It has been brought to my attention that more than 40,000 uninsured drivers are out on the roads in the North East of England.  In some areas, it has been noted that almost one in five cars will be without any sort of cover at all, whilst arrests have reached a peak in the Northumbria area – with a quadrupling of arrests for driving without cover since 2004.

Safety campaigners are keen to point out the relevant statistical ‘facts’ too – that uninsured drivers are ten times more likely to drink-drive and three times more likely to be convicted (not just arrested there) than your standard, insured citizen.  Not surprising really is it, if someone is quite happy to break the law with regard to insurance, I doubt they’d have a qualm about the legal requirement to drive with due care and attention either.

In the North East alone, there were 3198 crashes involving uninsured drivers.  I’m sure you’ll all agree that is actually quite a high number – especially just for one area of England.  So why do people do it?  Well for one thing, there’s the usual excuse of ‘well my car’s insurance is actually more than the car’.  This is worrying on two levels.  First of all, if you scrimp on the few hundred quid it’ll cost for your (s)crapmobile, exactly how often do you get it serviced?  Do your brakes work?  Are your tyres at the legal tread depth?  No, I didn’t think so.

Secondly, if people feel that there’s no point in purchasing insurance, they’re sorely mistaken.  There are a good number of reasons, but here’s the main one.  Protection.  Insurance can be costly, there’s no doubt about it.  But have you ever taken a look at a liability case where someone has caused the death of another?  Well this will carry a jail sentence, along with a near-unlimited fine.  Insurance gives you legal protection in the face of a lawsuit for whatever reason involving your vehicle.

The protection afforded by insurance also covers you.  Quite often, good insurance will allow you to drive another car (this is more useful than it at first may seem), cover any valuables you may have in the vehicle or even provide you with breakdown cover through a third party.  All very valuable no?

Of course criminals come in all shapes and sizes and that’s exactly what uninsured drivers are – it is after all illegal to drive a vehicle without insurance.  So what sort of person might do this?  Well first of all, you have the young ‘just passed’ driver.  Their reasoning is normally the one above – cost.  However, I’ll say this.  If you can’t afford all the costs of a car (this includes fuel, oil, serving and insurance) then DO NOT GET ONE.  Cars as a mode of transport are a privilege not a right.  Because you have a driving license you don’t have a license to break the law.

Another type of driver that may not have insurance is the ‘not so savoury type’.  Granted, sometimes people may borrow a car very quickly, but there are others who may ‘borrow’ a car for a longer time.  They are also more likely to be driving unsafely remember – so we’re better off without them on the road too.

Foreign drivers, unfortunately, don’t always come along with the correct level of insurance.  Apparently, cops are told to take just as hard a line with them too – whether this happens or not I won’t speculate but once again, they are braking the law.  They need protection and so do the rest of us on the road.

So what might happen if you get caught?  New powers mean that the police can legitimately seize uninsured vehicles anywhere if found to have been driven uninsured, or if uninsured by the registered keeper.  New technology means that the law-breaker is much more likely to get caught.

What’s the bottom line?  There are a few things that you need in life if you’re going to drive.  The first is a license for the type of vehicle you’re going to drive.  The second is a safe, regularly serviced vehicle.  The third is fuel.  The final essential is insurance.  Don’t leave him without it.

The current financial crisis is having many different effects on the may that people are spending their cash, but although interest rates have gone down the actual benefits of this are not filtering through to the people who are having to pay the mortgages etc, which leaves little over for the new car purchase.

In a recent report from Sainsbury’s bank it has been found that there will be a lot fewer people looking to by a new car within the next six months, this is bad news for everyone in the industry from salesman to the people who work in the car factories, as well as the finance companies everyone is feeling the pinch.

In fact it is believed that there will be a serious decrease in the amount of money, something in the region of £11 billion less that the same period last year being spent on a new car purchase.

Steven Baillie, head of loans at Sainsbury’s Finance, said: “Indeed, our research indicates that the overall cost of motoring, everything from servicing to insurance and fuel has increased by ten per cent in the last three years,”

Source [Lombard Direct]

Secure the Best Bargain in car Insurance – Some tips

Now that you have bought your dream car, it is time for getting proper insurance coverage to your car. And insurance for your car is a major purchase just the same way as the car itself.

What is the best deal in auto insurance?

Like the car itself, the car insurance needs to be thoroughly researched and compared between quotes offered by several car insurance companies. Only then you will be able to strike the best deal. Best deal means you get all the required coverage for a price that is reasonable and fair.

