There have been previous references to insurance companies challenging car hire costs claimed by credit car hire companies.

Whilst these credit car hire companies claim to calculate their charges according to an agreed formula, the challenge tends to be made when there are delays in the repairing of a vehicle.

All costs relating a claim are a financial drain on an insurance company and consequently impact on future premiums.

It has been suggested by Zurich that up to £20 is added to every policyholder’s insurance renewal premium just to help pay for these car hire costs.

Policyholders need to be aware that failure to report an accident or incident to their insurer could lead them to having to meet such costs from their own funds.

In fact, failure to disclose any material fact can have the same impact – your insurer could quite legally refuse your claim leaving you once again, liable for all of the other person’s costs if you are found to be at fault, and the legal costs alone can run into several thousand pounds.

In the current climate, insurance companies are closely examining expenditure, particularly in the area of claims, so be assured, if there is any doubt over the validity of a claim, they will pursue it.

Never be tempted to be economical with the truth when it comes to insurance.

There will only be one loser, and it won’t be the insurance company.

Zurich Financial Services Group has further extended its business interests in the General Insurance market around the globe by completing the acquisition of Russian Insurance Company, NASTA.

Zurich, based in Switzerland, originally purchased a 66% stake in NASTA in 2007 and following this acquisition of the remaining 34% will rename the company Zurich Retail Insurance Ltd.

Zurich Retail Insurance Ltd is now the largest foreign controlled general insurer in Russia operating exclusively under an international brand name. This new acquisition offers Zurich further access to insurance markets in Russia via up to 60 offices around the country.

There have of course been concerns around the financial stability of some financial institutions, and insurance companies have not escaped speculation, but it is worth noting that Zurich was founded in 1872, employing in the region of 60,000 people in more than 170 countries.

The fact that Zurich have business interests across the globe offers them opportunity to draw on a staggering amount of underwriting experience and analytical data which undoubtedly positions them as one of the main players in the provision of personal, commercial and corporate insurance throughout the world.

With main offices in 11 of the UK’s major cities, customers are assured of being able to access advice and support without too much difficulty.

Most people realise that their occupation influences car insurance underwriters and premiums are usually significantly higher for some occupations.

As an example, a male aged 49 years, working as an Administration Manager for a Government Department, travelling around 12,000 miles per year and using the car for pleasure and commuting only would expect to pay around £201 for comprehensive insurance on a Honda Civic 1.4i.

A Salesman for a Food Manufacturer, doing around the same amount of mileage but using the car in connection with their job could expect to pay around 16% more (£234).

A professional sportsperson such as a boxer however, travelling around 12,000 miles per year and not even using the car in connection with their work at all, (i.e. using the car for pleasure only),  can expect to be charged a whopping £377. That’s 88% higher than the Government Administration Manager.

Premiums increase even further depending on the mileage and purpose the vehicle is used for. The Salesman would see his premium increase by a further 8-10% if he travelled 40,000 miles per year and a professional sportsperson can expect their insurance to increase by a further 20% to approx. £450 per year.

It is of course acknowledged that professional sportsmen and women tend to earn significant sums (or at least some of them do) and drive expensive, top of the range motors but one must question whether underwriters can justify increasing premiums by such large amounts for the rest of us mere mortals.

Therefore, make sure you shop around for your car insurance as much as possible as not all insurance companies will penalise you in the same way. Check out those price comparison websites to get an idea who is likely to offer you the best deal when it next comes to your renewal.

Don’t be too surprised if you are summoned to appear in court for credit car hire company.

Many Insurance Companies offer comprehensive insurance policyholders a free courtesy car whilst their own vehicle is undergoing repairs as a result of an accident.

Some even offer such cover to Third Party Fire and Theft policyholders for a price.

However, for those people that are not as fortunate, or did not have the foresight to take out such cover, the only option following an accident where their car is no longer roadworthy is to either hire a car, buy another car, use taxis, public transport or walk.

Most tend to use a hire car and claim the hire costs back from the third parties insurance company.

