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Smart Box makes its debut

Thursday, March 17th, 2011

With the price of young person’s car insurance going through the roof, regardless of whether their car is a convertible or not, any method of bringing the cost down will be welcomed by those just embarking on their driving experience. Policies costing thousands of pounds are not at all out of the ordinary today and many young drivers simply can’t afford it.

Big brother helping young drivers

Under a scheme launched today, a so called smart box installed in a car driven by a 17-25 year old can bring down their motor insurance quotes by as much as £300. The box will keep a watchful eye on the motoring skills of the driver by monitoring such manoeuvres as cornering, braking, acceleration and reversing. The box will also monitor if the driver exceeds national speed limits.

The box is approximately the size of a mobile phone and can be fitted either in the car or under the bonnet. The box sends a signal back to the car insurer giving them a run down on how the car is being driven. The box uses satellites to assess the cars position and transmits the technical data such as speeds etc. back the same way.

Information helps insurers to rate the driver

The insurer can see if the driver is behaving in a manner that is conducive to good driving practice after downloading the information, and can then give the driver a discount if it’s felt the youngster behaves in a mature way when he/she is behind the wheel. The opposite can also happen. The information may reveal the driver is not conforming to the required standards and could actually be charged more for his insurance.

The likelihood of this happening however, is small. One can’t imagine irresponsible drivers volunteering to have their lack of skill exposed but it will mean that conscientious young drivers can put a distance between them and boy racers.

Safety record

It is no secret that the 17-25 year old age group have a horrendous record for death and serious injuries on the road, and that is the simple reason why insurance levels for this group are so high. The smart box will be a welcome addition to car technology for drivers, insurers and road safety campaigners.

Tags: road safety campaigners, Safety record, Young Drivers, young person’s car insurance
Posted in Car Insurance Claims, Car Insurance Cover Types | No Comments »

Call for action as car insurance quotes escalate

Tuesday, January 25th, 2011

It would appear that many aspiring university graduates could do far worse than plan a career as a personal injury lawyer, as reports from motoring organisations across the UK suggest they are responsible in part for the continuing rise in the price of car insurance quotes.

Their numbers it seems are growing as fast as motor insurance claims!

According to figures provided by the UK’s largest motoring organisation, the AA, the average cost for a motor insurance policy in the UK has now reached an almost unbelievable figure of £845. The figure is up by over a third on the average price for a policy a year ago and the notion of cheap car insurance seems to be a thing of the past.

So why are car insurance quotes becoming more expensive?

Firstly, the criminal element in the UK has turned their attention to the possibilities afforded by making false claims on motor accidents. Not only this, some criminal factions are now staging car accidents to profit from claims for personal injury when the accident occurred. Unfortunately it is now highly possible that if a car in front of you suddenly stops without any warning, causing you to collide with it, then you have become a victim of a staged accident. The car will probably have three or four passengers and all will make a claim on your motor insurance policy for injuries such as whiplash, and there is little you can do about it. The Insurance Fraud Bureau (IFB) estimate that 30,000 faked and staged car crashes resulted in insurance claims last year and as a result, car insurance in the UK has never been so expensive.

Secondly, the number of lawyers offering personal injury services has rocketed. Many motoring organisations believe their constant advertising techniques using high profile media campaigns is attracting foreign gangs to enter the UK and set up criminal organisations, just to profit from illegal activities around car insurance claims. Whiplash claims for example have increased year on year for the last 5 years. The IFB estimate that each staged crash costs the industry around £17,000 and recent figures show that the problem is getting worse almost day by day.

Solutions needed quickly!

It does appear that unless the insurance industry and the Government can find a way to solve this problem soon, then whole swathes of the population will discover that the price of car insurance cover is beyond them. If this in turn leads to more people driving without insurance then we really will be in a nightmare situation.

Tags: Car Insurance, car insurance quotes
Posted in Car Insurance, Car Insurance Cover Types, Cheap Car Insurance | No Comments »

5 Top Tips for Saving Money on Your Car Insurance

Monday, January 24th, 2011

With the recent sting of the recession, rise in VAT and the ever increasing petrol prices everyone is a bit strapped for cash at the moment. So, here at MotorQuoteDirect we thought this would be the perfect time to let you in on a few tips on how you can keep your car insurance quotes low and save money! Just follow these 5 simple tips and save yourself a bundle on your next car insurance quote:

Don’t Pimp Out Your Ride – You may think that adding a body kit or huge spoiler to your car is seriously cool (well if you are 17 anyway). However, your car insurance provider probably won’t agree! Modifications on your car mean more to insure and more potential risk meaning your premiums will soon be on the rise.

