eGroup Motoring & Insurance News November 08

Motorists told not to go without car insurance

As the finances of many people continue to be squeezed by the credit crunch, consumers have been advised to think carefully if they are to cut back on certain payments.

The British Insurance Brokers' Association (BIBA) has stated that many people will be looking to make financial cutbacks to reduce expenditure, but they should be careful where these cutbacks are made as some payments are unavoidable.

BIBA technical and corporate affairs executive Graeme Trudgill has stated that payments such as car insurance are required by law so these have to be paid.

"If you are going to review your insurances there are some that you should keep and some that you perhaps don't need," he added.

Among the policies that a person can safely cancel is that of their mobile phone or internet.

A way in which a person could save money without totally foregoing car insurance is to shop around for cheaper car insurance quote.

Other ways to make savings could include reducing the chances of a car being damaged or stolen by fitting it with an alarm or parking it in a garage where possible

Source eCar Insurance 29-10-08

Money more important than shorter commute for UK workers 

 Brits would be more willing to clock up a few extra miles on their daily commute to work than take a pay cut, a new study has found.

Despite growing numbers of Brits looking into the possibility of adopting a more flexible work load, many are now coming under economic pressure as the cost of living keeps rising, forcing them into accepting long journey times as a necessary evil and looking to try and locate cheap car insurance.

According to research carried out by the Trade Unions Congress (TUC), UK workers commute for an average 54 minutes each day, with those employed within the financial sector most likely to be on the road for an hour or more.

Furthermore, it was found that those in senior management positions or in well-paid industries such as mining were commuting for the longest, with a sizeable majority unwilling to give up their jobs in favour of something closer to home.

Paul Sellers, working time policy adviser at the TUC, explained: "People will travel a long way for jobs in mining and quarrying because those are quite well paid jobs for those who don't have many qualifications.

"Many of those workers would prefer to stay in the industry than take a 50 per cent pay cut and work nearer to home."

Source eCar Insurance 31-10-08

Eco-driving offers financial and health benefits

 Improvements financially and in a driver's road safety are among the key reasons why a motorist should drive more economically, a driving examiner believes.

Bob Millard, the Driving Standard Agency's assistant chief driving examiner, states there are many incentives to driving economically including making a wide range of financial savings.

He said: "Good driving and road safety is based on hazard perception and this is also the foundation of eco-safe driving. By adopting eco-safe driving techniques, drivers will be safer, with a reduction in the risk of accidents, and their journeys will be less stressful.

"Eco-safe driving does indeed reduce wear and tear on a vehicle, and maintenance costs can also be reduced (in addition to the savings made on fuel)."

By lowering the risk of being in an accident, a motorist opting to drive in a more environmentally-friendly way may also increase their chances of finding cheap car insurance in the future, as they build up a no claims bonus.

Source eCar Insurance  06-11-08

Motorists want elderly driver re-tests

 A large percentage of motorists believe that elderly drivers should be forced into taking some kind of regular driving test to prove they are fit for the roads.

A poll by breakdown company Autonational Record discovered that 40 per cent of the 1,000 adults questioned believed a driver should be re-tested when they reached 70.

Another 14 per cent believed re-testing should be brought in once a driver reached 65 and 12 per cent thought 60 was an appropriate age for a re-test.

Some 11 per cent believed an elderly driver should only take their test again if they were involved in an accident and just 13 per cent stated they should not be re-tested at all.

Also, some motorists aged over 70 lent their weight to the argument that re-tests should be applied.

Autonational's marketing manager Ronan Hart said: "It's estimated that a quarter of all drivers will be 70 or over by 2050 compared to just 9 per cent now.

"And statistics show that those aged 70 or over are three times more likely to be involved in a road accident than those aged between 45 and 60."

Elderly motorists looking to make savings on a car insurance quote may want to consider shopping around to try and get cheap car insurance.

Source eCar Insurance  21-10-08

Young men better at junctions than women

 Young male drivers cope better at busy junctions compared with their female counterparts, new figures have stated.

The Institute of Advanced Motorists (IAM) has revealed that 43 per cent of young men struggle to cope with busy intersections in urban areas, compared with 46 per cent of young women.

To help reduce these figures, the IAM is calling on the car insurance industry to recognise the benefits of young drivers who pass additional driving courses and provide them with a cheaper car insurance quote as a result.

Also, the education system is being asked to integrate road safety education into the core school curriculum to help youngsters be more aware of their responsibilities on the road, whether as a driver, passenger or pedestrian.

Kevin Delaney, IAM head of road safety, said: "The majority of young drivers have the right attitude to driving but aren't fully prepared for dealing with more complicated junctions, which they may not have come across in order to pass their driving test."

Cheaper car insurance is available for young motorists who undertake additional driving courses such as a Pass Plus exam, according to the Association of British Insurers

Source eCar Insurance  13-10-08

Clearing boot offers financial savings

 Many motorists are increasing their car running costs by not clearing unneeded baggage out of the boot of their vehicles, according to The Energy Saving Trust.

The organisation's smarter driving expert Tim Anderson has stated that by not removing unneeded belongings out of a vehicle's boot, a person is increasing the amount of fuel they are using.

Thus making the point that a vehicle can achieve more miles per gallon of fuel if it holds a lighter load.

He said: "The reason we are talking about clearing out their boots is because actually by carrying around excess stuff in the back of the car, the car has to work a little bit harder so it uses more fuel.

"That adds to your fuel costs and it also increases the amount of carbon dioxide and CO2 that your car emits."

Another way a driver can lower their motoring costs as well as emptying their boot is to step up their search for cheaper car insurance by making more of an effort to shop around

Source eCar Insurance  7-11-08

Win or lose motorists should pay legal bills for speeding

 Motorists should be forced to pay their legal bills when they challenge a speeding ticket even if they win their case, it has been stated.

