Insurance News Round-up: a month in the headlines

check flag Motorists mistakenly believe that third-party cover is the cheapest

It’s often said that you get what you pay for, but it simply isn’t true when it comes to car insurance. Recent research has revealed that seven out of ten motorists automatically assume that third-party car insurance will be cheaper than comprehensive cover, when it’s often the opposite. Calculating car insurance premiums is all about calculating risk, and third-party drivers are statistically more likely to make costly claims; hence higher premiums. It’s a popular misconception, but third-party cover can cost hundreds of pounds more and provides substantially less protection. If further proof is needed simply compare cover with Quoteline Direct and we think you’ll be pleasantly surprised.

Could cyber risk insurance become an everyday product?

Cyber insurance has quickly become a recognised ‘business essential’ and could become an everyday personal product. Cyber attacks are never far from the headlines and the recent high-profile credit agency hack shows that everybody is vulnerable. One insurance underwriter thinks they’ve spotted a gap in the market and is offering high net worth customers comprehensive cover against ‘misuse of personal data’ for £100,000. It’s a hefty price tag currently targeting well-heeled customers, but could one day trickle-down to the more affordable end of the market.

Government puts driverless cars on the starting grid

In a bid to put the country at the forefront of the autonomous vehicle market the government has begun tackling the thorny issue of who’s responsible when a driverless car is involved in a collision. The Automated and Electric Vehicles Bill states that drivers will be responsible for updating ‘safety critical’ software and could be found negligent for ‘allowing the vehicle to begin driving itself when it was not appropriate’. The moves have been welcomed by the motoring community and could help secure the UK poll position on the race to dominate the driverless marketplace.

The bare faced cheek of insurance fraud

Recently there’s been a run of attempted insurance frauds which have been so staggering in their stupidity that you couldn’t make them up. Last month we reported on a fraudster who claimed £19,000 for a workplace injury before being spotted bungy jumping on national TV and this month a ‘bedbound’ claimant has been busted stripping on stage. Having allegedly sustained a debilitating back injury the fraudster was caught on camera strutting his stuff in a strip club. While stories of short-sighted criminals make for easy reading; it’s law-abiding policyholders who are left to pick-up the bill.

Drivers delayed by 46 seconds every mile

When you’re stuck in a jam time seems to slow down, but have you ever stopped to think how much of your life you spend twiddling your thumbs in traffic? A report into the state of the country’s roads has revealed that congestion adds an average of 45.9 seconds to every mile driven on an A-road, with problems peaking in central London where motorists can expect a 348 second delay (nearly six minutes). The blame is being pinned on decades of underinvestment, combined with record traffic volumes, and motoring organisations are urging the government to take action.




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