5 Million Unsafe Cars on Britains Roads

According to research from Britannia Rescue a staggering five million British Drivers are currently driving unsafe vehicles. The number of hazardous cars on UK roads is thought to be boosted by people keeping their older cars for longer to benefit from the Government’s scrappage scheme.

The most common repair faults identified among these cars include driving with worn tyres (12%), having defective brakes (9%) and faulty exhaust pipes (6%). In addition, one in 20 have broken or missing wing mirrors and a similar number (5%) have broken head or tail lights.

There are strict laws governing the state of repair of vehicles and driving a damaged car can result in three points on your licence plus a fine. More importantly, vehicle defects were responsible for around 2,500 crashes in 2008 and 1 in 30 fatal motoring accidents, according to the Department for Transport.

Unfortunately motorists do not realise that they are potentially invalidating their car insurance as it is condition that vehicles must be maintained. There are also strict laws governing the state of repairs and driving a faulty vehicle can result in 3 points added to a driving license in addition to a fine if caught.

ASDA Car Insurance – 100% Online!

We visited the Asda car insurance online web site yesterday and discovered a product which we are sure will appeal to a whole raft of drivers in the UK.

If you (like us!) spend a lot of time on the internet and value the savings it can deliver both in terms of money and time then this car insurance policy from ASDA could be right up your street. You can in effect manage your entire ASDA motor policy from initial quote to renewal completely online – and No Paperwork!

ASDA Online Exclusive is 100% online, which means you can manage your policy any time, day or night. However, when you need to make a claim you can call their 24/7 helpline.

1. Guaranteed No Claims Discount for life – If you have a 5 years No Claims Discount it’s automatically protected for as long as you have an ASDA Online Exclusive policy.
2. Breakdown cover  – included FREE if your car is 8 years old or less.
3. 365 days European cover – If you decide to take your car to Europe, you’re covered!
4. Cover all your family’s cars and SAVE – Cover up to 4 cars and 4 named drivers on one policy. Find out more
5. Legal expenses – Up to £100,000 is included as standard to pay for the services of a solicitor to help you claim for personal injury or get your excess back.

Also there are other great benefits and options you can choose to include. Don’t forget ASDA utilises 20 insurers to deliver great value for money quotes for all drivers!

Quoteline Direct Car Insurance

Welcome back to all our readers, and a Happy New Year to each every one of you and best wishes for 2010!

We’re excited here at Homeapproved by the arrival of our new online partner Quoteline Direct Car Insurance. 

The company provides quick and easy online motor insurance quotations for nearly all driver and vehicle types.  Their online quote system will provide you with an immediate quotation without obligation, which is typically valid for up to 21 days.

Quoteline direct will also automatically inform you of changes to the value of the car insurance quotation should your starting date be more than 21 days away and subsequently on each anniversary of your start date.

AXA Car Insurance iPhone App

An iPhone app which records all the information drivers must collect if they have an accident has been unveiled by AXA.The new App aims to provide support in the event of a car accident. The iPhone app, which prompts the user to record all the information connected to an incident, also offers the ability to take photos.

The insurer conducted research which found that a worryingly high 66 per cent of drivers are unsure about what action to take if they are involved in a collision with another vehicle. According to the study, 27 per cent would not attempt to swap names, addresses and phone numbers with the other party, or to make a note of their registration plate.

Although AXA found that 84 per cent would look to exchange auto insurance details, this appears to be rendered meaningless by the discovery that just 15 per cent carry their policies in their cars.

Where Can I Get the AXA App?
The application is currently available from the Apple iTunes app store. The new App is one of the first of its kind in the UK and is available free to both AXA customers and non-customers.

Final Post for 2009

This will be the last time that the Homeapproved team will be blogging this year!

Many thanks to all our readers who have visited our blog and the Homeapproved UK Car Insurance website.

Our last few posts both here and on the main website have tried to drive home the need for all motorists to drive sensibly and safely over the Christmas and New Year period.

We look forward to hearing from many of our regular readers next year (and new readers) on all matters motoring and insurance.

Have a great Christams and cracking New Year!

Safe motoring

Regards

Homeapproved Car Insurance Team.

Co-Operative Motor Launches on HomeApproved

HomeApproved is delighted to announce the launch of Co-Operative car insurance. The only provider in the UK with a customer-led Ethical Engagement Policy, reflecting their customers’ views on a range of ethical issues. You could save you as much as £191*. Compare their car insurance prices NOW!

With The Co-operative motor Insurance, customers get more than they expect, for less – that’s because what many insurers charge you extra for, The Co-operative Insurance include as standard.

Awarded Best Motor Insurance Provider 2009 by Your Money and the Platinum Motor Insurance Claims Satisfaction award 2008 by Consumer Intelligence.

*Based on independent online research by Consumer Intelligence during May 2009. 10% of customers achieved this saving with The Co-operative car insurance.

Insurancewide.com to Close its Doors

It is with some degree of sadness that we at Homeapproved UK Car Insurance learned of the impending demise of Insurancewide.

Insurancewide have been in litigation with HM Revenue and Customs, regarding the partial VAT exemption accorded to Insurance Companies and their intermediaries. The claim against the Company is in the region of £650,000.

On the 15th May 2009, the High Court ruled that the Company will not be required to pay VAT on internet based commissions and HMRC have the right to appeal. On June 19 2009, they informed the Company that an appeal will be lodged.

This matter has cost the Company over £470,000 in the five years of the case, and it is estimated that defending the appeal will cost a further £180,000. If HMRC were successful, then they would have a claim against the Company for a sum in excess of £650,000.   

