Car Insurance News Articles

Yet another source has predicted steep rises in motor insurance premiums this year. Admiral says its own hikes of 12% in 2009 look set to be followed by similar increases across 2010.

According to the firm, the increases are needed to go further towards offsetting the pressures caused by settling compensation claims. Commenting on the story, a spokesman for the Association of British Insurers said premiums across the industry were around 10% higher than they would otherwise be thanks to the effects of claims. This is above and beyond the effects of uninsured drivers and insurance fraud, both of which are also cited as reasons for higher premiums.

The Admiral announcement may not go down too Full Story

Marks & Spencer has come up with a creative way of enticing new car insurance customers: it's offering a year's worth of free car washes for all new customers.

Until the end of February, anyone taking out a new M&S motor insurance policy through Moneysupermarket.com will receive a voucher book for 12 free washes at any ARC IMO location, a deal worth £84 a year.

The deal was announced in the same week as Kwik-Fit offered a special 24 hour "sale" during which every insurance policy came with a free MOT.

Such offers reflect the way price comparison sites and market competition Full Story

The average cost of car insurance in the United Kingdom has topped £1,000 for the first time. The AA says the steep rise is partly down to an increase in the number of settlements in personal injury cases.

Year-on-year, the average fully comprehensive quote rose 18.7%, the biggest annual leap since the AA began keeping records in 1994. That includes a 7.2% rise in the past three months alone, fuelled by an increase in accidents caused by the bad weather.

AA car insurance director Simon Douglas said the yearly rise was exacerbated by two factors. Firstly, there has been an increase in legal claims for injuries such as whiplash which people were less likely to follow-up in the past. Secondly, insurance fraud is still a problem, adding around £44 to the average Full Story

The Association of British Insurers (ABI) has reported a 30% increase in fraudulent insurance claims detected and prevented since 2007.

Whilst more people are being caught submitting fraudulent claims, the estimated cost of undetected fraud claims has also risen by 24% to £1.9 billion. This now means an average increase of £44 in every household's general insurance premiums.

Just some of the dodgy car insurance claims detected include not declaring motoring convictions, submitting an incorrect address and naming a parent as the main driver of a vehicle when it is mostly driven by a high risk motorist.

The ABI’s Director of General Insurance and Health, Nick Starling commented:  

"There is no hiding place for Full Story

We all like a bargain and insuring your car should be no different. But thousands of motorists pay more than they should every year by simply renewing with their existing insurer rather than shopping around first.

Whilst shopping around is a crucial step to bagging a good deal it's also important not to take special offers such as multi-car policies and 52 days' free insurance for granted.

Research by online insurer Swiftcover car insurance has shown that many offers are not as special as they appear to be, with drivers still paying too much for their cover.

For example, Swiftcover found that:

• Full Story

New research from Auto Trader Compare has revealed that many of us believe BMW owners to be the worst drivers on Britiain's roads. 59% of respondents voted BMW driver's the worst with Subaru drivers second at 42% and Porsche drivers third with 39%.

The survey results showed that BMW drivers are most associated with bad or inefficient driving, with 68% claiming that poor drivers of these vehicles drive too fast, overtake in dangerously, intimidate other road users and drive too close to the car in front.

Ford Owners Make the Most Insurance Claims

Whilst BMW drivers are being seen as the worst on our roads, those actually making the most motor insurance claims are Ford owners. Data from Full Story

The price comparison site Moneysupermarket.com has revealed that UK motorists found driving or attempting to drive while under the influence of alcohol could face an 82% increase in their car insurance premiums, or even find themselves uninsurable.

The price comparison site says that the DR10 drink driving penalty has a huge impact on your insurance premiums and drivers will find there is a heavy financial price to pay. Motor insurers such as Kwik Fit and Budget will offer cover for drivers with a previous drink driving conviction, but premiums will reflect this with increases of 82% on average with some cases by over 100%.

Moneysupermarket.com also found that many leading insurers such as esure and Full Story

Research from RAC breakdown has revealed that 31% of motorists are preparing to drive through the winter without roadside breakdown cover. Whats more, young women aged 18-24 are the least likely to be covered with 40% risking being stranded at the roadside.

The study showed that increasing financial pressures and confusing price structures are causing many motorists to cancel their breakdown cover and take the risk of being stranded. Over a third (35%) of all motorists have broken down without cover with 12% of these taking over four hours to reach their destination as a result.

The RAC's research also discovered the Full Story

Recent claims statistics from Norwich Union, the UK's largest insurer, have revealed an increase in thefts of older, less valuable cars.

Norwich Union's stats show that over 87% of car theft claims in 2007 were for vehicles worth less than £5,000 with cars 15-17 years old more than twice as likely to be stolen than newer cars.

The global rise in demand for steel and other metals has meant a sharp increase in the value of scrap metal, making even the most rusty old banger attractive to thieves.

Technical claims manager at Norwich Union, Martin Smith said: "Opportunist thieves are more inclined to target older cars that are not fitted with immobilisers, rather than take on modern day security systems. Cars most Full Story

New research by Norwich Union has revealed that as many as 19% of UK motorists involved in a crash have felt under pressure by the other party to admit liability. What's more, in 71% of cases, the cause of the crash wasn't actually their fault.

The study surveyed more than 1500 drivers and also found that 40% of respondents had suffered post-traumatic stress symptoms following a crash. These included recurring memories and feelings of distress when recounting the even, related to the facts that they had mistakenly admitted liability.

Norwich Union is urging drivers to be better prepared should they be involved in a Full Story