News

Holiday Insurance

Thu, 25 Dec 2008 00:00:00 GMT

In this article

Buying Travel Insurance
Generally, tour operators and travel agents can't insist that you take out their own travel insurance.

It's illegal for a tour operator to discriminate against a traveller not taking their insurance by way of price, discount or surcharge.

In these circumstances, check to ensure the package (including the insurance) represents good value for money and that the policy offers you a good level of cover. They should cover, at least, the following:

cancellation of, or cutting short, your holiday
illness or injury while you're away
loss or theft of your belongings
delayed or missed connection
liability for accidents to others

Remember...
If you need to cut short your holiday because someone at home is ill, ensure you get the insurer's consent before rearranging flights.

If you plan to try out sports or activities on holiday that could be considered hazardous, such as scuba diving, a standard policy may not cover you. You may be able to get this added to your insurance. If not, you need to arrange a specialist policy. Don't rely on buying local insurance abroad.

Things to remember

Ensure you understand what you're covered for and what you aren't.
Take the insurers contact details with you and a copy of your policy - always call them for consent if you're booking something which will form part of your claim.
Keep bills and receipts to support your claim.

Take as much care of your possessions as you would if they were uninsured.

If you don't, the policy may not pay out. Never leave belongings unattended, particularly at airports, or in an unattended vehicle or on the beach. Keep all valuables, passports and money in your hand baggage when travelling, not with the rest of your luggage.

Ensure you know all that's required of you to make a claim. If an item is stolen, for example, the policy may require you to contact the police within 24 hours and produce proof of notification to support your claim.

Check out your household insurance policy. You may find that some of the valuable items you're taking on holiday are already covered under an 'all risks' extension.

Motor Insurance Made Easier?

Sun, 17 Aug 2008 18:30:00 GMT

The industry body having originally made the request in its response to the DfT's consultation on the matter - which has just closed.

BIBA argues the move would make a huge difference to the motor insurance market, creating an estimated £11 million in savings for the intermediary sector alone. Allowing for electronic delivery would also have a positive impact on consumers, significantly reducing delivery times and creating better adherence to FSA contract certainty requirements. The other major benefit of this proposal is the potential for a positive impact on the environment.

Each year over 30 million vehicles in the UK are insured, requiring over 30 million letters to be printed and posted to consumers. Allowing for the electronic delivery of motor insurance certificates would dramatically reduce the need for packing materials, and would require consumers to print off a copy only when necessary.

Commenting on its submission, BIBA Technical Services Manager, Graeme Trudgill said: "In its consultation document, the DfT states that it is keen to encourage developments in technology which bring benefits and we believe this is essential. The insurance industry has been forced to stay in the dark ages for too long, and we are eager to start providing up-to-date services to our customers.

"We believe that allowing the insurance industry to issue electronic motor insurance certificates would have a positive effect for consumers, the industry and the environment. We urge the DfT to take these factors on board when considering its final proposals."

Insurers Pushed on Flood Claims

Thu, 10 Jul 2008 18:30:00 GMT

Ministers have already met local councils to discuss how to spend the £14m relief package announced by Prime Minister Gordon Brown.

UK insurers are facing a bill of about £1.5bn after June's floods. The flooding is estimated to have hit 31,200 homes and 7,000 firms, mainly in the Midlands and northern England. Earlier, Communities Secretary Hazel Blears told the House of Commons that pressure was being applied to insurers. She said: "I hope the House will appreciate how seriously we're taking this issue around insurance to make sure that claims are dealt with speedily, fairly, and [that] there is sufficient capacity to really get on with this, because this is a top priority for members of the public." Malcolm Tarling, a spokesman for the Association of British Insurers (ABI) described the meeting with ministers as "very constructive". "We believe 99% of properties have now been visited by an insurance representative or loss adjuster," he said. "The key priority right now is to make sure that anyone whose is property is uninhabitable gets into alternative accommodation and to help business get back to trading." Mr Tarling added that in the longer term, the construction industry should be given incentives to ensure all newly-built homes were better protected from flooding and local councils should ensure drainage was better.

Spending Shortfall

Meanwhile, Environment Secretary Hilary Benn has said the government is to increase flood defence spending from £600m this year to £800m a year in 2010/11. Nevertheless, insurers have been critical about the level of government spending on flood defences. Last year there was a £15m shortfall in the amount of money spent on flood defences. Under a deal struck between the government and the insurance industry in 2005, insurers agreed to continue to offer cover for homes at risk of flood. But if the government fails to fulfil its side of the bargain, people at risk of flooding could be refused cover by insurers. Insurers have also called for more information on the country's flood defences, in order to help them offer cover.

