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Posts Tagged ‘Premiums’


08.02.2011

Why is it getting harder to find car insurance for

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Why is it getting harder to find car insurance for young drivers?

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers.

These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling.

UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen.

As a result of what insurance company’s see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies.

It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parents age.

Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for
car insurance for young drivers, which is often paid not by the young person but by their parents.

The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence.

The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent’s policy in this way when they are in fact, an occasional user of the vehicle.

The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company.

They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time.

Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.

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21.12.2010

The truth about car insurance

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Youve now got your drivers license and for months, you eagerly search for a new car. Once you find your dream car, youre ready to take it out on the open road. Or are you? In many countries, it is compulsory to purchase auto insurance before driving on public roads and property. Auto insurance protects a third party against the financial consequences of loss, damage, or injury caused by any vehicle.

When first purchasing auto insurance, it is important to understand all aspects of the insurance. First off, an excess has to be paid. This is a fixed amount of money that must be paid each time your car is repaired through the insurance policy. A compulsory excess is the minimum excess payment that your insurer will accept. This varies according to your own personal details, driving record, and of course, insurance company. A voluntary excess is an excess that you agree to pay on top of the compulsory excess in case of a claim on the policy. A bigger excess reduces financial risk for the insurer, and thus they can offer lower premiums.

Depending on the location of the insurer, premiums may be government mandated or may be based on statistical data. The premium may vary based on many different factors that the insurer may deem will have an effect on the cost of future claims. These factors include gender, age, driving history, and usage of the car.

Because men average more distance driven per year than that of women, they have a higher proportionality of accident involvement. This leads insurance companies to offer lower premiums to women as opposed to men.

Teenage drivers have no driving record, and so they are less experienced on the road. This is the reasoning behind offering these teenagers higher driving premiums. However, these premiums may be lowered if the teenager decides to go through further driving training on the training that was required to obtain his or her license.

Car usage is also a large factor in determining premiums. By logic, it can be deduced that with more usage of the car, there is more potential for accidents, and thus more potential for claims on the policy. Insurers can estimate car usage by odometer, GPS, and OBDII (OnBoard Diagnostic) based systems. With the odometer system, customers buy prepaid insured miles and keep track of them on their odometer to determine when they need more. The GPS system tracks the usage of the car as it moves and records the distance it has travelled. The OBDII system works by utilization of the TripSense device. This connects to a computers OnBoard Diagnostic port, which is in all cars built after 1996.

Auto insurance may be both a blessing and a curse. Financially, it may save you a lot of money and keep you safe; however, auto insurance, like health insurance, can result in a lot of disagreement with the insurer and the insured. It may be wise to do you research before committing to one insurance program.

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07.12.2010

The Cost Of Car Insurance Is Set To Rise Again

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The Cost Of Car Insurance Is Set To Rise Again

The cost of car insurance is forever on the rise and it looks like it will continue to rise in the future, so now it is essential more than ever that consumers shop around when it comes to taking out their car insurance. By far the best way to purchase car insurance and to get the best deal is by making comparisons online, this is also the easiest way to find out about the many different policies available and what they entail.

A recent study into the cost of car insurance has shown that premiums have risen and then levelled out but it is thought that they will continue to rise in the near future. On average it currently costs around 800 in order to take fully comprehensive for your car insurance.

Over recent times the cost of car insurance has been rising by around 6% and it is estimated that the current trends will continue to rise at rates such as this in the coming year. However while this could happen there will always be bargains to be found by providers offering discounts, of course the best bargains to be found without a doubt are online.

By looking online you are able to not only shop around for the cheapest and best deals when it comes to premiums but you are also able to make comparisons with many companies. In just a few minutes by using one of the popular search engines you are able to find a huge amount of insurers and not only compare the premiums they offer but also what the particular policies entail.

Thee are many different types of insurance policy and many additions you can take with them, it is essential that you understand what these entail and there is much free information to be found when it comes to this aspect.

