February 23, 2012

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Family car – or works vehicle?

February 9, 2012 By Riley Jenkins

If you run a small business that involves taking equipment around with you – then an estate car is often a great option as it kills two birds with one stone and doesn’t necessitate a car and a handy van of some sort.

The downside is that if your business necessitates the carriage of tools or supplies or other equipment that gets dirty – or needs to go into dirty areas like building sites etc., then the car can quickly begin to look like a builder’s van rather than a family car. There’s no way round this beyond protecting the vehicle with plastic sheeting etc., cleaning it regularly and treating it a little more gently than you would a van bought for the same purpose.

But the upsides are great – particularly for your pocket. A vehicle that can help your work and ferry your family around saves you a fortune on what would otherwise be the cost of two vehicles – and if you can demonstrate that the vehicle is a necessary business expense then it’s perfectly justifiable business cost.

In many cases, however, it works out better tax-wise to own the vehicle privately, outside your business (if you have a limited company) and simply to claim a reasonable mileage allowance for all the miles you legitimately cover in pursuance of your business.

So the same goes for insuring the vehicle, i.e. whether privately or through your business. Obviously, this is something for your accountant to decide – but otherwise, there is usually little or no difference in insurance premiums between a standard saloon car and its estate car equivalent.

But making one vehicle a hybrid solution somewhere between works vehicle and family car – by picking the right estate – can really pay dividends.

And the final clincher is that an estate car is great for holidays!

 

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End of the road for the whiplash fraudsters?

January 16, 2012 By Riley Jenkins

I’m sure we all know people who have made claims for whiplash injuries following motor accidents when their car has been hit from behind.

I was once hit from behind gently. My Honda suffered no damage, nor did I, but I was “surprised” by my passenger’s whiplash injury!

The whiplash injury has become the shame of the insurance world with a few headline-grabbing cases whereby people have been involved in an unfeasibly high number of rear end collisions – always with themselves as the victims. Some of the crazier cases have made all the newspapers and little wonder.

But at last, it seems the government has decided to take action to actually do something about it – and about time too. Fraudulent insurance claims aren’t only immoral – they push up the costs of insurance for the vast majority of ordinary people who play by the rules – and they limit the pay-outs for those people whose claims due to physical injury and incapacity are perfectly genuine.

This, in turn, has a negative impact on the whole industry. The costs of motoring in general are far higher than they need to be – which has a deleterious knock-on effect in all sorts of ways. For example, people who may otherwise choose eco cars for the sake of the environment, or classic cars for the sheer love of driving – are deterred from doing so because the insurance cost just pushes things out of financial reach.

But now the report by the House of Commons Transport Committee says high insurance costs are partly the result of bogus whiplash claims and it says some insurers even sell motorists’ details to lawyers – who then encourage claims. Apparently, there was a 70% increase in the quantity of such claims over the past six years alone!

The Transport Committee recommends that the government changes the law in a way that people must then prove an injury, and prove that it’s having a major negative impact on their life.

 

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Britain’s drivers getting greener

January 9, 2012 By Riley Jenkins

The number of people buying environmentally friendly cars in the UK is on the rise. While the number of hybrids and eco cars UK consumers are buying is miniscule compared to conventional cars, nonetheless it is gradually growing.

In November 2011, 1.6% of the new cars sold in the UK were neither petrol nor diesel fuelled.  It’s a tiny amount but with the focus at the world’s motor shows on alternative fuels, hybrids and electric vehicles, this figure only has one way to go.  The world’s car consumers are demanding better fuel economy and an escape from our reliance on oil.

Buying any new car offers drivers better fuel economy than from a model five or even three years ago. An average new car today can achieve more than 52 miles per gallon, an increase of 29.3% on 2001 figures. More and more cars are being fitted with stop-start technology, so that the vehicle no longer idles at traffic lights or in queues.  Instead, the engine cuts out when the brake pedal is applied, and starts again automatically and seamlessly when the driver releases the brake.  Stop-start technology can significantly improve fuel economy and is great for reducing air pollution in urban environments.