Every year, 1.7 million drivers take their cases to court and government ministers are creating proposals which would see defendants lose their right to claim back their costs, a right that has been in action for a century.

Jack Straw's Ministry of Justice has published a consultation paper explaining the proposal, with it costing £1,500 per case to fight charges of speeding.

Junior Minister Lord Bach said: "Just as an individual who chooses to put their child through private education does not reclaim this cost from the education system, nor should public funding recompense those who choose to pay privately for a lawyer when a publicly-funded alternative is available."

A motorist caught speeding does not only have to pay an on the spot fine but will also see points added to their driving licence, which in turn increases the cost of a future car insurance quote.

Source eCar Insurance  7-11-08

Road casualty reduction aided by high fuel prices

 The high fuel prices that have especially hit motorists in recent months have been touted as the main reason for a reduction in road casualty figures.

Government figures for the second period of 2008 showed that the number of deaths due to road accidents has decreased, and AA president Edmund King has put this down to increases at the pumps.

He argues that the result of high petrol prices was that motorists drove more economically to save money and generally reduced the amount of time they used their vehicles.

"This quarter saw petrol prices rising towards their maximum, which was reached on 17th July, and industrial disputes affecting petrol supply. 77 per cent of drivers in our AA/Populus survey said they had reduced journeys, cut back on other expenditure, or done both as a result of high fuel prices," he said.

"Drivers also indicated that they were slowing down to save fuel. These actions could have contributed to a reduction in accidents and deaths."

Driving more economically and decreasing the chance of being involved in a road accident could also have a positive impact on a driver's search for cheap car insurance, as they build up their no claims bonus

Source eCar Insurance  7-11-08

Motorists leaving valuables in vehicles

 Motorists are leaving themselves more open to future rises in car insurance costs by failing to remove valuables from their vehicles.

According to a report from LV=, items such as mobile phones, clothes and wallets are generally left in vehicles on UK roads, encouraging thieves to break into them.

The report found that the average value of the goods left in a car is £380, while younger drivers are equally as lax with removing their possessions.

Some 40 per cent of all thefts occur on residential streets. However, despite the perceived high risk of car parks, only nine per cent of thefts occur there.

Emma Holyer, spokesperson for LV= Car Insurance, said: "These figures show a casual attitude amongst motorists when it comes to leaving their belongings in their car.

"The fact is that most car break-ins are by opportunist thieves who would probably not bother to break into the car if it looked as though it didn't contain anything to steal."

According to Sheilas' Wheels, women find it easier to get cheap car insurance because they make less costly claims.

Source eCar Insurance  7-11-08

Motorists failing to wear seatbelts

 More than one in ten motorists (12 per cent) admit to not wearing a seat belt when driving short distances because they do not think they will be involved in a road accident, new research has found.

Direct Line has revealed that 19 per cent of motorists admit to not wearing a seatbelt, with some interesting reasons stated for this.

Among the top excuses include 38 per cent of motorists saying they simply forgot, 11 per cent saying they do many short trips and have to regularly get out of a vehicle and eight per cent honestly saying they can't be bothered.

Maggie Game, head of car insurance for Direct Line, said: "Taking a few seconds to put your seatbelt on can significantly reduce the likelihood of being seriously injured or killed in a car crash.

"Motorists should not start a journey until all occupants have buckled-up in preparation for what is one of the most dangerous activities we undertake."

Recently, moneysupermarket.com discovered that a motorist found to be at fault in an accident could see their future car insurance quote rise by as much as 60 per cent.

Source eCar Insurance  6-11-08

Fault in accident leads to car insurance increase

 A motorist who is declared to be at fault in an accident could see their future car insurance quote rise by as much as 60 per cent, new research has found.

Moneysupermarket.com has looked at ten million quotes and discovered that it is exceedingly hard for a motorist at fault in an accident to find cheap car insurance when they have to renew their quote.

The research found, slightly worryingly, that bus drivers are the most liable to crash their own cars (16 per cent), with those in the health industry, including GPs and speech therapists also high on the accident fault list.

Peter Gerrard, head of insurance research at moneysupermarket.com, said: "Being at fault in a car accident is terrifying enough for any motorist but with purse strings tightening all over the country a hike of over 60 per cent on premiums should make Brits think twice about running risks on the roads.

"When an insurer risk assesses a driver, any history of accidents will no doubt mean motorists pay more."

Sheilas' Wheels recently stated that women are often provided with cheaper car insurance than men because the cost of their claims after an accident is much less.

Barnes escapes driving ban after car insurance blunder 

 Former Liverpool and England footballer John Barnes has escaped a driving ban because he claims that he cannot afford to pay for a driver.

The 44-year-old still earns £4,000 a week, but after being caught driving without car insurance he has escaped punishment.

Barnes already had nine points on his licence, but the six point penalty for driving with no licence, which would have taken him over the 12-point instant ban limit, was not activated by magistrates in Northwich, Cheshire.

He told magistrates that he couldn't hire a driver because his wages "varied drastically" while adding that a driving ban would prevent him carrying out his new job of managing the Jamaican football team, as he couldn't rely on public transport to view matches.

Barnes said: "I'd been in the Caribbean for two months when my insurance ran out and I thought my wife had sorted it out."

The current ITV pundit was fined £2,000 and the points were imposed on his licence but suspended.

Around one in every 20 motorists are hitting the road without even cheap car insurance, according to the Association of British Insurers.

Source eCar Insurance  3-11-08

See also:

January 2009:  eGroup Motoring & Insurance News January 2009 edition