Prime Minister David Cameron is planning to confront representatives of various car insurance providers, in an attempt to address the rocketing premiums faced by UK motorists.

Bloomberg reports that the PM will discuss the abundance of lawsuits, which has led many to adopt the term ‘compensation culture’. The nation’s plethora of weak claims for injury is having a direct effect on car insurance premiums, with companies claiming that the rise in compensation payouts has to be funded by price increases.

This has been considered more than a little dubious; many have highlighted the fact that car insurance companies receive payments directly from law firms, in exchange for the details of motorists who have been in an accident.

Bloomberg’s report states that the average cost of car insurance rose by 17% last year, to £410, whilst the average young male motorist pays out close to £3,000. The average young female driver pays out just over £1,500 and the Association of British Insurers has said that record claims for whiplash are adding almost £100 to each premium.

David Cameron is expected to pledge a reduction in whiplash claims, through requests for greater medical evidence, and lawyers’ fees for personal injury claims are expected to be forcibly decreased.

Drivers often fare better when they compare car insurance, and shop around for other key motoring services such as breakdown cover.

Image: The Guardian

New research has shown that the North of England is seeing the worst of rising car insurance costs, although the increases appear to be slowing down.

The information, provided by the Confused.com/Towers Watson Car Insurance Price Index, showed that from June to September 2011, Oldham was found to have an average premium of £1,437, representing a rise of 27.9% from last year.

Bradford was found to experience similar figures, with an increase 27.5%, whilst Liverpool saw premiums go up by just under 27%.

The North is not alone, however, as motorists all around the UK continue to struggle with rising costs for vehicle cover. Scotland saw the lowest rises, but no single area in the UK benefited from a recorded decrease.

A key issue regarding the current car insurance costs is the marked difference from the rate of inflation; the UK as a whole has seen an average rise of car insurance premiums of 12.3%, whilst the Consumer Price Index is sitting at 4.5%, and this means that the rise in premiums is almost three times as high as UK inflation.

Motorists can at least take a positive from the research, as it showed a quarterly decrease of 1.6% between June and September. This represents the first quarterly decrease for over three years.

You can save money on your car insurance premium by shopping around online and comparing car insurance quotes.

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After seemingly endless rises in car insurance premiums, it has been reported that things are looking up for younger drivers.

Website Tiger.co.uk has announced findings from research based on thousands of car insurance quotes in the UK, noting a 5.5% drop for both male and female young drivers between July and September.

The month of September alone has, according to the research, seen around a 4% drop for young men, and a 1% drop for young women. However, it is worth remembering that the premiums rocketed in 2010, and the cost of car insurance is still sky-high, despite the welcome drop.

Drivers are encouraged to shop around and compare car insurance in order to find the best deal, and to look out for policy details and benefits, instead of simply seeking out the cheapest offer.

Image: L&LAutomotive

In a move designed to curb the UK’s current compensation culture, the government is planning to ban injury claim referral fees paid by lawyers to insurance companies.

Lawyers pay a fee to insurance companies for customer details relating to accidents and injuries, and then pursue the individuals involved in an attempt to coerce them into making a claim. These are often advertised as ‘no win, no fee’ claims; this encourages people to move forward with their own potential claim as they have nothing to lose and money to gain.

According to The Independent, insurers partly blame their own soaring premiums on the rising number of personal injury claims, although, conversely, insurers receive payments for passing on the details that are integral to the whole process.

Justice Minister Jonathan Djangoly, quoted by the BBC, agrees that premium hikes can, in part, be attributed to the vast quantity of loose claims, saying: “Many of the claims are spurious and only happen because the current system allows too many people to profit from minor accidents and incidents.”

However, insurance companies can receive as much as £1,000 as a single referral fee, and the BBC report highlights the fact that around 6% of car insurance profits come from these fees paid to lawyers for personal details.

If the fees were to be banned, the insurance companies may actually look to counter the drop in profits by further increasing premiums. The ban could actually push policy prices up.

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Next week will see car repair specialist Kwik-fit offering extra online discounts for car insurance policies.

Those looking for an improved car insurance quote may want to look at Kwik-fit, which has a strong focus on online discounting, and on Tuesday 30th August extra discounts will be added for one day only.

Kwik-fit car insurance is particularly popular for its competitive pricing, which includes a 20% discount when booked online, and other types of insurance are also available in conjunction with further deals and offers.

In order to get a quote you can visit the Kwik-fit insurance website, and fill in the details. Kwik-fit searches a range of insurers to find you a suitable deal, and different levels of policy are available.

The Kwik-fit website has also been kitted out with tools, information and an online magazine Extra Mile providing regular updates on subjects such as motoring safety and fuel cost cutting.

