Car insurance comparison websites seem to be throwing money into marketing at the moment. There are very few comparison websites not advertising their wares on the TV at every opportunity.

But with increasing numbers of sites setting up shop how do you know which one offers you the best opportunity to secure the best deal for you?

Well, you don’t really, no matter what they claim!

So, they need to be more innovative and creative in their approach to entice you to use their website than fellow providers.

A first for the industry is MoneyExpert’s efforts to improve their market share by offering £20 cash back to anyone taking out any new car insurance policy through them. They will even offer 110% of the difference back if you obtain a better price online elsewhere!

Money Expert claim there are:-

“No strings attached. So not only can you see the best possible rates available, but you can also enjoy a second discount through our unique offer.”

Good on them in my opinion!

Now let’s see what the rest of the industry comes up with to fight back.

Whatever happens, it can only benefit car owners – anything that helps to push the cost of insurance down at the moment will be gratefully accepted.

As long as they don’t start to water down the cover afforded of course!

LV, the trading name for Liverpool Victoria, a UK friendly society and financial services provider has announced its acquisition of the Highway Insurance Group.

The acquisition by LV, who currently employs more than 2,700 people with a customer base in excess of 2.5 million, includes Highway Insurance’s General Insurance division and Hero Insurance Services.

Group Chief Executive of LV, Mike Rogers said:

“We are pleased to have completed this deal quickly and look forward to welcoming Highway into the LV Group”

He went on to say:

“This acquisition makes sound strategic sense and will assist us in our stated ambition to become a top five insurer in our chosen markets by 2012. Highway is highly complementary to our existing general insurance operations, and will provide a strong platform for growth. Putting the strengths of LV and Highway together will enable us to compete even more effectively in the insurance broker market.”

The overall value of the acquisition valued Highway’s share capital at £150 million with Highway shareholders receiving an interim dividend of 1.65p in early October 2008.

Highway is a personal lines insurer committed to providing technical and service excellence. Our products are distributed predominantly through over 2,500 independent intermediaries, of which we have strong relationships with across the UK and Northern Ireland. In 2008 we will have more than 650,000 customers, representing total premium income of £260 million.

Highway Insurance will become part of LV’s General Insurance business led by Managing Director John O’Roarke.

Andrew Gibson, Chief Executive of Highway, will remain in an advisory capacity until the end of the year.

Highway Insurance will be de-listed from the London Stock Exchange in due course and be fully integrated into LV, is a mutual organisation owned by its members in due course.

Is the credit crunch isn’t affecting everyone as much as we thought?

Is it lethargy?

Is it simply too much hassle?

Is it a lack of understanding?

Whatever the reason, even though we all moan about car insurance renewal premiums increasing year-on-year, more than 60% of car owners have not switched their car insurance in the last 12 months.

Quite frankly, it is extremely unlikely that the same insurer will offer the best deal for you, year in year out, even if there are exceptional circumstances making you a non-standard risk such as specific health issues, or driving history.

One thing is for certain, you will never know unless you check it out!

If you secure a better quote but would prefer to stay with your current insurer (better the devil you know and all that!) go back to your existing insurer and tell them what you have been offered – they may adjust their premium to retain your business.

And finally, don’t think a cheap car insurance quote means inferior cover, you may not need to compromise but be prepared to do so if it is worth your while and you can afford to take the risk.

The car insurance markets is very competitive and in the current economic climate, probably more competitive than ever, so get online, get phoning and shop around!

Times are tough out there and loyalty must come at a price.

Be assured, whether you like it or not, we are all just names attached to a policy number and your insurer will not hesitate to drop you like a stone if they chase underwriting strategies or don’t fancy the risk any longer!

Like most things in the UK, the insurance industry does not escape regulatory control. Insurance companies and reinsurers are required by solvency regulations to ensure they always have sufficient assets to meet ther liaibilities (something the banks seem to have struggled with lately!).

The Financial Services Authority (FSA)  has published its important latest advisory paper in response to the impending introduction of  the EU regulatory system known as “Solvency II”.
 
