Car Insurance Costs Playing a Big Part in Vehicle Purchase Choice

Posted on May 1, 2012 by admin

A survey by online motor insurance comparison sites shows that drivers looking to buy their first car are more aware of the cost of motoring than any of their precedents.

The report shows that people buying a car in today’s tough economic climate consider not only the price of the vehicle but the on-costs as well. Surprisingly the survey revealed that for over three quarters of those questioned buying a car was their biggest expense in life, and very few were interested in top of the range models with big engines. 70% chose a car with an engine size no bigger than 1.3 litres with a big proportion of young drivers citing cost and insurance as the main reason for their choice. In fact 2 out 3 people said car insurance was a huge expense to be considered when buying a car with 1 in 6 under 24s saying it was their main consideration when looking to buy a vehicle.

The survey found that young motorists in many cases would have to pay thousands of pounds to insure a new car. A 17 year old could expect to pay over £12,000 to insure a brand new Volkswagen Golf GTi 2.0l and needless to say very few consider such cars as an option.

Gareth Kloet collated data from the survey and said: “Buying your first car is a really exciting purchase. For the first-time buyer, cost is an important factor with 50% saying that price affects their purchase, and 35% of first-time buyers paying £500 or less for their first car. Car insurance is a huge purchase for young drivers. However, our research tells us that these drivers are adapting to pressures and opting for smaller, cheaper cars, in order to minimise their insurance premiums. We would advise first of all to decide how much you can afford to pay for your first car; not just the sum to buy the car itself but also the running costs, insurance, MOT, vehicle excise duty, petrol, repairs and servicing and only then make your final decision.”

Bus Lane Drivers Caught in their Thousands

Posted on April 30, 2012 by admin

More than 5000 drivers have been caught and fined for driving in bus lanes throughout Edinburgh in a matter of days. The new spy cameras caught over 1000 vehicles illegally driving in the city’s Greenways on the first day they were turned on.

A similar number were caught each of the first five days which will net the council up to £300,000 in fines. The figures reflected the scale of the problem in Edinburgh and the new cameras were installed after complaints that motorists have been using the bus lanes as “private routes” for too long. However, motoring groups have expressed their dismay and worry at the number of fines that have been handed out and they fear drivers may be faced with increased premiums on their next car insurance quote despite them only inadvertently violating rules. Those who have been fined face being taken to court or a bailiff visit if they do not pay the £60 fine, which can be cut to £30 if paid within two weeks. But the fear is that some drivers may have been caught more than once during the first week.

Councillor, Gordon Mackenzie, has been quoted saying: “I don’t think the council will end up making a lot of money – I expect the numbers will drop off by 75% to 80%. When these fines start landing on people’s doorsteps I think there will be a big change in behaviour and the level of income won’t be anything near what it is in the first week. Based on my personal experience I thought it was just isolated vehicles that are breaking the rules, but that is an awful lot of isolated vehicles.”

The amount recouped in the first five days will go towards paying the £297,000 cost of setting up the cameras and the £116,000 it costs to run them per year. Council chiefs have confirmed that any surplus will go towards improving both the road and transport infrastructure. The council feel that by fining drivers who illegally use Greenways, it will improve the efficiency of the bus service, benefit the environment and improve safety on the roads for all cyclists.

City Motorists Turn a Blind Eye to Spy Cameras

Posted on April 27, 2012 by admin

Motorists in a Scottish city have shocked their local council by ignoring static spy cameras in their thousands.

Aberdeen City Council has recently installed eight spy cameras in the City Centre to catch out motorists who are ignoring regulations concerning bus lanes. The council has widely advertised the fact the cameras are in position and that motorists will be fined £30 if caught straying into a bus lane. The cameras were not received well by the city’s motorists but the numbers who have completely ignored them has taken the council by surprise. In the first three days, thousands of motorists have been caught flouting the rules and using the bus lanes. One camera recorded 436 transgressions in the first three days. The council has stated that drivers caught in the first few days will not be fined but given a warning letter but fines will be handed out in the very near future.

