More Than Launch Green Wheels Insurance

More Than Car Insurance have recently launched their new Green Wheels Insurance policy. It is a new product which allows you to view and monitor reports on your driving style and compare it with other drivers - to see how green your driving really is.

Green Wheels aims to help UK motorists drive their vehicles in an eco friendly manner, thus saving fuel and leaving less carbon footprint.

The technology for this car insurance scheme uses Formula 1 technology in a Green box which simply plugs into the car’s management system and then records all of the driving habit data such as acceleration, breaking and number of short distance car trips. The data gathered is then transmitted to Morethan’s Green Wheels website where existing car insurance customers can access an array of reports on their driving through secure methods.

Bridget McIntyre, CEO at Royal & Sun Alliance commented ”We have created MORE TH>N Green Wheels Insurance to give our customers the opportunity to take responsibility for their carbon ‘tyre-print’. It helps people to understand how their driving style affects the environment by giving them access to information such as their rate of acceleration and braking, the number of short journeys they take and how long they leave their car idling.

This exciting new product is part of our commitment to the Together campaign which believes that, by offering customers positive environmental choices, large companies can make a real difference in the fight against climate change - you can find out more at together.com.

Women Car Insurance - 90 Second Guide

Part of our continuing ‘90 Second Guide’ series, we deliver a short but informative piece on getting the best women car insurance deal.

Today their is a number of leading insurers who specialise in providing cover for lady drivers. Backed by big marketing budgets companies such as Diamond, Sheilas Wheels, Cover Girl, Women on Wheels and Lady Insure, to name a few.

Instinctively many women will head straight for one of the above to obtain a new or renewal quote. Whilst there can be no doubt that these niche providers often deliver competitive quotes, it is wise not to forget mainstream insurers such as Direct Line, churchill, Privilege, Tesco and Budget among others.

Regardless of who you turn to to get the best deal, there are a number of factors that can help to put you in the driving seat for lowering your premium.

Statistically the majority of car insurance claims made by women are for relatively minor accidents when compared to their male counterparts. This is due to a number of factors such as women driving shorter distances, lower annual mileage, driving more slowly and a generally more cautious approach to driving. Women claim less on their policies than men, and are responsible for far fewer driving convictions. Hence most insurers will provide discounted rates to women drivers.

Aside from the above it is imperative that all lady motorists SHOP AROUND for the best deal. Certainly give the niche providers such as Diamond and Sheilas Wheels an opportunity to quote but also check out consumer favourites such as Budget and Tesco for (normally) ultra competitive quotes.

Back to…… Budget Basics

Yesterday I stumbled on a product I knew nothing about, let alone knew even existed! Welcome to Budget Basics, part of the privately owned UK BGL Group.

Nearly all readers of the Homeapproved blog will be familiar with Budget Car Insurance. In fact the insurer is featured on our Top 5 Car Insurance Companies, as consistently returning some of the most competitive motor quotes in the UK.

Budget Basic was launched in March 2007. This innovative product is designed to capitalise on changes in the personal insurance market. It is the insurance equivalent of a no-frills airline. Designed specifically for use on price comparison sites, it offers significantly cheaper insurance for key customer segments who are highly price-driven.

That’s about it in a nutshell! You can learn more about this product from the main Budget insurance website.

Motor Insurance - Driving a Hard Bargain

A familiar old topic of discussion, however one which is sensible to reiterate to our readers.

Lowering your car insurance premium (without reducing the level of cover) should be the goal of every motorist. There are three factors which make a big difference to the price you pay for your motor policy:

1. Age
2. Gender
3. Your address.

Unfortunately, besides moving house (and postcode area) there is nothing you or anybody else can change about the above. So, what we need to focus on are the factors insurers use when determining your premium - that we can do something about.

1. Shop around! Approximately three quarters of all drivers will renew with their existing insurer. No, no, no! By all means if you are happy with your current insurer - stay with them - but only after considering quotes (with like-for-like cover) from othe providers. It could save you 25% over your current premium!

2. If you haven’t previously considered buying your new policy on the internet, then now is the time to take the plunge. It could mean savings of up to 15%.

