The car insurance market is so competitive at the moment that many people, on shopping around at renewal time, can secure more competitive rates and associated benefits from alternative insurance providers.

Periodically however, particularly if a person has changed their vehicle near to their renewal date, been involved in an accident affecting their no claims bonus or in dispute with their insurer due to some kind of non disclosure of a material fact which may have affected their insurance premium of cover, there may be premiums outstanding due to the previous insurer.

If this is the case, beware that your previous insurer can legitimately withhold any evidence of no claims bonus until such time as they consider the matter to have been resolved to their satisfaction.

If you find yourself in this situation, whilst it may go against your principles, you are probably better advised to settle their bill now, and if the dispute is later resolved in your favour, request repayment of any overpayment made.

You also have the option of approaching the Financial Ombudsman Service for them to carry out an independent review of the dispute if you and your former insurer cannot negotiate a satisfactory settlement of the dispute.

The Insurance Times and its partner Norwich Union, have been visiting every corner of the UK having organised regional round tables discussing topics such as broker consolidation, regulation resulting from the financial crisis and outsourcing.

To end the series, a discussion hosted by Krishnan Guru-Murthy, the Channel 4 news presenter, was held in Birmingham, wherein Guru-Murthy asked the panel and audience if independent brokers are going to be able to survive the current climate of consolidation and economic difficulties.

From a customer perspective, there is probably no better time than realising the benefits offered by brokers as their expertise and market knowledge, particularly surrounding developments in the industry, could prove invaluable.

Whilst the temptation may be there, this is not really a good time to fnd yourself under-insured as this is actually a time to protect the value in both your home and business.

Therefore, from a broker perspective, you are probably more important than ever to your customers.

From an underwriting point of view, insurers need to feel assured that the broker knows their customer well.

The subject of commission payments and the apparaent power struggle between brokers and insurers was also discussed.

Not surprisingly, larger brokers continue to try and push commission payments up and Norwich Union, for example paid out 26% in commission in 2008, up 4% on 2006 across all ines of business.

Insurance companies are however looking very closely at the profit realised by their individual broker network partners and with individual reviews on a  case by case basis, some brokers could see commission levels squeezed. Something they claim they cannot afford.

It appears therefore that the days of brokers being in the better bargaining seat when it comes to negotiating commission levels is nearing an end and insurers are starting to stand their ground.

LV= has added its ABC Insurance private car product to a number of BGL Group car insurance panels.

Initially, the product will appear on the Budget, Dial Direct and QuoteMart panels and is expected to go live on other panels during the course of 2009.

BGL has more than two million existing customers and Phil Bunker, managing director of LV=’s broker business, said:
 
“I’m very pleased that ABC is now trading with BGL. I know the group well and I have been very impressed at the way they have grown their business over the years. They are one of the strongest intermediaries in the market and I am pleased ABC will now be able to play a part in their success story.”

This annoucement follows closely on the heels of LV’s announcement that it’s broker division is expanding into Scotland.

The expansion will be led from a new office based in Glasgow. Much of Scotland’s insurance business is dealt with by companies based in the city and LV= strongly believes that the opening of an office in Scotland, will leave it in a good position to  offer a first class service to local brokers.

Jim Rennie will be Branch Manager with 30 years experience including sales and management roles at both AXA, Independent Insurance and most recently as branch manager for Zurich’s broker business in Scotland.

Margaret Alexander is the Senior Underwriter with over 20 years’ experience in the local market, previously holding sales and underwriting roles with both Norwich Union and Chubb ably supported by Alison McDowell who has over 20 years’ experience in the local market, working most recently as a commercial underwriter with RSA.

Alan Blair is the Regional Sales Executive having worked for both Norwich Union and Fusion in sales roles for 20 years.

Following LV=’s acquisition of Highway Insurance in October 2008, Sandra Inglis, Regional Account Manager for Highway in Scotland, Northern Ireland and Northern England, will also be based in the new Glasgow office.

The Association of Personal Injury Lawyers (APIL) attacked the insurance industry and the FSA over the practice known as third party capture.

