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".
BCC demands increase in VAT not national insurance
The British Chamber of Commerce (BCC) has today pleaded with the UK government to increase VAT to 18.5% instead of increasing the rate of national insurance contributions. Figures from the BCC suggest that the scrapping of next year's national insurance contribution increase would benefit businesses by £5.1 billion while an increase of just 1% in the rate of VAT would bring in around £4.5 billio...Read More
Aviva setback as further legal challenges materialise
Insurance giant Aviva has received a setback in its three-year battle to pay out orphan funds to shareholders, policyholders and the company itself. The original £1 billion offer from a £4.2 billion fund has since been reduced to £500 million after the fund in question fell in value to just over £1 billion. However, last week saw what many believe was the final ruling in this ongoing saga but...Read More
Uninsured Drivers On The Rise
The subject of car insurance is always guaranteed to cause a great deal of upset amongst UK drivers with premiums seemingly increasing every year. However, with the credit crunch continuing to hit home there has been a marked increase in the number of drivers without valid insurance. Money is tight but there is no excuse - so why do people do it?
When you consider that the average...
Britons 'don't think they need' travel insurance, poll finds
More than 13 million Britons will go on holiday this summer without first taking out travel insurance, Sainsbury's Finance said today.According to the firm, one in five people believe that they "can't afford" the cover - while a further third feel that they "do not need" it.Surprisingly, youngsters were found to be showing a more responsible attitude to their summer holidays than their elders.Whil...Read More
Insurance fraud peaks at 2300 claims a week
The Association of British Insurers has issued a damning report on the UK insurance arena with confirmation that over 2300 fraudulent insurance claims are being discovered each and every week. It is estimated that these claims account for over £800 million a year which is then passed on to UK consumers who are left yet again to foot the bill. So why are insurance fraud claims rising? While the...Read More