A study carried out by Sainsburys Bank looking at data for the last 12 months has shown an increase in car insurance cover of 5.8 percent.
Sainsburys Bank has been studying the data since 2005 and this is the first time that the average annual premium has gone over the GBP500 mark, standing currently at GBP514. Commenting on this increased cost a spokesperson explained that premiums take into account both the cost of vehicle repair and personal injury and as these increase so premiums have to go up to cover those costs.
Car insurance premiums are also affected by the number of claims, something Sainsburys Bank would like to see reduce. They are therefore asking drivers to take more care behind the wheel, avoiding dangerous activities in order to have less accidents which will then lead to a reduction in insurance costs.
Endsleigh Insurance is warning homeowners that getting repairs and home improvement work done by non-approved people can mean home insurance is not valid, leaving the consumer unprotected.
Should the design or workmanship of a home improvement project be below the typical standard, or if unsuitable materials or tools are used, Endsleigh Insurance will not pay out for any claims made. They, along with many other insurers, will also refuse to pay when structural modifications that have been done on a DIY basis, lead to a buildings insurance claim.
The view of the insurer is that they are basing their premiums on the perceived risk of the property as described. If this changes, through a home improvement project for example, the insurer, be it Endsleigh home insurance or any other, needs to know about it, and to what standard it was done, so they can re-evaluate the risk profile.
The view of Swinton, the biggest insurance broker on the high street, is that drivers with six points plus on their licence will soon be the norm, categorised as standard.
With the advent of the speed camera and the often scandalously low speeds at which they are set to trigger, Swinton feel it is not right to automatically penalise drivers because of these points. Bearing in mind the fact that approximately six million drivers have points on their licence, which is over ten percent of the whole population of the country, the approach from the insurer seems a very fair and sensible one.
Swinton are taking the view that the driver with six points on their licence today is as safe as the one who had three points five years ago and no points ten years ago. We just hope other insurers follow suit.
