Police are crushing cars, vans or motorcycles owned by uninsured drivers at the rate of one every nine minutes.
Around 500 uninsured vehicles are seized every day and a third are crushed.
Traffic police in the West Midlands have just grabbed the one millionth car as part of a national campaign to curb driving without insurance.
That still leaves 1.2 million vehicles on the road without insurance – an average of 1 in 25.
Simon Douglas, director of AA Insurance, says: “A million cars seized is great news. The MIB, which provides compensation to innocent victims involved in collisions with uninsured drivers and drivers who fail to stop, is doing great work with the police and community leaders to get through to persistent offenders.
“But we are still a long way from cleaning up Britain’s roads. In uninsured driver hot-spots such as parts of Birmingham, innocent motorist are eight times more likely than average to be hit by an uninsured vehicle.”
West Midlands Police, which covers Birmingham, is seizing one uninsured vehicle per hour.
Police identify them with automatic number plate recognition technology which compares registration numbers against data provided by the Motor Insurance Database (MID).
“Every year, uninsured drivers kill 160 and injure 23,000 innocent people,” said Douglas. “What’s more this adds around £33 to every honestly-bought car insurance policy. It is not a victimless crime.”
Douglas argues that penalties for uninsured drivers are too lenient.
“Honest young drivers may have to pay £3,000 or more for their first car insurance policy, a figure that has been pushed up by uninsured drivers, yet the average fine for driving without cover is only about £200. Many go on to reoffend.
“Most are young men often with a string of motoring and other offences behind them and may not have a driving license. Their cars are frequently poorly maintained, have no MoT or tax and are driven with little regard for traffic laws.”
Showing posts with label Car Insurance. Show all posts
Showing posts with label Car Insurance. Show all posts
Wednesday, September 19, 2012
Car Insurance Prices rise 8.4% in a Year
The brakes have come off cheap car insurance as the average price of comprehensive cover rose 4.3% to £1,034 in the three months ending June.
Despite slowing prices over the previous six months, car insurance has surged 8.4% over the past year, according to motoring organisation the AA.
Cheaper cover is available from car insurance comparison sites, where the AA found average premiums dropped 0.9% to an average £631 – a fall of 3.3% over the year.
Scotland is the cheapest place to buy car insurance, with an average quote of £727, while Manchester and Liverpool are the most expensive at £1,648.
Simon Douglas, director of AA Insurance, says that the insurance market ‘is in turmoil’ at present, with some insurers increasing premiums while others are cutting prices to broaden their customer base.
“Competitive pressure is leading some companies to make big premium cuts on price comparison sites so that they can increase their portfolio of customers,” he said.
“While this is great news for consumers, they need to make sure they’re getting good cover, not just a good price.”
Douglas also hinted at a behind-the-scenes war waged between insurers and fraudsters, including exchanging information about suspected crooks trying to manipulate applications to get cheaper insurance quotes.
“Insurers are still handling excessive numbers of costly whiplash injury claims as well as fraudulent ‘cash for crash’ claims and ‘ghost’ broking set-ups, who sell seemingly valid insurance policies using false information,” siad douglas.
“However, significant inroads are being made by insurance fraud specialists including the new police Insurance Fraud Enforcement Unit, which has already smashed a number of insurance scams.
“We expect the industry eventually to have routine access to DVLA data and the sooner this happens the better. It will allow fraudulent applications to be weeded out.”
Despite slowing prices over the previous six months, car insurance has surged 8.4% over the past year, according to motoring organisation the AA.
Cheaper cover is available from car insurance comparison sites, where the AA found average premiums dropped 0.9% to an average £631 – a fall of 3.3% over the year.
Scotland is the cheapest place to buy car insurance, with an average quote of £727, while Manchester and Liverpool are the most expensive at £1,648.
Simon Douglas, director of AA Insurance, says that the insurance market ‘is in turmoil’ at present, with some insurers increasing premiums while others are cutting prices to broaden their customer base.
