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.

Read More

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. 

Read More

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.

Read More

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.

Read More