistakes. This is something which may affect both young and older drivers alike. If a person believes that it is not possible to leave early, a friend or family member may prove useful. 

Pay attention to Other Vehicles and rules

Reckless driving is a problem that many countries deal with; no matter where a person lives, chances are high that car accidents play a part of daily life. However, this does not mean that accidents cannot be prevented. The community benefits when a person takes on courteous driving habits. It is not difficult to take on defensive driving techniques with some practice. The information above can help a person take the right steps. If a person still has questions, he or she may wish to ask friends, family members, and trusted members of the community. Safety is not an issue to ignore.

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