Paying for Car Insurance by Direct Debit

Just a quick note for those motorists who are looking to pay for their next car insurance policy by Direct Debit (DD).

At first sight paying for your policy by (DD) can seem like an attractive option, enabling you to spread the cost of the cover over the year. Be wary though and don’t just dive into the first offer you receive as some companies and insurers will charge you through the nose for the convenience of paying them in monthly instalments!

Using DD to spread the cost – could mean that your motor insurance cover costs up to 20 per cent more. Around 83 per cent of motor insurance policies charge interest if you pay by direct debit, with 8 per cent not stating whether you will be charged until you get a quote. The average APR is 21.27 per cent but the top rate is 37.12 per cent, charged by Provident, which could add £283 to the average fully comprehensive premium of £762.

You  may be better off paying for your car insurance in a lump sum or using a low-interest credit card, which you can pay off at a lower rate than the one offered by your insurer.

Insurers that do not charge interest for paying by direct debit on motor insurance include Virgin Money and Age Concern.

Extracts from The Telegraph Online.

Insurance Phrase of The Week (12)

Our twelfth insurance phrase of the week is: Car Year

Definition: Equal to 365 days of insured coverage for a single vehicle. It is the standard measurement for motor insurance.

For example if you see a statement such as the following, the word ‘year’ is equivalent to 365 days:-

‘Get one months FREE car insurance in the first year and two months FREE car insurance in the second year, and every year after that unless you claim.’

Pretty straightforward – I hope it’s clear?!

Unhappy Car Insurance Customers!

Following on from an article we read over at Insurance Times – ‘Motorists Slate Insurers’, HomeApproved would like our readers to pass on their comments and experiences with their motor insurer.

If you have taken out comprehensive, third party fire and theft or even simple car insurance cover, let us know your experience of the buying process and making a claim.

One in five motor customers rated their insurance provider as ‘poor’ or ‘very poor’, according to research motoring website and magazine Auto Trader. More than a quarter of respondents who had made a claim on their car insurance were unhappy with the outcome. Common complaints included:

• Claims taking too long to process
• Pay-outs being too small
• Claims not being paid at all
• Claims being deemed invalid

The results, from a poll of 4,500 motorists nationwide, showed that negative perceptions of insurers persisted, with 55% of respondents believing that insurance companies were more interested in making money than protecting customers, and 53% believing that insurance companies try to avoid paying claims.

The survey also showed that loyalty to an insurer continued to fall, with just 24% intending to renew their policy with their current insurer if the premium remained about the same. One-third said they would collect online quotes from insurers when renewing their policies, and 37% that they would use price comparison sites.

Motor Sport at Goodwood 2008

Festival of Speed

The Goodwood Festival of Speed is firmly established as the world’s greatest celebration of motor sport history. Described by the media as ‘the garden party of the Gods’, the Festival of Speed is the essential place to be each summer for a uniquely intoxicating experience, blending speed and drama.

The Festival brings together a rich mixture of motor racing heroes past and present, driving and riding an exceptional selection of cars and motorcyles, hand-picked from every corner of the globe. Dates: 11-13 July 2008.

 
Goodwood Revival

The glamour and romance of motor racing as it used to be. The Goodwood Revival celebrates its tenth anniversary in 2008, yet remains unique as the world’s most authentic historic motor race meeting.

It is the only meeting of its kind to be staged entirely in the romantic time capsule of the Fifties and Sixties, with the legendary circuit untouched by modernisation, looking almost exactly as it did when it staged Britain’s first post-War motor race sixty years ago in 1948. Dates: 10-21 September 2008.

MPH 2008 Car Show

MPH 2007 London (Earls Court) and Birmingham (NEC) shows attracted 71,000 visitors. Everyone who attended the event enjoyed the incredible Live Motoring Theatre and the Prestige and Performance Motor Show.

The MPH 2008 Show Dates are:

• London 30th October – 2nd November
• Birmingham 13th – 16th November

Put these dates in your diary now and remember to book early to ensure you get the best seats! The box office will be open in June 2008.

Insurance Word of The Week (11)

Our eleventh insurance word of the week is: BROKER

Definition
An intermediary between a customer and an insurance company. Brokers typically search the market for coverage appropriate to their clients. They work on commission and usually sell commercial, not personal, insurance. In life insurance, agents must be licensed as securities brokers/dealers to sell variable annuities, which are similar to stock market-based investments.

Or…

An independent agent who represents the buyer, rather than the insurance company, and tries to find the buyer the best policy by comparison shopping.

BIBA – the British Insurance Brokers’ Association
The UK’s leading general insurance organisation. BIBA represent the interests of insurance brokers, intermediaries and customers, and have partner members from the leading companies in the insurance industry.

Safer Driving for Young Drivers

We came across the Auto Trader Young Driver website while surfing the web and thought it a sensible move to bring it to your attention.

‘I WAS A DICKHEAD’
Think it will never happen to you? Think that your driving is so great that you can overtake on a blind bend? Maybe watching this will make you think again – the guy featured in this film thought he was a good driver, till he lost it on the road and nearly lost his life. Think it will never happen to you? Watch the Film.  

The facts surrounding the number of young driver deaths and injuries on roads across the UK and worldwide is staggering:

• One young driver or passenger is killed or seriously injured on UK roads every hour.
• Worldwide, someone is killed in a road crash every 30 seconds.
• Young drivers account for more than 2 in 5 road deaths.
• 200 hundred young people a week will be killed or seriously injured in a car accident in Great Britain during 2007.  
• Road crashes are the leading cause of death for young people aged between 15 and 24.

 
Win a Pass Plus course of lessons and reduce your car insurance!

Learning to drive and gaining your freedom on the road is a skill for life. Developing good driving habits right from the start and building upon those skills with a Pass Plus course is an ideal way to increase your confidence and knowledge to handle situations on the road.

AA driving school and Auto Trader are giving you the chance to Win one of six Pass Plus courses. Pass Plus is made up of a total of six modules which cover urban driving, dual carriageways, motorways and rural roads, plus all-weather and night-time driving.