Latest News
Home under fire
New research suggests that the service provided by home insurance price comparison sites is failing customers and lagging some way behind the level of the motor aggregators.
With the ongoing financial squeeze of the credit crunch, consumers are increasingly turning to the internet to find the cheapest quotes for their household insurance.
But as new research from Defaqto reveals, the majority of price comparison sites are failing consumers in their quest for home insurance, often leaving them with inadequate cover. Read more...
Final report is a 'significant contribution' to managing flood risk
The Environment Agency has warmly welcomed Sir Michael Pitt's comprehensive final review into the 2007 summer floods, describing its as a significant contribution to managing the future flood risk in England and Wales.
Chief Executive Paul Leinster said the Environment Agency had highlighted the need for further clarity on the responsibilities for flooding from surface water drains, infrastructure protection, more publicly available information on flood risk, and additional resources to help adapt to climate change as key issues to be swiftly taken forward. Read more...
Raise profile of policies for older travellers, says BIBA
Biba has called on its members to better promote travel insurance for people over 65 to ward off a legislative intervention by the government.
The Equality Bill, on which the government is consulting with the public until next month, would make it illegal to discriminate against elderly people when selling travel insurance. But Peter Staddon, Biba’s head of technical services, said extra legislation was not needed.
Click here to read more... (source: Insurance Times)
Insurance Choice has always offered its customer valuable cover for travellers up to 85 years old for Annual Trip and any age for Single Trip insurance. We also provide for those with pre-existing medical conditions.
Heathrow Terminal 5 - Travel Insurance Update from BIBA.
Following the announcement from Direct Line, Churchill and Royal Bank of Scotland regarding excluding cover for insureds travelling from Heathrow terminal 5 in relation to delayed or cancelled flights, or delayed or lost baggage, Insurance Choice can assure its customers that their own insurance companies have not announced any similar action.
Cancellations and disruptions at Terminal 5 caused baggage backlogs.
 | Independent research company Defaqto has revealed that 14% of the 308 single trip policies on its database do not provide any cover for delayed baggage. The findings come as chaos continues at Heathrow’s Terminal 5 (T5). A spokesman for British Airways (BA), which operates from T5, said 24 flights were cancelled on Saturday due to a baggage system malfunction. |
BA was able to repair the baggage system that same day. But bad weather over the weekend also resulted in flight cancellations across the airport and T5 suffered 140 cancellations on Sunday. The spokesman added that of the 15,000 bags that were backlogged since the £4.3bn facility opened two weeks ago, 10,000 had been returned to owners and 5,000 were being processed.
Meanwhile, Defaqto also found that 40% of single trip policies only provided a maximum cover of £100 for delayed flights and baggage. A further 74% provided £20 or less for the first 12 hours of being delayed at the airport, and 82% provided £20 or less for each subsequent 12 hours of delay. The company has warned consumers about the need for comprehensive travel cover.
Mike Powell, consultant for general insurance at Defaqto, said: “With the problems that have occurred with the opening of Terminal 5 and the fact that there have been widespread reports in the media of people not being able to collect their luggage and flights being cancelled or delayed, consumers do not always consider what cover is provided by their travel insurance policy for these types of eventualities.
“It is therefore important to check what is provided by a travel insurance policy before purchasing cover.”
Russ to head up Motorcycle Department
Russell Butlin has joined us this month to manage the Motorcycle team at Insurance Choice. Russ brings with him a wealth of experience and knowledge of many of the well known insurance providers for motorcycle insurance. His aim is to pass this experience on to customers in the form of savings.
Welcome on board Russ!
Lee Murphy
Sales Manager
Check you Driving Licence
If your licence has been at DVLA in recent years, your motorcycle entitlement may have been 'lost'. It seems to have happened a lot - we hear again and again of occasions.
You need: P (moped), A1 (125cc), or A Category in the list on your licence.
If this entitlement is missing, contact David Short at MAG(UK). He is lobbying to get this sorted out, and is making progress - the more ammunition he has, the better.
source: www.motorcyle.co.uk
Travel Insurance Update
The government announced in June that it was giving the FSA responsibility for regulation of the sale of travel insurance sold within a holiday, in addition to the regulation of travel insurance sold on its own.
This will give all consumers the same regulatory protection and rights when buying travel insurance. You can read a review of the responses to the consultation at www.hm-treasury.gov.uk/media/D/E/travelinsurance_review_responses.pdf
The following is a true account from Ian Lynas, one of our Customer Support Team, following a trip he made to Scotland:
 First pickup at Fort William |
The driver of the last truck advised me that the total cost for our recovery would be some where in the region of £600. All I had spent was £69!
Money well spent I think.
Students - Get adequate insurance cover before starting university this autumn.