First try to understand what influences the insurance price
The insurance rates are determined on the basis of the following factors:

Risk factor is the foremost criteria to determine individual rates.

Risk factor relates to the chances of an individual’s meeting with an accident. On the basis of the assumption that people with higher stakes make more responsible drivers, a certain class of drivers are offered lower rates than the others.

• If you are over twenty five years of age, married and have children and are in any responsible career, then you are likely to grab the lowest car insurance rate.
• Even if you are younger, your chances of securing a lower rate are high, if you have successfully completed a pass plus course

The locality of the driver is another determinant factor in insurance rate.

• The people residing in the rural area will have better rate because of the reason that the cases of accidents are rarer in these areas.
• Contrastingly, daily commuters through the crowded roads at the rush hour are charged with much higher rate.
• You can also obtain lower insurance rates if you happen to drive a car that has the highest manufacturer’s safety rating.

So how can you grab the best offer from your position? Here are the possible ways:

• Don’t go by the first quote you receive; Shop around to know who is offering what and make a comparison among them.
• The Internet provides the best solution for getting several insurance quotes in a short time. Here you will get to compare the prices offered by several insurance companies with just a click of the mouse.
• Also take into account the testimonials of your friends relating to a particular company; their experience can give you the proper account of the process, customer service and efficiency of the company to settle a claim.
• However, before comparing prices, just check which risk group you belong to and expect accordingly. You are entitled to get a better rate if you are a married man having children than a teenage driver driving a sports car.

When you buy a car, one of the most important aspects to consider is the cost, and how you are going to finance this purchase. You might take out a hire purchase agreement or personal contract plan, or you may take out a personal loan. A personal loan means borrowing the amount you need to buy a car, then paying this amount back in monthly instalments at the agreed APR (annual percentage rate). This means that you own the car immediately and most of these loans are unsecured

You may want to go for a specific car loan, which often has benefits such as free breakdown recovery, or just a non-specific personal loan which often has a lower APR. You will be subject to credit check once you have applied for a loan, which means the loan provider will make sure you are a suitable candidate for a loan and do not have a poor credit rating.

You can apply for a loan with any bank or building society, and this can now be done over the internet, by phone and in person.

Below are some examples of types of personal loan and typical APR/repayment details, these are likely to change from month to month

Norwich Union

• Apply by phone or online.
• You can receive the cheque within 24hrs at a cost of £45
• There are no repayments for the first 3 months.
• Typical APR is 7.2% for loans of £7000 and over.

Car Loan Plus

• Instant online decision
• £30 cashback when you take out Norwich Union breakdown cover.
• £25 cashback when you take out Norwich Union insurance.

Creditcare

• Protects your repayments if you are unable to work due to accident or sickness.
• Maximum of £1000 monthly benefit for up to 12 months.
• Cover if you are employed or self employed.
• Life and accidental death cover for the full loan amount.
• No medical required.
• No excesses.
• Cost will be based on loan amount.

The AA

• No repayments for first 3 months.
• Repayments over 1-7 years.
• You can receive a cheque in 24hrs at a cost of £45 (if request is before 3pm).
• Typical APR 6.3% for loans of £5000 to £25 000.
• Free AA car inspection worth up to £174.

Creditcare

• Protects your repayments in the case you are unable to work due to accident or sickness.
• Covers the full loan amount in the case of accidental death.
• The Silver Plan also covers unemployment, and the Gold Plan covers unemployment and critical illness for up to 12 months.
• You must be between 18 and 65years old, a UK resident and employed/self-employed.
• The maximum they will pay on outstanding balances is £50 000.

The Cooperative Bank

• Car Loan
  • Free Green Flag roadside assistance plus homecare for the duration of the loan.
  • Repayment over 1-7 years.
  • APR of 8.4% for loans of £15000 - £25000 (goes up to 16.4% for £2000 loan).
• Personal Loan
  • Typical APR of 7.9% to 8.9%.
  • Repayments over 1-7 years.

Top Tips

• Some loans offer 0% APR – this may not always suit as you are often required to repay the full loan amount within 36 months.
• Low APR loans – these are often only available to those with a perfect credit history – plus they are often required to be repayed within 12-36 months.
• Always check your own credit rating before you apply for a loan – if you have a low score it may mean you have to repay loans at a higher interest rate (plus it can affect your job prospects and mean you have to pay higher insurance premiums).
• If your credit score is below 550 – do not apply for a loan until you have repaired your credit.
• Ensure your debt-income ratio is below 30% before applying for a loan.
• Credit balances should be below 50% of the limit, otherwise they could drop your crdit score.
• There are benefits to applying for a loan online – you get an immediate response, there are no application fees and they may also have lower APR’s.
• Check the APR’s of all loans and compare them.
• Consider creditcare – it will increase the cost of your repayments, but ensures that if you are unable to work (illness/injury) the loan repayments will still be made.
• You can check your own credit ratings online with: Equifax , Consumerinfo and Truecredit .

