Car insurance news

Which cars are cheapest to insure?

Insurance companies classify cars so that they can provide the correct level of insurance. To do this they assign each car to a group between 1 and 20. This means that each model of car can be accurately banded with cars of similar characteristics.

The different groups available range from group 1 (the lowest) to group 20 (the highest). Most family cars fall into groups 6 to 12, unless they have high-powered engines. If you have a sports car, or high-risk car then the group rating will be higher. So the lower the group rating, the less your insurance premium costs!

Here are examples of cars whose insurance premiums won’t cost you the earth.

Lower group cars
Some examples of cars that will be cheap to insure:

• The Seat Arosa ranges from groups 2 to 3
  
  
• The Renault Clio ranges from groups 3 to 7
  
  
• The Ford Focus ranges from groups 4 to 8
  
  
• The VW Polo ranges from groups 3 to 10
  
  
• The Vauxhall Astra ranges from groups 4 to 11
  
  
• The Renault Espace ranges from groups 11 to 14

Are here are examples of cars in other categories – maybe you’ll see your car or the car you are considering buying!

Middle group cars

• The Ford Fiesta 1.6, 16v, Si is group 8
  
  
• Citroen Saxo 1.6i VTR is group 7
  
  
• Rover 214i 16-valve is group 6
  
  
• Peugeot 306 1.8 XS is group 7

Higher group cars

• The Audi A3 ranges from groups 9 to 18
  
  
• Jaguar S type ranges from groups 14 to 19
  
  
• Mercedes E class ranges from groups 14 to 20
  
  
• BMW 3 series ranges 11 to 20
  
  
• BMW 5 series ranges from 14 to 19
  

Highest group cars

• BMW M series are group 20
  
  
• Aston Martins are group 20
  
  
• Audi TT ranges from 17 to 18
  
  
• Ferraris are group 20
  
  
• Porsche 911s are group 20

So how does the classification system work?

The cost of spare parts and the times taken by repairers plays a major role in when insurers decide how much a premium should cost. Here are the factors used to calculate which group a car should belong to:

1. Damage and part costs
   The likely extent of damage to each car model and the cost of the parts involved in its repair. The lower these costs, the more likelihood there is of a lower group rating.
   
   
2. Repair times
   Longer repair times mean higher costs and the greater likelihood of a higher group rating. Different paint finishes on modern cars are an important factor. These, too, are taken into account.
   
   
3. New car values
   The prices of new cars identify the higher specification models within a model range.
   
   
4. Body shells
   The availability of body shells (the basic frame of the car) is taken into account in group ratings because they are essential for certain accidental damage repairs.
   
   
5. Performance
   Acceleration and top speed are important factors. Insurers know very well, from their claims statistics, that high performance cars often result in more frequent insurance claims.
   
   
6. Car security:
   Security features fitted as standard equipment by motor manufacturers can help to reduce insurance claims costs. Such features include high security door locks, alarm/immobilisation systems, glass etching, coded audio equipment, locking devices for alloy wheels and visible VIN numbers.

Note that group ratings determined by the Association of British Insurers are recommendations only. Individual insurers, depending on their own experience, may vary from these recommendations.

Source - insurancewide.com – August 2004

Drink driving statistics

Nearly a quarter of drivers and more than 40 per cent of pedestrians killed on the UK 's roads are over the drink drive limit according to the RAC Foundation during National Road Safety Week.

Late on Friday and Saturday nights that figure is much higher - almost six out of ten drivers and motorcyclists and more than nine out of ten pedestrians killed had consumed enough alcohol to fail a drink drive breath test.

New research shows that in 2002 among the 797 driver fatalities with a recorded blood alcohol level, 23 per cent were above the 80mgs limit and, of those, nine per cent were more than two and a half times over.

These shocking figures and growing reports of increasing drink drive levels from police forces around the country have prompted the RAC Foundation to highlight the all year round problem during Road Safety Week.

The research shows:

• More than half (55 per cent) of drivers and riders killed during the
  traditional "drinking" hours of 10pm-4am were over the limit.
  
  
• That number rose to 58 per cent in the same period on Friday and
  Saturday nights.
  
  
• Of the pedestrians killed during "drinking" hours, 86 per cent had
  a blood alcohol level above the legal driving limit.
  
  
• On Friday and Saturday nights it was 92 per cent - half of them
  being more than two and a half times over.
  
  
• Among motorcyclists those in the 16-19 age group had the highest
  percentage of over the limit fatalities (26 per cent).
  
  
• Among pedestrians those in the 16-24 age group and those in the
  30 to 39 age group have the highest percentage of over the limit
  fatalities (69 per cent respectively).
  