“Competitive pressure is leading some companies to make big premium cuts on price comparison sites so that they can increase their portfolio of customers,” he said.
“While this is great news for consumers, they need to make sure they’re getting good cover, not just a good price.”
Douglas also hinted at a behind-the-scenes war waged between insurers and fraudsters, including exchanging information about suspected crooks trying to manipulate applications to get cheaper insurance quotes.
“Insurers are still handling excessive numbers of costly whiplash injury claims as well as fraudulent ‘cash for crash’ claims and ‘ghost’ broking set-ups, who sell seemingly valid insurance policies using false information,” siad douglas.
“However, significant inroads are being made by insurance fraud specialists including the new police Insurance Fraud Enforcement Unit, which has already smashed a number of insurance scams.
“We expect the industry eventually to have routine access to DVLA data and the sooner this happens the better. It will allow fraudulent applications to be weeded out.”
Insurance from Your Bank Worth it? The FSA asks the big question
xConsumer champions are warning about another financial misselling scandal to hit banks and building societies as new rules are announced about packaging insurance with bank accounts.
Most banks and building societies offer packaged accounts – which come with a bundle of financial services, like travel and gadget insurance, overdrafts and music downloads.
Customers are charged a fee for these add-ons – and less than a third use any of the services.
Now, the FSA wants to make sure they are no0t being ripped off by making the providers run stringent checks before selling packaged accounts from March 31, 2013.
These include:
● Checking if the customer is eligible to claim under each policy and to share that information with the customer
● If the sales adviser is recommending policies in the package they must establish whether each policy is suitable for the customer and alert them if some are not
● Provide customers with an annual eligibility statement setting out the requirements to claim each of the benefits under each insurance policy in the package which should prompt customers to check whether their circumstances have changed and whether the policies continue to meet their needs
Sheila Nicoll, FSA director of policy, said: “These products are often referred to as upgraded accounts but if you end up paying for an element you can’t claim on, it’s money down the drain.
“We are closely monitoring the promotion of packaged bank accounts and the new rules will make sure customers know what they’re buying and that they can rely on the product or have the limitations explained before buying.”
The FSA is also consulting on further issues including a proposal that annual eligibility statements should be sent to customers as a separate mailing to give them added prominence, and that banks and building societies should tell customers who have triggered the age limit for claiming on the travel insurance, or warn them if they will do so before the next statement is due.
Most banks and building societies offer packaged accounts – which come with a bundle of financial services, like travel and gadget insurance, overdrafts and music downloads.
Customers are charged a fee for these add-ons – and less than a third use any of the services.
Now, the FSA wants to make sure they are no0t being ripped off by making the providers run stringent checks before selling packaged accounts from March 31, 2013.
These include:
● Checking if the customer is eligible to claim under each policy and to share that information with the customer
● If the sales adviser is recommending policies in the package they must establish whether each policy is suitable for the customer and alert them if some are not
● Provide customers with an annual eligibility statement setting out the requirements to claim each of the benefits under each insurance policy in the package which should prompt customers to check whether their circumstances have changed and whether the policies continue to meet their needs
Sheila Nicoll, FSA director of policy, said: “These products are often referred to as upgraded accounts but if you end up paying for an element you can’t claim on, it’s money down the drain.
“We are closely monitoring the promotion of packaged bank accounts and the new rules will make sure customers know what they’re buying and that they can rely on the product or have the limitations explained before buying.”
The FSA is also consulting on further issues including a proposal that annual eligibility statements should be sent to customers as a separate mailing to give them added prominence, and that banks and building societies should tell customers who have triggered the age limit for claiming on the travel insurance, or warn them if they will do so before the next statement is due.
Why do I have to pay to complain about my insurance?
Car and home insurance companies are forever looking for new ways to make money out of their customers – and the Insurance Blogger can reveal yet another.
