Swinton, one of the biggest high street insurance retailers in the UK has acquired the Equity shop network of IAG (Insurance Australia Group Ltd) safeguarding the jobs of 600 jobs and 91 retail outlets.

The deal, worth some £50 million, sees Swinton now managing over 3 million individual home and car insurance policies and become the third largest insurance retailer in the UK.

Swinton Head Office is based in Manchester with three UK call centres in  Manchester, Halifax and Norwich.

With a workforce of nearly 5,000 people spread across the country in more than 500 high street offices, it is now said to have the largest high street presence of any insurer in the UK.

Notwithstanding, Swinton also recognises the benefits and choices customers want, so also operates five motor and two home insurance brands on the internet.

Swinton, continued it’s success story last year by reporting record profits for the 7th year in a row.

The Swinton Group Chief Executive, Patrick Smith, said;

“The acquired shops will be fully integrated into the business as will the Equity staff, whose expertise and knowledge of the communities in which they live and work, is very valuable to us. “

“This deal is not about reducing staff numbers to increase margins; it is about providing great customer service to local communities.”

This is unlikely to be the end of Swinton’s expansion plans.

Many car insurance providers now offer breakdown insurance as an add on to their car insurance policies.

Whilst, from their angle, it is another opportunity to generate income, the benefits for policyholders may prove extremely valuable, particularly during the current cold weather.

In an effort for individuals and indeed, businesses to reduce outlay and save money, some may be considering doing away with their breakdown cover.

Before doing so however, remember, the cost of calling out a tow truck and then paying a garage to complete any necessary repairs may far exceed the saving realised by cancelling the original breakdown cover thus proving to be a false economy.

Cold and wet weather conditions tend to show up any faults in vehicles, particularly if they are left standing around for a few days in freezing conditions. Sub-zero temperatures tend to expose any slight weakness in car batteries and there is nothing worse than breaking down in the cold and/or wet.

There are many breakdown recovery schemes available offering numerous levels of cover, so before cancelling your cover completely, it may perhaps be advisable to look at what areas in the level of cover that you could do away with.

For example, do you really need European Assistance? – if you are not planning to travel abroad in your vehicle for some time, why bother retaining that element of cover.

Can you  manage without home breakdown cover?

Retain the critical functions and look to cancel the add-ons rather than cancel your cover entirely.

The cold snaps being experienced of late leaves motorists exposed to potentially having insurance claims rejected.

Insurers impose certain conditions and responsibilities onto policyholders which could, if not adhered to, lead to people having their claims rejected for breaching their policy conditions.

There is always the temptation to go out and start the car up to let it defrost the windscreens and warm up, and return to the house for a few minutes to stay warm ourselves.

However, according to the British Insurance Brokers Association (BIBA), anyone submitting an insurance claim for their car being stolen with the engine running to warm up the car or even having just left the keys in the ignition, could find their car insurance invalidated.

Insurers are constantly reviewing underwriting criteria and amass an enormous amount of data surrounding claims experiences which is shared with other insurers.

This particular policy condition, although by no means new to the industry is being more rigorously imposed by insurers.

This type of theft is probably going to increase so it is very important to take care and protect yourself against such an incident happening to you by allowing yourself a few extra minutes, particularly in the mornings and evenings when cars are more likely to be frosted etc.

For anyone starting out, driving in the UK carries its own unique legal obligations which every driver on the UK roads must comply with.

Most issues relating to the ways of the road are attended to under the Road Safety Act and the Highway Code.

A further legislative requirement is that of insurance and since the 1930’s it has been a legal requirement for all drivers to have at least Third Party insurance cover on any vehicle that they drive. It is the driver’s responsibility to ensure adequate cover is in place, even if the vehicle belongs to someone else.

There are 3 levels of cover:

Comprehensive – covers damage to both the insured vehicle and any other person’s property damaged as a result of an accident you are deemed responsible for (including passengers in the vehicle you were driving).

Third Party Fire and Theft - covers damage to the insured vehicle in the event of a fire or theft (irrespective of blame) together with any other person’s property damaged as a result of an accident you are deemed responsible for (again, including passengers in the vehicle you were driving).

