AXA rewards safe motorists
Financial giant AXA has revealed a new car insurance policy which will see those with eight or more years no claims bonus receiving a 90% discount on their premiums. This compares to the average discount of 65% on a maximum five-year no claims bonus and will obviously further benefit the vast majority of drivers in the UK who do not claim on their car insurance.
This comes at a time when the AA has confirmed that UK car insurance premiums will rise by between 10% and 15% in 2010 with the majority of the increase caused by uninsured drivers causing accidents on the road. It would appear that slowly but surely we are seeing a polarisation between safe drivers and dangerous (and uninsured drivers) with many other insurance companies certain to follow the lead set by AXA.
Car insurance premiums have been on an upward spiral for many years now with the cost of covering uninsured drivers taken on by the industry and then spread out amongst insured motorists. Whether or not this is a fair allocation of the added expense associated with uninsured drivers is debatable but it is a trend which began some time ago and has ultimately led to a massive increase in car insurance premiums for "no apparent reason".
Uninsured driver claims starting to fall
For many years the problem of uninsured drivers in the UK has been a significant problem for the car insurance market. The Motor Insurers Bureau, which effectively looks after situations where uninsured drivers are involved in accidents, will this year take a £407 million levy from car insurance premiums, down from the £417 million figure last year. However, this is still a significant amount of...Read More
KPMG Slated Over Fall of Independent Insurance
Led by the enigmatic Michael Bright, Independent Insurance was one of the darlings of the City for many years, producing figures which not only seemed to go against market trends, but seemed just too good to be true. Ultimately this proved to be the case with the company suddenly collapsing in 2000 with the loss of hundreds of jobs.
As well as the job losses, the Financial Services...
Tell your insurer before making home bio diesel, firm warns
Making bio diesel at home can be dangerous - and might invalidate home insurance claims if an accident occurs.Defaqto said today that mixing cooking oil with ethanol and caustic soda, a common method of making the fuel, was becoming increasingly common among householders as they battled to counteract price rises at the pump.The firm made the comments following the widely-reported case of a Northam...Read More
Are your insurance policies secure?
News that Aviva has taken a hit on its asset base but is still financial secure will offer at least some short term relief to consumers and investors but should we be worried about the long term stability of the insurance market? Do we need to review who we hold our policies with?
While it would be a little foolish to suggest that we should all be checking the small print of our ins...
Payment Protection Insurance Plans Under Fire
In a move which many believe will see the end of the Payment Protection Insurance (PPI) sector the Competition Commission has indicated a number of possible changes which will give power back to the consumer. The changes involve forcing retailers to advise clients that they can buy their PPI cover elsewhere, price caps and annual subscriptions which need to be agreed by the consumer.