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Cost of motoring roars ahead

Thursday, November 24th, 2011

The recent report issued by the Royal Automobile Club (RAC) on the cost of running a car in the UK today, is enough to make anyone think twice before they get a motor insurance quote.

Fuel duty the main cause

According to the nationally recognised motoring group the price motorists pay to go about their business using a car has spiralled in the last 12 months. It will come as no surprise at all to motorists that driving is more expensive than ever before but the RAC reckon costs have increased by a massive 14% in the last year. The increases seem to cover every aspect of motoring but it is the fuel price that seems to have crippled long term motorists the most. This time last year petrol and diesel both cost less than £1.20 a litre, today drivers are paying on average £1.34 and £1.40 respectively. Fuel has risen in price by around 12%.

Motor insurance policies averaging over £500

The other big increase has come via car insurance cover. Unbelievably the average cost of a car insurance policy is now £550, up 14% on the year but up by over 30% on the prices in 2009. Insurance companies say the increases are due to the steep rise in personal injury claims more than anything else but say insurance fraud and uninsured drivers also play a big part in bumping the price up.

Running costs racing ahead

Overall the RAC estimate the average cost of running a car is now £6,500 a year or about £520 a month. This of course would make a massive hole in anyone’s pay packet, let alone those who are out of work or retired. The figures compared to those of four years ago show an increase of over 20% and this remember in a period of recession and austerity. Many workers have not had a wage rise since 2007 which makes the impact of high motoring costs even harder to bear.

Golden age of motoring finished

There really is little many drivers can do about the situation; fuel consumption is certainly down showing that people are cutting out unnecessary journeys. Car ownership is also down suggesting the middle classes are now managing without the “family run-around”, but in truth the golden age of motoring may well be over. Probably illustrated no better than the fact that only just over 1000 electric vehicles have been sold in the UK this year. Surely a nation keen to avoid the fuel prices imposed on them by the Government and oil companies would have flocked to the new breed of cars by now.

Tags: Car Insurance, Motor insurance, motoring costs
Posted in Advice, Car Costs, Car Insurance, Motor Insurance | No Comments »

UK drivers happy with MOT as it is

Tuesday, November 22nd, 2011

At a time when motorists are crying out for a cushion to protect them from the ever rising costs of motoring, a survey by one of the UK’s most prominent road safety organisations proves that drivers still put car safety issues at the forefront of their vehicle requirements.

Present system preferred

In a survey conducted by the Institute of Advanced Motorists (IAM) 6 drivers in 10 indicated a preference to leave the UK’s MOT certificate demands exactly as they are. The poll was launched on the back of a Ministry of Transport initiative which proposed to alter the UK MOT requirements of a test every 12 months after 3 years to the more relaxed EU checks which require the first check after 4 years and subsequent checks every two years instead of one.

Safety put before costs

At a time of soaring car insurance cover and exorbitant fuel prices one would have thought that drivers in the UK would have grasped the chance to lower their motoring costs but apparently that is not the case. Less than 3 in 10 UK drivers thought the changes to the MOT would be advantageous and 2 in 10 believed they were wrong.

MOT check will diagnose major problems

The survey probably reflects motorist’s belief in the MOT test as a fail-safe mechanism from their laziness. More and more drivers are happy to forget about car maintenance until it is a necessity, and the MOT is a necessity. Although 1 in 4 drivers suspect that garages invent a fault during the test to optimise their profits, over 6 out of 10 drivers believe the test will pick up dangerous faults.

Massive discrepancy in pass rates between UK and Europe

Amazingly, only 63% of cars pass their first MOT in the UK, while in France for example, 94% pass. Strangely enough the first check occurs a year later in France! That bare statistic suggests that drivers taking out motor insurance for the first time would surely opt for the European system, after all why should 1 in 4 cars fail a basic safety check after 3 years. Whatever the reasons behind the discrepancy, drivers in the UK have signalled their belief in the present system and it will take a brave Minister of Transport to turn against public opinion and at the same time put jobs in the motor industry at risk.

Tags: Car Insurance, MOT, Motor insurance
Posted in Advice, Car Insurance, Motor Insurance | No Comments »

Island communities set for a cut in fuel duty

Thursday, November 17th, 2011

It is a long time since motorists in any part of the UK had anything to cheer about, but it does seem now that a few thousand of the millions of drivers that can still afford to take their vehicles out for a spin, are in line for a small respite from increasing costs.

Islanders get a raw deal

People living in the outer reaches of the UK may at long last be getting a 5p per litre cut in fuel prices. Motorists on the outer boundaries of Britain have for a long time got a poor deal compared to the rest of us. Very little is spent on road maintenance and the cost of getting fuel out to the islands has always meant an extra few pence on the cost. The islanders who rarely have accidents have never done too well with car insurance cover either. Because of the remoteness of the islands the number of car insurance brokers is much less than those in other parts of the country. Less competition means prices tend to stay higher and even more prohibitive motoring costs are inflicted on the occupants of the islands.

