Insurance news round-up: a month in the headlines

Pot Holes on the RoadDo you think you could pass a driving test today?

It’s that month of the year when children up and down the country anxiously open their exam results and the media asks whether standards are being dumbed-down. Leaving controversy aside there’s one test which isn’t getting any easier and that’s the driving test. More traffic makes driving more difficult and both parents and children agree the test has become tougher. In a recent survey by a leading motoring organisation just one in ten parents thought they could pass today’s test pointing the finger of blame at increased congestion and a lifetime spent picking-up bad driving habits.

Don’t leave car insurance until the last minute

Running a business is all about supply and demand and providing insurance is no exception. We often remind customers that arranging insurance in advance means likely savings; while leaving things to the last minute could cost more. Savings can be significant and a recent survey by a leading price comparison website found that motorists could cut costs by an average of 12% by getting a quote one week before their policy expires. Previous research found there was a financial ‘sweet spot’ three weeks before renewal when quotes were at their lowest.

Uninsured motorists are driving-up premiums

Motoring is getting increasingly expensive and an unexpected rise in claims made against uninsured drivers is adding to the bill. The Motor Insurers’ Bureau (MIB) is a government-backed body which provides compensation for the victims of uninsured drivers. It’s funded by charging a levy on insurers which is estimated to add £30.00 to policyholders’ premiums. In the past 12 months the MIB recorded a 10% rise in claims (the first increase in over a decade) which may mean more expensive policies next year.

Will we ever beat the pothole plague?

Potholes are fast becoming one of the country’s biggest motoring menaces; causing delays and damage to millions of road users. Figures show that breakdowns caused by potholes soared by 30% in the last quarter, and to make matters worse; that’s after a particularly mild Spring. A tough Winter could wreak havoc with our roads and breakdown insurance is more important than ever. On the plus side the Department for Transport recently announced that local councils would have access to a ‘multi billion pound’ fund to improve the condition of local A-roads.

Distracted drivers’ £10million phone bill

Despite the obvious dangers of driver distraction more than 30,000 motorists were fined last year for using their smartphone behind the wheel. Figures from the DVLA reveal that more than £10million was collected in fines and irresponsible drivers can also expect to be hit with higher insurance premiums. In a bid to clampdown on drivers using mobiles the fine was increased from £100 to £200 earlier in the year, which will hopefully make motorists think twice.

 


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