Insurance Threat

Some firms, it seems, are already re-assessing who they should insure following the recent floods. German insurer Allianz said the recent floods were a "wake-up call" for the industry. "Flood in the UK, we believe, is right up there as a major world-class risk," Clement Booth, chairman of Allianz UK, told the Financial Times newspaper. He added it was too early to say how much insurance premiums would increase by.

Car Insurance Tips

Wed, 09 Jul 2008 18:00:00 GMT

The Options

Fully Comprehensive is the most expensive and covers everything - damage to your car, personal injury costs and any third party's vehicle and property. On very old, cheap cars, annual comprehensive premiums can cost more than the car is worth. But it's a must if you are buying a car using a credit agreement or a loan because if the car is a write-off or stolen you still have to continue paying the finance. Third Party insurance is the minimum legal cover allowed and is comparatively cheap. It covers damage to the other person's car or compensation but if your own car is stolen, burnt out or damaged it is not covered. Third Party can be beefed up using add-on insurance such as Fire and Theft.

The Costs

The price of insurance can add a lot to the cost of motoring so it's worth knowing the factors that affect the premium you are quoted. Shop around and compare quotes from different insurers. They base their premiums on their claims experiences, which naturally differs. One company may see your area as higher risk than others. One may charge more because of your occupation. Shopping around on the internet makes it even easier because you can quickly see the effect of, for example, accepting a larger excess. The starting point is the type of car you want to insure. There are many different insurance categories, with price, performance, and the cost of replacement parts the main factors that dictate the one your car falls into. Driving a smaller car is the best way to cut the cost of insurance. Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums.

High Risk Categories

Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums. Some insurers might class you as higher risk if you are a sports professional, entertainer, barman, chef or builder, among other occupations. But you may be able to avoid having your premium loaded by shopping around. Some insurers specialise in covering people traditionally regarded as higher risk, or non-standard. Even if you can't avoid having your premium loaded, the extra you are charged is now typically in the region of 10%-15%, down from 30% or 40%. If you suffer from a health condition that could affect your ability to drive, including epilepsy, vision impairment, certain heart conditions or sleeping disorders, or if you are taking any medication that could do the same, you must inform the DVLA. If you don't, you could be charged with a criminal offence.

How the no claims discount works

You typically get a 30% discount after one year of claim-free driving, rising to 65% after four or five years. But companies vary. Some go up to a 70% maximum while others specialising in younger drivers will give higher discounts at an earlier stage. Many insurers now offer the opportunity to pay a bit more to protect your no claims bonus. The rules vary but you may be able to make two claims in three years, for example, before your bonus is affected. Protecting your bonus will not stop your insurer from hiking up the premium at renewal following a claim. But at least you won't lose your no claims bonus on top. Making a claim does not automatically mean you lose your discount. It depends whether the claim is a 'fault' or 'not fault' claim. This is not just a question of whether or not you were to blame for the accident, but depends on whether your insurer can recover all its costs from someone else. For example, if you skid on black ice and hit a wall, your claim would be classed as 'Fault', even though you were not to blame, simply because your insurer can't recoup the cost of fixing your car from anyone else. Where another driver is involved, unless it can be proved beyond doubt that the other driver was to blame, the two insurers will often settle a claim on a 50:50 or 80:20 basis. This means both drivers will lose some of their no claims bonus. With most insurance companies, you will lose two years of no claims bonus if you have a fault claim.

Making a claim

If your car is stolen, report it to the police first and then your insurer. You will have to wait a while because many cars are stolen by joyriders and later recovered. If it is never found or is a write-off, then you may face another problem. Your car may have been in good condition with a low mileage, and the amount the insurer gives you may not allow you to replace it with an equivalent machine. In that situation, get hold of a car buyer's guide - Glass's Guide is the most frequently used. If its tables support the insurance company, you'll find it hard to get a better offer, even if the car was in good condition. If you have been in an accident and the other driver was uninsured, personal injury claims and some damage claims will be met by the Motor Insurers' Bureau - (01908) 240 000). This is financed by a levy on all insurance companies and was set up to compensate victims who would otherwise lose out through no fault of their own. It will also pay out if you are hit by a driver who has bought insurance from one of the fly-by-night unauthorised companies that offer cheap insurance. If you find yourself in this position, tell the police.