After recent blogs highlighting the cost of repairs and offering tips on how to drive down the cost of car insurance, it comes as no surprise these slippery customers have other tricks up their sleeves.
Phone calls are the latest money-making exercise – free calls to tempt new customers while loyal customers who want to talk about their cover, make a claim or complain have to pay premium rates.
Free 0800 numbers are on most of the new business lines – while only six out of 34 banks, insurers and energy firms tested by consumer champion Which provided free phone options for current customers.
Instead, most advertise 0844 or 0845 numbers, including says Which, leading insurer Churchill.
The costs vary for a 20 minute call to premium numbers from a BT landline -
● 0845 – around 50p
● 0844 or 0870 – around £1
● 0871 – around £2
Calls from mobiles cost even more
The Insurance Blogger assumes that insurers budget for the costs of administration, including sending letter and telephone calls in the cost of a premium.
After all, if they are clever enough to calculate risk to set a premium, their mathematicians must be able to cost how much they spending managing customers and claims.
If call centres are raking in an average £1 a minute, if every line is picking up a call for 8 hours a day, that adds up to every phone in the centre earning the insurer £480 a day.
Now times that by five days times 52 weeks and that’s £124,800 a year.
That’s a conservative estimate as most customer lines are open for more than eight hours a day and across weekends as well.
To the Insurance Blogger’s mind, that’s money that insurers could be diverting towards cutting the cost of my cover rather than towards the pockets of shareholders as dividends.
After recent blogs highlighting the cost of repairs and offering tips on how to drive down the cost of car insurance, it comes as no surprise these slippery customers have other tricks up their sleeves.
Phone calls are the latest money-making exercise – free calls to tempt new customers while loyal customers who want to talk about their cover, make a claim or complain have to pay premium rates.
Free 0800 numbers are on most of the new business lines – while only six out of 34 banks, insurers and energy firms tested by consumer champion Which provided free phone options for current customers.
Instead, most advertise 0844 or 0845 numbers, including says Which, leading insurer Churchill.
The costs vary for a 20 minute call to premium numbers from a BT landline -
● 0845 – around 50p
● 0844 or 0870 – around £1
● 0871 – around £2
Calls from mobiles cost even more
The Insurance Blogger assumes that insurers budget for the costs of administration, including sending letter and telephone calls in the cost of a premium.
After all, if they are clever enough to calculate risk to set a premium, their mathematicians must be able to cost how much they spending managing customers and claims.
If call centres are raking in an average £1 a minute, if every line is picking up a call for 8 hours a day, that adds up to every phone in the centre earning the insurer £480 a day.
Now times that by five days times 52 weeks and that’s £124,800 a year.
That’s a conservative estimate as most customer lines are open for more than eight hours a day and across weekends as well.
To the Insurance Blogger’s mind, that’s money that insurers could be diverting towards cutting the cost of my cover rather than towards the pockets of shareholders as dividends.
10 ways to make your car insurance cheaper
The average cost of car insurance is around £1,500 a year – but that figure does not take in to account the most expensive policies for young drivers could cost up to £4,000 or more.
Driving down the cost of car insurance can make a real financial difference to many motorists.
Although the cost of fuelling is falling, other than loan repayments for a car, the cost of insurance is probably the main other expense for a driver.
Paying £4,000 a year for cover is equivalent to spending £77 a week, and just £5 sliced off the weekly bill will put £260 extra in a driver’s pocket over a year.
To help make driving cheaper – here’s a list of the top 10 ways to make car cover less expensive:
Change your job description – make sure your job title isn’t pushing making your insurance more expensive when a more accurate title would be cheaper
Change your car – Cheap cars with small engines are cheaper to insure
Pay a higher excess – Raising the excess spreads risk for the insurer and gives a lower price
Compare quotes – Check the price with at least three comparison sites or providers
Challenge your insurer to match or beat the best quote
Don’t pay for cover you do not need – make sure you are not spending for add-ons you won’t use
Get quotes 29 days before renewal – they are often valid for 28 days, so if prices go up, the quoted figure still holds
Look at fitting a telematics black box for ‘pay as you drive’ cover
Park overnight in a garage instead of on a street – this will bring the cost down
Pay in one go instead of taking credit
Many of these tips won’t deliver cheap car insurance on their own – but taken as a whole they can knock pounds off the amount a driver pays.