3. Choose your new vehicle with care, with one eye on the car insurance group the car will fall into. Each group is assigned a number from 1 to 20, enabling each vehicle model to be accurately banded with cars of similar characteristics. The insurance group number rises according to relevant engine size, and performance of the car. The higher the insurance group the more relatively expensive it is likely to be to insure the vehicle!

4. Where do you leave your vehicle overnight? Garaging your car or parking off-street could cut your premium by up to 10%. Insurers will also take into conisderation if you fit a security device such as a steering lock or immobiliser.

5. If your car is of low value consider taking out third party fire and theft insurance as against fully comprehensive cover.

6. Insurance companies spend millions of pounds every year on expensive television, newspaper and glossy magazine advertising. Be wary of extravagant claims for a lower premium and generally sceptical over specialist insurers, who claim to offer the best deal just because they serve only a particular niche of the market.

7. Consider the savings and cover levels offered by policies such as Norwich Union Simple Cover, or Pay As You Drive car insurance.

8. Young drivers are traditionally hammered when insuring their vehicle. Unfortunately insurers are unlikely to devise a policy which significantly undercuts what is already available. One option if you are in your teens or early twenties could be to piggyback on your parents’ motor insurance.

9. Spreading the cost of your policy using direct debit over 10/12 months can seem like a sensible option. However, most insurance companies will charge you extra for the privilege. Where possible always pay your premium in full.

10. HAGGLE for the best price - If you don’t ask you won’t get!

Norwich Union Scraps ‘Pay As You Drive’ Policies

The Independent today reported that Britain’s biggest insurer Norwich Union has withdrawn one of its flagship car insurance policies less than two years after its launch.

The “Pay As You Drive” scheme used satellite technology and aircraft style black boxes to log details of all journeys, meaning lower bills for those who drive less often or in daylight only. The data was used to offer cheaper motor premiums to drivers who avoided high-risk periods such as rush-hour and late at night. A great concept, however…..

Norwich Union says too few customers had signed up for the policy, blaming a slow take-up rate of the technology among car-makers. A spokesperson for the company said “We are pausing Pay As You Drive and transferring existing policyholders on to more traditional products.” “The indication we had from the motor industry was that they (motor manufacturers) would readily adopt telemics boxes. That would have reduced our costs. But it hasn’t happened.”

It seems the provider also overestimated the response from consumers. In 2006, when it was launched, Norwich Union had hoped that 100,000 boxes would be installed. Today, that number is understood to be about 10,000. Concerns over the tracking capabilities were a sticking point as cars with the system were constantly tracked via satellite. Questions were raised over invasion of privacy and the use of the data generated from monitoring the movements of a registered vehicle.

“The big-brother element of Pay As You Drive, particularly the ability to see how fast someone drives, put a lot of potential policyholders off,” said Peter Gerrard, the head of insurance research at the price comparison site Moneysupermarket.com.

The policy charged drivers between 5p and £1 per mile depending on when and where they drove, particularly during rush-hour or at night. This made it more popular with younger and occasional drivers.

But the insurer admitted that policyholders may have to pay more for insurance as a result of the move. “The nature of the Pay As You Drive policy means it is not possible to match the premiums policyholders have enjoyed. However, the information we have about usage will us help find the most appropriate alternative policy,” the spokesman said.

Norwich Union’s withdrawal from the pay-as-you-drive insurance market will also have a knock-on effect on Government plans for road-pricing systems, which have unofficially relied on insurance companies to road-test tracking schemes.

Car Insurance Aggregators - Food for Thought

First, we ran the news of the latest report on UK motor insurance aggregators, published by Defaqto:

The report has analysed 41 aggregator sites including new entrants into the market and changes that may have occurred to other sites since its first report in October 2007. Defaqto has carried out a detailed analysis of the market and this report includes:

• A review of the aggregator market and where Defaqto believes it is headed.
• One page summaries of the key features and benefits of 41 aggregators including ComparetheMarket, Confused.com, GoCompare, Insurance.co.uk, Moneysupermarket and Tesco Compare.
• A Defaqto rating of each aggregator website.
• A review of the resurgence of intermediaries within the aggregator market.