Students leaving home for university this autumn are being urged to ensure they have an adequate insurance policy to protect themselves and their possessions. Home Office figures show that 1 in 3 students fall victim to crime each year, and are three times more likely than the average home owner to be burgled.
The call comes from the British Insurance Brokers’ Association (BIBA), which has issued advice to students to help protect them from theft while on campus. University halls of residence and student houses are rich pickings for burglars, especially when so many come laden with costly kit including laptops, TVs, DVD players, stereos and iPods or other digital music players. According to the Government, students are statistically one of the most likely groups to be targeted by criminals.
As students set off for universities around the country in the next month, Graeme Trudgill, Technical Services Manager at BIBA, has warned: “Too many students head to university without adequate insurance. All too often, insurance is the last thing a student will think of and they will dismiss not being a priority. We want to make sure that students starting out this autumn check whether they are covered through their parents’ home policy. If they are not it is vital they purchase a student policy to cover them. University is expensive enough without having to replace stolen possessions – a broker offers impartial advice and tailored insurance packages for students that don’t break the bank. So that even students on a tight budget can seek suitable protection.“
NUS President Gemma Tumelty added: " Understandably for most cash strapped students, adding the expense of an insurance policy may not make the 'must do' list. But given how much most students will have locked up in the value of laptops, mobile phones and other valuables, we would urge them to reconsider and ensure that they don't risk their possessions or having to shell out huge amounts to replace them. We are pleased that students generally experience safe living and working environments, but anyone can be the victim of theft or accidental damage. This is why NUS work with Endsleigh insurance brokers and why we support the drive to get students to brokers to advise on a whole range of packages available. Having to replace items without cover is far more likely to break the bank and finding out what cover is available doesn't cost a thing."
BIBA advises that:
Valuable Items must not be visible from windows Students should check that the locks have been changed since the last tenants left Students need to make sure that they have adequate locks on their front or back doors. High value items, like laptops, might require separate cover. It is important to read the small print on any policy to see in which circumstances cover might be invalid. Speak to a broker for advice on your insurance needs. Check the level of cover to items temporarily removed from your home, no two policies are the same and the level of cover can dramatically vary from policy to policy.
source: www.biba.org.uk
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Urgent advice to travellers following baggage crisis
Following the widely publicised, and growing, problems with lost baggage claims, the British Insurance Brokers' Association (BIBA) is urging travellers to ensure they have cover for any valuables checked into the hold of the plane.
Many travel insurance policies do not cover valuables when checked into the hold, and often require you to keep valuables under your custody and control. As a result, you are required to keep them in your hand luggage or about your person. However due to the stricter hand luggage restrictions more people are checking in items like foreign currency and portable computer games.
BIBA has issued a list of items which may not be covered by insurance when put into a suitcase and checked into the hold:
You should, of course, check your policy as each policy can be different.
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 | On the 14th June most areas received a month's rain in one day! Needless to say this caused mayhem in many areas. The photo on the left lays testament to this and brought the issue well and truly home as this car belongs to one of our staff! Fortunately he has fully comprehensive insurance and has received a courtesy car while his car is being assessed. Don't get caught out yourself. Make sure you have the right insurance and breakdown cover.
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 | Missing MadeleineMadeleine McCann was abducted from Praia Da Luz, Portugal on 03/05/07. If you have any information about her whereabouts, please contact Crimestoppers on 0800 555 111 |
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22nd March 2007
Beating the budget 07
 | The Chancellor of the Exchequer has delivered his budget, but what has it done for your budget? There may be a few winners, apart from Gordon that is, but if you have a car or a house you could be a loser. However, if you are clever you could save as much or more than the Chancellor has taken by looking at your insurance. |
Cutting car insurance
Too many people just compare prices without really thinking about their car insurance. Be careful about how you describe where you car is kept overnight, what your actual mileage is, do a little research on your car alarm and think hard about the value of your car and how much you want to pay in the event of a claim and you could save what Gordon Brown has just cost you.
You can compare prices at http://www.insurancechoice.co.uk/ or call 0844 55 77 600 and we will do the hard work for you.
Cutting home insurance
Not actually part of the budget, but hidden away in a report published on the same day were proposals that could put up the taxes you have to pay on your home.
A few ways to save money on your home insurance include fitting the right locks to doors and windows, making sure your alarm is approved, picking a policy with a no claims bonus, combining your buildings and contents policy and telling your insurance company if your home is occupied during the day.
When you come to buy your travel insurance, look at your home insurance. You might find that your baggage is covered on that policy so there is no need to pay again when you buy a travel policy.
You can find more tips on cutting your premium at http://www.insurancechoice.co.uk/ or call 0844 55 77 600 and we will do the hard work for you.