Driving down the cost of car insurance can make a real financial difference to many motorists.
Although the cost of fuelling is falling, other than loan repayments for a car, the cost of insurance is probably the main other expense for a driver.
Paying £4,000 a year for cover is equivalent to spending £77 a week, and just £5 sliced off the weekly bill will put £260 extra in a driver’s pocket over a year.
To help make driving cheaper – here’s a list of the top 10 ways to make car cover less expensive:
Change your job description – make sure your job title isn’t pushing making your insurance more expensive when a more accurate title would be cheaper
Change your car – Cheap cars with small engines are cheaper to insure
Pay a higher excess – Raising the excess spreads risk for the insurer and gives a lower price
Compare quotes – Check the price with at least three comparison sites or providers
Challenge your insurer to match or beat the best quote
Don’t pay for cover you do not need – make sure you are not spending for add-ons you won’t use
Get quotes 29 days before renewal – they are often valid for 28 days, so if prices go up, the quoted figure still holds
Look at fitting a telematics black box for ‘pay as you drive’ cover
Park overnight in a garage instead of on a street – this will bring the cost down
Pay in one go instead of taking credit
Many of these tips won’t deliver cheap car insurance on their own – but taken as a whole they can knock pounds off the amount a driver pays.
Press 2 if you are making a fraudulent insurance
The Insurance Blogger feels somewhat tainted after discussing two home insurance claims on the phone.
The experience was completely unsavoury and involved some minutes listening to a school ma’am reading a recorded message warning me of the perils of making a fraudulent claim.
Apparently, I would be branded a thief, my family and pets would be rounded up and sent in to captivity and my shame would live on generally making my life miserable for years to come because my name would be indelibly inscribed on an industry fraud database.
For goodness sake, my roof is leaking after the recent storms – hence the widening stain on the bedroom ceiling. I just want someone reliable to get up there and repair the problem.
It’s three floors up and probably needs scaffolding, so I guess a £100 job will spiral up to a grand or more to justify the £200 excess.
Then, I had the bad luck to drop my camera, well an envious Mrs Blogger’s camera as she has now assumed ownership as a new one may be on the way.
Two claims in one day! Am I a professional dishonest person, asks the claims advisor, unashamedly asking me or Mrs Blogger are convicted thieves, serial insurance claimants or generally unsavoury characters.
I am sure insurance firms are routinely ripped off by customers, but the Blogger has not made a claim in years. I understand they want to rein in compensation and pay out the least possible, but the whole process could be a lot more user friendly.
Instead of shouting out a warning to thieves and fraudsters that must concern and worry the vast number of genuine claimants who must outnumber the crooks by a considerable amount, insurance companies could be a little more restrained.
Perhaps a ‘Press 1 if you are a genuine caller’ and ‘Press 2 if you are a fraudster’ telephone menu on the claims line would work better, like the green and red channels at customs.
The experience was completely unsavoury and involved some minutes listening to a school ma’am reading a recorded message warning me of the perils of making a fraudulent claim.
Apparently, I would be branded a thief, my family and pets would be rounded up and sent in to captivity and my shame would live on generally making my life miserable for years to come because my name would be indelibly inscribed on an industry fraud database.
For goodness sake, my roof is leaking after the recent storms – hence the widening stain on the bedroom ceiling. I just want someone reliable to get up there and repair the problem.
It’s three floors up and probably needs scaffolding, so I guess a £100 job will spiral up to a grand or more to justify the £200 excess.
Then, I had the bad luck to drop my camera, well an envious Mrs Blogger’s camera as she has now assumed ownership as a new one may be on the way.
