Marriage can Cut the Cost of Car Insurance

Author : Jennifer Scott 

With the average wedding now costing nearly £16,000*, tying the knot can lead to a big hole in your finances. However, getting married or entering into a civil partnership can actually save you money on your motor insurance!

According to online insurer swiftcover.com, adding your spouse to your car insurance policy can save you up to 20% compared to your singleton counterparts.

For example:

• A man adding his female spouse to his insurance policy could see his premium cut from over £388 to under £345 - if both drivers are male and in a civil partnership, the new premium would be around £348 because male drivers are considered a higher risk
• However, if a woman driver put her male spouse on her policy, the premium would fall from just over £341 to little more than £303 - the cost for two women in a civil partnership would also be around £303

Swiftcover says insurance premiums are cheaper because claims statistics show that married people are safer drivers. However, couples that aren't officially 'hitched' will also benefit from insurance savings, whether they are heterosexual or same-sex partners, although the savings won't be as high as drivers in a legally recognised partnership.

Tina Shortle, marketing director of swiftcover.com, says: "We're not suggesting that people say "I do" just to push down the cost of their car insurance, but many married couples may not realise that they can make significant savings by adding their spouses to their car insurance. It's also important to note that same sex couples in a civil partnership will also get lower insurance premiums and swiftcover.com's online quote system has been designed to enable drivers to add a spouse of either sex.

"The amount of savings will vary depending on individual circumstances such as the type of car, where you live, your job and your previous claims and motoring history. As long as your spouse is not particularly high risk you will see a saving - and although it may not help with the cost of the 'big day', over many years of wedded bliss it could amount to a substantial saving."

Shortle pointed out that insurance policies should always be in the name of the main driver - the person that drives the vehicle most often - with the spouse or partner as the named driver. Naming your spouse or partner, or indeed anyone else, as the main driver to bring the cost of premiums down further could invalidate your policy in the event of a claim if it is found that they are not actually the person that drives the vehicle most often. Likewise, incorrectly claiming that a named driver is your spouse could make your policy invalid if you need to claim.

As Swiftcover shows, adding your spouse as a named driver to your car insurance policy, whatever your gender or orientation can begin to save you money, with the following examples reducing annual premiums by an average of £38, which could add up to £380 over ten years.

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09.59  No comments

Motor insurance customers input false information when applying for cover online

Author : Victor Popescu

A study conducted by DVLA in collaboration with ABI revealed that  at least 17% of motor insurance customers produced false driving license information when applying for cover online. Their research concluded that 1% of those customers don't even hold  a valid driving license.

This fact influences other honest customers which have to pay higher premiums as a consequence. This research comes hand by hand with the initiative from regulatory bodies to grant insurers more access to their customer's driving licence data.

The new proposals will change significantly the on-line quote system as customers will no longer have to input their driving record details but will only provide their licence number instead. The insurers will then be able to obtain the customer's driving records,  prior to giving a quote , directly from DVLA database.

The move suppose to cut down fraud levels and as a result will lead to a decrease in insurance premiums.

Nigel Bartram, Aviva UK insurance motor underwriting manager , advises  that  it is crucial to keep the initiative moving faster as  the problem will become more acute when it becomes an offence to keep an uninsured vehicle next year.

According to the news of the initiative, around 10 % of applicants for Swiftcover insurance do not divulge all of their previous claims and that 60 % of the those customers do not renew their policies.

Because there was no real progress since the change of government in May, Trudgill will meet during this month with junior transport minister Mark Penning, who oversees DVLA, and will be trying to put pressure on him in order to be more dynamic in the project.

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09.53  No comments

Drivers Urged To Check Motor Insurance Small Print

It is important for motorists to be fully aware of the terms and conditions of their motor insurance policies, it has been suggested.

Research carried out by swiftcover reveals that a significant number of British drivers could be unwittingly putting themselves under financial pressure due to a lack of comprehension about what is and what is not covered by their insurance.

In the company's study more than a third of motorists were shown to be unaware of the effects of underrating their mileage in an attempt to reduce insurance costs. Some 25.8 per cent of respondents reported to be unaware whether driving beyond their stated amount of miles would have an impact on their insurance cover, with 16.1 per cent claiming that it would not have an effect. However, it was stated that a failing to contact their supplier upon exceeding their mileage may result in motorists invalidating their cover. As such, consumers were urged to constantly check their mileage and to get in touch with their insurance provider should they notice something is awry or their circumstances change.

