Motor Insurance
The rising cost of motor insurance is just another bill that is increasing but has to be paid! The latest figures from the AA’s benchmark British Insurance Premium Index, which has been tracking industry-wide car and home insurance premiums since 1994, shows that over the three months ending June 2008 the cost of car insurance premiums rose by 7.5 per cent to an average of £724.28. Drivers can now expect to pay £486 for their annual comprehensive cover which is a rise of £39 since this time last year.
In 1994 when the AA began collating premiums the average cost was just £328 a year.
Young drivers, who typically buy third-party, fire and theft insurance and already pay the highest car insurance premiums, are hardest hit because they are the most likely to make a claim. Since the last index in March 2008, more than £45 has been piled on to the average premium they can expect to be quoted, which is now £884.
The greatest insurance losses are amongst young inexperienced drivers, particularly men. Although they pay premiums that are typically up to twice that of women of the same age they also make by far the largest claims.
Insurers are also concerned about rising legal costs and personal injury claims, and expect the upward trend in premiums to continue.
If you wants the best car insurance deal then you must shop around. There is no reason why you should not get at least 50 quotes from different insurers and brokers in the UK!
The cheapest option is to look online. You can get lots of quotes from a whole range of insurers or brokers. Don't assume that the larger companies offer the best quotes or that the smaller companies are not worth getting quotes from!
What you must do, and this is essential, is to fill in the quotation forms accurately. The insurance companies do not necessarily check all the details that you enter, but the quote will be based on these details. The snag is if you have a subsequent claim all these details will be checked. If the information is false or incomplete you could end up with no insurance and a criminal conviction for fraud!
One major factor on the cost of your insurance is the car that you want to insure. You can save hundreds of pounds simply on your choice of car!
If you have a good driving record over a number of years then do search for those companies that offer reduced rates to experienced drivers with good driving history.
Provisional Drivers
Please note that a provisional driver can only drive when they are supervised by a person who is both over 21 and has had a full license for over 3 years. The supervising driver must not be over the drink drive limits and can be breathalysed with consequences if they fail the test.
Provisional drivers be warned. The police can seize your car and you may find that your insurance is void!
Documents
IF you are driving without a valid road tax disk or the appropriate insurance then you now no longer have 7 days to get road tax and to produce it at the police station. The police have the right to seize your car and impound it. You will have to pay a fee to get the car out (and produce valid tax and insurance documents.
The same applies to you having a valid driving license for the type of vehicle you are driving.
parent insured?
a word of caution for parents who are insured with their children
A thousand insurance claims a year are being rejected by the insurance companies when the insurance policy is in the name of a parent and their children are the main drivers of the car.
This is effectively a fraud known as 'fronting'.
It is not an unreasonable action by the insurance companies because the premiums are based on the adult and would be significantly higher if their child was named as the main driver.
But it does get worse for those involved in an accident. The young driver is treated as though they were an 'uninsured driver'
and will end up in court. The car could be seized and crushed
The insurance companies will not pay out for claim for the young drivers damage and will sue to recover any payments to the other party.
The lesson for parents is 'it is not worth the risk'.