Driving is getting greener by default through improved fuel economy, because of the lower emissions that new cars today produce. Manufacturers such as Honda, Toyota and Volkswagen, among others, are putting increasing emphasis on greening their models. The less fuel you burn, the fewer emissions are produced, and car manufacturers are under constant pressure to reduce emissions on all new car models.

Some drivers are making a conscious decision to be even greener by choosing to drive a hybrid or electric vehicle, which have low or zero carbon dioxide emissions when being driven.  However, it is important to remember that emissions are still created in the production of cars and in the production of electricity to fuel electric cars.

 

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Finding the best insurance cover

December 14, 2011 By Riley Jenkins

Car insurance is one of those things that we all have to have – even if our car just sits on the driveway. Since June 2011 it has become a legal requirement to have insurance for every vehicle registered under your name, unless you have filled in a SORN application to declare it as legally off the road.

And with the ever increasing incidences of car insurance scams, the price for cover creeps up every year. Most people stay with the same insurers for years, never thinking to question the renewal when it comes up each year.  This is the business model that insurers rely on.  So it’s always worth your while checking that you’re not missing out on a better deal elsewhere.

The cost of your vehicle insurance depends on a number of factors, including what insurance group your car falls into – there are fifty of them in the UK.  The lowest group has the cheapest insurance – economic runarounds with small engines. The highest group includes expensive sports cars with huge ticket values. They represent a greater risk of being stolen or involved in a high speed crash, and replacement and repair costs are high.

Some cars don’t always fall into the category you’d expect, though. For example, the Honda CR-V is an incredibly safe vehicle that will offer lots of protection to its driver and passengers in case of an accident, but its premium is quite high because of the damage its solid body might do to another car.

Different types of car also fall into different insurance brackets. If you drive one of the eco cars UK consumers are buying in increasing numbers, you may find it’s better to find an insurer that targets the greener customer.  Often they will give discounts for cars with low carbon dioxide emissions and high fuel-efficiency. Drivers of environmentally friendly cars also benefit from lower road tax and cheaper fuel bills, so they’re in a win-win position.

But whatever vehicle you have, it’s worth shopping around for the best deal every time your renewal letter lands on your doormat.

 

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How to make a car insurance claim

November 24, 2011 By Riley Jenkins

If you’ve had a bump or worse in your car, not only can it be shocking and upsetting; it can also add a big pile of stress and hassle to your day. Whatever car you’re driving, whether it’s a Honda, a Ford, or a Jaguar, brand new or ancient, if it wasn’t your fault, sorting it all out can feel like a real headache.

One thing that has got easier since the days before the internet and call centres is filling in claim forms.  Insurance companies are much more approachable and helpful than they used to be.

Try to remember to get all the details you need from the other driver at the time of the accident – this includes their name and address, their insurance details.  Note down their registration number and the make and model of their car. If possible get a name and telephone number from someone who witnessed the crash and who is willing to be contacted by your insurance company.

Phone the insurance company and get connected to the claims department.  They can often take the details you give them and fill in a claim form on your behalf. Sometimes you can make the claim online – and this is useful as you’ll be able to track the progress of your claim at any time.

The process is usually very quick – one phonecall will probably get you to the point where you are given a time and date for an assessor to come and inspect the vehicle.

Sometimes, insurance companies decide to write a car off, if the repairs will be too costly.  But if your car is a particularly solid make like a Honda, you may want to repair bodywork damage and keep what is essentially still a good car. You can discuss this with your insurance company and come to an arrangement if you want to keep the car.

 

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Poor excuses – but at least they’re insured

November 14, 2011 By Riley Jenkins

Working in insurance can’t be the most scintillating job in the world, with many boring claims to file and process, it might even be dull at times.  But one of the best things about dealing with claims must be reading the silly excuses that people make up, or write purely by accident.