  
• Among car drivers the highest percentage of over the limit deaths
  is in the 30 to 39s (38 per cent) followed by the 20 to 29s (30 per cent).

Edmund King, executive director of the RAC Foundation said:

"It is vital that we find the right method to convince people not to drink and drive. The RAC Foundation is convinced that the most effective method is telling drivers about the real costs of drinking and driving and what they have to lose."

Consequences of a drink drive conviction may include:

• A possible prison sentence and a fine of up to £5000.
  
  
• A disqualification of at least a year.
  
  
• Possible job loss - particularly if employment is dependent on a
  driving licence - 15 per cent of those convicted are made redundant.
  Even if a person doesn't need to drive for their job but has a company
  car then they will almost certainly lose it.
  
  
• Loss of independence and increased reliance on public transport.
  
  
• Increases in insurance premiums by up to five times the original
  amount after a drink drive ban.
  
  
• An endorsement on the licence for 11 years - even when the
  disqualification period is over it may be difficult to hire a car for up
  to ten years.

An evaluation of last year's Festive drink drive campaign by the Scottish Executive showed that being banned from driving was seen as the most effective deterrent given the financial and personal implications. It also demonstrated, however, that over 90 per cent of drivers said that they would risk drinking and driving if they thought they were unlikely to be caught.

"The lack of visible evidence of enforcement of drink driving adds to the perception that people can simply do it and get away with it. We need to see a police presence on our roads not just cameras."

"71 per cent of drink drive offenders in a survey earlier this year said that they were aware of anti drink drive publicity within the previous six months but had done it anyway.

"The facts prove that we have a growing problem with drinking and driving in the UK and that there is a need to understand why, despite years of campaigning, the problem still exists to this extent.

"This shows that the message is not getting through to some. It is horrifying to see that a quarter of drivers killed are over the legal limit."

Drink-drive casualties (deaths, serious and slight injuries) rose by a third over the past decade from 14,980 in 1993 to 19,010 in 2003. 560 people were killed and 2,580 seriously injured in drink-drive crashes in Great Britain in 2003 - ten 10 more deaths than the year before, and the highest death rate since 1996.

Source - carsouce.co.uk – September 2004

Revamped anti fraud database in drive for honesty

Insurers are tightening the net on motor insurance cheats. A revamped insurance industry database aims to expose more fraudulent motor claims, which are costing insurers and honest motorists millions of pounds every year.

Improvements being made to the industry’s Motor Insurance Anti Fraud and Theft Register (MIAFTR) will make it easier for insurers to identify the most common motor insurance scams. These include:

• Owners insuring their vehicle with several insurers then shortly
  afterwards claiming for a total loss from each insurer.
  
  
• Owners reporting a fictitious theft to the police, and then storing the ‘stolen’
  vehicle away until the insurer has  paid out. The database will automatically
  advise the insurer when the police record that the vehicle has been recovered.

Developments to the register are being overseen by vehicle information specialists, HPI. The new system fully operational by mid – 2005. Jo Dagustun, the ABI’s Head of Motor, said:

“ I am pleased to have reached agreement with HPI. The improvements to MIAFTR will make it easier for insurers to identify fraud, and reduce access costs for members.

“ The improved database will add to industry support for wider car crime reduction initiatives, such as the Vehicle Identity Check introduced in 2003. The database will be an integral part of the industry’s ongoing battle to reduce fraud, so protecting honest policyholders”.

Source - abi.org.uk – August 2004

UK Floods Hit Cars Too...For £30m Each Year

Car insurer, esure, estimates that £30 million worth of damage to cars is caused by flooding each year showing it’s not just homes that are affected by heavy rainfall. That works out as 5,000 cars that are damaged or completely written off by floods each year.

Damage can occur to stationary cars caught in flash floods, but more often when drivers try to drive their cars through excess water on the roads. It only takes around two feet of water to float a car and much less for water to be sucked into the engine and cause extensive problems.

The most common types of damage caused by floodwater are engine and electrical. Although upholstery often looks like it’s ruined after water damage, it can generally be dried out and cleaned without incurring the costs of replacing it.

Esure also warns that many people do not realise what is and isn’t covered by their insurance if their car is affected by floods. The good news for drivers is that only the standard excess applies to flood damage and esure car insurance does not penalise people for living in flood areas by charging higher premiums.

However, if motorists have third party, fire and theft cover or third party only cover, they will not ordinarily be insured against flood damage. Additionally, only around £100 of personal belongings left in the car are likely to be covered by most motor insurance. If you have an expensive stereo that is ruined it will only be covered up to the value specified in the policy.