Two claims in one day! Am I a professional dishonest person, asks the claims advisor, unashamedly asking me or Mrs Blogger are convicted thieves, serial insurance claimants or generally unsavoury characters.
I am sure insurance firms are routinely ripped off by customers, but the Blogger has not made a claim in years. I understand they want to rein in compensation and pay out the least possible, but the whole process could be a lot more user friendly.
Instead of shouting out a warning to thieves and fraudsters that must concern and worry the vast number of genuine claimants who must outnumber the crooks by a considerable amount, insurance companies could be a little more restrained.
Perhaps a ‘Press 1 if you are a genuine caller’ and ‘Press 2 if you are a fraudster’ telephone menu on the claims line would work better, like the green and red channels at customs.
Uninsured Drivers Can Dent Your Wallet as well as Your Car
Police are clamping down on the 2 million uninsured drivers by crushing cars and handing out big fines, but that’s not much of a consolation if one crashes in to your car.
Not only can crashing with a driver without insurance make a mess of your vehicle, if you don’t have the right car insurance cover, it can make a dent in your wallet as well if the crash is your fault or the car is not traced.
Uninsured drivers cost law-abiding motorists about £380 million each year – the equivalent to adding £30 to the typical annual cost of each driver’s car insurance.
Third party and third party fire and theft cover won’t cover damage to your vehicle in a fault accident with another driver – comprehensive car insurance will, but you will have to pay the excess and may lose your no claims discount.
If the crash is not your fault – bearing in mind uninsured drivers are around 10 times more likely to have a drink-driving conviction and five times more likely to crash their car – your insurer will help.
Financial problems generally lead to driving without insurance, and most uninsured drivers have little or nothing to make a claim against if they have a crash.
To get around this, some insurers offer special protection for customers who have accidents with uninsured drivers that safeguard any no claims discount.
The Motor Insurers’ Bureau (MIB), which is funded by the car insurance industry will pay your insurer for your claim.
The MIB will also pay anyone injured by an uninsured driver, or who has property damaged in a crash, providing the uninsured vehicle is traced. If it is not, only personal injury claims will be settled.
Police seize around 1,500 uninsured vehicles a week – but at that rate crushing every uninsured car in the UK will still take around 25 years, and that’s if no more vehicles are added to the list.
Not only can crashing with a driver without insurance make a mess of your vehicle, if you don’t have the right car insurance cover, it can make a dent in your wallet as well if the crash is your fault or the car is not traced.
Uninsured drivers cost law-abiding motorists about £380 million each year – the equivalent to adding £30 to the typical annual cost of each driver’s car insurance.
Third party and third party fire and theft cover won’t cover damage to your vehicle in a fault accident with another driver – comprehensive car insurance will, but you will have to pay the excess and may lose your no claims discount.
If the crash is not your fault – bearing in mind uninsured drivers are around 10 times more likely to have a drink-driving conviction and five times more likely to crash their car – your insurer will help.
Financial problems generally lead to driving without insurance, and most uninsured drivers have little or nothing to make a claim against if they have a crash.
To get around this, some insurers offer special protection for customers who have accidents with uninsured drivers that safeguard any no claims discount.
The Motor Insurers’ Bureau (MIB), which is funded by the car insurance industry will pay your insurer for your claim.
The MIB will also pay anyone injured by an uninsured driver, or who has property damaged in a crash, providing the uninsured vehicle is traced. If it is not, only personal injury claims will be settled.
Police seize around 1,500 uninsured vehicles a week – but at that rate crushing every uninsured car in the UK will still take around 25 years, and that’s if no more vehicles are added to the list.
Atch That Gap For The Best Car Insurance Deals
Drivers who have a new car written off or stolen and expect the insurance company to offer the full cost of replacement may be in for a surprise when their claim is turned down.
Even motorists with comprehensive cover are unlikely to pick up new for old replacement if they have owned the car for more than a year.