The council had anticipated raising just over £1 million for the Scottish Treasury over a period of 12 months via the fines; if Aberdeen motorists continue to ignore the cameras then the final figure would be much more. A spokesman for the council said: “I think it would be fair to say that we were slightly surprised by the volume of offending. It does give a certain justification for having the cameras there, but we would hope to see the volume of offending come down significantly over the following weeks and months. There has been a huge amount of publicity about the introduction of the scheme so people should know that the system is in operation. By the time the fines start rolling out, people will have no excuses. Obviously we are not publicising the date when the fines will start, but it will be sooner rather than later.”

Motoring organisations are less than impressed with the council’s attitude as the money spent on setting the system up was from a £400,000 funding package from the Scottish Executive to ease traffic congestion in the city centre. A spokesman for a motoring trust in the area explained: “With motorists already under pressure from rising car insurance and unjustifiable fuel prices, the last thing they need is to be a cash cow for the Scottish Government.”

Insurance companies brace themselves for a stormy weekend

Posted on April 26, 2012 by admin

Car insurance companies are preparing themselves for a deluge of claims as weather forecasters warn motorists in the South West to be prepared for treacherous conditions on the roads.

Motorists in Wales and the South West of England have been told to prepare for flooded roads and danger from falling trees as rain continues to fall. It is only a week since the areas officially became drought zones and ever since the water companies made that decision the area has been saturated with heavy rainfall. Yesterday saw the heaviest rain so far and over 40 flood alerts were issued but it was not just the rain causing problems. Four cars were damaged in Southsea when strong winds brought scaffolding down, and gale force winds with heavy rain is the forecast for the next seven days.

Paul Mott, a forecaster for the Meteo Group, who supply weather reports for the press association, said: “It’s going to be another rainy day across the country. It will be mostly unsettled with heavy rain and showers at times. There is already quite a lot of surface water on the roads and motorists should be aware of the dangers. It’s going to stay unsettled over the next seven days with frequent showers and persistent rain. Sunday looks to be a washout with up to an inch of rain falling across England and Wales.”

While the rain has been welcomed by gardeners and farmers, motor insurance providers will be fully manning call centres as they expect claims to spike over the weekend. With the heavy rain falling on dry ground they believe flash flooding will catch many drivers unawares.

Angry Residents Receive Parking Tickets Outside Their Own Homes

Posted on April 25, 2012 by admin

Residents in a Coventry suburb were furious to find they had been given £60 fines for parking cars outside their own homes, despite being assured by the council that their out-of-date parking permits would be valid while they waited for new ones to be sent out in the post.

The local council office assured residents that the new permits would be sent out before the old ones expired. However, when the permits failed to arrive, the residents were told to display the old permit and the parking wardens would be told of the delays, unfortunately no-one told the wardens. The parking scheme was introduced seven years ago to stop football fans attending matches at Coventry City’s brand new Ricoh Arena leaving their cars in the surrounding streets and blocking local residents from accessing their drives. The permit scheme entitled residents to park their cars on the streets during match days and other major events at the Arena while visitors had to use official car parks.

Resident, Tracy Wallace, has been commenting: “We are the ones who live here and yet we’re being penalised. Many of us have already lost our no claims bonus on car insurance because of minor accidents caused by visitor parking and now this. I went out to tell the wardens about the situation and that they are our cars but she said it was too late. I was so annoyed because I live there and I have a right to park outside my home. We were sent out letters from the council saying they would send out new permits before the expiry date. I rang them up and was told my out-of-date one was okay. The council have led us to believe our permits are valid and that everything is straightforward.”

When the local newspaper raised the issue with the council they promised they would quash any fine handed out to a vehicle that displayed an out of date permit, as long as they were waiting for a new permit. They are also encouraging all residents to apply or renew for their permits as soon as possible in order to avoid a similar situation in the future.