There are many car hire companies specialising in offering cars following accidents. These companies even pursue recovery from the third party direct, only involving the policyholder if the claim ends up in court.

From a policyholder’s position, this is convenient and given there is no immediate financial cost, is a very attractive proposition.

There have been many court cases pursued by insurers to challenge what they consider the appropriateness of the costs claiming the bills are unreasonable.

Credit hire firms on the other hand insist charges are calculated according to an agreed formula and insurance firms incur costs through penalty charges for late payment.

So don’t be too surprised if the other person’s insurance company do decide to challenge the costs and you end up being summoned to appear in court on behalf of the accident management company as it tries to recover the car hire costs.

Drivers breaking speed limits by significant margins could face a six penalty point conviction on their licence if ministers agree to proceed with a new proposal under consideration.

This change would in effect, double the penalty for drivers breaking speed limits clearly demonstrating the government’s determination in reducing road deaths due to excessive speed.

These tougher penalties could quite easily result in drivers facing an automatic ban after just two convictions.

Road Safety Minister, Jim Fitzpatrick will soon outline the proposals in a written statement to the Commons which will then be subject to a three-month consultation period before ministers will make a formal decision.

Whilst provisional government figures issued in November, indicates road fatalities during the period April-June 08 was nearly 20% less than the same period in 2007, the Road Safety Minister still believes there is more that can be done.

It is not known how insurance companies will react if these new proposals are pushed through parliament. At the moment, it is unlikely that car insurance underwriters would increase a driver’s insurance premium by any significant margin as a result of just two speeding convictions.

With technology moving forward at an incredible speed offering authorities an ever increasing array of gadgets and equipment that is capable of watching our every move with increasing accuracy, drivers can no longer afford to take a chance.

Some Drink Driving Statistics:

• Around 3,000 people are killed or seriously injured each year in accidents where alcohol is considered a contributory factor.
• Nearly one in six of all deaths on our roads involves drivers who are over the legal alcohol limit.
• Male drivers under the age of 30 are more likely to be injured.
• Male drivers under the age of 30 are more likely to test positive for alcohol during a breath test
• Latest provisional figures indicate some 560 people were fatally injured in accidents involing a driver that was over the legal limit.
• 2,100 were seriously injured in accidents involing a driver that was over the legal limit.
• Around 100,000 drivers fail a breath test every year, which equates to roughly 20% of all those tested.

As a reminder, the legal limit is 80 milligrammes of alcohol in 100 millilitres of blood.

Effects of Alcohol:

• Alcohol affects the time you take to react in an emergency.
• Your vision is affected, you could suffer blurred vision.
• Your judgement can be seriously affected meaning you misread the distance to potential threats/danger or the speed at which of yourself and others are travelling.
• Alcohol also tends to make you feel over-confident and more likely to take risks when driving.
• All the above result in your stopping distance increasing.

Implications:

• You will, in all likelihood, lose your licence for at least 12 months.
• You could be imprisoned for up to 6 months.
• You could be fined up to £5,000.
• You could be improsoned for up to 14 years if you cause a death by careless driving when under the influence of alcohol.
• Simply sitting in your car whilst over the drink, driving limit, and you  determined to be in charge of the vehicle at the time carries up to 3 months imprisonment and a fine of up to £2,500.
• You could lose your job.
• You will probably find your insurance premiums more than double for several years.
• Your Drink Driving conviction will remain on your licence for 11 years being being classed as spent. 

Every year, 1.7 million drivers take their cases regarding speeding tickets to court.

Government ministers are in the process of considering proposals which would see defendants lose their 100 year old legitimate right to claim back their costs.

The Government are now considering opinions whether motorists should be forced to pay their legal bills if they challenge a speeding ticket even if they win their case.
 
The Ministry of Justice has published a consultation paper explaining the proposal for ministers to consider.

With the cost to fight each speeding charge said to be £1,500, the annual cost is in the region of £25.5 million.

 Junior Minister, Lord Bach has said:

“Just as an individual who chooses to put their child through private education does not reclaim this cost from the education system, nor should public funding recompense those who choose to pay privately for a lawyer when a publicly-funded alternative is available.”