This shortfall between the claim pay out and the cost of the car can leave car owners in debt because the finance company still wants their money regardless of what’s happened to the car.
The insurer will opt to pay the current market value of the car – that’s more than the trade-in price but less than the retail price
The solution for many drivers is special insurance which covers the gap between the insurance settlement and the price of the car.
As an example, gap insurance on a car purchased for £12,000 that is written-off three years later when worth around £5,000 would meet the £7,000 difference.
Gap insurance is a standalone policy with a separate premium paid alongside standard car insurance cover.
Gap insurance is not suitable for every car owner, but has three key uses:
Bridging the negative equity between the finance deal and value of the car
Settling contract hire deals if a car is written off or stolen and the driver must have transport
Protecting the equity in an expensive car that depreciates quickly
Dealers will try to sell gap insurance with every new car because they earn commission on the deal, but most motorists will find a better deal shopping around.
Points to consider include whether the car insurer offers new for old replacement in the first 12 months of ownership – if they do, there’s no need to pay the extra premium for gap cover or look for a policy with a deferred start.
Terms vary between gap insurers as well – check out maximum vehicle values compared with maximum payouts because they won’t be the same.
Even motorists with comprehensive cover are unlikely to pick up new for old replacement if they have owned the car for more than a year.
This shortfall between the claim pay out and the cost of the car can leave car owners in debt because the finance company still wants their money regardless of what’s happened to the car.
The insurer will opt to pay the current market value of the car – that’s more than the trade-in price but less than the retail price
The solution for many drivers is special insurance which covers the gap between the insurance settlement and the price of the car.
As an example, gap insurance on a car purchased for £12,000 that is written-off three years later when worth around £5,000 would meet the £7,000 difference.
Gap insurance is a standalone policy with a separate premium paid alongside standard car insurance cover.
Gap insurance is not suitable for every car owner, but has three key uses:
Bridging the negative equity between the finance deal and value of the car
Settling contract hire deals if a car is written off or stolen and the driver must have transport
Protecting the equity in an expensive car that depreciates quickly
Dealers will try to sell gap insurance with every new car because they earn commission on the deal, but most motorists will find a better deal shopping around.
Points to consider include whether the car insurer offers new for old replacement in the first 12 months of ownership – if they do, there’s no need to pay the extra premium for gap cover or look for a policy with a deferred start.
Terms vary between gap insurers as well – check out maximum vehicle values compared with maximum payouts because they won’t be the same.
Geminis Are Worst Drivers
A motorist’s birthday can reveal more about them than the detailed driving histories held by insurance companies, according to astrologers.
As car insurers look at new ways to fleece their customers with prices banned on gender banned from later this year, the Insurance Blogger has been looking at alternative ways to charge for cover.
In an endless search for the truth, the Insurance Blogger unearthed, if that’s the word, a survey by Insurance Hotline that purports to link how we drive with our star signs.
The study looked at the safety records of 100,000 US drivers over six years and came to some startling conclusions. The results are grouped by three categories: maniac driver, on-the-fence driver, and sane driver.
When it comes to car accidents, here are the astrology signs grouped into each category:
Maniac driver – Aries, Gemini, Cancer, Libra and Capricorn
On-the-fence driver – Leo and Virgo
Sane driver – Aquarius, Pisces, Taurus, Scorpio and Sagittarius
For traffic tickets, some astrology signs remain in the same categories while others have shifted:
Maniac driver –Gemini and Cancer
On-the-fence driver – Pieces, Aries, Taurus, Leo, Virgo, Libra and Capricorn
Sane driver – Aquarius, Scorpio and Sagittarius
Looks like Gemini and Cancer drivers should be careful while driving, as drivers with these astrology signs have the highest number of accidents and tickets according to our database.
Whether you are married or not seems to affect the number of traffic tickets picked up by drivers:
Single – 24.47%
Married – 16.10%
Divorced – 21.43%
Unmarried partners – 25.06%
Widowed – 12.94%
The message – steer well clear of a Gemini who is single or lives with a partner.