It is a rapidly growing, controversial approach by insurers of approaching injured parties directly in order to settle the claim before a lawyer becomes involved.

The technique is used in order to speed up the claims settlement process and cut out costly legal actions and keep down claimant lawyers costs.

Claims by the APIL president, Amanda Stevens infers that insurers attempt to bully claimants into accepting lower compensation than they should be entitled to and that the FSA (Financial Services Authority) is not taking action against this activity.

Insurers insist that they deal fairly with the injured party and that the compensation offered is fair.

The FSA began an investigation into third party capture at the end of 2007, calling for evidence of bad practice from claimant lawyers and trade unions but has not, as yet,  publish any findings.

With the economic downturn taking a real hold, the arguments around third party capture is set to intensify with the practice likely to become more prevalent with insurers looking to reduce the cost of claims by offering speedy settlements, and legal costs.

In these times of credit and financial instability, the pressure is on, not only for customers, but for businesses as well.

Not a day goes by where you don’t hear/read about some business having gone into administration or ceased trading.

The insurance industry is no different to any other, and just as susceptible.

Throughout the year, the  Financial Services Authority (FSA) an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000 monitor the trading activities of financial bodies and enforce breaches in the fight against money laundering and inpropriety etc. It will, if the need arises, issue health warnings etc. to consumers.

The latest warning was issued about A Razzaq Insurance Brokers, based in Oldbury, West Midlands, over concerns that there was  a risk that the company had not passed on all insurance premiums collected to the insurers, and was alerting customers to check the validity of cover arranged through the company.

The FSA said: “If you took out a motor insurance policy through A Razzaq Insurance Brokers then, without valid third-party insurance, you may be committing an offence if you use a vehicle on the public highway under the provisions of the Road Traffic Act 1988. If you are a customer of A Razzaq Insurance Brokers and are in any doubt as to whether you have valid insurance, you are strongly advised to contact the insurance company with whom you believe your policy is held, to check. If you discover you are not covered, you should take immediate steps to arrange new cover.”

You can keep up to date with the latest warnings about firms that may be in financial difficulty etc.  by visiting the The FSA Money Made Clear section of their internet website.

Importing vehicles from markets such as Japan is increasing in popularity.

There is a tendency for these types of car to have lower mileages and higher specifications than the equivalent UK models, and because they are imports, they are frequently available at good prices.

These types of car are usually known as “Grey Imports”.

Grey Import cars are not as popular with insurers however so it is unlikely that the usual insurance providers would be prepared to offer cover. You would be best advised therefore to consult a specialist insurance provider.

When you bought your grey import car, you more than likely went to a specialist dealer. To purchase parts, you will probably need to consult a specialist as well. The same applies when you are looking for imported vehicle insurance.

These providers will be used to finding policies to suit unusual and even completely unique cars. They will know which insurers offer the best policies and at prices to suit most budgets.

You will be assured of speaking to knowledgeable staff with access to underwriters prepared to develop bespoke policies if necessary.

There are specialists out there with exceptional expertise in the provision of insurance for:-

• Japanese and other Grey Imports
• Specialist American cars
• Modified imported vehicles
• Q plated imports
 
Finally, keep your car garaged if at all possible, install the best alarm system you can afford and you will, in all likelihood pay less for your insurance.

Whether you have bought your off road kit car as a ‘project’, hobby or simply for the fun of driving it through some mud, you’re going to have some very clear ideas on how you can personalise that car making it completely unique whilst ticking every box for you.

Before insuring the vehicle, you need to be clear on what you are going to use the car for as not all insurers will necessarily provide suitable cover whilst it is being driven say off-road.

So, before making that call to insurers:-

• Get it valued by a specialist – many insurers pay the ‘market value’ only if you suffered a total loss. Kit cars are notoriously difficult to value and often undervalued by non-specialists. You don’t want to get a nasty surprise if you need to make a claim.

• Goods In Transit cover – do you need to insure the parts etc. whilst on route to you?

• Build Up Cover – so your kit car and its parts are fully protected from theft or mishap during assembly.

