1 April 2011
Car Insurance News Round-Up - April 2011
There's
more on these and numerous other news stories in our blog.
The big story this month is the Government's decision to press ahead
with the Jackson-recommended reforms of civl litigation costs,
excluding the banning of referral fees.
Justice Minister, Ken Clarke, to
implement key Jackson report recommendations
In our blog Ken Clarke Jackson white
paper - Insight and Opinion, we explain the changes to the way
injury lawyers are paid and how this will effect claimants and help to
reduce the ever-increasing cost to car insurance providers of settling
personal injury claims. Currently, for every £1 paid in damages,
87p is paid in legal fees. With the Jackson reforms, this is set to
drop. It's good news for car insurance consumers.
Co-op introduces Smartbox telematics to cut the cost
of young driver insurance
Young drivers under the age of 25 have been
hardest hit by the recent car insurance price increases, with many
seeing increases of around 50% over the last year. So-called telematics
technology exists, that until now has not been widely available, that
allows for the calculation of the premium according to how the car is
being driven, rewarding safer dirvers with cheaper car insurance. The
Co-op is now offering a telematics policy as we explain here: Co-op Car Insurance
'Smartbox' telematics saves young drivers up to £328.
Budget provides
a little relief for hard-pressed motorists
The two key measures of relevance to motorists in
the recent Budget were a drop
in fuel duty and an increase
in the statutory mileage allowance. It can be argued that both did
not go far enough, but in as much as they have provided some financial
assistance to motorists, they are a positive development.
Transport Committee Report on the Cost of Motor
Insurance
Following its enquiry into the rapidly increasing
cost of car insurance, the Transport Select Comittee has released its
report on its findings along with several recommendations. These are
presented in our report: Transport
Committee Report on the Cost of Motor Insurance. Our reaction, in
which we argue that their recommendations are sound but could have been
bolder, are presented in this editorial: Transport Committee
Report on Car Insurance - Review.
Continuous Insurance Enforcement Starts
As we
explain in this item: Continuous
Insurance Enforcement now to start April 2011, the Government
clampdown on uninsured drivers is now to begin. For those that fail to
insure their vehicles, they risk a hefty fine and the possible seizure
and destruction of their car.
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