Some helpful websites :

• http://Apl.moneysupermarket.com/loans
• http://Loan.uk.com
• http://www.bad-credit-loans.uk.net
• http://www.debtwizards.co

In the UK you must be insured, by law, if you are the owner or driver of a car, van, motorbike or lorry. Finding insurance can be quite a daunting prospect as there are thousands of different companies to choose from, jargon to understand and different types of policies. Here are some helpful tips and advice to make the process of getting and understanding car insurance a little simpler.

Types of Policy

Third Party

This is the minimum insurance you can buy. It provides cover if you injure someone else or damage their property in a motoring accident. If you or your vehicle is injured or damaged, you will need to cover any costs by yourself.

Third Party Fire and Theft

Some companies will offer this type of cover as the minimum available. It provides protection if you injure someone else or damage their property. It also provides cover if your vehicle is stolen or burnt. If, however, your vehicle is vandalised or involved in an accident you will have to cover the costs yourself. This may be the most appropriate cover if your car is not worth very much.

Comprehensive

Covers injury to someone else, damage to their vehicle, damage to your vehicle from theft or fire, plus accidental damage. There is also some cover for items stolen from your vehicle, medical expenses and personal accident protection. These will vary depending on the insurer.

You need to decide on the type of policy that is most appropriate for you. Comprehensive insurance is the most expensive, but will cover your vehicle for accidental damage, so in the event of a crash you do not have to pay out to repair your car. Most comprehensive policies include the transportation of your car to a garage for repair.

There are other factors that have an effect on the cost, such as…..

• Type of Vehicle- Performance cars are the most expensive to insure as they are most likely to be stolen or broken into.
• Area- If there is a lot of car crime in the area this will raise the cost.
• Occupation- Students and young people are the most expensive to insure, as they are most likely to have accidents. It may be best to go to a broker or company that specialises in insuring young drivers.
• Parking- Your car is more likely to be stolen or broken into if it is parked on a street instead of a driveway or garage.
• Age/ Driving experience- The basic rate is for 30-49 year olds. If you are outwith that bracket it may be cheaper to go to a specialist insurer.
• Previous Convictions- For motoring offences, such as a large accident history, will raise the costs.

Cutting The Cost

It will reduce your premium if you simply restrict the amount of cover, such as limiting the number of named drivers (keep to partner/spouse) and raising the excess (part of a claim that you pay for). A security device will also lower your premium, the minimum is a Thatcham 2 device.

No-Claims Bonus

This is the number of years that you have had insurance without making a claim. This usually means a reduction in your premium (price of policy) of up to 65% depending on how many years you have. You lose this bonus when you make a claim, unless the accident was the fault of another party, in which case your insurer should be able to recover the costs from them and you retain your bonus. If you have a number of years no-claims then claiming may result in a reduction of your bonus, rather then losing it completely.

Excess

This is the first part of the cost of a claim that you pay for. For instance, you are involved in an accident and make a claim for the cost of repair. You will be required to pay the first £100-£300 of that claim, depending on the agreed excess on your policy. You can often volunteer to pay a higher excess, if you are trying to reduce your premium. However, you must remember that you will be required to pay this amount in the event of a claim. There is often also an excess on windscreen cover, where you have to pay the first £50 or so of a replacement windscreen. Check the details of excesses for each policy.

Travel Abroad

If you want to go abroad with your vehicle, then a Uk insurance policy will provide the minimum legal cover required for European Union countries. If you want to be covered for theft, accident or damage then you will need to take out additional cover. This is provided by most companies at an extra cost. You must always tell your insurer if you plan to take your vehicle abroad. This should be done in advance, as not all territories will be listed and your insurer may have to order a green card.

