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Car Insurance Costs Are Cut, But It’s Not Good News for Everyone

The seemingly never-ending rise in car insurance prices could be coming to a screeching stop thanks to proposed government changes.

New proposals will see a huge U-turn on the rate at which payouts for victims of serious accidents is calculated which is known as the Ogden rate.

The Ogden rate is set to be changed as soon as next year in a bid to provide a “fairer” system.

How does the Ogden rate work?
Set by the government, the Ogden rate is the amount awarded to victims with life-changing injuries after an accident.

The rate had been set at 2.5% which meant that for every £1,000 awarded to a victim in a claim, the insurer would pay out £975 – with the other 2.5% or the Ogden rate expected to be earned by the claimant through investment interest. This would then give them the full pay out they were due.

In March 2017, the rate was cut to -0.75% or in a monetary sense, insurers would now have to pay victims £1,007.50 per £1,000 payment.

It was this increase in pay outs that helped cause car insurance prices to hit record highs* in the last 12 months.

What’s the latest Ogden rate change?
While a specific date hasn’t been announced, the Ministry of Justice have confirmed that they are revising the rules and it’s expected that the Ogden rate will be put at 1% from next year.

The changes have been welcomed by insurers as it will reduce the amount they are forced to pay.

Huw Evans of the Association of British Insurers commented on the proposed changes:
“This is a welcome reform proposal to deliver a personal injury discount rate that is fairer for claimants, customers and taxpayers alike.”

“If implemented it will help relieve some of the cost pressures on motor and liability insurance in a way that can only benefit customers.”

What do these changes mean for drivers?
The last time rates changed it meant an increase in car insurance premiums as insurers passed on the extra costs to drivers.

Now with pay-outs to victims expect to drop, it only makes sense that the savings will be passed on to drivers by reducing the overall cost of their cover.

Changes are not expected to come into effect until next year so it may be some time before these savings can actually be seen on the price of annual insurance.

How will it affect accident victims?
While it’s potentially good news drivers, victims of serious accidents who are left with life changing injuries could be short changed.

Instead of receiving the full amount of the awarded pay-out, victims will now once again be expected to invest their money for profit.

While the assumption is that these people will be able to make up the difference comfortably, many have commentated on the unfairness of the new rate.

Speaking to The Mirror, President of the Association of Personal Injury Lawyers, Brett Dixon said:

“Someone with a life-long, life-changing injury such as brain damage or a spinal injury cannot afford to take any risks with how his compensation is invested,”

“The last thing people with devastating injuries think about when they are lying in a hospital is their insurance premiums. They think about how they are going to manage. Insurers say an increased discount rate will benefit customers through their premiums. It is of no benefit if they are severely injured and forced to take risks with the compensation they so desperately need.”

4 ways to reduce the cost of your car insurance
While you wait for rate changes to bring the cost of you cover down, there are a number of ways you can save yourself money right now.

Reduce your risk
While there are some details you can’t change, there are a few things you can do to reduce the risk you pose. Something as simple as changing your job title from an office manager to an office administrator could save you money.

You also need to consider the vehicle you’re driving. When choosing a car, you should try and get one that’s safer, slower and less eye-catching.

Increase your excess
Increasing the amount you’re willing to pay if you have an accident will reduce the price of your premium. This is a great way to reduce the overall cost but remember you should never agree to an excess that you can’t afford to pay.

Make sure your car is secure
Whether it’s adding an immobiliser to your car or locking it away in a garage overnight, increasing your vehicles security will make it less attractive to thieves and cut the cost of your cover.

Make sure you let your insurer know about your improved security as some providers will offer discounts even before you renew.

Only pay for the cover you need
If you’re only borrowing a car or just need to drive for a few days, an annual insurance policy could be a huge waste of money.

A temporary policy offers the same level of cover and financial protection as yearly insurance at a fraction of the price.

You get the cover you want without having to pay for insurance you don’t need. You can get a range of quotes in minutes and compare prices to save time and money.

Things to Consider Before Buying Car Insurance

You just have bought this car of your dreams by putting so much of earnings, time and energy on it and thinking through all the options available to you in your range. Surely it’s going to be one of your priced possessions but what is the next thing you are going to do? Of course take your family on a ride. And after that? Car insurance. It is the foremost thing you should do after buying a car. It not only protects your vehicle from damage but provides a huge support in emergency. With myriad insurance schemes on the road it is quite obvious for you to get confused. Here, these are the things you should consider before choosing one

1. Settlement of claim:

Often it is seen that companies fail to claim a good settlement. Don’t go on their words or assurances but research and choose a company with good history of claim settlement. You of course do not want hassles in any emergency.

