27 Dec 2011
Car Insurance News Round-Up - December 2011
The
December news round-up includes our report on what needs to be done by
the Government to reduce the cost of motor insurance, the financial
risks of 'no frills' car insurance, the OFT's review of the motor
insurance industry, the latest drink driving research and UK motorists'
lack of preparation for winter conditions.
Our news section provides more stories
and analysis on
these and other topics.
Tackling the rising cost of motoring
In our report, released on 2 December 2011, Tackling
the High Cost of Car Insurance - Strategic Review, we look at what
needs to be done to reduce the cost of car insurance in this country
given that the Government's current proposals with have only a limited
impact. The report includes 28 recommendations for change, listed in
the report's Executive
Summary.
The financial risks of 'no frills'
car insurance
Research from Sainsbury's Bank has quantified how
much under-insured drivers need to pay out themselves following
accidents. The total annual cost is £73m. On average motorists
pay out £170.67 each for courtesy car hire, for example, where
their policy does not include it and other costs can reach many
hundreds as we review fully in our related news story: Research
reveals risks of 'no frills' car insurance.
The
OFT's review of the motor insurance industry
In our article OFT
to review car repair / hire costs in car insurance, we look at the
background and context of the OFT's investigation into anti-competitive
referral practices in the car insurance claims market. We point out
that claims management companies, and not just motor insurers, are
responsible for these expensive referrals for which the motorist picks
up the tab via inflated car insurance premiums.
Drivers often encouraged to drink
and drive
In a recent major survey from the AA, reported in
our news item Drink-driving
often encouraged, it has emerged that young drivers in particular
are especially likely to be encouraged to consume alcohol before
driving with 44% saying that they felt encouraged to do so. Such
encouragement was common among older age groups too.
Motorists unpreapred for winter driving
A survey has shown that 38% of drivers have done
nothing to prepare for harsh winter conditions such as, for example,
putting a shovel or spare warm clothing into their car. We look further
at these failures to make ready for winter driving in our news item: Many
motorists unprepared for winter conditions.
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