Are comparison websites to blame for raising insurance premiums?

Posted on September 6, 2010 by Steve

The AA has said the typical price of a motor insurance quote has increased dramatically because of the growing number of fraudulent insurance claims. In the last 13 weeks vehicle insurance premiums have gone up by a record 11.5%. A typical comprehensive car insurance premium has risen by an incredible 30.9% over the last 12 months.

According to industry experts, during the past 12 months, for every £100 the insurers take in premiums, they have been paying out £122. Insurance companies are getting much better at identifying fraud and they are also bringing in new technology which will help them fight the fraudulent applications. Anyone who is caught making a fraudulent application will find it very difficult to find an insurer willing to take them in the future, and if they do, the premiums will more than likely reflect their bad history.

Simon Douglas, director at the AA, said “The growth of price comparison sites has encouraged fraud, although most people wouldn’t see it as such. It is much easier to manipulate information on a computer screen to find the cheapest price – for example, by changing the facts about past driving experience, than attempting to do so in a conversation with insurance sales staff.”

But Paul Lawler, spokesman for Moneysupermarket.com, disputed these claims saying “I cannot accept that it is any easier to commit fraud on a price comparison website than anywhere else. After all, what is stopping people from entering in fraudulent information into their own website? Or providing that information over the phone?

Most insurance comparison websites will monitor each and every application made by a user and the details are kept on record. If they then try to reapply with very different information it will be flagged up. Comparison websites do not deny there is a problem with fraud in the insurance market. They claim it is the rising number of false claims that are the real problem and point to the proliferation of personal injury companies as an indication of how many people are claiming for injuries in car accidents

GAP insurance sales grow

Posted on August 25, 2010 by Steve

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.

Five hundred million cars from one bright spark

Posted on August 17, 2010 by Steve

Long before there was any need for a motor insurance quote, people mostly got around by either riding a horse or walking. Then in the second half of the 19^th Century two German engineers came along.

Wheels may well be over 5000 years old, but the cars we drive around in only made their debut in 1885. German engineer Karl Benz fastened a small petrol engine to a three wheeled cart and made the first, if somewhat primitive, petrol powered car. He was following in the footsteps of another German engineer, Nikolaus Otto. Otto had actually invented the petrol engine in the first place, about twenty years earlier. It shows what a stroke of genius Otto had when inventing the engine, because almost all car engines designed since have embraced his four stroke principle.

In layman’s terms, a car is a metal box which has wheels at the four corners that takes a person from A to B. In scientific terms, a car would be described as an energy converter i.e. a machine that releases the energy locked inside a fuel such as petrol or diesel and then turns it into mechanical energy which moves wheels and gears. When the wheels power the car, the mechanical energy then becomes kinetic energy. Cars are powered by fuels made from petroleum which is the thick, black, energy-rich liquid. Petroleum is buried deep under the ground and during the 20^th century it was the world’s most important source of energy.

A car engine is built around a set of cylinders, there can be anything from two to twelve cylinders, but normally four, six, or eight can be found inside. The cylinders are made out of an extra strong metal and then sealed shut, but at one end they open and close much like a bicycle pump. Inside they have tight fitting pistons that slide up and down inside. At the top of each of the cylinders, there are two valves that can be opened and closed very quickly. The inlet valve will allow fuel and air to enter the cylinder from a carburettor, while the outlet valve allows the exhaust gases to escape. At the top of the cylinder, there is also a spark plug; this is an electrically controlled device that will make a spark which will set fire to the fuel. At the bottom of the cylinder, a piston is attached to an axle which is constantly turning; the axle is called a crankshaft. It is the crankshaft that powers the gearbox of the car which, in turn, drives the wheels.

There’s no doubt that Otto’s petrol engine was an invention of genius, but it is now a victim of its own success. We have over 500 million cars on the planet, the pollution produced by this many vehicles is a serious problem which is likely to get worse before it will get better. The carbon dioxide released when the fuel is burned is also a major cause of global warming. The solution could well be electric cars, as they get their energy from cleaner sources of power or even a hybrid car that will use a combination of electricity and gasoline power.

Future of cars is changing

Posted on July 29, 2010 by Steve

Back in the 1980s Knight Rider, a television show from the USA, starred a black Pontiac Trans called K.I.T.T. (Knight Industries Two Thousand) the car could talk, drive itself and also get its human driver out of any predicament using its onboard computer. At the time, it seemed having a car like this was just fantasy some might say it was even laughable. Yet today in 2010, this once futuristic car is becoming reality or very close to it, anyway. Currently four vehicles are slowly making their way from Italy to China driven by instructions from a satellite. If a car does come out that can drive itself, it will bring a whole new meaning to any driver car insurance when contacting a company for a motor insurance quote.