As car insurers look at new ways to fleece their customers with prices banned on gender banned from later this year, the Insurance Blogger has been looking at alternative ways to charge for cover.
In an endless search for the truth, the Insurance Blogger unearthed, if that’s the word, a survey by Insurance Hotline that purports to link how we drive with our star signs.
The study looked at the safety records of 100,000 US drivers over six years and came to some startling conclusions. The results are grouped by three categories: maniac driver, on-the-fence driver, and sane driver.
When it comes to car accidents, here are the astrology signs grouped into each category:
Maniac driver – Aries, Gemini, Cancer, Libra and Capricorn
On-the-fence driver – Leo and Virgo
Sane driver – Aquarius, Pisces, Taurus, Scorpio and Sagittarius
For traffic tickets, some astrology signs remain in the same categories while others have shifted:
Maniac driver –Gemini and Cancer
On-the-fence driver – Pieces, Aries, Taurus, Leo, Virgo, Libra and Capricorn
Sane driver – Aquarius, Scorpio and Sagittarius
Looks like Gemini and Cancer drivers should be careful while driving, as drivers with these astrology signs have the highest number of accidents and tickets according to our database.
Whether you are married or not seems to affect the number of traffic tickets picked up by drivers:
Single – 24.47%
Married – 16.10%
Divorced – 21.43%
Unmarried partners – 25.06%
Widowed – 12.94%
The message – steer well clear of a Gemini who is single or lives with a partner.
Car Insurance Talk Shop is a Load of Hot Air
The big car insurance talk-in chaired by Transport secretary Justine Greening turned out to be just a load of hot air.
The talking shop was billed as a roundtable summit between politicians and industry movers and shakers that would solve problems.
The result was a big, fat zero for motorists who are unlikely to see the cheap car insurance they hoped for.
The meeting, in Whitehall, London, was talked up as a council of war against crash-for-cash fraudsters who have milked millions from innocent drivers with their spurious whiplash claims.
But after the talks, the minister admitted no one really had a solution to the industry’s problems.
“There is no one silver bullet to tackling fraudulent whiplash claims or reducing young driver premiums but we have already taken decisive action by banning referral fees, reforming no-win no-fee rules and cracking down on fraud,” said Greening.
“We will also work with industry to take full advantage of the use of telematics, or in-car black boxes, to give young people a greater choice of options if they want to drive.”
In other words, talk about car insurance turns out to be much cheaper than buying a policy, especially for younger drivers.
The government blames motorists for driving up the cost of premiums by profiting from a compensation culture that has pushed up claims by 70% in the last five years.
Around 1,500 whiplash claims are made every day, which cost the insurance industry £2 billion last year – equivalent to £90 on every driver’s premium.
The talking shop was billed as a roundtable summit between politicians and industry movers and shakers that would solve problems.
The result was a big, fat zero for motorists who are unlikely to see the cheap car insurance they hoped for.
The meeting, in Whitehall, London, was talked up as a council of war against crash-for-cash fraudsters who have milked millions from innocent drivers with their spurious whiplash claims.
But after the talks, the minister admitted no one really had a solution to the industry’s problems.
“There is no one silver bullet to tackling fraudulent whiplash claims or reducing young driver premiums but we have already taken decisive action by banning referral fees, reforming no-win no-fee rules and cracking down on fraud,” said Greening.
“We will also work with industry to take full advantage of the use of telematics, or in-car black boxes, to give young people a greater choice of options if they want to drive.”
In other words, talk about car insurance turns out to be much cheaper than buying a policy, especially for younger drivers.
The government blames motorists for driving up the cost of premiums by profiting from a compensation culture that has pushed up claims by 70% in the last five years.
Around 1,500 whiplash claims are made every day, which cost the insurance industry £2 billion last year – equivalent to £90 on every driver’s premium.
Subscribe to:
Posts (Atom)