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8th March 2007
Grand Designs. Not so clever home insurance.
 | The popular Channel 4 programme Grand Designs features a couple, Alex and Cheryl, who are rebuilding their dream thatched cottage in the New Forest after it was destroyed by fire. A disaster like this is bad enough, but the couple had allowed their home insurance to lapse! If you want to see just how big a shock it can be if you are uninsured, make sure you see the second in the series of Grand Designs. |
For an instant quote on your own home insurance, go to Insurance Choice. If, like Alex and Cheryl, you need insurance on a thatched property, you may find it expensive or difficult to get cover. Insurance Choice have specialist policies for thatched properties.
Up to date but under insured?
You don't have to let your insurance lapse to be in trouble if you have to rebuild. If your home is undervalued it can be almost as bad. Your insurer will only pay out the percentage of the value of your home they consider is insured if you make a claim - which might not be enough to rebuild.
If you want to check you have adequate cover you can go to the Association of British Insurers (ABI) web site or the BCIS web site which both have handy calculators.
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8th March 2007
Landlords, what have you let yourself in for?
 | Things are changing in the rental market and it's not all good news for landlords. From 6th April the Tenancy Deposit Protection (TDP) scheme comes in and the risk of people failing to pay their rent is rising. |
Tenancy Deposit Protection
This new legislation applies to Assured Shorthold Tenancies, the vast majority of tenancies in England & Wales. It means that Landlords cannot simply bank deposits, they have to join a statutory custodial of insurance based scheme.
With a custodial scheme, the interest on the deposit pays for the scheme with any left over paid to the tenant or landlord.
Insurance based schemes allow the landlord to keep the deposit and pay a premium to protect the tenant. Both schemes have a built in dispute resolution scheme designed to make sure any disputes are resolved quickly, cheaply and fairly.
There is more information about this on the Directgov web site and the Communities and Local Government web site. Below links for companies running the custodial scheme and insurance based schemes.
Protecting your rent
Another problem for landlords is tenants who can/cannot, or will not, pay the rent. According to sources in the lettings industry; couples breaking up and people losing their job are the main causes of arrears and excessive personal debt is an increasing threat.
Lee Murphy of Insurance Choice has been studying this area and has come up with a simple policy that gives landlords real protection at a realistic premium. "The landlord has to carry out a simple credit check on the tenant; we can sort that out for them for £12.95. Then for £125 per property the landlord gets rent protected and £10,000 of legal cover". If there is a claim the insurance company will try to reach an agreement with the tenant, but subject a few conditions the rent will generally be paid within 21 days from the end of the month.
Useful links:
| Assured Shorthold Tenancies | http://www.communities.gov.uk/index.asp?id=1151898 |
| Directgov | http://www.direct.gov.uk/en/TenancyDeposit/DG_066385 |
| Communities and Local Government | http://www.communities.gov.uk/index.asp?id=1152035 |
| The Deposit Protection Service | http://www.depositprotection.com/ |
| Tenancy Deposit Solutions Ltd | http://www.mydeposits.co.uk/ |
| The Tenancy Deposit Scheme | http://www.tds.gb.com/ |
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1st March 2007
Contaminated petrol - can you claim on your insurance?
 | Thousands of drivers across the country are finding their cars coughing and spluttering to a halt, apparently because of bad petrol. No doubt the drivers are spluttering with indignation as well when faced with the cost of repairs, bills are topping £1,000 for some drivers. |
Should you claim on your insurance?
According to the Association of British Insurers (ABI), motorists with a comprehensive insurance policy should be able to claim for the cost of repairs.
However, Jamie Mancini of Insurance Choice sounds a note of warning. "Drivers should think before claiming. First they should look at their excess and make sure making a claim is worthwhile. For instance, if the repair bill is £1,000 and they have a £100 excess, it could make sense to claim. But with an £800 bill and a £500 excess it makes much less sense. Then they have to think about how making a claim will affect their no claims policy. A claim might mean they pay higher premiums for the next 2 or 3 years. That might leave them more out of pocket than the repairs." Mancini added "Even someone with a protected no claims bonus will lose a ‘life' as it were, so still worth thinking about."
It seems the problem is something to do with an impurity in the petrol that damages an oxygen sensor in the engine. As a result the engine runs very poorly and the sensor has to be replaced, not surprisingly dealerships are swamped and the sensors are in short supply.
Motorists are reporting problems throughout the country, mainly in the South East of England. There most complaints are from drivers who filled up with unleaded fuel at Tesco or Morrisons. Both companies insist they have checked the fuel being sold from their stores and found nothing wrong.
Update: 6th March 2007
On the 6th March Tesco ran full page ads in several national newspapers saying sorry about the problems caused and promising to pay the repair bills.