Some of the technology is already here and ready to use while other advances will need further research to iron out the current flaws. Today, several technologies are competing to eventually replace the current dependence on fossil fuels, accepted now as environmentally unfriendly and the truth is that they will eventually run out. Bio diesel and ethanol, both renewable fuels have made significant steps on the premise that we can always grow more. But both of these are causing controversy. A debate is starting to brew about the ethics and science of using crops to make fuel rather than food.

Everyone should have heard of a hybrid car and some will already be driving one. Hybrid vehicles combine a traditional engine but with an electric motor which delivers increased fuel efficiency and are the first stepping stone of the new technology. Hybrids will be around for some time to come, even when the all electric cars come to dominate the roads. Many of the cars made in the 21^st century last much longer than those of 10 or 20 years ago, and they will continue to need the support of the petrol filling stations. Today, all electric cars are the Holy Grail of clean transportation that all manufacturers are looking for. This is because they produce zero direct emissions. What is even more crucial about electric cars is that they have the potential to be completely none polluting by making it possible to recharge them with emission free solar or even wind energy. A lot of manufacturers are bringing out electric cars in the near future and eventually they will outnumber petrol vehicles.

Over 100 years of experience

Posted on July 28, 2010 by Steve

Any driver car insurance was not even invented when the Fiat Company was born. Fiat is an acronym for ‘Fabbrica Italiana Automobili Torino’ and translated to English, reads ‘Italian Automobile Factory of Turin’. F.I.A.T. was founded on July 12, 1899, in the Italian city of Turin, at the time the city was enjoying a good period of industrial growth.

The first Fiat plant started in 1900, had 35 employees and made 24 cars. The Chairman was Mr Ludovico Scarfiotti, with Emanuele Cacherano di Bricherasio having the job as Vice Chairman. It was Giovanni Agnelli, however, whose strategic vision and determination paved the way for FIAT to become a household name. A former cavalry officer in the army, he managed to gain an important position with the original investors and he was made Managing Director in 1902. He came up with the idea of a promotional tour of Italy by car and this was successfully done with the finish line at the Milan Fair. The Fiat oval logo on a blue background was designed by Carlo Biscaretti and this was adopted in 1904, the first car to have the Fiat brand was a Model 4 HP. The Fiat Company focused on a two-pronged strategy for the company to grow. These were 1- diversification of production and 2- concentrate on the most promising markets. This has been the strategy for Fiat throughout over 100 years of history.

A decade after it was founded, Fiat had seen its capital stock increase to a massive 12 million Lire, it now had 2,500 employees and had manufactured a total of 1,215 cars. Even the First World War did not hamper them, as this meant a conversion to military production of army trucks, ambulances and engines for submarines, to name just a few. During this time, Giovanni Agnelli still had a vision of a bright future for Fiat based on car manufacturing. Following fact finding missions to the USA, Fiat then started to plan a new factory based on what they learned from the states. Fiat’s aim was to match the technology of America.

By 1948, mainly thanks to money received from the Marshall Plan (officially the European Recovery Program, it was the primary program during 1947-51, of the US for rebuilding and creating a stronger economy for Europe) factories had been rebuilt. The number of workers employed by Fiat increased by ten thousand. In 1946 Fiat recorded a loss. But the upward trend resumed two years later. As manufacturing output recovered in the years after the war, Fiat introduced the Fiat 500B, which was available to customers as a sedan or as a station wagon. When the 500C was released it offered for the first time, heating and ventilation installed as standard equipment. The first vehicles that were equipped with a diesel engine were driven off the assembly line in 1953.

Almost 60 years on from that first diesel engine FIAT is still going strong even though it has had its ups and downs.

Passing your test does not mean the learning stops

Posted on July 22, 2010 by Steve

Anyone who is looking for a way to lower a motor insurance quote can do worse than taking an advanced driving course. One such course is the Pass Plus scheme which is aimed at making new drivers become better drivers. To join the Pass Plus scheme finding an Approved Driving Instructor (ADI) to do the training will be the first thing needed. An Approved Driving Instructor will help complete all six of the training sections needed to pass the course. The Pass Plus scheme is an established training course aimed at new drivers. It was designed by the DSA (Driving Standards Agency) with expert input from driving instructors and insurers.