Mike Pickard, head of risk and underwriting for esure car insurance, said:
"Drivers sometimes don’t appreciate how dangerous water can be to their cars. While people will be cautious about driving in icy conditions, many drivers carry on regardless when there is heavy rain. On top of this, we believe many motorists do not realise that they may not be covered by their insurance for some or even all of the costs if their car is damaged by flood water."

esure has these tips for drivers to avoid becoming a victim of flooding:

• Make sure you have fully comprehensive insurance.
  
  
• If you know that you are likely to be hit by flooding, move your
  car to a higher spot. The Floodline number 0845 988118 operated
  by the Environment Agency Service - can provide details of local
  flood warnings.
  
  
• Before setting out on a journey, check with a 'road watch'
  organisation to make sure the roads you intend to use are safe.
  
  
• Never drive through water unless you know how deep it is.
  
  
• If you are out on the roads and it is very wet, watch out for skidding.
  Make sure your tyres have adequate tread and drive carefully.
  
  
• Before attempting to drive in any rain, make sure your windscreen
  wipers are working properly - inefficient blades can seriously
  impair vision.
  
  
• After driving through excessive water, test brakes as soon as it
  is safely possible to do so.
  
  
• Be considerate to other drivers. Spray can be dangerous to other
  drivers and very wetfor pedestrians!
  
  
• Don’t open the bonnet in very heavy rain as the water could damage
  the electrics in your engine making it hard to start.

*The £30 million figure is calculated using the following assumptions: esure estimates, based on it’s own experience multiplied up to reflect the market, that up to 5,000 claims are made each year that specifically relate to flood damage to cars.   esure has then multiplied this 5,000 by £6,000, which is the average figure for esure's flood damage motor claims.

These figures do not include the huge number of other claims that arise because of accidents that occur when driving in wet conditions.

Source - esure.com – August 2004

Obese people more likely to die in car crashes

Heavier people are more likely to be killed or seriously injured in car accidents than lighter people, according to new research.

That could mean car designers will have to build in new safety features to compensate for the extra hazards facing overweight passengers. In the US , car manufacturers have already had to redesign air bags so they inflate to lower pressures, making them less of a danger to smaller women and children. But no one yet knows what it is that puts overweight passengers at extra risk.

A study carried out in Seattle, Washington, looked at more than 26,000 people who had been involved in car crashes, and found that heavier people were at far more risk. People weighing between 100 and 119 kilograms are almost two-and-a-half times as likely to die in a crash as people weighing less than 60 kilograms.

And importantly, the same trend held up when the researchers looked at body mass index (BMI) - a measure that takes height as well as weight into account. Someone 1.8 metres tall weighing 126 kilograms would have a BMI of 39, but so would a person 1.5 metres tall weighing 88 kilograms. People are said to be obese if their BMI is 30 or over.

The study found that people with a BMI of 35 to 39 are over twice as likely to die in a crash compared with people with BMIs of about 20. It is not just total weight, but obesity itself that's dangerous.

Crash-test dummies

While they do not yet know why this is the case, the evidence is worth pursuing, says Charles Mock, a surgeon and epidemiologist at the Harborview Injury Prevention and Research Center in Seattle, who led the research team. He thinks one answer may be for safety authorities to use heavier crash-test dummies when certifying cars as safe to drive.

Crash tests normally use dummies that represent standard-sized males weighing about 78 kilograms. Recently, smaller crash-test dummies have also been used to represent children inside crashing cars. But larger and heavier dummies are not used, the US National Highway Traffic Safety Administration in Washington DC told New Scientist.

The reasons for the higher injury and death rates are far from clear. Mock speculates that car interiors might not be suitably designed for heavy people. Or obese people, with health problems such as high blood pressure or diabetes, could be finding it tougher to recover from injury.

Richard Kent, an expert in impact biomechanics at the University of Virginia , thinks the new research has established a legitimate connection between obesity and severe injury or death. Because the research used BMI data, it has not confused taller (and therefore heavier than average) people with those who are overweight.

People who are obese might also be at risk because seat belts do not hold them as securely in a crash. "For example, a large amount of [fat] tissue between the restraint system and the bony thorax acts much like a winter coat: it introduces "slack" into the restraint system and decreases its performance," Kent says.

Source - newscientist.com – August 2002

Rear seatbelt use slashes front seat deaths

Car drivers wearing seatbelts are five times more likely to die in a crash if their back-seat passengers are unrestrained, say Japanese researchers.

Masao Ichikawa of the University of Tokyo and colleagues analysed data on about 100,000 car crashes between 1995 and 1999 in Japan , where rear seatbelt use is not compulsory. They looked at crashes involving cars in which the driver was wearing a seatbelt, had at least two rear-seat passengers and where all the occupants were injured.

