Tesco Compare – Does it Offer Anything New?

The recently launched Tesco Compare online insurance website has been much feted by the giant supermarket chain. The question is does it offer anything new to motorists searching for the best motor deal on the market.

We have already seen the growth of insurance aggregators such as MoneySupermarket.com, Confused.com, and uSwitch et al. This proliferation of comparison sites led Direct Line to counter with it’s own marketing claims:

• You won’t find us (Direct Line) on comparison websites
• Take out the middleman and you could avoid extra costs
• Benefit from unique features such as no excess to pay if you’re hit by an uninsured driver with our comprehensive cover.

Many individuals and groups are also starting to question the validity of these comparison websites. Claims of researching the ‘car insurance market’ to bring you the best value deal are not always quite what they seem.

Specifically, one of the complaints that Direct Line made about the aggregators was about the ownership of the comparison sites. Suggesting that perhaps the price comparison sites might be biased in favour of their owners!

What many people don’t realise is that many of the competing brands of insurance advertising on your TV screens every day are all owned by a relatively few companies, and very little mention is made of the links between them. Direct Line have been very quick to point out the following ownership issues with the aggregators:

Confused.com owned by Admiral. They (Admiral) also own elephant.co.uk, Bell Direct and Diamond (car insurance for women).

GoCompare are “independent” but have received a £30m loan from esure.

Compare the Market is owned by Budget. Rather dubious here as all of the brands quoted are Budget group companies! They (Budget) also own Dial Direct and Junction who run the insurance arms of the Post Office, Marks and Spencer, Debenhams, Bradford & Bingley, Homebase and yesinsurance.com.

The bottom line here is when shopping around for a first time policy or renewal make sure you get at least three quotes, from three different sources, online or offline.

Escalating Fuel Prices

Regardless of the size of petrol or diesel powered vehicle you drive, you can’t help but notice the rising price of fuel at the pumps.

In the south east of England we are now paying up to 105.9 for a litre of fuel! I watch in horror as the spinning counters on the pump show that the amount of fuel I put in (litres) loses ground to the price in pounds.

The question is just how much is the british motorist prepared to pay for fuel before leaving the car at home and taking an alternative mode of transport? There have been recent studies indicating the price of fuel could near £2 per litre before people start switching to trains or buses.

Higher fuel prices also impact on the economy. Driving unwelcome rises in inflation, restricting economic growth and being distinctly unpopular with the electorate.

Why is the Price of Fuel So High?
Currently oil prices hover around $95 a barrel. This means OPEC members (Saudi Arabi, Kuwait, Nigeria, et al) are reaping record revenue. The demand for their product (oil) keeps rising, and the world economy seems capable of sustaining oil prices that would have seemed suicidal just a few years ago.

However, there have been real concerns over the actual figures relating to the amount of oil left for global consumption. There are also growing fears of a global economic slowdown, an endlessly depreciating dollar, and growing concerns about the effect of fossil fuels on the planet’s climate.

A great resource for understanding more about the price of oil, depleting oil stocks and general trends in the oil industry can be found at the Wolf at the Door

To quote from the above web site – “For years, the experts have been warning of the dangers of oil depletion. They have been accused of crying wolf. This time, the wolf really is at the door“.

Ferrari 430 Scuderia

4308cc V8, 510bhp at 8500rpm, 347lb ft at 5250rpm, 198mph, 0-62mph in under 3.6 seconds, £172,500.

The above numbers really mean nothing in themselves… They say a picture paints a thousand words… so here goes…..

For those individuals who are lucky enough to get behind the wheel of the 430 Scuderia, the experience of driving a Ferrari which laps quicker than an Enzo round the Ferrari test track at Fiorano, is just sensational!

Actual figures state that the 430 Scuderia will lap around Fiorano 2 seconds quicker than the Enzo, ostensibly Ferrari’s ultimate road car.

If the track crudentials of the 430 Scuderia are unquestioned, how does the car perform on the roads?

A stark cabin, leather replaced with Alcantara, ‘technical cloth’ and carbonfibre suggest the 430 Scuderia would struggle with regular road use. However you still get to enjoy electric windows, air-conditioning and high quality stereo – even if the roar of the V8 is music to most enthusiasts ears!

Press a button and the dampers switch to a softer, more resilient mode; not loose or flabby, just more compliant. Now it is possible to go even quicker around lumpy bends because the wheels stay in better contact with the road.

The 430 Scuderia is the fastest ever Ferrari on real roads. It is also the easiest-ever to drive fast! 

Insurance Word of The Week (3)

For our third week, we have chosen - Actuary.

Definition
An insurance professional skilled in the analysis, evaluation and management of statistical information. Evaluates insurance firms’ reserves, determines rates and rating methods, and determines other business and financial risks.

Alternatively….
Actuaries provide commercial, financial and prudential advice on the management of assets and liabilities – especially where long term management and planning are critical factors.

They evaluate the likelihood of events and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events.

Further information: The Institute of Actuaries.

Porsche Close to Majority Ownership of VW?!

I read with continued interest the story of Porsche AG attempts to secure the majority ownership of VW.

Hang on a minute…. Niche sports and performance car manufacturer Porsche is seeking a majority ownership stake in motor manufacturing behemoth VW?

Most recently the European Court of Justice (ECJ) ruled against a 47-year old law protecting Volkswagen from a hostile foreign takeover. In a judgement with potentially far reaching consequences for German companies, the ECJ ruled that the so-called ‘VW Law’ could not be justified on the grounds that it protected the interests of minority shareholders.

This gives the green light to Porsche chief executive, Wendelin Wiedeking, to increase the current stake of 31% to 51%, thus gaining overall control and majority ownership of Volkswagen. 

If you are still slightly confused how a seemingly niche player like Porsche is able to amass such buying power it is worth noting that the company based in Stuttgart is the world’s most profitable car company in terms of margins. Hence it’s ability to both expand the Porsche model range and acquire companies the size of Volkswagen!

Insurance Term of the Week (2)

For our second week, we have chosen - ACCIDENTAL DEATH BENEFIT (ADB).

Definition
A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident. 

Key Features

• All benefits are paid in addition to any other policy or family income entitlement.
• All cash benefits are free from income tax. (Under current legislation).
• Low monthly premiums.
• No medical examination.
• This type of policy is generally available to anybody aged between 18 and 81 who resides permanently in the United Kingdom.

Speed Camera Rules Have Changed – Did You Know?

If you are anything like me you will probably be unaware of the recent changes to the rules governing speed cameras….

The rules regarding the positioning and colour of speed cameras changed in April (2007). Speed or “safety” cameras, as the Government calls them, no longer have to be painted yellow, or be visible from 60m (200ft), and no longer have to be sited only where there is a history of road accidents.

The relaxing of the regulations is part of the new autonomy for the local camera partnerships, which have been handed over the responsibility for regulation of cameras. The Department for Transport (DfT) now merely issues guidelines as to how the cameras should be operated. 

While the primary objective for camera deployment is to reduce KSI’s (collisions where the person was killed or seriously injured) at known collision locations, cameras can also be beneficial where there is a community concern.

Road safety charities, including Brake, have welcomed the possibility of more covert enforcement. The DfT meanwhile says that if the local partnerships are found to be abusing their autonomy, it will consider bringing back enforced regulation.