Statistics clearly show that a new driver is much more likely to be involved in an accident during the first two years after passing their test, due in some part to lack of driving experience. This is where Pass Plus comes in; it will build the new driver’s skill and knowledge. It will teach how to anticipate whilst driving, plan for and deal with different hazards, helping the pupil to become a more confident driver. It is possible to take a Pass Plus course at any time, but its main function is firmly aimed at all new drivers in the first 12 months after passing the driving test.

The Pass Plus scheme has six areas where experience will be offered. The six areas are motorways, duel carriageways, driving at night, experience on rural roads, driving in town where traffic is increased and finally driving in different weather conditions. The course will take around six hours but can take a little bit longer if the instructor deems it necessary.

The Pass Plus scheme is a practical course and all six sections should be practical sessions. However, the time of year along with weather conditions could mean that some of the six areas will need to be given as a theory session. For example a theory session may need to be given on motorway driving in some rural areas. More often than not all but 30 minutes should be spent in the car. No test at the end of the course will be required because a continual assessment will be done during each of the six sections. The instructor will have been completing a training report form during each part of the scheme which will need signing and dating when the required standard is reached in each section. To pass the whole course a satisfactory standard will need to be reached in all the course sections.

On successfully completing the training course a Pass Plus certificate is issued which will help the owner claim a discount on a motor insurance quote. Getting a Pass Plus certificate does not mean the learning ends. Consider working towards passing an Advanced Driving Test. Because passing this test would take the driving skills to a much higher level, and also provide further financial benefits. Apart from the obvious benefit of taking the advanced driving test there are other reasons to consider an advanced test. Car insurance companies will often offer a reduced premium to those who have passed this test and it is also possible to reduce the maintenance costs because being a better driver should mean that less wear and tear is caused to the vehicle. Passing the Advanced Driving Test is not easy, but if the right guidance and instruction is given, it is a worthy addition to anyone’s driving CV.

Making summer driving less stressful

Posted on July 7, 2010 by Steve

Whether your car has any driver car insurance and is used virtually everyday, or is used less often, it is important to remember that the heat of summer can take its toll on any vehicle that is not looked after properly. Add to that the effects that last winter may have had on the vehicle, a breakdown may well be on the cards. However the chances of mechanical failure can be reduced by simple maintenance that anyone can do.

Try to stay on top of the fluids of the vehicle and get the vehicle’s oil changed before it is too late. Remember that most of today’s oils are multi viscous, which means they will get a bit thinner when the temperature gets hotter outside; increasing the chance that the engine will not be getting the right lubrication. The manufacturer’s manual will have a list of the correct oil recommendations for different climates. While the bonnet is up, check the coolant/antifreeze mixture inside your vehicle’s radiator. During extreme summer temperatures, failing to keep coolant levels topped up correctly, a leaking coolant hose or a broken electric cooling fan can all result in overheating along with expensive damage. All the breakdown services say that the biggest cause of a summer breakdown is overheating.

Rotate the cars tyres around every 5,000 miles and check the tyre pressures at least once a month. This will be very helpful during the summer months. And do not forget the spare tyre; also be sure the jack is in good condition. Examine the tyres for tread life and uneven wearing another check is the sidewalls for any nicks/cuts. Brakes should be inspected as soon as any pulsation, grabbing, noises, or larger stopping distances are noticed. A car battery can fail any time of year and the only 100% way to detect a weak battery is with professional equipment.

Summer holiday driving should be a happy experience, but there are dangers that need to be considered. There may be children in the back, who will be doing their best to cause a distraction. The hot sun blazing through the windscreen, or being stuck in a traffic jam caused by what seems like the whole country headed towards the coast can all be a distraction as well. Over 100 million trips are taken within the UK, with the majority being taken during the school six weeks summer holiday period.

One final piece of advice is to make sure that travel sickness remedies are available because no one wants to have poorly children in the back of the car, if this does happen it will make the journey 10 times more difficult. As well as some anti sickness tablets there are other methods which can help keep travel sickness away. Get some acupressure wrist bracelets which have a small plastic button on the inside which puts gentle pressure on acupuncture points. One final good remedy would be to try ginger biscuits, as ginger can be a natural remedy to sickness.

What Car, What Noise?

Posted on June 1, 2010 by Steve

The EU has been great in many ways for member countries. A common currency and free movement across borders have been a boon for trade. On the downside, though, are the many stupid regulations that hinder trade. At one stage 26 types of fruit and vegetables, including artichokes, asparagus, Brussels sprouts, cucumbers, onions, peas, carrots, plums, and ribbed celery were under shape restrictions, and they also told us that bananas must not bend abnormally. Thankfully they have since relaxed this bizarre ruling but don’t think we are free from more strange rulings as we enter the new generation of zero-emission vehicles. Greener cars will get you a good motor insurance quote and possibly a car that sounds like a spacecraft.