Third Party Only – the important thing to note here is that Third Party Only cover does not offer any insurance against damage to the insured vehicle you are deemed responsible for. It only covers damage to any other person’s property damaged as a result of the accident (again, including passengers in the vehicle you were driving).

Failure to be deemed in control of a vehicle without adequate insurance and you can look forward to a fine, ban, be disqualified from driving, having your car crushed, a criminal conviction and possible liability for any personal injury claims submitted a s a result of the accident.

As a word of caution therefore, always ensure you are actually insured to drive the vehicle you intend to drive. If it isn’t your vehicle, check the individual’s insurance certificate which will very clearly include details of those insured to drive their vehicle and if in doubt, either check with the person’s insurer beforehand or don’t drive it.

If you’ve had, or currently suffer from a medical condition or disability that may affect your driving you must tell the Driver and Vehicle Licensing Agency (DVLA).

You must also ensure you provide details if you develop a new condition or disability or one that has become worse since your licence was issued.

Failure to notify DVLA is a criminal offence and is punishable by a fine of up to £1000.

Insurers use notifiability of a  medical condition to DVLA as one of their main considering factors affecting their underwriting, so it is as equally important that you ensure your insurers are also made aware of a notifiable medical condition.

Rules surrounding which conditions must be notified varies depending on the type of licence held. For example, conditions that must be notifed to DVLA and insurers may be slightly different for lorry drivers as they spend more time then private users on the road.

Whilst most people will rely on the GP for guidance on whether conditions need to be notified to DVLA, there is guidance for those wishing to do a little of their own research on the DVLA website.

More specific guidance regarding medical conditions can be quickly accessed via the following link:

http://www.dvla.gov.uk/media/pdf/medical/aagv1.pdf

One of the most common injury costs associated with car accidents is that of whiplash, and without wishing to undermine the legitimacy of any whiplash related injury claim, compensation costs have increased, and insurers, safety groups and the Association of British Insurers (ABI) have been campaigning the Government to take action to reduce the number of such accident claims.

Passengers in the vehicle concerned together with any 3rd parties affected that were in  other vehicles involved are entitled to claim such compensation against the driver that is deemed to have caused the accident, even if it was another member of the same family.

Make no mistake, whiplash related injuries can be painful and take some time to dissipate (if at all) and the amount of damages an injured party could receive following such an injury will depend on a number of factors including the severity of their injuries, the likelihood of permanent damage and any expenses which the individual has incurred as a result.

There are many solicitors offering their services on a “no win, no fee” basis along with numerous companies offering Legal Protection Insurance running alongside other insurance policies (particularly Home Insurance policies) all of which will pursue any claim on your behalf.

 
Those considering themselves efficient and confident enough can attempt to negotiate with the driver’s insurance company themselves, but be warned, their claims team will have access to a lot more data at the touch of a button than you will, and their day job is quite simply to negotiate claims down so be prepared for a difficult battle.

The temptation may be there during this current difficult economic period, but any motorist caught omitting key personal information or material facts when applying for car insurance or submitting claims to their insurers could find them refusing to honour claims.

This is the warning being issued by the the Association of British Insurers (ABI) following their discovery that the number of fraud cases appears to be on the increase.

Insurers are uncovering more and more instances where customers have been either “economical with the truth” or out and out “lied” in an effort to secure lower insurance premiums.

One of the main sources of fraud surrounds the inclusion of a young driver on a car insurance policy naming them as an occasional user whereas in reality, they are the most frequest user, or even the only user, which would have attracted a significantly higher insurance premium.

Be warned, this sort of activity can have disastrous consequencs for all involved, and worst of all, in the event of a serious accident, render the individuals involved open to criminal prosecution.

One must ask, how would you feel if one of your family was the victim, and as a result, having little recourse against the offending driver.

Never forget, insurers share information and will pass all such costs onto all car drivers one way or another, so there is not really anything to gain.

Honesty really is the best policy.

If in doubt, disclose the information, let the insurer decide whether it is relevant. Ignorance is no excuse.

It’s just not worth the risk.