Here’s a top five of the silliest answers in the little box on the claim form where you have to describe what happened:

  • I had been driving for fifty years when I fell asleep at the wheel.
  • I thought my window was down but found it was up when I put my head through it.
  • On returning home, I drove into the wrong driveway and hit a tree that I don’t have.
  • I was waving at the woman whose car I hit last week when I ran into another car.
  • I was driving home from work when I ran into a bus. The bus driver was to blame as he was five minutes early.

Of course, all these claims were made by people who had insurance, but at least they were insured and so could file a claim.

What causes a far more serious problem is the number of uninsured drivers on the roads today.

Although uninsured vehicles are a problem on UK roads, thankfully the numbers are in decline.  This is partly due to the introduction of new legislation in June that makes it obligatory to insure all vehicles that you own, whether you use them or not.

The UK’s ‘driving when uninsured’ figure is still out of step with the rest of Europe – about 4% of the 34 million cars on the road aren’t covered.  Of course, there are still different rates for different drivers and their vehicles. Your age and driving record will make a difference to how much your premium works out to.  The type of car is important, too. A driver of a hybrid, for example, tends to benefit from the fact that other people who own hybrid cars are generally careful drivers, just as sports car owners are classed as a higher risk.  Some insurers offer better deals for low emission cars over gas guzzlers.

All the people who do the right thing and pay for car insurance have about £30 a year added to their insurance premiums just to cover the costs caused by uninsured vehicles. But it’s not just about financial damages; it is estimated that 160 people are killed by uninsured and untraced drivers every year in the UK.

 

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What determines a car’s insurance group

October 31, 2011 By Riley Jenkins

There are a number of factors that can alter the amount of your insurance premium and the most important one is which car insurance group that your car fits into.  So, before you invest in a new or second hand car, it’s worth knowing how car insurance groups are decided, and which one your prospective purchase falls into.

The Group Rating Panel assesses every passenger car in the UK and grades it into one of fifty car insurance groups.  The panel consists of various insurance industry representatives and includes Association of British Insurers members.

Cost of parts and repair times play a big part in deciding a car’s insurance group, as over half the money that is paid in vehicle insurance claims is to cover repair costs.  If your car has longer repair times and expensive spare parts it will be in a higher group.  Certain types of car, like Honda cars, may have expensive parts but their reputation for reliability and safety will counter this in their insurance group ranking.

Another thing that increases your car’s risk rating is its performance.  Cars that are capable of high speeds and quick acceleration are linked to higher claims, so represent a greater risk to insurers.

The cost to replace a car is also another factor – so the pricier the new car, generally the more expensive it will be to insure.  Alongside this, the panel reduces the risk category for those security features that make it harder for anyone to steal the car – for example, an alarm or immobiliser or a visible Vehicle Identification Number (VIN).

The cars with lower insurance group ratings tend to be cheaper models with smaller engines.  To give a couple of examples, a Nissan Micra could fall into group 5 whereas a Porsche 911 will be in the highest (and costliest) group 50. Honda UK’s CR-V is somewhere in the middle, starting at insurance group 27.

So, before you go ahead with a car purchase, make sure you know what kind of amount your insurance will be; it’s easy to find out and could save you unexpected costs further down the line.

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How to reduce car insurance costs