Keep it safe – You may be put off by the initial cost of a car alarm system, a steering lock or an immobilizer but the return on your insurance premium will be worth the investment. The safer you keep your car the less likely you are going to have to claim on your insurance and the lower your premiums will drop.

Check What’s Covered – It may seem obvious but it is always worth checking exactly what is covered in your policy and asking yourself “do I need all this?” Do you really need Fully Comprehensive or will Third Part Insurance do? Do you need breakdown cover or a courtesy car? Etc. Make sure you check out all your options before making a decision!

Do you need to take the car? – Your yearly mileage can have quite a noticeable effect on your insurance premium as the more you drive your car the more likely you are to have an accident. So, the next time you have the munchies and want to go to the corner shop why not walk instead of drive.

Pay Upfront – It may seem tempting to spread the cost of your car insurance over the year rather than paying upfront but this can end up costing you a lot more. If you choose to pay your premium monthly you will be using a credit service and could be charged up to 29% APR! So pay upfront and save yourself a bit of hassle and money.

So there you have it, simply follow these simply and easy tips and you are sure to save yourself a bit of cash on your car insurance. Anyone got any other good tips to share?

Tags: Car Insurance, Car Insurance Tips, Cheap Car Insurance, Money Saving Tips, Save Money on Car Insurance
Posted in Car Insurance, Car Insurance Cover Types | No Comments »

GAP insurance sales grow

Wednesday, August 25th, 2010

With the motoring world anticipating the new 60 plate that will be on show with new registrations from September 1^st. Motoring insurance companies will not only be anticipating a rush of motor insurance quotes for new cars, but also GAP insurance companies will expect a bonanza of business as well. However, how many people know what GAP insurance is?

GAP insurance, is a product now routinely offered to purchasers of brand new cars. Everyone knows that the value of a new car starts depreciating the minute it is driven out of a showroom. GAP insurance is intended to cover purchasers of new cars for any loss of revenue they may incur during the first four years of ownership.

For instance, if a vehicle is stolen from the owner when it is two years old and never recovered. The insurer of the vehicle will make a payment based on the value of the car the day it was stolen. This payment will certainly be far less than the sum the owner paid for the car in the first place, and in many circumstances can be less than the outstanding finance left on the car. Remember most cars are bought with either bank loans or manufacturer finance. In both cases there will almost certainly be several thousand pounds on finance above the value of the loan. An accident or theft can leave an innocent motorist thousands of pounds out of pocket.

GAP insurance is designed to pay the motorist the amount of money he actually spent in the showroom. There are two possibilities for the car owner to consider. He can take a policy out for the price of the car plus the interest on the loan or choose a return to invoice policy which means the policy will pay the actual value of the car when purchased.

There is no doubt that GAP insurance is getting more popular and more competitive. Dealers will always mention GAP insurance on new car purchases, but it does appear that it is worthwhile getting an independent quote as this can save a few pounds. Whichever way the owner goes, he can expect to pay a one off sum somewhere in the region of between £300- £600.

Tags: Car Insurance, Motor insurance
Posted in Car Insurance Cover Types, Cheap Car Insurance, Savings, selling a car | No Comments »

Car Insurance Guide

Friday, June 5th, 2009

Our guide to car insurance contains all you need to know about finding the right type of motor insurance policy, how to lower the cost of your premium and what to do in the event of a claim.

If you want to go directly to another section of our guide to car insurance, you can click on one of the links below:

Car insurance is almost certainly the financial product most commonly held by consumers in the UK, with the possible exception of a bank or savings account. This is hardly surprising: if you drive a vehicle, insurance is compulsory.

In theory, this ought to make everyone a car insurance expert, able to get the best deal on their motor cover.

Yet too many of us tend to stick with the same insurer for too long and end up paying hundreds of pounds more a year than we need to. We only change policies when premiums become very noticeably too dear.

Conversely, we pat ourselves on the back because we have found ultra-cheap car insurance – only to discover that when we make a claim, certain items were never covered under the terms of that policy.

Shopping around is the starting point for anyone who wants the best car insurance deal. Our car insurance comparison tool allows you to search for and compare quotes from more than 60 top insurers and brokers in the UK.

But knowing how motor and car insurance works can help you get an even better deal – not just on price but in terms of the service you may need from your insurer. This guide is designed to help you achieve that.

It tries to answer some of the most typical concerns of motorists: everything from explaining how your quote is set and tips on how to cut the cost of your cover, to the various steps involved in making a claim.