Insurancewide was the original insurance comparison website, launched in 1999 and has historically enjoyed considerable success working with such prestigous brands as AOL, Tiscali, eBay and Yahoo.

Trader Media (who run autotrader) are also invovled in the same legal battle. Insurancewide is  due to close on 31st August 2009 – unless it gets help!

Consumers see no value in expensive motor policies

The vast majority (89%) of British consumers do not believe that paying more for their car insurance results in the delivery of a better product or service from their insurance provider according to a market survey conducted by Datamonitor.

“These findings are extremely worrying for UK insurers,” said Liz Hartley Datamonitor’s Principal Consultant for Financial Services Consulting.

“It shows that British consumers do not see any point of differentiation among providers, and essentially believe that car insurance is a price-based commodity. It is therefore important in this economic climate – particularly given that premium rates are currently hardening due to weak investment returns – that insurers look to reinforce their value proposition with consumers.”

This view is supported by other findings from the study. Compared to the US, for example, where over half of car insurance policy holders automatically renew their policies each year, only 9% of British consumers actively allow their policies to roll over, while 44% claim that they shop around for better deals each year.

According to Datamonitor, these inherent high rates of customer churn mean that, for UK insurers, the cost-to-serve will continue to rise. However, it appears drivers in Britain do see comprehensive car insurance as being an essential insurance to hold and maintain, even during the economic downturn, and are not willing to compromise the features and perceived benefits that they currently receive.

Indeed, only 5% of survey respondents claimed that they would look to trade down to third-party-only cover in an effort to save money, and 13% said that they would look to reduce their premiums through increasing excess amounts or through reducing the total sum insured.

“This is reflective of the open and competitive insurance market that exists in the UK generally,” said Ms Hartley.

“It is a buyers’ market and, as such, consumers do not believe that they need to compromise when negotiating their insurance policies; indeed, there is almost an expectation of ‘more for less’ each year.”

Datamonitor said the price mentality adopted by British consumers is in part being fueled by the high penetration of price comparison websites in the UK, with 34% of respondents claiming to have used a site of this type to find the best priced car insurance, compared to only 23% of respondents who used a comparison site to find the best priced house and contents insurance.

“The economic downturn and the high cost of motoring in the UK generally mean that consumers will continue to spend a disproportionate amount of time looking for savings on their car insurance policies,” said Ms Hartley.

“However, over the medium to long term, the onus will be on car insurance providers to actually begin to re-establish value in their proposition through understanding the need states and drivers that are important to consumers, and marketing their products accordingly. At the moment, nearly every car insurance marketing campaign in the UK centers on reduced price, and the essential benefits of the product, such as safety, security and well-being, are lost.

“These messages and the underlying importance of needing to have car insurance have to be re-emphasized, along with the reassurance that, if people do need to make claims, they will be treated equitably and fairly.”

Police and Insurers Crack Down on Car Theft

A new partnership between stolen vehicle recovery firm Tracker and the police could help car insurance companies save thousands of pounds.

The recovery company has joined forces with the Association of Chief Police Officers Vehicle Crime Intelligence Service allowing the police to track and recover vehicles once they have been taken, following a two month pilot scheme.

The initiative, which is known as Operation Semita, has the backing of a number of insurers, including Tracker parent company RBS Insurance. As part of the initiative, the proceeds gained from the vehicle recovery, will be split evenly between Tracker and the insurers.

Tracker managing director Bill Raynal said that around 50% of UK insurers had signed up to the deal, although others were unhappy with halving the proceeds.

He added: “We have a large number of insurers taking part in the scheme but some want to hold out for a greater percentage. However, we are keen to have all insurers signed up.”

Tracker said that around one million cars currently had their tracking facilities installed and that it had recovered more than 18,000 vehicles since 1993.

Car insurance premiums see first Q1 rise for six years

The average quoted premium for an annual comprehensive car insurance policy rose by more than 1% over the first quarter of 2009, according to The AA’s latest benchmark British Insurance Premium Index.

This is the first time for several years that there has been a first-quarter increase in car insurance premiums. The average quoted premium, based on data from over 80 insurance providers on a basket of 1,000 customers, rose by 1.3% to £751.60. The Shoparound index, an average of lowest three premiums for each customer and is closer to the premium most people will pay, rose by just under 1% to £504.38.

Simon Douglas, director of AA Insurance, says: “Although 1.3% may not sound much, premiums fell during the same period in each of the past five years, so this increase is a significant indication that insurers are determined to address past underwriting losses this year, as we predicted last year.

“Premiums tend to fall a little during the first three months of the year. It’s when most car insurance renewals take place while the new March car registration change prompts customers to look for new insurance cover, so competition between insurers tends to hold premiums in check.

“But the industry is facing escalating costs, falling investment income and underwriting losses. Premium rises are therefore inevitable.” Mr Douglas pointed out that theft, fraud, personal injury claims and legal expenses were all contributing to increasing costs.

“Figures issued by The Association of British Insurers show that the value of detected fraud rose by 30% last year. Insurance cheats add an estimated extra £40 to the average premium paid by honest motorists.

“In addition, theft claims for modern expensive cars, where thieves first steal the keys by either robbery or burglary, rose by 15% over the six months to April, compared with same period last year.

“Personal injury claims and their associated legal costs also continue to rise, especially as the recession takes hold.” Mr Douglas said that for every £100 in premiums received by motor insurers, around £105 was paid out in claims. He added that the economic downturn had also contributed to reduced investment income and depleted reserves from which insurers pay claims.

“Over the past 12 months, the average quoted premium for comprehensive insurance rose by nearly 11%. I expect premiums to increase by at least a similar percentage over the rest of 2009,” he added.