Select Committee Looks to Bring Down the Cost of Motor Insurance

Posted on April 24, 2012 by admin

A government report on the cost of car insurance is focusing on the plight of young drivers and how driving can be made more economical for them.

The report issued by the Department for Transport (DfT) is titled “The cost of motor insurance” and although it looks into the problems the rising cost of motor insurance is causing for all drivers in the UK, it concentrates on the impact of high premiums on young drivers. In the past 12 months several surveys amongst motorists and insurance companies have found that young male drivers now face premiums of above £3,000 on their first car insurance policy, a price that many can’t afford and that encourages many to break the law by driving without insurance at all.

The report investigates ways that insurance for young drivers can be brought down and at the same time cut down on the terrible accident rate motorists in the under 25 category have. MPs who worked on the committee responsible for the report believe the way insurance companies handle claims could also be improved.

The use of telematics via the placement of a “black box” in a car that records the activities of the driver is considered the best way forward by both insurers and the motor industry in general. They believe that not only will it encourage young drivers to drive more carefully in a bid to bring their insurance costs down but will also help reduce the number of fraudulent claims on motoring accidents, the main reason why vehicle insurance is so expensive. The device monitors speed and braking patterns and would deter would be fraudsters from making erroneous claims. The authors of the report also believe the practice of referral fees between insurance companies and accident management companies should be outlawed and laws surrounding claims for whiplash injuries completely revamped.

A spokesman for the DfT said: “The cost of motor insurance, a report by the transport select committee, shows that the rising costs of insurance throws up important issues with significant economic and social impact for all motorists, especially for young drivers and we are determined to give help where we can.”

Barton Needs More Car Parking as Number of Vehicles Grows

Posted on April 23, 2012 by admin

The demand for town centre parking in a Humberside town is growing as motor insurance providers report ever increasing claims in the town from minor accidents. Ann Clark, a member of Barton Town Council, has been contacted by a number of residents who are very concerned at the number of vehicles parking on the streets and she is eager to find a solution to congestion problems.

Barton town centre only has 105 free spaces in council owned car parks and Mrs Clark believes that a new car park is needed to relieve the congestion that has been getting worse as the town has grown. Drivers are parking up cars without giving consideration to passing traffic or residents, and as a result minor accidents and scrapes are becoming frustratingly common.

Ann has raised the issue at Barton Town Council and has been given support from the town’s MP, Martin Vickers, along with local traders. Now she wants to draw up a plan to get the ball rolling as soon as possible. The reality of the idea does, however, depend entirely on identifying a site. The easiest solution would be to use council land, but it has to be a suitable location. Barton is fortunate that they have always had free parking, a fact that the town is very proud of.

Mrs Clark said: “The town centre is becoming very congested, and because Barton is always growing we need to make plans for the increasing number of vehicles. The town is not providing the necessary facilities to accommodate more people, and it is starting to become a big problem. The streets were built many years ago, and do not have the capability for two-way traffic as well as rows of parked cars. We need to find a suitable location in the town centre, and if we have the financial capability we can hopefully develop plans to build a new car park.”

Demand for Green Cars Beginning to Accelerate

Posted on April 20, 2012 by admin

According to research carried out by SMMT (Society of Motor Manufacturers and Traders) CO2 emission level figures on new cars are getting greener. The average CO2 emissions for a new car went down by 4.2% last year and have reduced by 23% in the last decade.

However, the average new car figure of 138g of CO2 per one kilometre is still higher than the 2015 European legislative target of 130g/km. SMMT figures showed that last year only half of new cars had emissions below the 130g/km figure. They also found that 66,000 vehicles were exempt from having to pay vehicle excise duty because they were below 100g/km. An increasing number of drivers are looking to compare cheap car insurance for a greener car than they had previously driven.