2. Coverage:

Ask the provider of the coverage options available and how soon can it be issued. Generally, most of the companies take time in issuing coverage. However, it is our foremost need before deciding on any insurance policy.

3. Premiums:

Premium options vary from company to company. You can make this easy by reviewing the quotations of the companies you are interested in. Research thoroughly and choose the one that fits for you.

4. Customer Support:

A good 24*7 customer support should be available in case of any emergency. You can ask people around you about their experiences with the company and their conduct in managing situations with customers.

5. Cashless Option:

One cannot carry huge amount of money all the time. With advent of modernisation in our country, the need for cashless system is mandatory. It will provide you a relief in urgency.

6. Garages:

With quotations of premium, you can also ask for the list of network garages of the company. It is excellent to consider of they have ample amount of garages and especially nearby you. Ask people about their conditions, get feedback and decide.

We do not want any kind of damage to our vehicle but most of the times we become wee bit ignorant in choosing a good insurance company. Do not get trapped by choosing the company the car provider recommends but research on your own. Spend ample amount of time by thinking through all the options and then choose a best one.

How to Save on Insurance Costs When Buying a New Car

When you are buying a new car, you want to find ways to save on car insurance. There are many ways you can save on the cost of your insurance when you purchase a new car.

Check the Car Rating

Insurers charge more for cars that have high claims rates regardless of owner driving record. Some charge you less for collision and comprehensive coverage if your car scores well for durability and safety. Check the statistics on the new car you want before you buy.

Raise Your Deductible

If you can afford it, consider raising your deductible. The idea is that you can be prepared to pay for the damages yourself, so the insurance company does not have to in the event of an accident. They like this. So, if you can do it and transfer the risk to yourself, then you might be able to reduce your premiums up to 40%. Then you can take part of those savings and put them into an emergency fund, still coming out on top.

Reduce Old Car Coverage

If you have an old car that you are replacing with the new car, you should reduce the amount of collision coverage you have. The reason for this is that insurance companies will not pay more to fix a car than the car is worth.

So, if you have an older car and the damages are $12,000 but the blue book value of your older car is only $10,000, they will not repair the car and will instead just likely give you the $10,000.

Cars more than five years old, depending on their value, but not be worth the collision and comprehensive insurance coverage. Remember that every year of depreciation diminishes the maximum claim that you are able to make with collision coverage.

Use the Same Company

If you have a car already and you are getting ready to buy a new car, be sure to use the same company to get your policy. Insurance companies will give you discounts if you put more than one car on the same policy. Often you can get upwards of 15% off the policy for doing this. The same is true if you combine your auto insurance with your home insurance.

Avoid Installments

If you can avoid it, do not pay in monthly or quarterly installments. If you can afford it, pay your premium in a lump sum instead. Insurance companies tend to charge extra fees if you pay premiums in monthly or quarterly installments.

Better Credit Score

Insurance costs are tied strongly to your credit history and insurance claims. In many states, your credit score directly impacts the rates you are given. You should review your credit score in-depth to make sure everything is accurate and there are no errors.

If you have bad credit, work hard to systematically bring it back up as you pay bills on time, repair debt, etc… Then go back each time the score improves to ask about lower rates from your insurance company.

Top Ways to Save on Auto Insurance

When you get a car, you need to have auto insurance. It is important to get coverage that is comprehensive, but also inexpensive. While most people care a great deal about getting a good price when they first set out to get car insurance, they often fail to continue searching thereafter. Not continually looking for good deals can cost you hundreds each year.

Many people are unaware that the cost of your auto insurance can be lowered to help you save, depending on your driving record, your car, and where you are.

Increase Your Deductible

If you insurance the amount you pay for a deductible, it will reduce the cost of insurance fees. Now understand that this move is certainly one way to save on the costs month to month, but if you end up in a car accident, then yes it can end up costing you more to fix the damages.

However, if you have a history of being a safe driver, try it out and set some money aside for an emergency fund to cover unexpected car costs.

Try Carpooling

There are some insurance companies which actually track mileage, so the less you drive, the cheaper your coverage. With these policy types, if you drive less than 7,500 miles you get the lowest rate, and anything up to 13,000 is the medium rate.

