Digital Curator, Author at Insurance Agency Singapore | Commercial Insurance and Personal Insurance

On the rise again is cost of car insurance

13 October 2015 By Digital Curator Leave a Comment

The average insurance premium for an annual comprehensive policy increased by 2.1% in the second quarter of 2015, compared with the first three months of the year, according to the latest figures from the Association of British Insurers (ABI).

The ABI’s Quarterly Average Private Comprehensive Motor Insurance Premium Tracker shows that the average premium has risen from £359 to £367.

The cost of motor insurance had started to fall in 2013, after the government introduced reforms to the civil justice system, which included a reduction in fixed legal fees for personal injury claims: before them, the average premium was £377.

However, data from the ABI’s Claims Portal highlights a year-on-year increase of 12% in the number of personal injury claims related to road accidents for the year ending April 2015.

Rob Cummings, the ABI’s manager for general insurance, said: “Motorists have seen a solid two years of lower insurance premiums as a result of market trends and in the wake of the government’s reforms to tackle frivolous personal injury claims, and over a billion pounds’ worth of savings have been passed on to customers.

“With pressure on premiums increasing however, it’s important the government continues its work to tackle the compensation culture and attack the high cost and number of whiplash claims.

by Craig Thomas

See Full Story at express.co.uk

‘Eye-watering’ administration fees hit by Which? car insurance probe

29 September 2015 By Digital Curator Leave a Comment

Image via Flicr user Hamed Saber

The consumer group, which is running a “stop sneaky fees and charges” campaign, found that the admin fees used by car insurance providers can vary widely, with some charging double the average for certain costs.

Of the 44 insurers Which? looked at between May and August, it found that five did not have any adjustment fees for changing details such as a name or address, while others charged up to £35. The average fee for this was £22.79, Which? found.

Previous Which? research found that two-thirds (68%) of consumers thought companies used separate fees to trick people into thinking the product or service was cheaper than it was.

Which? is urging companies to set out all fees and charges clearly so consumers can easily compare between providers.

Which? executive director Richard Lloyd said: “We’ve found some insurers charging customers eye-watering admin fees that can be hard to avoid, and people often don’t know what they are actually paying for. We want companies to ensure their fees reflect actual costs.”

“Customers should always read their policy documents carefully and speak to their insurer or broker if they have any questions about any charges for making changes to a policy or for cancelling it. In accordance with the rules of the Financial Conduct Authority and relevant legislation, the fees insurers charge must be clearly and fully set out and broadly reflect the costs they incur.”

See Full Story at belfasttelegraph.co.uk

A list of right add-on covers for motor insurance

24 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Diamondback Truck Covers

Buying the right add-ons could help you get the maximum benefit from motor insurance policy

A personal accident add-on cover in a vehicle insurance includes the owner or the driver if he is employed. In case of a owner driver, a policyholder’s nominee is entitled to a 100% claim in case of death.

Here’s a list of some popular add-on covers which general insurers provide for motor insurance:

Zero depreciation

Zero depreciation is one of the most popular add-on covers sold by general insurance companies. It ensures that the policyholder can receive a full claim on the value of parts that are replaced after an accident.

Personal accident

Break-down assistance

This is a popular add-on cover at a very nominal cost, which takes care of the car in case of breakdown or accident on the road. The policyholder will have to call up the designated helpline number of the insurer and help will reach him.

Engine cover

This add-on cover provides protection to the engine in case of flooding during monsoon. Since waterlogging is common in most Metros, hydro-static lock is a major cause of engine failure. Any damage due to hydro-static lock, which happens if one repeatedly tries to run a moist engine, is not covered under a regular motor insurance policy.

In driver’s seat
* Any vehicle that plies on the road needs a third-party cover under the Motor Vehicles Act
* Insurers have to ensure that the cover is available at their underwriting offices
* As per the Motor Vehicles Act, the third-party cover is unlimited in the case of an accident and the entire compensation has to be paid by the insurer
* While third-party insurance cover is mandatory, a policyholder can opt of add-on covers to the basic vehicle insurance
* The add-on covers come in handy, especially for roadside assistance in case of a breakdown of the vehicle

by Saikat Neogi

See Full Story at financialexpress.com

Preventing rejection of motor insurance claims

22 September 2015 By Digital Curator Leave a Comment

Image via Flickr user akem2013

You invest a lot into buying that new set of 4 wheels which literally becomes your second home. You take care of all the documentation and related processes while insuring your vehicle against any perceived damage.

When can insurer reject your motor claim?

The value of motor insurance is realised when one meets an accident. Of course, there are some unforeseen incidents which we cannot anticipate. Insurance is the key to managing such uncertainties in life.