Second, we note with interest that LV= has placed its car insurance product on the Gocompare.com website.

The insurer has announced ambitious growth plans for its general insurance business focused on becoming a top five general insurer by 2012 with the web a key channel to achieving this target. LV= believes their five star Defaqto rated car insurance policy will prove to be a popular choice for consumers using Gocompare.com.

Gocompare.com are no doubt delighted to be welcoming the valuable LV= brand to their roster of high profile insurers. The company makes a point of promoting its aim to offer the customer the widest possible coverage across the market with well over 60 car insurers onboard.

Mmm….. Food for thought?

Whilst the current vogue for insurance aggregators cannot be doubted, one has to wonder whether:-

1. Are the aggregators building any real value for ‘their brands’. It’s great to have thousands of online consumers coming to your site to buy another firms product! However, what happens to the Gocompare.com, MoneySupermarket or BeatThatQuote.com of the online world when the fickle consumer discovers another route to the ‘best value deal’? Are these three leading aggregators (amongst others) building any real loyalty for ‘their brand’?

2. Apart from a potential short term gain in revenue and market share for LV=, what are the long term implications of handing over a much loved, cared for and nurtured brand to a ‘price comparison’ custodian such as Gocompare.com?

We welcome any thoughts and comments from our readers on the subject of the online insurance aggregator!

Student Car Insurance Guide

It’s high time we brought our readers an updated guide to student car insurance. We have scoured the net to bring together all the best resources and latest information on where to find the best value deals.

A great place to start would be the National Union Students (NUS). The Union have long had a partnership with Endsleigh Insurance - the only insurer recommended by NUS. In fact the relationship stretches back for over 40 years, enabling Endsleigh to use their expertise to develop great value motor premiums:

• BEST price from Endsleighs panel of 40 car insurance schemes
• FAST claim turnaround
• 90 day European cover included

Lastly a reminder of the diferent levels of car insurance from which you can choose, why making your No Claims Bonus a priority is a must, and a last but not least reminder of the legal requirement for Road Tax!:

Third Party Only Car Insurance
This is the lowest level of cover available and is therefore often the cheapest. However, it is important to note that it will not provide you with cover for the costs of loss or damage to your car or belongings. By selecting this level of protection you are choosing the minimum level of cover for your vehicle as required by the Road Traffic Act 1988.

Third Party Fire & Theft Car Insurance
Adding fire and theft will provide protection against damage to, or loss of your vehicle due to it being stolen or set on fire.It also possible to include cover for legal fees in case you require a solicitor to represent you.

Comprehensive Car Insurance
If your vehicle is valued at over £5,000 then, by law you must have comprehensive cover, thus the majority of motor policies sold in the UK are of this type. Fully comprehensive motor insurance will cover everything as in a standard Third Party Fire and Theft (TPFT) policy with the addition of Accidental Damage.

No Claims Bonus
No Claims Bonus (NCB) is extremely important for reducing your student car insurance premiums. A NCB of five years or more, for example, can entitle drivers to a reduction of up-to 55-75% over the standard policy premium!

Road Tax
If you use or keep a vehicle on a public road, you must display a valid tax disc on it. As the registered keeper of the vehicle you’re responsible for taxing it or making a SORN (Statutory Off Road Notification) if it’s to be kept off the road.

Insurance Word of The Week (8)

Our Eighth insurance word of the week is: Authorised Person

A person (usually a firm) that has been approved by the Financial Services Authority (FSA) to carry on one or more FSA regulated activities.

The Financial Services & Markets Act 2000 (FSMA)
FSMA is concerned with the regulation of financial services and markets in the UK . Under Section 19 of FSMA, any person who carries on a regulated activity in the UK must be authorised by the FSA or exempt (an appointed representative or some other exemption). Breach of section 19 may be a criminal offence and punishable on indictment by a maximum term of two years imprisonment and/or a fine.

A copy of FSMA, as well as secondary and related legislation, can be found on the Treasury’s website. Bear in mind that this version of FSMA does not include amendments made to it by subsequent legislation.

Making a Complaint Against a Car Insurance Company

If you feel aggrieved about the actions of your car insurance company or feel you have good grounds for making a complaint, there is a series of steps you can take to seek re-dress.

