Tuesday, June 26, 2012

Driving You to Current Car Insurance News

A study has shown that one in ten adults have admitted to making fraudulent insurance claims. This is despite 91% of the population considering insurance fraud to be a serious offense. A minor proportion of 14% stated that they would definitely report someone if they had knowledge of them committing insurance fraud. Some 21% of the people asked, believed that everyone embellishes when making an insurance claim. The possibility of insurance fraud was widespread over all social groups, ranging from high income to lower income people.

Fraud costs the UK £1.5billion per year and it is estimated that fraud adds an extra 5% on to the typical policyholder's premium.

However, those who do pay their car insurance and not pull any scams may want to join the 'car wagon' and wish for lower car insurance, in return for greener cars.

Many drivers are prepared to pay that little extra for a new car that is friendlier to the environment in an exchange for cheaper car insurance. An insurance poll showed that on average, drivers would pay 4.8% more for a new car if it was proved to have low carbon emissions.

However, whilst 41% of drivers would pay more for a greener car, 73% stated that they should be entitled to discounts in road tax. This was followed by 71% who wanted lower insurance premiums and 32% who desired for greener cars that could go faster. A spokesperson from an insurance company stated: "It is encouraging that drivers want to go green and are willing to (pay) a bit extra."

However, it has been acknowledged that there does need to be more incentive to make a driver go green. Insurers could help this by looking at special deals for greener cars. The government also needs to help.

Those who are concerned with keeping their insurance down may like to know that an insurance penalty for driving whilst using a mobile has come into place. Motorists who are caught using a mobile telephone whilst driving could be penalised through higher insurance premiums plus fixed penalty charges.

The fixed penalty for using a handheld telephone while driving has doubled from £30 to £60, with an additional three penalty points. The crime has become an offence, under the offence code CU80 and insurers now take this into account when calculating premiums.

An endorsement is likely to attract a premium rise of £60 which will remain for three years. Some insurers may ignore this at first for example like some do for a speeding fine, but they will probably increase the premiums for a second offence. Janet Pell, a spokesperson for an insurance company stated: "There is a direct relationship between speed and accident claims" Pell furthered that there is a link between "the use of mobile telephones and claims so insurers will take this issue seriously."

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