The credit crunch that everyone is probably sick to death of reading about and listening to on the news is just not going to go away; for the time being anyway, according to expert financial analysts so we just as well accept that fact and get on with it as best we can.

Insurance premiums are very likely going to increase and some people may even decide to downgrade or replace their current car with a more sensible and cost effective model.

But how can drivers decide which car is likely to meet their needs and be more economical to run and insure?

There are of course, many comparison and advice websites to help you decide, but few offer details of car insurance groupings etc. without actually having to go through an extensive questionnaire to ascertain an indication of the premium, and even then, it is unlikely you will be provided with details of the car group.

You can of course, ring your current insurer to get an indication of the cost of insuring the car, but again, it is unlikely you will be given details of car grouping etc. without asking for it – all of which is going to take quite a time.

As well as offering much information about new and used vehicles, Parkers, also offer details of car insurance groupings for many vehicles which in order to keep premiums down, should be one of the predominant factors.

It is very easy to navigate your way around the site but here is a link to the section which includes car insurance groups on their website.

It’s cold, and it’s likely to get colder and wetter over the next few months or so increasing the risk of dangerous driving conditions, the potential for accidents and as a result, insurance claims.

According to the Met Office, it was the coldest December in more than thirty years. Indeed, the average temperature for the first ten days of December  was three degrees below the long-term average of 4.7°C.

Current financial pressures are enough for most to cope with so and it goes wihtout saying that the last thing anyone needs during such difficult financial times, is a car accident which pushes up insurance premiums at next renewal.

Low temperatures, combined with shorter daylight hours, make driving at this time of year much trickier. In particular, a sudden temperature drop can lead to ‘black ice’ forming on ungritted roads, which is the cause of many sudden impacts.

As with most things, prevention is better than cure, so it makes sense to prepare for difficult conditions and to drive with extra caution. This is especially the case if you’re driving long distances so here are a few tips on avoiding accidents and risk of injury to you or your passengers.

1. Do not rush – no matter how late you are for your meeting or get together with friends – they will undoubtedly prefer you to get there late than not at all. Just pull up at the side of the road and call them to tell them you will be late – no big deal.

 
2.. It is safer to drive during daylight hours – the roads may be busier but improved visibility more than compensates.

 
3. Make sure that the windscreen is completely clear and clean before setting off, because you can’t drive safely if you can’t see clearly.

 
4. Check all four tyres are in good condition – remember, worn tyres increase stopping distances significantly and if in doubt, get them checked out.

 
5. Make sure that all lights are clean and working replacing faulty or blown bulbs before commencing your journey.

 
6. Make sure you have at least one mobile phone fully charged and operational in case of emergency. If you have one, take an in-car phone charger with you. In seriously bad weather, this could your lifeline to emergency and breakdown services.

 
7. Keep an emergency kit in your car, or at the very least, a torch, preferably one of those which flashes an amber light to warn other drivers of a hazard in the event of breakdown.

 
8. Pack some blankets if you know it is going to be particularly cold.

Some of these suggestions may be blatantly obvious, and others may seem a bit dramatic, but they have all proved valuable to others.

Basically, take as many precautions as possible to ensure your no claims bonus stays intact during any adverse driving conditions.

Like any other business, insurance companies, no matter how large or small they might be, have responsibilities to their both their shareholders and policyholders to ensure they manage their finances efficiently and in a profitable manner.

Whilst there are many legal obligations imposed on insurance companies to assure liquidity etc. so that they will always be financially able to meet their obligations and liabilities to policyholders, the current economic downturn could have wider implications for policyholders.

As consumers refuse to be tempted into buying new  cars, or choosing to hang to their existing car for longer than usual, insurers are going to need to look at increasing current insurance premiums in order to maintain investment returns.

There will of course, be some mitigation in the increase in premiums for consumers as their existing cars will be older and worth less, therefore, attracting slightly lower premiums to offset part of the probable increase.

There is also suggestion following a recent study by Norwich Union that insurance claims may rise in the next few months putting even further pressure on insurers increasing further the likelihood that insurers may need to increase premiums and individuals and businesses alike, should perhaps make provision in the strategic plans to allow for same.