Reduction in the pipeline

For many years pressure groups and MPs who represent the islanders have harangued transport ministers and treasury experts to make a special case for places like Shetland and introduce some sort of discounted fuel duty, at long last it looks like it may happen. According to Alastair Carmichael the Liberal Democrat MP for Orkney and Shetland the Coalition Government is about to announce a 5p cut in the price of fuel for: the Isles of Scilly, the Inner and Outer Hebrides, the Northern Isles and the islands in the Clyde Estuary.

Increase in the New Year will cancel benefits

It is thought the reduction in duty will at first be given to retailers who will be compelled to pass it on to their customers. There is no word yet whether the proposed increase of 3p a litre on fuel destined to take place in January has been put on hold. If not the hard fought campaign to get relief for the islanders will be short lived indeed.

Tags: advice for motorists, Car Insurance, Fuel price
Posted in Advice, Car Insurance | 2 Comments »

Motoring groups opposed to change in MoT system

Thursday, October 27th, 2011

Road Safety Minister, Mike Penning, is coming under increased pressure from motoring groups to think again about proposed changes to the Ministry of Transport compulsory car safety test known as the MoT.

Test been in place for 50 years

For almost 50 years there has been little change to the MoT test and motorists in the UK have known from the moment they take out motor vehicle insurance, their car must pass its MoT every year after its third birthday to stay on the road. Costs associated with the MoT have, in line with all other motoring costs, shot up over the last few years and so many motorists will be relieved that the incumbent Government propose changes to the system that will save them a few pounds.

Car manufacture has radically improved

The Government are looking at proposals to change several key elements of the test as they claim car manufacture today is radically different to that of the 1960s. When the tests were introduced the materials in vehicle construction were inferior to those today, vastly improved car safety measures along with super strong engine parts and bodywork mean that cars should not have their first MoT until they are four years old and then only need a bi-annual test until they are ten years old according to Government advisers.

Motoring bodies opposed to change

The proposals are not as popular as one would have thought; in fact 25 organisations with close links to the motor industry have united to form a pressure group to get the transport minister to change his mind. The companies include such high profile names as the AA, RAC, road safety campaigners BRAKE and insurance giant Aviva. Opposition to the change is based on safety issues, many people in the industry point out that an MoT is the only time many cars are checked for safety faults and this includes basic checks such as tyres, windscreen wipers and lights. Road safety campaigners believe a reduction in testing could lead to over 200 extra road deaths in the UK each year and point out that European countries impressed by the road accident figures in the UK are currently looking to emulate our present system because it works so well.

Price to pay

The group also believe the new measures will make even the cheapest car insurance more expensive than it is at the moment and point out that reduction in the number of MoTs will inevitably mean less mechanics are needed at garages and therefore job losses in the industry are assured.

Tags: Car Insurance, Ministry of Transport, MOT, Motor insurance, motoring costs
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More motorists feeling the pinch

Thursday, August 4th, 2011

The continuing difficulties in the UK economy is still impacting on families across the country, and as recent surveys report how spiralling costs are affecting two sections of society more and more, motorists seem to be walking away from their cars.

Moms driven off the road

A recent survey by Bridgestone tyres suggests that cheap motor insurance quotes for women drivers appears to be a thing of the past and soaring premiums plus the exorbitant price of fuel is turning the school run into a walk. The survey by the famous tyre company asked mothers from all over the UK how the current financial downturn was affecting their daily lives and the outcome proved very interesting.

Motoring targeted for savings

Over 90% questioned said they were feeling the effects of spiralling prices and the austerity cuts. The same amount unsurprisingly revealed that they were saving less than before, with more than 50% admitting they now regularly incurred bank charges for using overdraft facilities. It is motoring though where moms are looking to make the savings. The taxes along with the hike in car insurance premiums has persuaded 5% of moms to sell their vehicles already while over 30% said they were considering doing the same thing.

Effect on children worries moms most

Of course most moms primary focus in life is their children, and while a short walk to school will certainly not do their offspring any harm whatsoever, 50% of moms were concerned that because they could no longer take their children on school trips in their cars the youngsters were missing out. The same worry extended to after- school activities and family holidays.

Young drivers in the same boat

At the same time as moms were revealing how the downturn is affecting their motoring, a BBC report shows how the cost of young person’s car insurance is dramatically reducing the number of youngsters taking driving lessons. According to the BBC report it is not the £25 cost of the average lesson that has seen a 20% drop in 17-22 year olds learning to drive, nor is it the prohibitive cost of fuel, it is the mind boggling sum they have to find in insurance. In 2005 a 17 year old male could expect his first car insurance policy to cost him around £3,000 that has now rocketed to £5,200 and is in many circumstances more expensive than the value of the car.