By publishing their detailed Discussion Paper ‘Insurance Risk Management: The Path to Solvency II’, the FSA is making a clear statement to the UK insurance industry that they must start to act and plan now if they are to meet the forthcoming Solvency II requirements.

Although, requirements under the European Solvency II regulations which are due to come into force during 2012 are not yet finalised, the industry cannot really afford to delay development of implementation plans. The discussion paper launched the FSA’s programme of preparation,  highlighting key requirements and suggesting how insurers might start planning for implementation.

Under the new regulatory system, insurers’ will need to ensure they hold not only sufficient assets to meet their liabilities but will also need to take account of market risks (such as a fall in the value of any investments), operational risks (malpractice or system failure) and credit risks (such as a default on a large debt) when calculating assets v liabilities.

UK insurers already meet risk-based capital requirements under the Individual Capital Adequacy Standards (or ICAS) introduced in December 2004. But the FSA warns that Solvency II goes further.

Companies are invited to submit feedback up until the end of the year. The FSA will then start asking companies to identify an individual in their organisation who will be responsible for Solvency II and to confirm their overall governance and implementation plans.

Surprisingly, research conducted by YouGov on behalf of car insurance company, Liverpool Victoria (LV) has revealed that 21% of those people questioned during the research were unaware of the legislation regarding the safe transportation of children.

In short, all passengers under the age of 12 should be seated in the appropriate restraint.

The regulation regarding the safe transportation of children whilst a passenger in a vehicle on the roads in the UK states that:-

“All children travelling in an automobile must be subject to the appropriate safety restraint”.

John O’Roarke, managing director of LV stated

“We’d urge all drivers to make sure they’re aware of the guidelines - child seats can take just five minutes to install and greatly reduce the chances of injury to everyone in the car.”

As a driver, you could face a fine up to £500 if you are convicted of failing to ensure that a child passenger is using an appropriate child restraint or wearing a seat belt according to the law.

Specialist advice regarding the correct restraint you may require will be available from a local supplier or alternatively, have a look at the following website - Child Car Seats : Carrying Children Safely

In 2011, all new UK cars and vans will be required by European Law to be fitted with lights that operate throughout the day, i.e. automatic daytime running lights.

Although there is no verifiable research undertaken to support their comments, the law is to be introduced because the EU believes that the lights could reduce death and injury on the roads by 3 to 5 per cent every year.

Whilst it is quite feasible (and hopefully correct) that the number of accidents involving only vehicles could possibly reduce as a result of this new law, it is questionable whether this would benefit other road users such as motor cyclists, pedal cyclists, horse riders and even pedestrians.

An Environmental Transport Association (ETA) spokesperson has stated:

“Whilst daytime running lights are well-suited to countries with frequently foggy or poor lighting conditions, it’s hard to understand the rationale for having them in Britain. Will this type of legislation end in pedestrians being required to carry lights at night?”

I wonder if insurers will start to penalise those drivers of older vehicles for not having automatic daytime running lights fitted?

After all, if the EU predictions prove true, the rest of us poor souls unable to afford to purchase new vehicles will be a higher risk, or we will be, until such time as the vehicles registered on/after 2011 become affordable.

Allstate, the US insurer, is offering drivers over the age of 50, a chance to reduce their insurance premiums by playing brain-training computer games.

The games have been developed by Posit Science, and according to Allstate, the technology can improve people’s driving skills and increase reaction times to the point where stopping distances are reduced by an average of 22 feet at 55 miles an hour.

At the moment, the initial launch of the scheme is being restricted to only  people over the age of 50 and living in Pennsylvania. If the software proves to successfully reduce the frequency and number of accidents for the over 50’s, they will start to offer discounts to policyholders (over the age of 50 of course!) that use the computer based exercises to improve their mental sharpness.

Commendable and imaginative but unlikely to make a great deal of difference I hear you say! And you may be right. But hats off to Allstate – at least they are opening their minds up to alternative approaches to help customers reduce costs and you never know, it may even work!

However, why should it be restricted to only those over the age of 50?  After all, it is the younger generation (the under 25’s) that could benefit most, given they are involved in more accidents than any other age band.