Car insurance policyholders could be forced to forget smoking at the wheel, as The British Medical Association has recommended that the government introduce an in-car ban to the UK.

According to BigMouthMedia and WalesOnline, the BMA annual conference saw the motion passed, and this will result in a concerted push for new legislation. The medical health experts say that stopping drivers from smoking could improve road safety, whilst also preventing damage to passengers’ health.

The BMA’s Dr. Mark Temple drew comparisons between driving and smoking with driving under the influence of drugs or alcohol, and added: “Smoking is bad wherever it may be involuntarily imposed on people. It’s quite obvious that people who smoke in cars do not just put themselves at risk, they also put other road users at risk.”

“People are distracted by trying to light their cigarettes and if they then drop it there’s a sudden distraction because they are getting burnt. Fires and cars do not mix very well.”

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Motorists could see their cars clamped on their driveways if they fail to renew their insurance on time, under new legislation announced by Parliament.

The new rules, collectively known as ‘continuous insurance enforcement’, will require insurance renewal on all cars, even those tucked away on the drive. If an enforcer spots an uninsured car off the road, authority can be given to clamp the vehicle.

The only way to avoid this action for an uninsured car would be to declare it off the road with a SORN, or Statutory Off Road Notification.

According to This Is Money, motoring groups are deeply concerned that those who are on holiday, in hospital or simply forget to renew could be facing heavy punishment, including a possible £100 fine, for an innocent or unavoidable mistake.

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The extreme weather conditions have already caused havoc on the nation’s roads, and as the widespread snowfall and biting icy temperatures continue RAC is warning drivers to take extra care.

Weather warnings are firmly in place for much of the UK, with the wintry weather paralysing Scotland and the North East and looking set to continue disrupting transport networks and schools across the nation.

As a result of these treacherous conditions, breakdown recovery expert RAC has seen a 10% rise in call-outs this morning alone. The slow and cautious drive home will also inevitably result in an extended rush hour for motorists. RAC has confirmed that it is well prepared; a large number of 4×4 RAC vehicles are on standby, ready to assist the worst affected areas, and extra patrols have been laid out for stranded drivers.

RAC Patrol Ambassador of the Year Alana Wilcock has commented: “With more bad weather forecast across the country for the weekend, we’re expecting to see our number of call-outs remain above average over the next couple of days.”

“We’re advising motorists to check out local weather and traffic conditions before setting off and to remember that, even if there isn’t snow on the ground, that black ice may be widespread and roads still treacherous. It may well be that there is no place like home this weekend.”

RAC has also provided an excellent list of pointers regarding motorist safety during these tricky times for drivers:

• Check local weather and traffic conditions
• Avoid your journey if it’s not essential
• Allow extra time for your trip, and stay on main roads
• In the case of long distance trips, let someone know where you are going and your estimated time of arrival
• Clear ice and snow from your car and lights
• Take extra clothing and supplies, as well as a scraper, de-icer and fully charged mobile phone
• Beware black ice! It may appear as wet patches on the road, and is most common on bridges and overpasses
• Drive carefully! Leave extra braking distance, and keep to low speeds

These conditions have got a firm grip on the UK and they look set to stay, so drive with extra caution and get home safe!

RAC has predicted that UK bank holiday travellers will be opting for shorter trips this weekend, highlighting the recent travel chaos, erratic weather and spiralling fuel costs as the cause.

The car insurer and breakdown specialist has suggested that people will choose day trips over weekend jaunts, and has warned that the extensive traffic volumes will last until unusually late in the evening on Friday. It is also expected that Monday afternoon and early evening will see very high volumes, as well as Tuesday morning.

Popular destinations will include theme parks and beaches (providing the weather holds out), and shopping centres such as Bluewater and Lakeside will certainly be swamped with shoppers.

Motorists are advised to plan their route before setting off, and a contingency route would certainly be a good idea. Local radio stations and route planners are great tools that will help you experience an easier journey.

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With the new registration coming out today, many people will be looking to renew their car insurance. Moneysupermarket says that 7.3 million drivers will renew with their current car insurer, without examining the variety of options available from other potential providers. This means that a staggering 22% of the UK’s drivers are not even trying to save, despite the abundance of car insurers looking for your business!

UK drivers are wasting an astonishing £1.3 billion; an average of £180 per policyholder. 14% of those choosing to automatically renew their car insurance simply do not believe they will find a better deal, whilst 8% just cannot be bothered! Comparison websites offer people any easy and quick way to check if they could save money on their car insurance; but blind loyalty and a certain amount of laziness is costing almost £200 per person.

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