Policy providers must find an answer

It is a well known fact that young people and males in particular, are many times more likely to have an accident than older more experienced drivers, but it is also a fact that skill often comes with experience, and that skills are picked up more easily by a young enquiring mind. Experts are looking to the motor insurance industry to now come up with new initiatives in policies to answer questions like “what insurance group is my car?” to help prevent a generation missing out on a skill that has been taken for granted over the last 50 years.

Tags: Car Insurance, motorists, Young Drivers
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More young drivers ignoring the perils of drink driving

Tuesday, August 2nd, 2011

Worrying statistics released by police forces across the country this week suggest that Government cuts in advertising road safety campaigns are having a devastating effect on drink driving figures.

Prosecutions up, budget down!

According to the police statistics there has been a 15% upsurge in the number of young drivers proving positive for drink driving offences, and the increase in figures comes at a time when the budget for anti drink driving propaganda, put out by the government has dropped from £3.4 million last year to just over half a million this year. Road safety organisations and motoring groups believe it is the cut in budget that has led to a manifestation of the problem and are urging the Government to reconsider its position.

Minister looks at a glass half full

As a result of the budgetary cuts police forces across the country took significantly less breath tests than in previous years and subsequently the number of those proving positive dropped as well. However, the percentage of those proving positive was noticeably higher and it is this figure that triggered concern from the Police and other organisations mentioned earlier. Government sources take a slightly different view. Mike Penning the road safety minister believes the increase in under 25s caught breaking the law is down to the Police targeting their resources in a more specific and successful manner. He is delighted with the outcome of the road side initiatives by police forces across the country and promises to continue along the same lines, preferring seasonal campaigning rather than a prolonged message.

Youngsters ignoring the dangers

Road safety campaigners are not impressed by the ministers take on the subject and point to statistics taken from an earlier survey that found almost 1 in 4 young drivers admitted to driving when they thought they may be over the legal limit. Perhaps just one reason why young person’s car insurance quote is now so expensive. It seems that neither the loss of licence, a jail sentence nor even more costly motor vehicle insurance is enough to make them think twice.

Message may be lost

There is a real fear amongst such organisations that over 20 years of Government led advertisements that led to a public acceptance that drink driving was socially unacceptable may be destroyed if the current spending budget is not reviewed.

Tags: Car Insurance, motorists, Police, Young Drivers
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UK motor industry alive and kicking

Tuesday, July 26th, 2011

The latest facts on the motor industry in the UK, released by the Society of Motor Manufacturers and Traders (SMMT) reveals just how important the motor trade is to the United Kingdom and how the tenacious spirit of those concerned with the industry have brought it through its most difficult period.

Million sales figure achieved

Throughout the year of 2009 (the latest statistics available) motorists took out motor insurance on around 1 million vehicles produced within our home shores. On top of that 2 million engines were also produced. The industry exported over £26 billion of goods which represents about 10% of the total amount of exports for that year.

Export market a key factor

It is the export trade that the UK motor industry revolves around. Over 75% of the vehicles produced in 2009 were shipped overseas with both cars and commercial vehicles proving exceptionally popular. The destinations of the cars exported from the 40 motor manufacturers in the UK finished up in many destinations. In all over 100 different foreign markets import motor vehicles made in the UK.

Money wisely spent

The UK motor industry can now boast that it is the fourth largest in Europe and it is indicative of a population whose love affair with the motor car is undiminished. Almost 2 million of us purchased car insurance cover on a brand new car in 2009 and a quarter of a million working vehicles also hit the roads for the first time. Of course the figures were helped by the scrappage scheme in 2009 but the very latest figures for 2011 show that the industry used the Government incentive not only as a crutch to help them through the most difficult times but as a spearhead to finance research and development projects that are now coming to the fore.

Different challenges ahead

The motor industry in 2011 is already vastly different to 2009 as the race to lower CO2 emissions has become the Holy Grail. The first alternative fuelled cars are now rolling of production lines (there have been 11,000+ so far this year) and even conventionally fuelled cars now have average emissions of almost 10% less than those in 2009. The future for the British Motor Manufacturing industry looks assured but it is for certain they will not be resting on their laurels.

Tags: Car Insurance, motor industry, motorists, Society of Motor Manufacturers and Traders
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Bright ideas for night driving

Tuesday, July 19th, 2011

As the world we live in becomes busier, more and more motorists are finding they have to carry out journeys in the dark. The saying that New York is a city that never sleeps could now be applied to dozens of towns and cities across the UK.

It isn’t natural

Shift workers in all types of occupations now find themselves driving at night, and a warning from the Institute of Advanced Drivers (IAD) that night driving is far more hazardous than day time driving and, percentage wise, results in far more claims on motor vehicle insurance policies should be heeded by all of them. The IAD advise there are plenty of precautions motorists can take to protect themselves and their passengers when driving at night. Accepting the fact that for human beings night time activity is unnatural is the first thing to understand.

