Hastings Direct has been fined GBP735,000 by the FSA (Financial Services Authority) for treating its customers unfairly. The car insurance company was found to have cancelled over 4,500 policies following a pricing error.
The problem was caused by the Hastings Direct car insurance quotation system, which generated quotes that were lower than the market rate. The insurer then decided to cancel these policies, a step that was not acceptable according to the FSA.
Although a cancellation clause was included within the policies the FSA felt that Hastings Direct should have considered other options first rather than invoking the cancellations. They believe that it is not acceptable to cancel cover because of what is simply a pricing error.
Instead of punishments for not going green the government should use incentives instead says Tesco Finance.
Research carried out shows that around 2 million people already drive an eco friendly vehicle but that is dwarfed by the 21 million who would seriously consider such an option if it was made easier to do so. Tesco Finance found that the cost of buying such a vehicle was prohibitive to many.
The Tesco Finance study also found that those aged 55 and over are the most likely to have gone eco friendly, with 8 percent having a green car. This contrasts with the 34 and under age group where those with an ecologically friendly car is just 4 percent. A Tesco representative saw the research as proof that the nation is happy to embrace green transport as long as it is financially possible for them.
The quarterly AA Insurance review of car insurance premiums has found that costs are on the rise again, with the average fully comprehensive policy now costing GBP700.
There has been an increase of over GBP20 compared with the previous quarter said AA Insurance and it is young driver car insurance that has seen the biggest increase, up by more than twice the overall average – GBP45. Along with all the other price rises consumers are seeing this latest one just reiterates how the cost of living is spiralling ever higher.
The best advice upon seeing these results is to shop around said AA Insurance. Look at different car insurance providers, having an increased voluntary excess or removing some of the features that are not needed. Following some of these steps may help keep that motor insurance bill down and save money.
