A study by Defaqto has revealed that almost half of all car insurance policies on the market do not offer a courtesy car.

This means that consumers who find themselves without their car because of a problem with their vehicle will not be given a replacement car with 49 per cent of the insurance policies currently available.

Furthermore, 28 per cent of policies that do offer a courtesy car only do so as an additional cost option at the time when the policy is first taken out.

This goes against the priorities flagged by those surveyed particularly those in the 33 to 44 year old age group and those with children in general who desire the inclusion of a courtesy car.

With the World Cup knockout stages advancing Swinton insurance warns motorists over drink driving.

Swinton released new figures revealing  a 23.4% increase in the number of car insurance enquiries from customers with drink driving convictions in June 2008 compared to those reported in June 2009 (coinciding with the Euro 2008), a percentage which is expected to rise sharply in summer 2010 with the World Cup.

Steve Chelton, insurer development manager for Swinton Insurance, said:”Many people are indulging in social drinking during the day and some don’t realise that they could be over the limit the following morning.”

“Motorists who are caught drink driving may be faced with a fine, a disqualification from driving or even a prison sentence, as well as a sharp increase in their car insurance premiums.”

Insurers stress the importance of motor insurance applicants providing accurate information especially with respect to who is the main driver of an insured vehicle.

Motor Insurers’ Bureau and Aviva describe fronting as the act of parents insuring their child’s car in their own name to significantly lower the cost. The organisations are quick to emphasise that it is actually illegal to do this.

Ashton West of MIB stated: “There is a lot of confusion amongst drivers about the importance of giving accurate information about the main driver to an insurer.” With as many as 70% of those polled unaware of the problems associated with fronting this appears to be true.

Stark Wayne contributes content to the comparechecker blog. He is particularly interested in ecommerce and its application in the insurance sector. See other posts by him on the blog at comparechecker.com

Chancellor, George Osborne, announced in the 2010 budget rises in Insurance Premium Tax (IPT) which affects car home and travel insurance.

From 4 January next year people will pay 6% tax (currently 5% included in overall price). The increase translates to an average £18 a year in tax on a typical £300 car insurnace premium.

Young drivers who pay much higher premiums will be hit hardest. This comes at a time when drivers have already been hit by hikes in the price of their premiums –as much as 20 percent in the last 12 months.

Eric Galbraith, chief executive of the  BIBA commented “Biba’s research last year demonstrated that businesses and consumers were reducing insurance cover as a result of the recession, and we are concerned that increases to insurance premiums as a result of IPT could lead to even further underinsurance or even a lack of insurance protection. The last thing people need in a financial crisis is a higher insurance bill,” he said.

History of IPT

Introduced in 1994 at a flat rate of 2.5%.

It was increased on general insurance products to 4% in 1997

Increased to 5% two years later.

Increased by Conservative-Liberal democrat government to 6%

CompareChecker views the increase in IPT along with the increase in premiums made by insurers, admittedly to cover underwriting losses, to be yet more incentive for consumers to compare car insurance on the major comparison sites to get the best cover at the best price for them.

 Flex Luthor is a graduate turned entrepreneur known for his involvement in the widely opposed attempt to launch the first price checker for comparison sites, comparechecker.com

The over 50s often seen as avoiding hi-tech aids appear to be adopting them in great numbers.

Although it must be noted that they are the most responsible when it comes to using hand-held devices when driving (12 % compared with 33% of 18-34 year olds –the worst offenders)

The insurer, Saga,  feels that in this age bracket 31% of drivers are finding hands-free aids a distraction. This brings cause for concerned when paired with the findings released by Saga that 32% of over-50s use sat nav systems and a further 20% use cruise control systems whilst driving.
 In addition Andrew Goodsell, of Saga, commented: “Installing high-tech gadgets, or leaving personal possessions such as mobiles and laptops in the car is an attraction to thieves, so we are urging people to make sure they keep high value items out of sight and to check they have adequate insurance cover,”  so there is a great need for car insurance.

Stark Wayne contributes content to the comparechecker blog. He was notably outspoken as a lobbyist for the launch of the widely opposed price checker for comparison sites, comparechecker.com

 Researched commissioned by Defaqto recently found that women are far more concerned about their policies covering the cost of replacement of car door locks.

Mike Powell of Defaqto comments: “Replacing the locks of the vehicle if the keys were lost or stolen is seen as one of the most important cover elements for women, but for men, the survey highlighted that this cover feature was far less significant.

It appears that the feature is of more complexity than men, who generally give it far less significance, consider it to be with Mr. Powell breaking it down further

“Where cover is given, most policies will pay for the costs of replacing the locks, subject to any policy limit. Other policies also include cover for the costs of replacing the vehicles lock transmitter and central locking interface, and the affected parts of the alarm and/or immobiliser.”

Mr Powell echoed the sentiments of other advisors in his conclusion that drivers needed to review the wording in their policies as cover was usually  “subject to the policyholder being able to establish that the identity or garaging address of their car is known to any person who is in possession of the ignition keys.”

Source: Defaqto

Flex Luthor is a graduate turned entrepreneur known for his involvement in the widely opposed attempt to launch the first price checker for comparison sites, comparechecker.com

Flex Luthor is a graduate turned entrepreneur known for his involvement in the widely opposed attempt to launch the first price checker for comparison sites, comparechecker.com

Directline, Aviva and other direct insurers are trying to make a comeback by refusing to allow their prices to appear on comparison site listings. Others such as AXA promise discounts to consumers who “come direct”. Can they really offer better prices by cutting out the “middle man”? Read more…

Flex Luthor is a graduate turned entrepreneur known for his involvement in the widely opposed attempt to launch the first price checker for comparison sites, comparechecker.com

Regulations, innovations and the pursuit of the best car insurance search experience Read more…

Ade Molajo is a graduate turned entrepreneur known for his widely opposed attempt to launch the first price checker for comparison sites, comparechecker.com

Innovation is the biggest advantage in the price comparison sector (innovation and huge marketing budgets!). A little innovation is plugged with tens of millions of pounds in the next marketing campaign.

A major innovation is a “game changer”. Find that and you can dominate your industry. It appears that the price comparison industry is seriously lacking in real innovation – a meerkat is the biggest product innovation since the launch of such sites a decade ago. Read more…

Ade Molajo is a graduate turned entrepreneur known for his widely opposed attempts to launch the first price checker for comparison sites, comparechecker.com. 

A few figures from a new Which? Money report

• 1 in 4 find better value financial products elsewhere. With 12% stating they were unhappy with the quotes delivered for them.
• More than half went direct to purchase the product after using the comparison site.
• Only 3 out of 10 trust comparison sites.
• Two thirds believe results are listed based on the commission they make the comparison sites.
• No comparison site scored higher than 50% in customer satisfaction. Read more…