An increasing number of hard-up children are staying insured on their parents’ car insurance policy into their late 20s and early 30s as the cost of premiums continues to rise.

As household budgets have been squeezed during the recession and unemployment has risen, the average age of sons and daughters registered as secondary drivers on their parents’ insurance has gone up from 25 to 31 years old.

The rise in the number of grown children adding themselves to their parents’ car insurance policy rather than taking out one of their own reflects the increasing number of youngsters who save money by continuing to live at home and take advantage of parental support.

(more…)

Car insurance premiums are rising at their fastest rate for 15 years, with average premiums up 14% since last October. In the last three months alone prices have shot up 5.6% and this trend is expected to continue, warns the AA.

Drivers who fail to shop around face a typical premium of £821 for fully-comprehensive cover, while those who visit price comparison sites pay £552 on average, the AA said.

Young drivers have been most affected by the rise, with premiums for third party, fire and theft cover rising by 9.3% over the quarter and 17.6% over the year to an average quoted premium of £1,059. This type of cover tends to be bought by young people as it is significantly cheaper than fully comprehensive insurance.

(more…)

The clocks have gone back an hour and the evenings are getting darker. With many drivers facing a dark commute to work, pedestrians and cyclists more difficult to see, and the potential for heavy rain, snow and black ice, the winter months can be dangerous for motorists.

However, there are plenty of things you can do to improve your safety during winter. RAC patrol Crackers Patel shares some tips:

• Before heading out, check that your lights and brakes are in good working order.
• Clean your lights - a quick wipe over will enable you to see, and be seen, more easily.
• Don’t forget to switch your lights off when you park your car. The RAC anticipates a 15% increase in flat battery call outs over the winter due to people leaving their lights on when their car is stationary.

(more…)

One in seven motorists has lied to their car insurance company in order to reduce premiums, a new survey has revealed.

According to research by insurer Salaam Halal, some 14% of drivers admitted that they or their partner had deliberately submitted false information in order to benefit from cheaper insurance.

The worst culprits came from Wales, where 21% of drivers admitted they were likely to lie when applying for insurance. People living in the East of England were most truthful, with only 10% of motorists providing false applications.

People most commonly lied about the location of their car when applying for insurance, with 39% of those who had been dishonest claiming they parked their car in a garage, when in fact they kept it outside.

(more…)

The UK scrappage scheme continued to encourage growth in the car industry in August with sales up 6% from a year ago, industry figures show.

The Society of Motor Manufacturers and Traders said 67,006 new cars were sold in August, the second consecutive month of rises. However, total sales since the start of 2009 are still 21.5% lower than the same period last year.

The Society attributed the rise to the scrappage incentive scheme introduced in May, in which drivers who trade in a car over 10 years old receive a £2,000 discount off a new car. Half of the discount is paid by the government and half by the car industry.

The announcement was cautiously welcomed by SMMT chief executive Paul Everitt:

(more…)

A fifth of young motorists are driving without car insurance, a new report from the Motor Insurance Bureau (MIB) revealed today.

The MIB, which is funded by the motor insurance industry and pays compensation to those involved in an accident with an uninsured driver, estimates that around 243,000 drivers aged between 17 and 20 are uninsured.

The report found that one in 10 young drivers claim not to know that motorists must purchase car insurance by law. However, this group poses a particular danger on the road, because young people are 4 times more likely that average to be involved in claims.

(more…)

Fake injuries, fictitious stolen goods and exaggerated claims for car repairs are all ways in which policyholders attempt to defraud their car insurance provider, according to Admiral Insurance.

The FTSE 100 company is the latest insurer to warn that it has seen a significant increase in fraudulent claims from individuals and criminal gangs in the first half of the year.

David Stevens, Admiral’s chief operating officer, said that the company had received “roughly a third” more suspicious claims during the period than in the first half of 2008. He added that Admiral, which specialises in car insurance, had discovered several instances of false or exaggerated claims such as fake whiplash following minor prangs, as well as policyholders lying about the number of people they were driving in their car at the time of an accident.

(more…)

More than half the money earmarked for the government’s “cash for bangers” scrappage scheme has been used up, according to figures from the Department of Business.

So far, 154,927 cars have been bought under the programme, which aims to breathe new life into the UK’s ailing car industry. The government has promised to underwrite 300,000 deals altogether in which motorists receive a £2,000 discount off a new car when they trade in a car over 10 years old.

Half of the cash is provided by the treasury, with the car industry putting up the rest.

The scheme has been most popular in the South East of England, which accounted for 18% of deals under the programme. 12% of purchases were made in the East of England, with 11% in the North West and South West.

(more…)

Car insurance premiums are rising at their fastest rate in a decade, according to an AA report.

According to the latest benchmark AA British Insurance Premium Index, car insurance premiums rose by 3.5% in the second quarter of 2009, and 11% over the past year. The average premium for comprehensive car insurance increased by 3.5% between April and June this year to an average £778.13, while premiums for Third Party, Fire and Theft, typically bought by young and inexperienced drivers, went up by 4.6% over the quarter to £968.22.

The AA said theft, fraud, personal injury claims and legal expenses have all contributed to the rise in premiums, with personal injury claims expected to hit £10.9bn by 2012.

(more…)

The government’s scrappage scheme has created a vital boost in demand for vehicles, as new car sales fell at their slowest rate for almost a year.

New car registrations fell by 15.7% in June compared with the same month last year. In May, output fell by 43%, with a 55% annual drop in output in April.

According to figures released by the Society of Motor Manufacturers and Traders (SMMT), 176,264 units were sold during the month, the smallest decline in sales since July 2008. In April the SMMT forecast that registrations would fall to just 153,000 units, adding that there would be a time lag before the full positive impact of the scrappage scheme would be felt.

“We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations,” a spokesperson for the organisation said.

(more…)