In the not too distant future when more and more of us will have changed our cars over to a greener version, the perceived notion of roads being used by fuel efficient motors that also cut down on noise pollution due to their smaller engines may not be the route we are going down at all. Thanks to a possible new EU ruling not only will you be thinking about the traffic ahead while driving but also what sound you want your car to make as you drive along. Each manufacturer may be allowed to provide its own sounds, with the regulation simply setting a minimum volume to prevent pedestrians, cyclists and especially blind people from stepping into the path of battery-powered cars. Some of the manufacturers are thought to be considering using the same noises used on the spacecraft in Star Wars; the noise will be projected in the direction in which the vehicle is travelling to cut down on unnecessary noise. The manufacturers think that a noise will only be needed when the car is travelling under 20mph as going any faster will create tyre noise which will warn the people who are most at risk.

Professor Paul Jennings at the university where the tests on different sounds are being carried out said: “We will have a week with music and weeks with natural sounds, engine noise and also with science-fiction sounds. “We need to find noises which alert people to the approaching vehicle without causing the annoyance people already feel when they hear the bleeping sounds of reversing trucks .It is possible that pedestrians will learn to look out for silent cars and that the warning sounds could become redundant but, he said, people were far more dependent on detecting noise than they realised when crossing the road. They think they are reacting to the sight of a vehicle but often it is the sound that is triggering their attention and sound also tells you whether the vehicle is accelerating or decelerating.” The tests are ongoing and the end results could prove very interesting.

Simple Steps to Keep Your Driving Green

Posted on April 12, 2010 by Steve

There are some really simple ways to make sure that your driving is as ‘green’ as possible. There are now a whole host of options for those buying new cars, or willing to spend lots of money on new green motoring technology. Whilst these are great if you have the resources, there are still ways to change your driving habits for the good of the environment.

Global warming is caused when the sun’s rays are trapped within the Earth’s atmosphere. Greenhouse gases – which are, in part, produced by cars and vehicles – strengthen this effect. The resulting rise in temperatures may lead to extreme weather conditions, melting of ice caps and rising sea levels. Reducing emissions of your car will help to decrease this problem.

Manufacturers are now building cars which specifically keep emissions to a low, like those which use electricity rather than petrol for power, or hybrid cars which use a combination of both.

However, it is possible to use your existing car in a way which significantly reduces your emissions. Here are some helpful tips for achieving this:

- Changing your driving style is one of the simplest ways to reduce emissions. Heavy, jerky and sudden movements put strain on the engine, causing it to increase emissions. Smooth, flowing driving can take pressure off the engine and reduce emissions. In particular, if you can see an obstacle ahead such as a traffic light, coming to a gentle stop is preferable to accelerating fast then braking hard.

- Lowering your speed is another great way to reduce emissions. The higher your speed, the more emissions your car will be making, so travelling slower is a greener (and perhaps calmer) method of driving. Changing speed lots uses energy too, so anticipating the road ahead in order to set steady speed, or using cruise control are also helpful techniques.

- Remove any excess weight from your car. If you are driving with unnecessary, heavy items, your car is having to work harder to carry these around everywhere. Items on the outside of your car, like roof boxes particularly increase fuel consumption by causing aerodynamic drag. If you only use them occasionally, they are worth removing.

- Switching off internal electric components increases fuel efficiency, too. Whilst they can be a great luxury, features such as heated seats and air conditioning use a lot of energy. Switching them off when you don’t need them will improve your green driving.

- Your car should be checked regularly to make sure it is running efficiently. If you notice any marked increases in fuel consumption, this could be a result of a faulty component or poorly inflated tyres. A well looked-after car will make sure you are not wasting any energy in driving.

- Finally, and perhaps most importantly, consider whether driving is entirely necessary in the first place. The greenest car is one which is sitting in the driveway making no emissions at all. If your journey could be made on foot, by bike, or using public transport, you will be cutting your driving emissions to zero!

So if you feel inspired to do your bit for the environment, but worry that a new energy-efficient car isn’t really on the cards for you at the moment, these tips should help you ‘drive green’ with only some very minor changes to your existing habits. Remember, if you do make any modifications to your car, ensure you keep your insurance company up to date, or search for motor insurance quotes should you need new insurance.

Car Insurance Guide

Posted on June 5, 2009 by Steve

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.