Tags: Car, Car Insurance, Car Insurance Application, Car Insurance Policy, Insurance Cover Types
Posted in Car Insurance, Car Insurance Claims, Car Insurance Cover Types, Cheap Car Insurance | 3 Comments »

What is my Car Insurance Quote Based On?

Friday, June 5th, 2009

Your car insurance quote is based on the following:

Personal Circumstances
External Factors
The level of cover you require

Personal Circumstances

The Insurance Group of your Car – Each make and model of vehicle is assigned an insurance category, based on various factors including the car’s value, performance and cost to repair.

Click here for more information on Car Insurance Groups.

Age and Experience as a driver – If you are under 25 or have only been driving for a short while, then your car insurance will be more expensive because statistics show that the younger and more inexperienced you are the more likely you are to have an accident. More experienced drivers can expect a lower premium.

If you have a teenage son or daughter it is usually cheaper to insure them on your own car on your policy for a short while, rather than have them get their own policy on a car. Another tip to reduce your premium is to take an advanced driving course, which are run by most driving instructors.

Insurance History – No Claims Discounts – Drivers who do not claim on their insurance get ‘no claims’ discounts. Typically the discount can range from 30% – 65% depending on how long it’s been since you last claimed.

Your Address – The cost of your premium may be affected by where you live. The installation of additional security e.g. locks, alarms, immobilisers etc can help reduce costs.

Your Occupation – What you do for a living may also affect the cost of your car insurance, as some occupations are considered more high risk than others.

Excess – Your excess is the amount which you are willing pay towards the cost of any repairs. For example, if your excess is £200, and the repairs to your vehicle cost £1800, then you will pay £200 and your insurance company will pay £1600.

You can decide how much your excess is – the more your willing to pay out, the lower your premium.

External Factors

Uninsured Drivers – Surprisingly, official statistics state that 1 in 20 drivers are uninsured and other statistics have previously stated then this number could actually be nearer to 1 in 10 drivers. Insurance premiums are affected by this and it is said that around £30 of your insurance premium is to cover the fact that you may be in an accident with an uninsured driver.

Litigation – Personal injury claims following car accidents are on the rise as our society is becoming increasingly litigious. As it is the insurance companies who foot the bill for any financial compensation awarded by the courts this has caused premiums to rise.

Medical Expenses – The accident and emergency part of the NHS can now claim back the cost of treatment (and ambulance) from insurance companies. As medical expenses increase, again the costs of policies rise.

Stock Markets – Insurance premiums are becoming higher because the money which is paid for insurance is often invested by insurance companies until a payout is necessary. This means that whilst the state of the stock market remains unstable, premiums are likely to increase.

Tags: Auto, Car, Car Insurance, Car Insurance Quote, Motor, Quote
Posted in Car Insurance, Car Insurance Cover Types | No Comments »

What happens if my car insurance claim is rejected?

Thursday, May 28th, 2009

Occasionally, insurance companies refuse to pay claims and can sometimes reduce the amount they are going to pay you. Usually, this is because of one or more reasons.

Clauses – You are not covered by a clause in the insurance policy and it would be better dealt with by another insurance policy i.e. home insurance.
In the event of a write-off – Your claim can also be reduced if your car has been written off and the value of the car is much less than what it would cost to restore it.
Supporting Information – If you do not have receipts for aspects of your claim for example theft of a laptop or iPod from your car then you are unable to make a claim.
Theft – Sometimes if an insurance company believes you were at fault for the theft of your vehicle or belongings inside your vehicle then you will not be able to make a claim.
Untruthful Information – If you have given inaccurate or untruthful information in relation to your claim then you are not able to make a claim.

What can you do?

Keep a record of all the conversations and correspondence in relation to your claim. This can really help with the success rate.
You don’t have to accept their offer. You can sometimes negotiate a better deal with your insurer in cases where you believe the sum they are willing to pay out is wrong. This can sometimes work well and you will get what you are owed.

If you are stuck and don’t know how to deal with something and you feel you are being treated unfairly by your insurance company then you can contact the Financial Ombudsman Service who are there to help.

You can either call the FOS on 0845 080 1800 or write to:

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall

Or visit the website at: http://www.financial-ombudsman.org.uk/

Tags: Accidents, Car, Car Damage, Car Insurance, Car Insurance Claims, Insurance Cover Types
Posted in Car Insurance, Car Insurance Application, Car Insurance Claims, Car Insurance Cover Types | 1 Comment »