First and foremost it is always best to make to make your first port of call the specific car insurance provider, insurer or broker with whom you have a complaint. Try and make every effort to ascertain the name of the appropriate people to speak or write to obtain an answer or solution to your grievance. You should always ask the company about their recommended complaints procedure and follow that.

If you find no joy or resolution through your motor insurer then there are three organisations which you can approach and contacnt for guidance, information and assistance.

The first is the Association of British Insurers (ABI). Although the ABI is not an insurer, does not regulate insurers or mediate in disputes and cannot endorse individual products or services, it is still an excellent source of information and guidance. If an insurance company is a Member of the ABI it will endeavour to follow its code of conduct.

The Financial Ombudsman Service (FOS) is the independent service for settling disputes between businesses providing financial services and their customers. If you don’t know who to complain to at your insurer or you’re unsure about anything, get in touch with the FOS. They will contact the right person for you, telling them that you have a complaint that they need to look into.

The Financial Services Authority (FSA) regulates the insurance industry in the UK. Firms regulated by the FSA must provide a formal and free complaints service. Firms should tell you about this in information they give you about their services. Ask for this information if you don’t get it. The FSA website lays out simple guidelines for progressing your complaint.

Altering Your Car Insurance Policy - Think Twice

Are you planning to alter or change any part of your current car insurance policy? If your answer to this question is yes, you need to read this:-

New research has indicated that drivers are being hit with fees of more than 300 million pounds a year for making changes to their car insurance policies.

The removal of a clause on “excessive charges to retail customers” in the Insurance Code of Business earlier this year has left consumers open to alleged unfair charges.

Almost 60 percent of drivers - 14 million people - need to make amendments to their policies mid-term, and are being stung with fees totalling 333 million pounds. The research comes amid a test case designed to decide whether bank charges are fair.

The average charge for making an amendment to a car insurance policy is just over 22 pounds. The top 10 insurers charge an average of more than 38 pounds for cancelling a policy, almost 17 pounds for making an adjustment, such as a change of address or name, and almost 12 pounds for providing duplicate documents.

Failure to amend policies can result in invalid insurance. Charges vary widely, the data shows. Some insurers do not charge anything for certain policy alternations: Norwich Union, Direct Line, Prudential and Hastings are among those who do not levy fees for duplicate documents, while the latter and Swiftcover charge nothing for change of details.

Others, however, charge unlimited fees. Direct Line, Churchill and Prudential have no set charges for a policy being cancelled, but calculate these fees on customers’ remaining premiums.

High street banks and the consumer watchdog began court proceedings last July to resolve a dispute on the charges applied to unauthorised current account overdrafts, after thousands of customers reclaimed millions of pounds in refunds, but banks continued to impose the charges.

A preliminary hearing at the High Court, which started in January, will decide whether the fees, typically between 24 and 39 pounds for each transaction over and above an authorised overdraft, should be regarded as unfair under consumer contract regulation.

Insurance Word of The Week (1)

Every week, starting this week we will be publishing and sharing with our readers a comprehensive, alphabetical run-down on all the different terms used in the wonderful world of insurance and what they mean.

For our first week, we have chosen - ABI.

ABI: Acronym for the Association of British Insurers, a regulatory body for the UK insurance industry. The ABI (Association of British Insurers) represents the collective interests of the UK’s insurance industry.

The Association speaks out on issues of common interest; helps to inform and participate in debates on public policy issues; and also acts as an advocate for high standards of customer service in the insurance industry.

The Association has around 400 companies in membership. Between them, they provide 94% of domestic insurance services sold in the UK. ABI member companies account for almost 20 per cent of investments in the London stock market.

Insurance Term of the Week (2)

For our second week, we have chosen - ACCIDENTAL DEATH BENEFIT (ADB).

Definition
A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.

Key Features

• All benefits are paid in addition to any other policy or family income entitlement.
• All cash benefits are free from income tax. (Under current legislation).
• Low monthly premiums.
• No medical examination.
• This type of policy is generally available to anybody aged between 18 and 81 who resides permanently in the United Kingdom.