A motorist caught speeding does not only have to pay an on the spot fine but will also see points added to their driving licence and potentially see their car insurance premiums increase at next renewal.

For some, this would inevitably mean that they would not bother to challenge the conviction as they may feel it is cheaper to simply pay the fine and take the hit on any increase in their insurance premium at next renewal.

Swinton, a leading high street insurance provider in the UK is stating that drivers could be unwittingly invalidating their car insurance.

With so many factors affecting a person’s car insurance, it is imperative to ensure a policyholder offers the full facts to the insurance provider.

Failure to disclose some seemingly insignificant piece of information at the time could result in an insurer deciding that you have broken the terms of your policy and withdraw cover, or even more worryingly refuse to indemnify you when you try to make a claim.

YouGov found that as many as 10% of motorists could have invalid policies. 6% even admitted to deliberately misleading insurers about their age and address, while 3% admitted to withholding information about past driving convictions.

Steve Chelton, Insurer Development Manager, for Swinton said:

 ”It is very important that UK drivers are aware of the terms and conditions of their policy so they are not unconsciously invalidating it. The last thing a motorist wants to do is pay annual premiums only to find their policy is void when the time comes to make a claim.”

Some of the more common bits of information that are not disclosed are:-

• Failure to mention past driving convictions or accidents.
• Failing to inform your insurer of a change of job. 
• Any changes in your health that may affect your ability to drive such as deterioration in your vision. It is not your decision whether it will affect your insurance policy – inform your insurer immediately. 
• Failing to disclose modifications to your car.
• Failing to inform your insurer where the vehicle is to be used and what for. Using your car in connection with your work as an example is going to affect your premiums as would using the car daily in London rather than in a rural area somewhere else in the country.

Let your insurer decide whether the information is relevant or not or you may regret it in the event of a claim

In spite of pledges made by Ministers to introduce tougher controls 3 years ago, the Driver and Vehicle Licensing Agency (DVLA) continues to sell the names and addresses of motorists to wheel-clamping firms without carrying out checks on their background and credentials.

Action was originally promised following disclosure by the The Mail on Sunday that personal details of car owners were being sold by the DVLA for £2.50 to unlicensed operators.

There are of course Government approved procedures in place to manage such requests to ensure their legitimacy, but it has come to light that this loophole still exists in the checking process, thereby remaining open to abuse.

Whilst car insurance providers have shown no interest in this particular area to-date there is nothing to say that will remain the case.

It transpires that online requests are subject to verification by means of security checks for reputable parking enforcement organisations, but there appears to be no such verification for requests received by post!

Accepting that the DVLA charge for these services, which will undoubtedly be claimed to cover administration and database maintenance costs and offer no profit, it does, once again, raise serious questions around the security of our personal information held by Government Departments.

It appears that everyone’s personal information is available, at a price!

The government needs to close this loophole and soon!

We deserve, and indeed, expect our personal information to be secure.

Nothing less is acceptable!

It is always sensible to check around whenever a car insurance policy is due for renewal to obtain assurance that you are still getting a good deal.

This is predominantly an annual event however, and with volatile fuel prices, drivers should continue to  think about the cost of making unnecessary journeys etc. 

Any person having experienced travelling by aeroplane sees this clearly evidenced by the baggage restrictions imposed by airlines. If you wish to take extra baggage over their limit, you will pay extra – this additional cost is mainly due to the extra fuel they will use to get you to your destination!

The theory is no different for travel by car, but many motorists however have failed to look at reducing the amount of personal possessions they leave in the boots of their cars which, if removed, could reduce their fuel consumption according to The Energy Saving Trust.

Tim Anderson, their smarter driving expert has stated that by failing to remove unneeded belongings out of a vehicle’s boot, a person is increasing the amount of fuel they are using.

He said:

“The reason we are talking about clearing out their boots is because actually by carrying around excess stuff in the back of the car, the car has to work a little bit harder so it uses more fuel.

“That adds to your fuel costs and it also increases the amount of carbon dioxide and CO2 that your car emits.”