Choosing the cheapest premium isnt always in your best interest and what might seem like a very good deal could in fact end up costing you much more if you have to take additional cover with the basic. The policy that one company offers isnt always the same as one which another offers and this should be taken into account when making the comparison in premiums.

So when looking online for the best deal always take this into account and also make sure that you understand what the exceptions and exclusions are, for the majority of time exclusions are hidden in the small print of policies, so be aware of this when choosing your policy.

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21.09.2010

Lady Drivers Can Make Savings On Their Car Insurance

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Unfortunately your sex can make a huge difference to the amount of car insurance that you pay. Women drivers while having been the brunt of many jokes, particularity from male drivers, can in fact get cheaper car insurance than men.

Statistics have shown that women are indeed safer drivers than men, this is because women have been proven to make less claims than men do on their insurance. They also usually go for much less flashier cars than men choose, instead going for the more reserved and what is classed as the safer car.

There are many online companies now taking advantage of this fact and as such are offering deals specifically aimed at the women driver. Lady drivers can now search online for companies aimed at them and by doing so they can make huge savings on the amount of premiums they pay for car insurance.

However, there are other factors that determine how cheap you get your car insurance, regardless of your sex. The best, cheapest and quickest way to look for your car insurance is by doing so online. By looking online for your car insurance you are able to get instant quotes from many companies which ensures that you choose the cheapest deal possible.

Policy features and benefits and the cost of car insurance does vary from company to company and all policies have exclusions hidden within them so it is essential that you understand just what is included in the quote.

Other factors which are taken into account include the area in which you live. Depending on your postcode you can be charged a higher premium for your car insurance. While there isn’t much you can do to change this you can make sure you have the best security features installed on your car, by doing so you can help to reduce the premium.

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14.09.2010

Is Womens Car Insurance Just A Marketing Gimmick?

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Women’s car insurance has been popping up all over the net and our TV screens lately. There’s a whole new class of insurers like Sheila’s Wheels and Cover Girl who offer car insurance for ladies only. They promise lower premiums for women drivers because, they claim, it’s cheaper for them to insure women. Women are better drivers so a lower risk, they say. They have fewer accidents, fewer driving convictions and when they do have an accident, the repairs are usually cheaper. So, is it really true, or is it just another marketing gimmick?

The answer to the question is both yes and no. Women only insurance companies are marketing to a specific niche – women drivers. Of course it’s a gimmick, but like the best marketing gimmicks, it is based in truth. Here are the facts about women drivers and insurance:

-92% of driving convictions are handed out to men.

Those figures are changing, though, as women become more aggressive drivers. According to statistics gathered by the car insurance comparison site confused.com, 16.8% of male drivers have convictions on their driving record, compared to 9.8% of female drivers. That number is up from 4.8% of female drivers just three years ago.

-Men drive differently than women.

A whopping 98% of dangerous driving convictions were handed out to male drivers last year. According to all the research, men tend to be more aggressive and competitive behind the wheel than women, and that naturally leads to more accidents. Women tend to drive more slowly – generally within the speed limits – and to drive shorter distances. All of those facts add up to fewer accidents that involve women. (So much for all those jokes about lousy women drivers. The statistics say otherwise.)

-Insurance companies pay out less in damages for policies taken out by women.

When women do get into an accident, they tend to be of the fender-bender scrape variety. Overall, insurance companies have always known that female drivers cost them less in payouts.

However, that doesn’t necessarily translate to the lowest premiums from companies that only insure women. In fact, many of them offer actual quotes that are higher than the rate you’d be quoted from a more generic motor insurance company. The truth is that despite the widespread sentiment that women drivers underwrite their more expensive male counterparts by paying higher insurance, most insurance companies offer lower insurance rates to female drivers as a customary part of doing business.

That’s not to say that you won’t get the best price from an insurer who only insures women’s cars. The bottom line is the same as it is with any other auto insurance decision. Shop around. Get insurance rate quotes from a number of different companies before you decide on the policy that’s best for you. Keep in mind when you’re comparing policies that you should always compare like with like. Decide on the specific cover that you want before you start requesting quotes, and make sure that the rate you’re quoted includes all the cover you need. It’s really the only way to be absolutely certain you’re getting the best cover for your money.