Change Plans to What You Need

It is better for you to change plans to what you need, when you need them. Buying a brand new car is going to require different insurance compared to an older car. When you are paying off your car loan you will need collision and comprehensive coverage, but once it is paid off you have many more insurance options at your disposal.

You might end up with more collision insurance than you need. In fact, on older cars it is recommended that you drop collision insurance anyway because comprehensive coverage is comparable inexpensive and will give you all the coverage you need.

Combine Policies

If you have car insurance and renters/homeowners insurance through different companies, you might be able to combine your policy with one company and stack discounts.

Check for Discounts

If you have changed jobs, moved somewhere new, or anything else, keep track of your policy options. You might be able to get a cheaper policy in a new town or with a new job.

Check Your Credit

Your credit score has a small role to play in what your insurance costs are. So pay your bills on time and make sure you work hard to improve your credit score. As you are doing so, continually check to see if you now qualify for lower rates.

Other Discounts

As a student, good grades can earn you discounts. As an adult, see if you can take an adult driver safety program from better discounts. Consider avoiding a red colored car, as these come with higher insurance rates for users compared to other colors.

7 Scenarios Wherein a Car Insurance Claim Might Get Rejected

Car insurance is a mandatory investment as the law. Therefore, a large number of car owners opt to pay a premium for a car insurance policy to safeguard their cars against a possible collision. However despite this, a majority of their claims are rejected by companies. This is because people are unaware or rather ignorant to the intricacies related to car insurance. Therefore, a major chunk of car insurance claims are rejected. To stop this from happening, let’s go through a list of reasons where a car insurance claim might get rejected:

1. Intimating your insurer late or not at all: Please be informed that your claim is destined to be rejected if you fail to inform your insurance provider in the stipulated timeframe. On an average, you should update your insurance company within 48 to 72 hours from the time of accident or collision.

2. Driving under the influence of alcohol or any other drug: This one is a no-brainer but still most people are negligent about it. If you are driving when you have consumed alcohol not only are you breaking the law, but even your insurance company will refuse to cover in case of an accident.

3. If your car is being used for commercial purposes: If you have a private car and it is being used for any commercial use such as being used to carry goods or passengers than your car insurance provider can reject your claim. This is because there are different policies for Private car and commercial vehicle policies.

4. If you drive without a valid license: In case you or anyone driving your car is driving valid license and face an accident then your coverage becomes null and void. Therefore, ensure you renew your license on time.

5. Starting the repairs before inspection by insurer: When you intimate your insurer about the collision or accident, a surveyor will visit you to inspect the condition of the car and authenticate your claim. Without this inspection, the insurance company will be unable to trace the degree of the repairs and estimate the cost involved. Therefore, your claim is bound to be rejected.

6. Failing to transfer the policy from the previous owner: There is going to be some verification during the claim process. In case, the car insurance policy is not in your name then your insurer has the right to refuse your claim.

7. An Electrical or Mechanical Breakdown: In case your car is damaged without any external collision due to some electrical or mechanical breakdown then you are not covered by your car insurance policy. In this case, you will have to shell out some money from your own pocket.

Guide on Getting the Best Car Insurance Rate

Getting the best car insurance rate can seem exhausting. This is made even more difficult when you consider that lots of insurance agents are reticent to volunteer information on the discounts and deductibles they have available.

Getting the best car insurance rate, therefore, means arming yourself with the facts.

1) Compare Premiums

The first thing you want to do is compare premiums. The rates in your area might be different from one place to another or one agency to another. Sure, they might not be substantially different, but even a percentage point or two can help to save quite a bit of money for longer term.

Visit different insurance company websites and compare the rates you are offered. In state insurance offices they typically have pricing guides but the categories used by the companies you are considering might not match yours so use a guide yourself to figure out the most cost-effective insurance agents in your area.

2) Family

If you have teens in your family, anyone under 25 to be exact, manage them carefully. Young drivers tend to pay more because they are accident prone. Once they reach 25, statistically this decreases.

That said, if you have kids, encourage them to keep their grades high, at a B average or more, so that they get discounts on car insurance. Students can get between 5% and 25% saved. Moreover, if they complete approved drivers education courses it can get them a large discount.

Parents of students who spend part of each year at a school which is more than 100 miles from home, and need the family car to do so, might get a break on the costs too.

3) Careful Driving

Kids are not the only ones who need to be careful drivers on the road. Many insurance companies give a discount of 5% for anyone who keeps a clean record for three years in a row, and 10% for those who go six years without an accident or violation.

