Hidden Hiccups And How To Save On Car Insurance

May 8th, 2008 Posted in News

Of the two million British drivers expected to drive their cars across the Continent this summer, it is expected that many of them will unwittingly be under insured. European law states that British car insurance will automatically cover your third party, fire and theft car insurance obligations in Europe.

Of course it should never be assumed that third party, fire and theft car insurance will cover any losses you would personally suffer in the event of an accident which is why many people take out comprehensive car insurance to cover themselves in every eventuality. However, this does not always mean they will be covered on European soil.

Some car insurance companies will provide cover for European driving at extra cost but very few will voluntarily tell you are not comprehensively covered. It is essential that, before any trip overseas, you check the small print on your policy or talk to your car insurance provider to ensure you are covered. Then can be nothing worse than being stranded in a foreign country without assistance after an accident.

If you are a regular European traveller it would pay to check this aspect out before you take out your initial car insurance as cheaper insurance doesn’t necessarily pay if you are frequently paying out for extra cover overseas.

Staying in the field of cheaper car insurance, women are often penalised for their unfair reputation behind the wheel. To this effect, many car insurance companies have set up subsidiaries specifically aimed at insuring female drivers. However, do not be taken in by the gloss and the hype. They are not always cheaper and the benefits not always what they claim so, once again, check out the small print before committing to anything.

With the increasing cost of living these days, we are all looking for ways to reduce outgoings so it certainly pays to shop around for car insurance. Premiums have been soaring in the last few years and this is due to several factors. One is the incidents of so many uninsured drivers having accident. Claims then have to be settled by the Motor Insurers Bureau who, in turn, get their funds from the insurance industry, and ultimately, us.

The increasing cost of repairing new cars and the dreaded ‘no win, no fee’ compensation claims all have to be paid for by. And the people funding all these increases are, unfortunately, you and I, the legal, regular driver. The average cost of comprehensive cover is now £822 and TPFT car insurance that is normally taken out by higher risk drivers has broken through the £1,000 per annum barrier.

That said, one item of good news, for me at least, is the fact that speeding fines have become so common place that insurers are no longer seeing the offenders as any more of a risk than those without the incurred penalty points. Premiums up to four times higher have been imposed on those with speeding fines and six or nine points on their licence but according to The Association of British Insurers, many insurance companies will be following the example of Swinton by ignoring these blemishes.

With the increased amount of fixed speed cameras on the road, many are getting caught and it is virtually seen as an occupational hazard to the point that more than a million drivers are suspected to be one conviction away from losing their driving licences. This is deemed as an unfair reason to increase car insurance premiums as these cameras do nothing to pick up those who are a more serious risk, such as drink drivers and the uninsured or untaxed.

So, it’s not all doom and gloom in the car insurance field. Do your homework, shop around and you should still be able to secure a good deal but regardless of the effect on insurance premiums, it will still save you money if you watch out for the 6,000 speed cameras on our roads.

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