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31.08.2010

How To Make Great Savings On You Car Insurance

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As anyone who has a motor car knows, car insurance can be expensive. However there are many ways in which you can save money when it comes purchasing for the first time or renewing your car insurance. Here are some simple ways that you can make some small and some substantial savings.

The premium you pay for your car insurance can vary a lot from company to company so it is in your best interests to shop around. You can do this yourself by trawling the internet or get a specialist broker to do it for you.

Work out what type of insurance you want, be it third party, fire and theft cover or fully comprehensive. If your car is an older model, for instance, then consider just taking third party, fire and theft car insurance.

Once you have determined the level of cover that you need, then get at least three separate quotes from different companies.

Getting a quote online will vary from company to company and you do need to compare quotes on a like-for-like basis.

One great way to lower your premiums is to offer to pay more for the voluntary excess you would pay if you were to make a claim. By doing this you can make savings.

If you choose to go with an insurance company that does home cover, sometimes if you take your household insurance cover along with your car insurance then you can make noticeable savings.

Finally, if you have taken advanced driving lessons or have no claims bonus for a number of years then it is worthwhile asking about any special considerations you might be entitled to receiving. While the majority of insurers ask about things such as this when filling in an enquiry regarding car insurance, it is also worthwhile mentioning if they don’t.

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20.07.2010

Getting The Best Teen Car Insurance Rates,

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Adding a teen driver to your auto policy can be a painful experience. One, you don’t want to let them drive your brand new car and two, your rate is about to double or triple. Yes, I did say triple. Especially with a new car. The newer your cars are the higher the rate increase.

Here are some tips to help you avoid this financial headache.

Do your kids have to have a brand new car?

This one surprises me all the time. Parents complain about how much insurance costs for a teen driver and then I ask them what kind of car they are looking at and it’s a brand new 2006 or maybe even a 2007 model. You say it’s loaded with all these new safety controls and has 12 airbags. Those safety features will protect you but they also cost a lot to fix and replace so that’s why the insurance is high. Cars are easy to replace, people are not.

There are many reliable late model cars out there that are just as safe as the brand new models and will cost less to insure. If your teen wants a newer model to look cool, tell them to start working for it.

Another benefit to having a late model car is you can choose not to put comprehensive and collision coverage on it. This will drastically reduce the cost of your premiums. Keep that in mind when shopping for a car.

Make sure you get all the discounts your teen driver is eligible for.

A ‘B’ or better average will usually qualify them for a Good Student Discount. Have your teen take a driver’s training course. These two discounts can take a nice chunk off the insurance. And they also encourage safe and responsible driving. Make sure you remind them that driving is a privilege not a right.

Two other discounts you may be eligible for are for when they go away to college or overseas to study abroad. Both of them give you a discount for limiting your teen’s access to your cars. The logic is they don’t have access to your vehicles so they should not affect your premium. You have to make your insurance company aware of these situations when they arise. Most companies are not going to be proactive about lowering your rates if they can help it. It’s up to you to make sure you get all the discounts you and your teen are eligible for.

Most states allow teens to have a permit. Use that to your advantage.

This one is a little sneaky but when you can save a few hundred pounds every 6 months every little bit helps. When your teen has a learner’s permit most insurance companies do not charge you for this. Only when they get their actual driver’s license do your rates go through the roof. The idea is to keep them with their permit for as long as possible. Understand that with a permit there are restrictions such as driving supervised and not driving at night. So as long as you don’t mind supervising your teen as they gain more experience by all means go ahead.

And once they do get their actual license you have to let the insurance company know about it or risk a claim they cause being denied.

Insuring a teen driver is expensive no matter how you slice it. Follow these tips and you can start getting the best teen car insurance rates available.

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29.06.2010

Do You Make These 5 Mistakes When Buying Car Insurance?

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Do You Make These 5 Mistakes When Buying Car Insurance?

Here are some of the common mistakes many car insurance policyholders make. See if you recognize yourself:

You assume the insurance salesman is your friend.