You buy a vehicle with such a pleasure and for most of us it gives a sense of achievement. When the vehicle is new, you tend to keep it covered under insurance. But at times, there are gaps when it comes to renewal of insurance.

This also happens when you are among the lucky ones who never meet any unpleasant incident and never get to raise any claim. It feels a waste of money sometimes. Isn’t it?

Driving license: You are vigilant about expiration of your car policy. Good. But what about your driving license? Driving licences are valid for a considerably long period. After this period, you need to renew it.

God forbids, if your vehicle meets an accident during the time your driving licence is not valid, then a car insurance policy will be rendered useless. So, just take care of this aspect.

Drunk driving: If the driver is found drunk at the time of an accident, then an insurance company has all the right to straightaway reject the claim. There is no possibility of any negotiation in this regard. Your claim can be duly rejected on this ground and no court will hear you too.

Usage: A personal vehicle cannot be used for commercial purposes. If in case you do it, and your vehicle meets an accident, then you are in trouble. Insurance company won’t hear your claims in any case.

The vehicle should never be used for any unlawful act. Do not ever lend your car or bike or any other vehicle to any person without knowing the purpose.

Therefore, it is better to pay attention to these aspects with seriousness and steer clear of worries.

by Naval Goel

See Full Story at economictimes.indiatimes.com

Why over-declaring penalty points lets car insurers overcharge 2.8 million drivers

17 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Stig Nygaard

Needlessly telling insurance firms about expired penalty points for speeding and other offences adds £57 to premiums, yet insurers continue to ask about old convictions

Millions of motorists are needlessly paying £57 extra for car insurance because they are “over-declaring” old convictions and penalty points, Telegraph Money has learnt.

Speeding penalties, car parking fines and convictions for careless driving typically stay on motorists’ driving records for four years even though there is no obligation to inform insurance firms.

But 2.8 million drivers with clean driving slates, or 7pc of motorists, continue to “over-declare” past offences, according to the Driver & Vehicle Licensing Agency (DVLA).

This is partly due to mixing up the dates of convictions or providing more detail than asked for on application forms.

But major insurance firms also play a part.

Some will demand customers disclose convictions – even if they are spent – before providing a quote. Others leave questions about convictions “open-ended” to encourage a customer to “over-declare”.

by Kate Palmer

See Full Story at telegraph.co.uk

Does it make sense to file small claims on car insurance?

15 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Pictures of Money

When Amit Sharma’s new car met with an accident recently, he was unhappy but comforted by the fact that he had taken comprehensive car insurance and could get the insurer to pay for the repairs. However, a discussion with his friend put him in a dilemma. His friend advised him to skip filing a claim and instead pay for the repairs out of his own pocket because the car was not damaged badly and getting it repaired was unlikely to cost him much.

Not fully convinced, Sharma felt that as his car was insured it was surely his right to make a claim. However, he was also worried about the side effects of making a claim e.g. how would it impact his claim history and renewal premiums? Therefore, he was finding it difficult to decide.

Many of us sometimes find ourselves in a similar situation when our vehicle is damaged. So when should you claim insurance and when should you skip it?

Industry experts say there is no hard and fast rule for filing a claim. However, it is in one’s own interest to do some calculations and keep some basic facts in mind while deciding whether or not to claim insurance.

“Insurance is based upon the concept of risk and simply put higher risk is bound to increase the premium. Adverse claim history is one of the factors that impact premium rates. In case of motor insurance, for instance, it directly impacts the no claim bonus, which becomes zero and thus results in a person having to pay higher premium amounts in the future,” informs Sanjiv Bajaj, managing director, Bajaj Capital.

“Before filing a claim, one should assess the quantum of loss, applicable deductibles, any impact on the NCB and future premiums if any and should proceed only then,” says Dr Sandeep Dadia, CEO & Principal Officer, Aditya Birla Insurance Brokers Ltd.

by Sanjeev Sinha

See Full Story at economictimes.indiatimes.com

Driver database helps uncover 212,000 car insurance lies

10 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Salim Fadhley

Thousands of drivers who lie to their insurance firm have been caught out by a £58 million database that hands over motorist details to insurers and promises to “eliminate insurance fraud”.

The Government began sharing details of 40 million licence-holders with firms 12 months ago including whether drivers have been caught speeding before, their age and postcode, and whether they have previously lied to insurers.

Since the launch of the “MyLicence” database, part of a £58 million Government project to digitise driver details, firms have detected 18pc more incidences of motorists lying on car insurance applications in an attempt to get a cheaper premium.

There were 212,000 attempted dishonest applications for motor insurance in 2014, according to the industry body, the Association of British Insurers (ABI). This is one fifth higher than in 2013, before the database was unveiled.