Shed some light on the subject

Night time affects our judgement in many ways but it is our eyesight that suffers most. The IAD suggest every use of artificial light available should be used to its best advantage. They suggest turning your car headlights on an hour before official times to enable other drivers to see you better and at the same time dim any lights in the car (this will cut down on glare and also keep the driver more alert to what is happening on the outside of his vehicle). They advise to drive on full beam whenever it is safe to do so and also to remember that shadows and artificial light can affect your judgement of distances.

Every second counts

Driving comfortably below the speed limit will give you that extra split second of braking time in an emergency, and will also give other drivers more time to assess your vehicle in relation to theirs. Ensure all your lights are working and make sure your windows and mirrors are clean, this will not only give you greater visibility but will make your car more visible to others.

Take a break

Finally remember that it is natural to feel sleepy at night. Thousands of discount car insurance deals are spoilt every year because a driver fell asleep at the wheel when journeying overnight. The IAD advise all drivers to stop and rest at regular intervals when driving overnight whether they are professional drivers or holiday makers making a once in a year journey.

Tags: advice for motorists, Car Insurance, Night driving
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Car insurance for 17 year-olds in Northern Ireland proving too costly

Thursday, July 7th, 2011

Young person’s car insurance in Northern Ireland is becoming so expensive that a national body is calling on insurers to cut policy premiums before young drivers are forced off the road because they can’t afford to insure their cars.

Most expensive in the UK

The Northern Ireland Consumer Council (NICC) say that car insurance, in general, is much higher than the rest of the UK, but young drivers in particular have seen their policy premiums increase by over 60% in just one year. They have asked the Northern Ireland assembly to investigate why youngsters in the province pay on average £300 more than their English counterparts.

Change in claims procedure should accelerate cuts

The council accept that insurers are reluctant to insure drivers in Northern Ireland due to historical evidence that, not only is there a high incidence of personal injury claims in the country, but payouts are also significantly higher than anywhere else in the UK. They do point out though that this was because of the system where claims were heard before a jury rather than in front of a single judge, and that the system has now been changed. And it really had to. The average pay out was over triple those on the mainland and scared insurance companies away.

Youngsters should not be driven to crime

Insurance providers have been slow to pick up on the change in the legal system and so have not realised there may now be lucrative business to be gained over the sea, and of course while there is a lack of competition, then prices will remain sky high. At a time when austerity measures and inflation are hitting most families in the UK, asking a 17 year old to pay £3,000 to get car insurance cover on an old car is not going to be feasible, and while everyone accepts that new drivers, and particularly young new drivers, are susceptible to accidents, pricing them out of the market should not be the answer. The last thing Police in Northern Ireland want is youngsters driving around without insurance at all. That is one sure way of putting premiums prices up for everyone else.

Tags: Car Insurance, Motor insurance, Northern Ireland, Young Drivers, Young Person's Car Insurance
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Is car ownership in the UK over the hill?

Tuesday, July 5th, 2011

With yet another survey suggesting that Britain’s motorists are being forced off the roads due to financial pressures hitting the press, the question now being asked is; have we reached the peak of car ownership in the UK? Will the 27 million cars reckoned to be owned by the population of these small islands in 2010 be the summit of vehicle registrations in this country and will it now be downhill all the way?

Over 3% turn their back on motoring

The latest survey by a leading supermarket who sells motor insurance quotes suggests that 1 in 30 of us have given up our car in the last 12 months. It is a statistic that is certainly an eye opener because the percentage represents a figure of 1.3 million, but is it true?

Blues and yellows turn green

Environmentalist campaigners have said for many years that the only way to force people out of their cars was by making them too expensive to run. The irony is they fully expected it to be years before the Green Party would have enough political clout to achieve this, it seems as though the Coalition Government in conjunction with the oil companies may have done the job for them. Although it is hard to imagine the figures represent anything but a significant amount of families getting rid of their second or third car, by the time the current downturn is over the number of cars in the UK may have dropped significantly.

New legislation will make its mark

Another factor that may bring the number of sundry cars down is the new laws surrounding motor insurance. No longer can someone park their car on a drive or in the street without insurance cover. It is now an offence to own a car that is not insured unless it has been declared so using the SORN form. The new legislation even gives the law enforcers the power to confiscate and scrap the vehicle.

Environmentalist’s advice at last being heeded

The average price of fuel is now £1.36 a litre, and besides the 1.3 million car drivers that have stopped using their cars completely, other motorists have used various techniques to cut down on their fuel consumption. These include car sharing, driving slower and simply using the car less, all principles environmentalists have tried to get over to the public for years.

Tags: Car buyers, car costs, Car Insurance, Environment, Petrol
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