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".
Fraud costs insurers '£4m a day'
Insurance fraud costs UK insurers some £4 million a day, new research has indicated.A survey by the Association of British Insurers (ABI) found that one in ten adults had admitted to filing a fraudulent insurance claim.The trade body said that their dishonesty was adding an average of almost £40 to the annual premiums of other policyholders and costing the industry £1.6 billion a year.Policyhol...Read More
Buy to let investors urged to review home insurance
Landlords whose property portfolios have increased in value over the last year should act now to review their home insurance cover, Sainsbury's Home Insurance has advised. Research conducted by the home insurance provider shows that at the end of 2006, the cumulative value of rental property stood at £571.38 billion. However, as a result of price inflation over 2007, this now stands at £641 bill...Read More
Car insurance costs 'soar'
The cost of insuring a car has risen significantly over the last year, according to a new study, particularly for people who pay by monthly instalments.Research conducted by uSwitch revealed that the amount spent on car insurance and fuel has risen nearly £500 to an average of £2,482 a year.Motorists who pay their premiums monthly rather than in a one-off payment could be paying £624 million mo...Read More
Midlands revealed as "caravan Bermuda Triangle"
More caravans disappear in the Midlands than in any other part of the UK, according to new data.Research by AA Caravan Insurance indicates that owners in the "caravan Bermuda Triangle", a region bordered by Leicester, Coventry, Birmingham and Nottingham, face a ten per cent higher risk of theft.Simon Douglas, head of AA Caravan Insurance, said: "These disappearances are well thought out criminal p...Read More
Is the insurance sector next for a fall?
While we have heard much about the performance of the leading UK banks over the last few days there has been little mention of the problems facing insurance companies over the last few months and the challenges which lay ahead. Today's news that US insurance giant AIG is in trouble and had to carryout a fire sale $20 billion asset disposal to keep the group afloat has brought the sector to the at...Read More