This equates to just over 4,000 fraudulent applications found out every week.

Common lies exposed by the licence-checking service, currently accessed by 100 insurers and comparison websites, include “forgetting” to come clean about previous claims or unspent convictions and giving a different postcode to their correct address.

Previously, insurers would check individual driving records through the Driver & Vehicle Licensing Agency (DVLA), a government body, but this was expensive and time-consuming.

Insurers instead relied on information from individual drivers when they filled out an application form.

Industry data suggests 23pc of drivers fail to provide accurate records of their driving, whether intentionally or not. Out of all motorists, 16pc hide their previous convictions.

by Kate Palmer

See Full Story at telegraph.co.uk

Call for official inquiry into motor insurance

8 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Rachel Johnson

The Government has been called on to set up a broad-based inquiry into the insurance market in a bid to cut the spiralling cost of premiums.

The inquiry would be similar to the Motor Insurance Advisory Board, which reported in 2002 and made 67 radical recommendations.

That led to the setting up of the Injuries Board and brought lower insurance premiums.

The call for an inquiry to shake-up the insurance market was made by the Consumers Association and AA Ireland.

It comes in the wake of a surge in motor insurance premiums, with domestically-owned insurer FBD the latest to suffer as crisis grips sector.

Higher levels of claims, more drivers using lawyers to seek compensation, low levels of reserving in the industry and poor investment returns for insurers have been blamed for the spike in premiums.

Michael Kilcoyne of the Consumers Association said there was a need for a new government-appointed inquiry into insurance costs.

This should consider the capping of claims amounts, examine the operations of insurers, scrutinise the role of the Central Bank, look at reserving by insurers and probe uncompetitive practices in the industry.

by Charlie Weston

See Full Story at independent.ie

Admiral defies the gloom in car insurance

3 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Pictures of Money

The car insurance group Admiral has shrugged off gloomy forecasts of costly claims inflation to post better-than-expected profits for the first half of the year.

Admiral said “positive claims cost development” had allowed it to release £92.6m that was set aside in previous years to cover motor accident costs, helping take its pre-tax profits up 1pc to £186.1m.

Despite rival firms complaining of a surge in injury claims, the group reported a 9.8pc drop in claims costs to £390.4m in the first six months of the year.

Like other car insurers, Admiral has been helped by the mild weather at the start of the year, which reduced accidents caused by ice and snow.

“A good start to a challenging year. Profits are up, customer numbers are up, earnings per share is up, the dividend is up … you might say it was a pretty ‘up’ first half!” said Henry Engelhardt, Admiral’s outgoing chief executive.

“The UK business turned in a very solid result helped by positive claims cost development, with modest growth accompanying price increases.”

Cardiff-based Admiral continued to add customers, taking the total number of people on its books from 4.05 million to 4.19 million. The firm took in revenues of £1.06bn, up £20m on a year ago.

The company has concentrated its efforts on attracting customers with a lower risk of claiming, despite these drivers paying lower premiums.

Nevertheless, prices are expected to rise over the next year. David Stevens, who will take over as chief executive next May, said that bodily injury claims were now back to the levels seen before a Government crackdown on legal fees in 2013.

by Marion Dakers

See Full Story on telegraph.co.uk

Call for official inquiry into motor insurance

1 September 2015 By Digital Curator Leave a Comment

Image via Flickr user Paul Hamilton

The Government has been called on to set up a broad-based inquiry into the insurance market in a bid to cut the spiralling cost of premiums.

The inquiry would be similar to the Motor Insurance Advisory Board, which reported in 2002 and made 67 radical recommendations.

That led to the setting up of the Injuries Board and brought lower insurance premiums.

The call for an inquiry to shake-up the insurance market was made by the Consumers Association and AA Ireland.

It comes in the wake of a surge in motor insurance premiums, with domestically-owned insurer FBD the latest to suffer as crisis grips sector.

Higher levels of claims, more drivers using lawyers to seek compensation, low levels of reserving in the industry and poor investment returns for insurers have been blamed for the spike in premiums.

by Charlie Weston

See Full Story on independent.ie

Insurance Agency Singapore | Commercial Insurance and Personal Insurance

On the rise again is cost of car insurance

‘Eye-watering’ administration fees hit by Which? car insurance probe

A list of right add-on covers for motor insurance

Preventing rejection of motor insurance claims

Why over-declaring penalty points lets car insurers overcharge 2.8 million drivers

Does it make sense to file small claims on car insurance?

Driver database helps uncover 212,000 car insurance lies

Call for official inquiry into motor insurance

Admiral defies the gloom in car insurance

Call for official inquiry into motor insurance

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