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28th February 2007
Road charging and your car insurance
 | The government has launched proposals to replace road tax and petrol duty with road charging within 10 years. Some insurers in the USA and now in the UK are offering pay as you go cover, so will we all be paying tax and insurance by the mile in future? The Association of British Insurers (ABI) has set up a sub committee to investigate how the industry might fit in with government road pricing plans. Insurers have been developing telematics, the technology behind pay-as-you drive insurance and there has been talk that this technology might be used to collect revenue for the government. |
It is definitely coming
According to Neil Carpenter, Managing Partner of Insurance Choice, the move to pay as you go car insurance is inevitable. "The worries about Big Brother are a bit of a red herring. The same people who complain about the government being able to track them probably have a Sat Nav system and a mobile phone that knows where they are."
When asked about the current benefits of pay as you go insurance for drivers, Carpenter commented "For a few drivers, typically youngsters who are prepared to adapt their driving patterns to maximise the savings, they could save money until they build up a good driving record. But most people won't save money until the technology is fitted as standard to all cars. But pay as you go will be the norm eventually."
The Department for Transport says road traffic has risen by 5 billion kilometres since 1997 and by 2025 congestion will cost industry £22bn a year. So it looks as though we will all be paying by the mile for motoring before long, if we want to get anywhere.
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27th February 2007
Car Insurance and using your mobile in your car
 | On February 27th 2007 the law on drivers using mobile phones while driving has been made considerably tougher. From now on the maximum fixed penalty fine has risen to £60 and 3 penalty points. If the case goes to court the fine could rise to £1,000, rising to £2,500 for drivers of vans, lorries, buses and coaches. These penalties should be a deterrent, but for some drivers a fine will be just the start of their financial problems. They may find themselves paying much more for their car insurance. |
Up to 50% higher premiums
There are no hard and fast rules about this in insurance circles yet, but for some people a conviction like this could be very bad news. For instance, a young driver who already has points on their licence could suffer a 50% loading when they come to renew their policy - which could easily be an extra £500.
If the additional points take the driver over the 12 point limit there is always the possibility of a 6 month ban. Apart from causing problems with work and life in general, car insurance premiums can be hundreds of pounds a year more.
The lesson drivers should learn, according to Dr Vivienne Nathanson of the British Medical Association (BMA), is that "Drivers must get into the habit of switching off before they set off on their journey." Drivers who are caught and convicted may find renewing that their car insurance policy is more costly business as a result.
The Royal Society for the Prevention of Accidents (RoSPA) offers a full explanation of risks associated with driving while using a mobile phone.
Hands free kits are available from Halfords and The Carphone Warehouse.
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27th February 2007
Who gets hurt in a train crash?
 | Our sympathies go out to all those people injured in the recent train crash in Cumbria, and to their families. But when the dust settles and the precise cause of the crash is established - who will pay the price? If there has been any negligence or illegal activity by any company (and we don't suggest for a moment that there has been) the Directors and Officers of that company may find they are held personally liable. |
Directors' & Officers' Insurance.
This is why increasing numbers of companies and individuals are taking out Directors & Officers Insurance. It is not just Health & Safety at work legislation that you need to worry about, a financial train wreck can cause just as much damage to your pocket.
There are over 200 possible offences Directors can commit under the Companies Act alone; let alone The Data Protection Act, The Racial and Sexual Discrimination Act, The Insolvency Act and a raft of consumer and employment legislation - plus are any number of EEC Directives and Regulations. Directors can be held jointly and severally liable, so your personal assets can be put at risk by your fellow directors and managers.
Is it only company directors who are at risk? No. Partners, Managers and owner operators can all be pursued through the courts for unlimited amounts of liability. Shareholders, employees, customers, clients, sub contractors and any interested party can take action through the courts and there seems to be an increasing amount of litigation in the UK , which seems unlikely to change any time soon.
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26th February 2007
Heading for a breakdown online?
 | The surprise big seller for Insurance Choice since the site launched at the beginning of February has been breakdown policies. In the first 20 days of trading the new online brokerage sold 40 policies with very little promotion, primarily Car Breakdown Cover. "To be honest I am surprised" said Michael Gabbitas, E-commerce Development Manager responsible for the IC Breakdown products. "You see ads on TV all the time for the big players" he continued. "We have only spent a tiny fraction of our online budget through our marketing people at emart and we sell policies every day". |
On further reflection, Gabbitas came up with some pretty good reasons why customers might be beating a path to his digital door. "When I compared rates today (27th February) our policies were better value like for like than Green Flag, The RAC or The AA, even with their discounts. And our site is really easy to use; you can get covered in a few minutes."
It looks as though motorists can navigate their way around the internet when they spot a bargain.
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If you have any comments on this or any other article, please contact The Editor - richardb@insurancechoice.co.uk.