You might even get discounts, depending on where it is you live, if you are a female and the only driver in the family, a non-smoker, a senior, or a member of specific profession which is statistically less prone to accidents (usually law or medicine).

Other discounts can be had from taking defensive driving courses, carpooling, or maintaining low miles on your car. If you participate in a data-tracking program, where the insurance companies get to monitor your driving habits, then you can often get a discount for that too.

These rates all vary based on where you are and what company you use. Moreover, you might not qualify for a discount one month, then qualify the next.

You need to keep on top of the insurance company and make sure you are getting the discounts you deserve, because they will not be the ones forthcoming about what ways you can save. Asking about these programs can only help you save, not hurt you. So call your agent today.

Understanding and Saving on Alberta Car Insurance

Finding car insurance can be a difficult and stressful process, especially for those who don’t have much experience when it comes to average rates and coverage. Luckily, the knowledgeable team at InsurEye knows exactly how to find the best auto insurance in Alberta, and for the best price! With a solid team of professionals on your side, there is no need to worry about finding cheap auto insurance that fits your needs.

The Many Ways to Save on Auto Insurance in Alberta

There are many factors that affect car insurance rates in Alberta, from the condition of your vehicle to where you drive and park, or even your educational and driving history! The following are just a few of the ways that you may be able to save on your auto insurance rates.

By starting with an online comparison, you will be able to check average auto insurance rates in Alberta. If you’ve been with the same insurer for a long time, it may be difficult to beat their rates (especially if you haven’t had any recent claims), but it’s always worth looking. If you don’t have a good driving record, keep in mind that this will only affect you for approximately three years. At that time, previously incurred tickets will be removed from your history, and your premiums may be reduced.

If you haven’t done so already, you can complete a driving course in an attempt to reduce your insurance premiums with some insurance companies. If the car you’re currently driving isn’t worth very much, consider only getting the minimal coverage required by law, without collision damage. This will likely mean that you’ll have liability insurance, and will still be protected if you damage someone’s vehicle, but the damages on your own vehicle will not be covered.

If you’re a more experienced driver, you may be able to save by increasing your car insurance deductibles, and thus incurring higher payments for damages in case of an accident.

Something as simple as where you park your vehicle can also affect your insurance rates. By parking in a safe location, like a private or secure garage, you will likely receive lower premiums. If you need multiple kinds of insurance coverage (like auto, home, and life insurance), many companies will give you the option to bundle them together for a discounted rate.

Graduates of certain Canadian universities may be eligible for a discounted rate from some insurance providers. Some insurance providers will offer a discount to members of certain professional organizations, such as Certified Management Accountants of Canada, or The Air Canada Pilots Association.

As a senior citizen, you will also be able to save, since most companies offer discounts to seniors.

Car Insurance – Cushion Huge Expenses and a Legal Protection

A car has become a basic need of families now-a-days. You can see many small, big, different models and companies cars rushed on the road around all the cities. We all know that a good car comes under a luxury item and no one wants to spend money on this on daily basis. Could you afford to buy a new car because one you had damaged or stolen? Yes answer is most of the people can’t. So there is a solution to protect your favorite and needed car- the car insurance.

What is car insurance?

It is a type of a contract between the car owner and insurance company. In this contract car owner pays the premium and the insurance company pays the losses or theft of car. A car is often a high expense and you want to insulate it. So insure your car and feel safe to roam around!

It repairs all types of damages

The aim of such insurance is to serve the victim. It pays to repair all types of damages such as weather damage, flood damage, fire damage and animal smashups. If your car is wrecked due to any mention damage in insurance papers, company will provide you amount for the relevant damage.

Clinches the peace of mind

Same as its spelling “insurance”- it insures peace of mind to deal with daunted bearings that completely hooked with budgeting. Unforeseen situations can happen anywhere with anyone but this type of investment keep your mind peaceful in such situations. It brings immediate relief from stress and survives in such incidents.

Bear thefts- roaming and parking is comfort

Could you purchase a new car because the one you had is pilfered? It’s difficult to bear a loss of theft of your favorite or luxury car. But you may feel recline from the fear of theft if you have insured your car. The company from where you have purchased insurance compensates you the value of car that was stolen.

Easy to excess

Car insurance is an easy and fast process to protect your car. You can purchase or renewed insurance online that is an easy and fast process. It is accessible by anyone as per the time and convenience.