Further research showed that more than a fifth of motorists are unaware whether or not they will be covered should they have an accident while smoking or eating at the same time as driving. This figure comes despite just under two-thirds (65 per cent) of respondent stating that they consume while on road, with over one in three choosing to smoke.

The financial services firm pointed out that although eating or smoking while driving is not a criminal offence outright, should they suffer an accident while doing on these things than they could be accused of being negligence. It was purported that motorists' reaction times can be up to 50 per cent slower should they be talking on the phone or having a cigarette or snack. Meanwhile, swiftcover stated the Highway Code recently listed smoking and eating as dangerous distractions when behind the wheel.

Following on from being forced to dip into their own pockets and purses, it may be possible that those drivers with inadequate levels of insurance might find that their ability to manage other demands on their spending. Such areas could well include loan, credit and store cards, utility bills and mortgage or rent repayments.

In addition, the study indicated 29 per cent of drivers think that their policy will automatically cover them should they get behind the wheel of a friend or partner's automobile.

Tina Shortle, spokesperson for swiftcover, said: "While choosing the lowest price car insurance policy is most people's objective, it is also important to know exactly what is and isn't covered. Drivers make a lot of assumptions about their policies, so it's best to read all terms and conditions carefully and to regularly review the terms."

Consumers looking to buy a new car over the coming months might wish to consider taking out a secured loan to finance their purchase. In selecting this type of loan, borrowers may be able to select a top-of-the-range model quickly and effectively, in addition to being left with enough spare cash to help get a comprehensive insurance policy. A secured loan could also be recommended for those wishing to meet the cost of damage to a sailboat. In a study conducted by Saga in April it was shown that hitting an underwater object while on the sea will cost the typical consumer 2,419 pounds. Meanwhile, the average burglary claim stands at 1,820 pounds.

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01.48  No comments

Britain's first motor insurance

For the first time in the UK, well certainly the first time I've heard this, there is a motor insurance company offering new customers the chance to cap their motor insurance premium for the next year so it's the same as they pay the first year.

Funny enough my car insurance is up for renewal in March and I've been sent an email from my current insurer. I've got 5 years no claims discount and I'm 31, I drive a 7 year old , 1.9 Diesel car and my renewal price Is £281.00, not bad I thought...

I decided to try a comparison web site and after completing my details I found a few quotes around £200, so I could in theory save around £80. The problem is can I really be bothered to go through the hassle of changing everything to a new insurer just to save myself less than £8 per month?! I suppose this is what insurers rely on; customer apathy...The thing for me is that I've got enough to do without having the hassle, and to be honest complete boredom, of changing car insurance!

With my current insurer everything renews automatically, I don't have to do anything, apart from read the emails they send me. On the other hand a friend has just said that he'd never deal with them again because they were awful when his car was written off...I guess we all just hoping that we never have to deal with that situation.

I think I'll get a few different quotes from other comparison sites, maybe a few insurance specialist sites. If I can't save a decent amount then I'll just leave my policy with Swiftcover insurance, after all insurance can only get so cheap they're not going to give it away!

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06.07  1 comment

UK Motor Insurance First

For the first time in the UK, well certainly the first time I've heard this, there is a motor insurance company offering new customers the chance to cap their motor insurance premium for the next year so it's the same as they pay the first year.

Funny enough my car insurance is up for renewal in March and I've been sent an email from my current insurer. I've got 5 years no claims discount and I'm 31, I drive a 7 year old , 1.9 Diesel car and my renewal price Is £281.00, not bad I thought...

I decided to try a comparison web site and after completing my details I found a few quotes around £200, so I could in theory save around £80. The problem is can I really be bothered to go through the hassle of changing everything to a new insurer just to save myself less than £8 per month?! I suppose this is what insurers rely on; customer apathy...The thing for me is that I've got enough to do without having the hassle, and to be honest complete boredom, of changing car insurance!

With my current insurer everything renews automatically, I don't have to do anything, apart from read the emails they send me. On the other hand a friend has just said that he'd never deal with them again because they were awful when his car was written off...I guess we all just hoping that we never have to deal with that situation.

I think I'll get a few different quotes from other comparison sites, maybe a few insurance specialist sites. If I can't save a decent amount then I'll just leave my policy with Swiftcover, after all insurance can only get so cheap they're not going to give it away!

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04.12  No comments