Another thought, why not take it to the other extreme and instead of offering a discount, make the taking of such mental exercises compulsory. If all insurers signed up to such a condition, look at all the lives that could be potentially saved if the software is as effective as hoped!

It’s my birthday today and yes, the traditional visit to some watering holes is planned with a few friends.

There are quite a few of us actually, and we have been going out to pubs and clubs together since we weren’t even old enough to drink or drive. Yet although we are all now over 40 years old, some of us married with children, some divorced and some who are confirmed bachelors, we all have one thing in common - we don’t drink and drive!

Here’s how we do it:-

• If visiting a different town for the night, we will drive to the town and book a cheap B&B and stay overnight.
• Again, if visiting another town, we sometimes book a minibus and driver to take us there and bring us back
• If staying local, we will sometimes hop on a bus or take taxis, and of course, share the costs.
• More often than not however, we take in turns to drive – the driver never pays for a drink all evening, the rest of us take in turn buying the driver(s) soft drinks
• If the driver succumbs to the pleasures of alcohol, there is no question; taxis it is for the journeys home.

Nothing sensational there I admit.

The secret is in the discipline we all have in sticking to these rules and it’s not because we are mature in years!

Why do we stick to these rules?

• The conviction would hurt
• The driving ban would probably cost us our jobs which in turn could cost us our homes
• The insurance premiums when the ban is over would be many times more expensive than people of a similar age would pay for the same car
• The fine would hurt financially
• We wouldn’t be able to ferry our kids around and watch them play football, netball or cricket for their schools etc.
• The stigma of having a drink driving conviction will remain on the licence for 11 years
• Because none of us could face the families of anyone injured (fatally or otherwise)
• Because the passengers would refuse to get in the car if we thought the driver was over the limit!

Try it – it’s not that bad, it’s always better to go out, have a good time (even if you’re the driver and remain sober) than risking your livelihood, licence and injury.

No more preaching- have a good time – I will – luckily it’s not my turn to drive!

The Department for Transport have recently revealed that drivers caught speeding could face up to six points on their licence.

The Road Safety Minister, Jim Fitzpatrick, said;

“In cases of extreme speeding only, there is a proposal to increase the penalty to six points to ensure the punishment corresponds better to the offence.”

For some motorists in Cheltenham recently, although facing the prospect of increased car insurance premiums after Gloucestershire police launched an operation against speeding motorists, can look forward to receiving the current fixed penalty fines etc.

PC Mark Love of Cheltenham Town Centre Safer Community Team said that the intention of the operation was to offer:-

“Additional reassurance to people living and working in the town centre that we take the matter of speeding very seriously and will continue to clamp down on individuals who drive irresponsibly and at dangerous speeds.”

15 drivers were caught speeding during the operation with 13 being issued with fixed penalty notices. Any speeding conviction must be disclosed to your insurer who may increase your insurance premium at next renewal as a result.

RoadPilot recently revealed that 71 per cent of those surveyed owned up to speeding.

There may be an alternative on the horizon however, as under the new proposals being put forward for consideration at the Dept. for Transport is to permit offenders the option of  taking a road safety course as an alternative to having the penalty points put on their licence.

Another insurer has now joined Norwich Union in highlighting the risks both young drivers and indeed their parents run when trying to cut car insurance costs by adding their fledglings to the parents’ policy.

Zurich spokesperson Keith Lewis told the Independent recently that students and their parents often don’t even realise they are committing the offence known as “fronting”.

It is without doubt, much cheaper for a parent to insure their sons/daughters on their policies as an occasional user, but if the young driver is to actually be the main user of the vehicle, this is technically fraud.

Mr Lewis said that while people often presume it is legal, it is not!

He warned that both the young person and their parents could be charged with insurance fraud and claims could be refused leaving the family to foot the costs themselves.

The hassle won’t stop there either. Just wait until you try to renew your insurance policy and/or your young fledgling tries to start up their own policy.

Insurers maintain and share a database with details on literally every insurance policy written and an even more comprehensive claims database. Details of the fraud/attempted fraud will be there for all to see so please do not take the risk.

You may save a little money in the short term, but you will not be doing your child any good in the long term and it’s unlikely they will thank you!.