Premiums and claims

Premiums and claims may different according to company’s policy. It totally depends on which type of policy you want to buy. But it is easy to pay premium because companies will provide you online facility to access all information. If you do not claim during the policy period No claim Bonus will offers you renewable policy in certain terms and conditions.

Car insurance contributes to legal, mental and financial peace which makes driving, buying or owning a car easy. It is a best way to boost broad coverage against debt you might face due to car theft or damage.

All You Need to Know About Auto Insurance

What is auto insurance?

It is an agreement between you and the company that defends you against any monetary loss in the happening of an accident or theft. In trade for your paying a premium, the insurance company agrees to pay your losses as summarized in your guidelines.

Auto insurance is made obligatory by most of the states and this provides you with some economic protection in case of an accident or any misfortune. But this information is not enough for an individual to decide whether he should take up auto insurance or not. For this, you need to more about different kinds of aspects provided by various schemes. So let us learn how this works and what is obtainable from it.
Different types of Auto insurance:

• Property – This includes losses such as damage to or theft of your car.

• Liability – This includes your official responsibility to others for physical injury or assets damage.

• Medical – Includes the cost of treating injuries, therapy and any other kind of medical expenses.

Fundamentals of Auto Insurance

You need to understand some basic things about your scheme. Auto insurance might be different in some ways but here are some common things about it that will mostly remain the same.

• Your policy will cover you and your family members listed on the auto insurance, whether you are driving your car or someone else’s car (with their authorization).

• Your policy will also provide protection if someone who is not in your scheme is driving your car with your approval.

• Your personal vehicle insurance only covers driving for personal reasons, whether you’re commuting to your office, running household errands or taking a trip to another city. But it will not provide any kind of cover if you use your car for profitable purpose. For instance, if you rent out your car or use it for delivery purposes.

• Personal auto insurance will also not offer coverage if you use your car to supply transportation to others through a ride-sharing service such as Uber or OLA. A number of auto insurers, on the other hand, are now offering supplemental products (at an extra cost) that expand coverage for automobile owners providing ride-sharing services as well.

Is Auto Insurance Mandatory?

Requirements differ from state to state and you might have to get it depending on your state’s legal guidelines. If you are financing a car, your lender may also have its own necessities and might want you to get it. Almost every state requires car owners to take:

• Bodily injury liability – which covers expenses related to injuries or death that you or another person has faced in an accident while driving your car.

• Property damage liability – which compensates others for damage that you or another person who was driving your car might have caused to another vehicle or other property, such as any boundary marker, any building or pole in the accident.

These things make it compulsory to enroll in one policy as soon as possible. This will not only help you but also your family members. So make sure you take up a policy as soon as possible for a safe and secure drive.

Life Without Car Insurance Can Be A Nightmare

When going out for a drive, Car owners should take great care not just about their life but also of their car. But sadly not every car owner is cautious while driving which leads to road accidents and ultimately them ending-up paying unexpected expenses.

If you’re a car owner without car insurance you should consider buying one, as owning a car without an insurance policy can be a living nightmare full of bills that need paying.

1.) medical bills-

A car accident can lead to injuries which ultimately land you in a hospital where you spend time in recovering and paying your medical bills.

2.) medical bills of the people injured-

If the people around the incident were injured as well, you would also have to pay their medical bills.

3.) Repair costs of the property damaged-

Say for instance your car collided with the entrance of someone’s front gate. You end up paying for their damaged gate as well.

4.) Repair costs of the car-

And let’s not forget about the repair costs of your damaged vehicle.

5.) Totalled car

Say for instance you were driving a car that you just bought with an EMI plan. It’s the third month and your car is completely totalled because of an accident.

In other words, you lose your perfectly new car and would still have to pay the EMI amount every month.

You’ll be surprised to know that at times mishap to your car can also happen because of external factors like –

1.) Vandalism

Scratches, dents, broken glass, graffiti, glue in keyholes, and slashed tires are some of the most common types of vandalism faced in inner cities.

2.) Theft of car parts

Thieves find this to be an effective way of making easy money, as stealing car parts don’t require much skill and can be accomplished in minutes.

3.) Stolen cars

Every year, police make some progress in recovering stolen cars however, the recovery rate is still not close to the total number of cars stolen.

4.) Riots

Riot is a time when parked cars face maximum damage in the form of loots and vandalism.

5.) Flooding

From forming rust to damaged electronic wiring, floods are a natural disaster that can ruin your brand new car.