Car insurance news

Female car drivers told to shop around for cover
In a move that will have many men scratching their heads, Bradford & Bingley has said that women need to shop more.

The comment comes after the bank found that women are just half as likely to shop around when they are renewing their car insurance.

While many will resent taking advice about shopping, Bradford & Bingley points out that the male members of the population not only shop around more, but also organise their shopping better.

Most men start investigating their alternative options at least two weeks in advance of their existing insurance deal running out, while just one in two women do the same, the bank discovered.

Men also spend longer looking and are ten per cent more likely to phone five or more providers when looking around than women are.

"Many women are missing out on substantial savings by not shopping around for motor insurance. Premiums do vary considerably between insurers so it's vital both female and male car owners do their research or visit a broker to do it for them, so as to ensure they're getting the best deal possible," said Nigel Asplin, group general insurance director for Bradford & Bingley.

The bank points out that the average potential saving which could be made by shopping around for a competitive quote is £130.

But despite this sizeable saving 39 per cent of women stay with their existing motor insurance provider when it is time to renew, Bradford & Bingley has found.

The importance of organisation in looking for a new quote is increasing as, at the turn of the year, motorists lost their traditional 14 days' grace to renew policies.

Previously motorists had a period of two weeks between their existing car insurance policy running out and when they had to have a new one. But in order to come in line with new European regulations this has been removed.

Source – www.prudentminds.com – January 2004

Days of grace on motor policies ended
Motorists can no longer rely on a two-week grace period on their car insurance, the British Insurance Brokers' Association has said.

Until recently drivers had 14-days grace between their current car insurance policy running out and when they were required by law to have a new one, but in order to come in line with new European regulations this time has disappeared.

The British Insurance Brokers' Association has advised motorists to check their renewal date and make sure they have a new car insurance deal in place before it expires, or risk prosecution.

"Insurers have in the past offered a 14 day Road Traffic Act (RTA) Certificate which was evidence of Insurance pending receipt of their renewal certificate, but even this did not offer free cover," said Graeme Trudgill, British Insurance Brokers' Association technical services manager.

"The British Insurance Brokers' Association wants to put the record straight and ensure that all motorists know that there is no longer any room for manoeuvre and that insurance must always be up to date."

"We would urge policyholders to renew their policies at least 14 days in advance of the renewal date so they are in possession of their motor insurance certificate in plenty of time."

The new rules are an attempt to crack down on uninsured drivers.

Police estimates suggest that between one and five million UK drivers do not have insurance. It is also estimated that insurance premiums are inflated by an average of £30 to cover claims that are made against drivers without insurance.

Source – www.prudentminds.com – January 2004

Women make case for cheaper car cover
A report by road safety charity Brake backs a decision by the European Union this week to allow insurers to charge women cheaper premiums on their car insurance.

Nearly twice as many men as women received penalty points for driving offences in the past twelve months, the report claims.

Brake's survey of 850 drivers and riders found that 17 per cent of men said they had received penalty points for driving offences, compared with just nine per cent of women.

The survey also showed that over half (56 per cent) of men admitted to tailgating (leaving a gap of less than two seconds between their vehicle and the one in front) when on the motorway, compared with 44 per cent of women.

According to Brake, 16 per cent of men stated that in the past twelve months they had overtaken when there was a chance they could have hit something they could not see, compared with nine per cent of women, while 60 per cent of men and just 41 per cent of women confessed to breaking the speed limit to overtake on rural roads.

Women generally pay less for car insurance than men because of their safer driving record, but European MPs had been considering a new directive to make it illegal for insurers to take gender into account

Mary Williams OBE, chief executive of Brake said: "Safe drivers should be rewarded and I therefore welcome the EU's announcement to allow women cheaper insurance premiums.

"Historically, men have criticised women for their driving, but this research shows that men have much to learn from women drivers. Women may be more likely to make mechanical errors, such as when changing gears, but men are more likely to take risks that put others lives in danger.

Source – www.prudentminds.com – October 2004

Gender differences in driving and insurance risk
Men and women exhibit different driving behaviours that affect their attitudes, safety and insurance risk. Many factors underpin these differences, including neurochemical structures and hormonal processes shaped by evolution, and global socialisation practices. Each plays a part in explaining why men and women drivers have very different records in relation to accidents and insurance claims.

Differences between male and female drivers in terms of crash rates are evident in a wide range of countries, including the United States , Europe , Asia and Africa , with males being significantly more at risk than females

Similar differences are evident regarding male and female pedestrians and accidents in the home and workplace

The differences are not easily explained in terms of levels of competence and driving skill of men and women. They derive from more fundamental differences in specific areas of behaviour and psychological functioning

There is extensive evidence to show that men, and young men in particular, tend to be more aggressive than women (in all known cultures) and they express aggression in a direct, rather than indirect, manner. This has a very significant impact on driving - encouraging more competitive and hostile behaviour with consequent higher probabilities of crashing

Levels of deviant (rule-breaking) are significantly higher in men than in women. This manifests itself in a greater frequency of violation of traffic regulations, including speed limits, traffic controls, drink-driving, etc.

Men also exhibit, on average, higher levels of sensation-seeking and risk-taking in a wide variety of settings. The basis for this well-established gender difference has a hormonal and neurochemical basis - it is not simply a product of socialisation or experience

The differences between the genders in terms of their risk-proneness while driving can be explained, at least in part, using an evolutionary psychology perspective. This proposes that much of neural circuitry of the human brain evolved to meet the requirements of societies and cultures very different from our own - that of the hunter gatherer - that existed for over 99% of our evolution as a species. Our 21st century skulls contain essentially 'stone-age' brains, and the brains of men are women are different in certain crucial respects

Stone-age man did not drive. But the legacy of his hunting, aggressive and risk-taking past - qualities that enabled him to survive and mate, thereby passing on his genes to future generations - are still evident in the way in which he typically drives his car

A report published by the Department of Gender and Women's Health at the World Health Organisation has called for recognition of these fundamental differences between men and women drivers and the development of gender-differentiated policies in relevant areas

Source www.sirc.org - August 2004

*A replacement car can normally be arranged under one of the following conditions: (1) Comprehensive policyholders – a replacement car may be available under the terms of your insurance policy. Please check your policy details for more information. (2) Non fault accident – where we have the name, car registration number and insurance details of the person who caused the accident, we can supply a replacement car. This is done on a credit hire basis which means the costs for this service will be passed onto the insurance company of the person who caused the accident. We may not be able to arrange a replacement car where we are unable to get an admission of liability from their insurance company, or where the driver is untraceable or uninsured. (3) Repair garage – if your car is booked in for repairs following an accident, the repair garage may be able to provide a replacement car (subject to availability).