Insurance salesmen are exactly that — salesmen. And they do get compensated with bonuses and other rewards for selling certain types of policies. Those policies are not always the policies that are best for you. Remember that the next time you are shopping for auto insurance. Generally speaking, insurance salesman are rewarded for selling the smaller policies that leave the insurance company less exposed in the event that you want to make a claim. These are the policies that are most profitable for the insurance company. So, as surprising as it might sound, you may actually be under-insured.

To make sure this doesn’t happen to you, make sure that you have the basics: liability coverage, comprehensive coverage and collision coverage (see below).

Your deductible is too small.

Many consumers think that they need to protect themselves against every little scratch and dent. That’s a bad idea. You should only insure yourself for those things that you cannot afford to lose. If your car is only worth a few thousand pounds, don’t spend that much on premiums for collision coverage by buying a small deductible.

Another reason this is a bad idea is that you’ll be tempted to nickel and dime your insurance company with every little thing that happens to your car. Eventually, your premium will go up or they could say, “we’re declining future coverage.”

So seriously consider getting a much higher deductible — maybe even as much as 1000. You’ll save money and your coverage will probably extend to a much higher limit.

All your cars have the same insurance coverage.

If one of your cars is an old beater, don’t cover it the same way that you cover your other cars. For example, if you have an old pickup truck that you use to transport building materials and you don’t care if it gets dented or scratched or whatever, just get the minimum amount of coverage on it. Who knows? Maybe you just drive it a few miles a year. Get insurance that is appropriate for that vehicle and cover your other vehicles in ways that are appropriate for them.

All your cars are jointly owned.

There’s really no reason to own a car jointly. If you share ownership with your spouse, it’s possible that you could be exposed to liability if your spouse causes an accident. In other words, both of you could be sued. Similarly, when your child buys a car, or if you buy them a car, put the car in your child’s name. That way, you can avoid liability for any accidents caused by your child.

You forgot your umbrella.

Here’s how umbrella coverage works: if you’re in a very bad car accident that causes a lot of property damage that is beyond which your insurance policy covers, you may have to pay massive amounts of money out-of-pocket. This is what umbrella policies are for: to protect you from liability that is way beyond the limits of your standard auto insurance policy. These umbrella policies are usually pretty cheap (a couple of hundred pounds) and can give you important coverage.

Conclusion

Hopefully this article has showed you some things that you can do, that will help you avoid common mistakes that car owners make when they buy auto insurance.

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18.05.2010

Car Insurance Uncovered

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There are many ways in which you can make savings on your car insurance, the best, not to mention the quickest way to make sure you get the cheapest car insurance is to shop around for your insurance.

You can do this yourself by going online or by getting a specialist insurance broker to do the legwork for you.

Things to bear in mind include combining your car and home insurance. There are companies who can offer savings by you taking both policies together. Sometimes you can make savings of around 40% on your car insurance simply by combining the two.

The safety features that are installed on your car can help bring your premium down. Simply by having top notch alarms and window etchings, you can attract huge savings.

Your postcode can make all the difference between the price you are quoted for your premium as certain areas and their postcodes are deemed as high risk crime areas and as such you pose a greater risk just by living in an area such as this.

Younger drivers will normally pay a higher price for their car insurance, due to their inexperience on their road and statistics that say they are more likely to be involved in an accident.

Women drivers – despite the man jokes about their driving – are classed as safer drivers and there are specialist sites aimed particularly with these people in mind who can offer discounted premiums.

If there is more than one driver and two or more cars in the family then you can get a great deal on your insurance by taking a package for two or more drivers. This can save you a whole lot on your insurance, which of course benefits the whole family of drivers.

One mistake that the majority of people make is to stay with their insurance company year after year and not even consider changing. People who don’t look around when it comes to renewing their insurance could be paying around 30% more than they should be for the same level of cover.

So when it comes to purchasing your car insurance don’t become complacent! By putting a little time and effort in to shopping around – or getting your broker to do it for you can save you hundreds of pounds on your insurance.

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