Top Tips

• Shop around. Don’t decide on the first reasonable policy you find. Go to a variety of different brokers for quotes. You can do this by telephone or online. Many companies offer a discount for insurance purchased online.
• Always check the small-print of any policies (courtesy car, EU cover, protected no-claims, extent of cover)
• Be ready with details of you and your vehicle. Brokers will ask a number of questions including car make, model and registration number. They will want to know your estimated annual mileage, where your car is kept, your occupation, the type of cover you want, any previous motoring offences (when they were issued, what type) and any no-claims bonus you have.
• It is helpful if you have a few quotes to hand, as you can then ask the broker if they can provide a more competitive price. Many will ask you what you have previously been quoted and see if they can find a better quote for you.
• Always inform your insurer of travel abroad with your vehicle and any accidents (even if you do not intend to make a claim).
• Have a security device fitted.
• If you are a young driver, it will pay to look at brokers who specialise in insuring young drivers.
• 80% of personal injury claims are for whiplash injuries, so adjust your headrest to support the base of the skull.
• Where possible, give yourself plenty of time to find a good broker and policy. You are more likely to pay above the odds when you are in a hurry.

Helpful Addresses

www.theaa.com

www.rac.co.uk

www.norwichunion.com

www.churchill.com

www.motorquotedirect.co.uk

www.its4me.co.uk

www.directline.co.uk

www.insureyourmotor.com

www.endsleigh.co.uk

Car HPI checks are extremely useful when considering buying a car.

An HPI check can confirm:

• that the vehicle is not stolen
• there is no outstanding finance
• the vehicle has not been written off
• whether vehicle is recorded as imported, exported or scrapped
• if vehicle has been involved in any plate changes
• if vehicle has correct vehicle identification number (VIN)

Guide to HPI Terms

Clocking

This is when the mileage has been altered to make it appear much lower than it actually is. Last year 1 in 12 checked cars had mileage discrepancies. It could mean that you pay far in excess of what the car is actually worth. Signs of clocking include wear around the gear stick, steering wheel and driver seat, that would indicate the car is older than its mileage would suggest.

Stolen

375,000 vehicles are stolen every year, many of which are sold on at cheap prices. If it is discovered that you have purchased a car that is stolen, you are required to hand the car over. This means you will lose your money spent on purchasing the car, as well as the car itself.

Written Off

This is when a vehicle is declared a total loss by an insurer due to accidental damage or theft, and they have decided it is not worth repairing. If your insurance company discover your vehicle has been written off they may not be willing to offer insurance, and in the case of a claim, may not pay out. Some write-offs are legally allowed back on the road after repair, but around half are too badly damaged. The Car HPI check allows you to ensure you do not purchase a car that will be a danger to drive. There are five categories of write-off (Association of British Insurers):

• Scrap only.
• Bodyshell to be crushed. Spare parts can be used.
• Extensive damage-insurer decided not to repair.
• Damage-insurer decided not to repair
• Damage by fire- insurer decided not to repair. Often also category A.

Ringing

This is the practice of changing the identity of vehicles. The registration mark is often taken from another vehicle, often one that has been written off. The vehicle identification number (VIN) and the chassis number may also be changed. The vehicle identification number is stamped onto the bodywork of the car, on the chassis plate and behind the windscreen. Check that these match, and walk away from the vehicle if they do not.

Cloning

This is very similar to ringing, except that in this case the identity of a legitimate vehicle is cloned. One other way to check for this is to see whether the chassis and vehicle identification number match what is in the log book. If it does not match, then you should walk away. The vehicle may well be a clone, and probably a stolen vehicle.

Outstanding Finance

The previous owner has taken out finance in the vehicle, but has not completed the repayments. In this case, you could lose you money and the car. As two-thirds of new cars are bought on finance this is a serious problem, but is easily clarified with a Car HPI check.

HPI Check Top Tips

When buying a car, it is worth compiling a checklist to ensure you do not miss or forget anything that could be important.

• Set a realistic budget, including insurance, fuel and servicing.
• View the car in good light at the sellers address.
• Ask for and carefully check all keys and paperwork.
• Look for signs of clocking.
• Take a varied test drive.
• Use the log book to check the vehicles history.
• An inspection by an independent automobile association may be well worth the money.
• HPI before you buy!
• If there is something you are not happy with-just walk away. There are lots more vehicles to choose from.

Where to get Car HPI checks

www.hpicheck.com £39.95. Immediate online report. Confirmation pack and certificate will follow by post within 48 hours.

www.ukcarcheck.com £36.99.

www.channel4.com/4car/buying-guide/hpi/check £39.95 online. £42.95 by phone -Tel: 01722 422422.

Remember to:

• Have your credit card details available.
• Have the number plate details of the vehicle you want to check.
• Have the vehicle identification number, mileage and MOT certificate details (for maximum protection).

Most HPI checks offer £10 000 worth of protection for any financial losses you suffer due to inaccurate or incomplete information supplies as part of the HPI check.