SMMT Chief Executive Paul Everitt said: “The UK motor industry can be proud of the progress it has made in reducing CO2 emissions and improving fuel efficiency. The industry recognises its responsibilities and the industrial opportunities from the transition to ultra-low carbon vehicles. Future environmental and economic success will be determined by sustained investment in new technology, research and development, infrastructure and consumer incentives. We are seeing steady improvement in conventional technologies and the emergence of a range of alternative technologies, creating one of the most innovative periods for the global automotive industry.”

Executive cars (10%) and specialist sports cars (8.0%) showed the biggest fall in emission levels in 2011 compared with 2010, while executive cars (35%) also made the biggest emissions improvements in the last decade. With stricter emissions legislation in place and increasing consumer demand to reduce the costs of motoring, the great majority of motor manufacturers are striving to reduce carbon emissions and improve vehicle efficiency. Many car manufactures are giving plenty of useful information to help make the right choice, such as eco labels that show its CO2 figure and estimated annual running costs.

Economics Driving Consumers to Car Showrooms

Posted on April 19, 2012 by admin

Motorists in the UK are increasingly looking to purchase car insurance on vehicles with low carbon emissions and economic usage of fuel.

That is the outcome of a report from the industry leading Society of Motor Manufacturers and Traders (SMMT). The report shows that new cars with their technological advances are becoming more popular with consumers, and it is down to the modern day cost of motoring. According to SMMT almost half of all new cars sold last year had emissions of less than 130 grams per kilometre; just four years ago only 10% of cars could boast of being so clean. The figure of 130 is key to the industry as European Union regulations demand that all cars emit no more than 130 g/km by 2015. At the moment the average new car in the UK emits 138g/kg but designers are now confident that the target will be met.

It is not clean emissions though that is foremost in motorists’ minds when they buy a new car, it is economics. The new breed of cars can easily give drivers over 50 miles to the gallon and with fuel prices obstinately staying at record levels it is this factor that is driving prospective buyers to the car showrooms. John Madslien from the BBC summed it up by saying: “New or nearly new cars are now so frugal that, with the currently high petrol and diesel prices, switching from old, thirsty models often pays for itself. Both fleet and private car buyers realise this, so demand for fuel efficient cars has soared. Given the close link between reduced fuel consumption and emission reductions, the result has been a big step towards an envisaged future of low carbon motoring.”

Interestingly enough the report shows that zero emission cars are still having very little bearing on the race to cut emissions, as only just over 1% of new cars are carbon free.

Car Thieves Cashing in on DVLA Loophole

Posted on April 18, 2012 by admin

A DVLA (Driver and Vehicle Licensing Agency) loophole means that vehicles can be scrapped without any proof of ownership being provided, leaving the process wide open to fraud. Anyone can claim a vehicle is theirs, contact a dismantling company, arrange for it to be collected and then receive cash for the scrap value of the vehicle.

Currently there is no need for any paperwork, such as a V5 registration document, and given the increase in the price of scrap metal, it is little wonder that more and more vehicles are rapidly disappearing from the roads of the United Kingdom.

George Harrison found out how easy it is when he returned from a two-week holiday and found his Ford Mondeo missing. He contacted the police who looked into it and found that according to the DVLA records the car had been scrapped while he was away. George was told by the DVLA that a Glasgow firm, IBP Vehicle Dismantlers, had registered the car’s scrapping. He has handed this information to the police who have promised to investigate.

George said: “The car was only worth about £1000, but it was mine. I am mad at myself because I did not even have motor insurance so I am unable make a claim. I’d had the chance of another vehicle and transferred my policy to that. I couldn’t afford to pay insurance for both of them. The law in relation to scrapping must be tightened up. It’s outrageous.”

IBP Vehicle Dismantlers confirmed that the person claiming to be the owner did not possess a V5 registration document and so they were asked to fill out a form with their contact details before they took the car. They are themselves shocked to hear the car was stolen and have handed over all the information they have and are fully cooperating with the police investigation.