• Limited Mileage discounts – the fewer miles you drive, the more you can save, from as little as 1,500 miles.

• Use of vehicle - Track Day / Rally cover can be arranged on some policies so make sure your policy does/can be extended to cover attendance or participation if you think you may use it for that purpose at some stage during the period of insurance.
 
• Owner’s Club Discounts – If you belong to a recognised owners club or enthusiasts’ forum, you could receive a discount of up to 15%, depending on the policy taken.

As new car sales plummet and money gets tighter, there is always a temptation to put off minor maintenance repairs to not only one’s home, but to our cars as well.

And the consequences can be expensive, if not fatal.

Nobody wants to spend their hard earned money at the moment but if you do not invest a little in keeping your car roadworthy, you risk not only yourselves and any passengers, but the wrath of the police and your insurers.

It is a condition of your insurance policy that your vehicle is kept in a roadworthy condition when used on public highways. The police will not hesitate to prosecute anyone driving on our roads without a valid MOT, insurance along with a variety of other reasons.

Motor engineers and servicing specialists are equally looking to generate business in this tough economic climate just like every other business, so whilst you may not want to fork out for a service and get that car checked over, you may in fact find yourself being able to negotiate a far better deal than you think.

With the adverse weather making driving conditions treacherous in places, it must be worth having a chat with your local garage or mechanic.

All too often, as consumers, we simply decide on the level of cover we want for car insurance and then compare the costs provided by insurance companies.

We may have heard of the insurance provider, we may not have, it makes no difference as long as the cover is in place and we conform to UK legal requirements.

Periodically, therefore, I intend to include a little history and information about specific car insurance providers in the UK.

It is important to note that many of these insurers have diverse portfolios and do not offer only car insurance

In this article you will be provided a little information about Eagle Star Insurance Company.

The present name Eagle Star was adopted in 1937 but it started to assume its present form in 1917 when the British Dominions General Insurance Co Ltd, merged with Eagle Insurance Company, Sceptre Life Association Ltd and Star Assurance Society to form Eagle Star and British Dominions Insurance Company Ltd.

Diversification and growth continued when in 1959, Eagle Star acquired Midland Assurance Ltd, prominent in employers’ liability insurance and the subsequent acquisition of Navigators and General Insurance Co Ltd, very prominent in the insurance of yachts and small craft in 1960.

Eagle Star is also associated through minority interests and various reinsurance and co-operation agreements with a number of insurance companies in other countries.

Eagle Star Group underwrites fire, accident, motor, marine, aviation and transport risks within the United Kingdom and overseas,
including reinsurance and is what is known as a proprietary composite insurance company.

Proprietary in the sense that it is a publicly owned joint stock company as opposed to a mutual association and composite in the sense that it carries on both life and non-life insurance.

Eagle Star is involved in property management which has been acquired, managed, and developed over many years.

Within the United Kingdom the Eagle Star Group transacts its insurance business through a regional network of over 100 branch offices and the 10 regional offices with many other branches enjoying a large degree of decentralised underwriting authority.

With the recent addition of none new insurance brands to its car insurance comparison service, Gocompare.com has confirmed it’s position as the UK’s leading car insurance comparison site.
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The addition of HSBC, Insurance4my, 1st Central, Insurebasics, Moorhouse Exclusive, Motor Insurance Warehouse, One call Direct, Renault and The Post Office now offers visitors to the site unrivalled market coverage which even drivers with unusual vehicles or circumstances can use.

Anyone wanting to obtain a quote and compare the levels of cover and premiums offered can now compare insurance products from up to 90 insurance providers in a matter of minutes.

Gocompare claim their breadth of coverage across the motor insurance market is unrivalled enabling them to cater for a wider variety of risks than ever.

Information provided offers consumers the product information they need to find the right insurance together with assurance that the price the customer sees at our site is the same as if they went direct, which means customers can trust the prices they see on the site.

The new insurer, 1st Central, will be distributing their insurance products only via comparison sites and signifies an exciting time for the insurance industry demonstrating the importance comparison sites as a distribution channel for the most competitive insurance companies.