October 5, 2011 By Riley Jenkins

Car insurance is a substantial part of a car’s running costs, but there are ways you can save money on it.
There are fifty car groups in insurance terms – if your car is in a lower group, insurance premiums will be cheaper.  It’s not just about engine size, sometimes the kind of car you drive affects the group with different premiums being offered for hybrid cars compared to conventional diesel or petrol cars.
Younger drivers can take the pass plus driving test, which includes learning to drive at night and on motorways.  It costs about £100, but can give you a thirty per cent reduction on your insurance premium. For a young driver this can be a saving of about £400 per year.
Earning no claims bonuses can also be advantageous – the first year’s no claims bonus can reduce the next premium by 30 per cent.  This can rise year on year – with a 60% reduction for four years.
Keep your mileage down.  The fewer miles you travel, the less your insurance premium will be.
The most expensive kind of cover is fully comprehensive.  A driver can reduce their premium by choosing third party, fire and theft cover instead.  But if you do go for this option, remember that your insurance will not cover any repair costs for your vehicle if you’re involved in a crash.
Installing certain alarms and immobilisers can also mean that your insurer will discount your premium.
By agreeing to pay a larger excess you can also reduce your premiums, but you should make sure that you will be able to afford this excess if needs be.
Go to an insurance broker for a quote, rather than to an insurer directly. Brokers sell a wider variety of products for different insurers and will be able to match the driver to the insurance company that offers the best price. Some insurers now offer better deals for environmentally friendly drivers – so owners of low emission cars can benefit from cheaper insurance as well as lower road tax.

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Getting the best value in car insurance

September 26, 2011 By Riley Jenkins

It’s almost impossible to get through a TV programme these days without seeing at least one insurance ad.  Go compare and Compare the market are probably two of the most watched and remembered – as they seem to be on every other ad break.
However, it’s worth bearing in mind that you should compare different quotes when you’re looking for insurance – especially when it comes to car insurance.  Some types of cars have very high premiums for surprising reasons.  For example, 4×4 cars usually have higher premiums than standard cars. The reason for this is that although they represent a low risk in terms of how much damage might be done to them or their passengers, they can do some real damage to a lighter weight car in case of collision.
Hybrid cars in the UK are a little difficult to gauge. Some insurers put high premiums on them, as they are still somewhat of a specialist technology, so may incur higher repair and part costs.  However, other insurers offer a special rate for more eco-friendly cars, and hybrids fall into this category because of their lower carbon dioxide emissions and their fuel efficiency.  Some insurers also offer better premiums to hybrid owners as they tend to be generally older (and wiser) and more careful drivers.
As well as giving all your driving history details, you’ll also need to say approximately how many miles a year you drive and where you store the car at night.  Where you live can alter an insurance premium significantly, as it is linked to your postcode.  It’s worth being honest when giving all these details, as you’ll get caught out if you ever need to make a claim.
Remember not all insurers are on comparison websites, so it can still be worth ringing round a few separate companies yourself.  That way you’re most likely to get the best deal for you and your vehicle.

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Finding the best cover for hybrid cars

September 13, 2011 By Riley Jenkins

As hybrid cars in the UK become more common, it’s worth taking your time to shop around for your car insurance.  Although traditional insurers tend to have higher premiums for hybrids, there are now some specialist insurers offering better deals on hybrids and other eco-friendly cars.
Hybrids can benefit their owners in a number of ways. While they offer comparable speed and performance to conventional cars, they are fuel-efficient and better for the environment as they produce low emissions.  Because of this, they qualify for lower road tax in the UK.
Traditional insurers have tended to keep hybrid premiums high. Although the average hybrid owner is in a lower risk category, the main concern for insurers is the sophisticated components that make up a hybrid, and the replacement and repair costs for these. Also hybrids are more expensive to buy than conventional cars, and so their replacement cost would be higher.
Now though, there are several specialist hybrid insurers offering more attractively priced premiums. Apparently, these niche market insurers see hybrid drivers as a better bet than the average motorist.  There are a number of reasons for this. Owners of hybrids tend to be older and are willing to pay more for a car. They are more likely to take good care of their vehicle and ensure it is maintained regularly.  They are usually responsible and careful drivers.
As these insurers specialise in insuring cars that run on new technology, they generally have a better understanding of the hybrid technology, and price their premiums accordingly. They may also offer better quotes for cars that meet environmentally-friendly criteria.
So, whilst it’s always important to carry out a price comparison when you’re looking for car insurance, it seems that it’s of far greater importance if you want to insure a hybrid car.

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