During an impact, rear-seat passengers can be thrown forwards with great force and cause severe injuries to those in the front. The researchers concluded that the number of deaths in the studied accidents could have been reduced by 79.2 per cent, if the rear seat passengers had also used belts. Overall, deaths and severe injuries could be reduced by nearly a half.

"Our findings provide a basis for making rear seatbelt use compulsory," says Ichikawa . "Most deaths and severe injuries of front-seat occupants of cars would potentially be averted by rear seatbelt use."

Breaking the law

In the UK , it has been illegal to not use a rear seatbelt since 1991. But a survey conducted in 1999 found that six out of 10 British adults routinely break this law.

"Although you cannot directly compare figures from Japan and the UK , the end result is the same: if you don't belt up in the back, you kill people," says Roger Vincent of the UK 's Royal Society for the Prevention of Accidents. "This study re-emphasises the dangers of not wearing rear seatbelts."

Vincent thinks legislation can go only so far. Advertisements warning of the dangers are important, and car manufacturers should be encouraged to improve rear seatbelt design, he says.

"Some people do find rear seatbelts fiddly," he says. "Some also feel confined in the back while they're belted in."

Source - newscientist.com – July 2002

Combined accelerator and brake pedal could save lives

A pedal that works as both an accelerator and a brake will save lives if car makers adopt the design, according to Swedish inventor Sven Gustafsson. The idea sounds bizarre, but officials at the Swedish National Road Administration have already done extensive road tests and approved the device for use.

It takes longer to brake in an emergency with separate pedals, says Rickard Nilsson at Uppsala University , who tested out Gustafsson's pedal for the SNRA. It takes at least 0.2 seconds to move your foot from one pedal to the other, he says, and at 90 kilometres per hour this adds five metres to your stopping distance.

Another problem with separate pedals is that it's easy to hit the wrong one. A slight misjudgement when going for the brake, perhaps because a driver is wearing a new pair of shoes, can lead to the accelerator being clipped, causing a crash.

With Gustafsson's combined pedal you have to make two distinct motions for accelerating and braking, and you can't do both at the same time.

Pivot or push

To accelerate you pivot the pedal, while to brake you push the entire pedal mechanism forwards. So accelerating is predominantly an ankle movement, while braking comes from extending the whole leg. "You can go from acceleration to braking instantly, just by pressing the combined pedal forwards," the inventor says. "As soon as you brake the accelerator is switched to idle."

It's not the first time the pedals have been rearranged. Henry Ford was the first to introduce the three-pedal car in 1909. His Model T's accelerator was a lever on the steering column, while the three pedals were a brake, a gear shift and a clutch. Ford later decided that the brake and accelerator should be placed close to each other and operated alternately. By 1928, the Model A had an accelerator pedal and a separate gear control. Automatic transmissions later made the clutch obsolete.

Gustafsson, who hails from the southern Swedish city of Lund, pondered the combined pedal idea for 30 years, but has only just got around to developing it. Now his idea could lead to manual cars with two pedals and automatics with just one. Since the SNRA approved it, he and his wife have been driving their car with one - with no problems.

Reckless driving
During his evaluation for the SNRA, Nilsson tested how well drivers adapted to the combined pedal. He set challenging driving tasks to assess the abilities of 18 people before and after they drove about 1000 kilometres with the combined pedal. They took the tests in cars with the combined pedal and with conventional pedals.

"They relearn very fast and without very much effort," he says. But Nilsson is worried that drivers using the combined pedal may become accustomed to their improved reaction time and drive more recklessly.

Besides improving normal reaction times, Nilsson believes that the combined pedal could also make cruise control functions safer. Cruise controls allow drivers to set a desired speed for long journeys so they can take their foot off the accelerator and rest it. But because the combined pedal lets the driver rest their entire foot on the pedal while cruise control is activated, they should be able to react to emergencies far quicker.

Volvo is testing the pedal in cars, buses and trucks. But a mass-produced version won't be available to motorists for at least three years, even if manufacturing approval is granted straight away.

Source - newscientist.com – August 2002

Insurance costs of road accidents nears £1bn.  ABI backs World Health Day Initiative

Road Safety is the key theme for this year’s World Health Day on April 7 th organised by the World Health Organisation (WHO). In support of this initiative, the UK ’s insurance industry is today highlighting the human and financial cost of road accidents.

Jo Dagustun, Head of Motor Insurance, at the ABI (Association of British Insurers) said today:

“On average, Britain ’s motor insurers receive a new claim for compensation as a result of a road accident once every two minutes. In 2002, the cost of paying these claims reached just short of £1bn, and the cost of compensation is now increasing at four times the rate of inflation.

“So today’s initiative from the WHO is very significant. Insurers are at the sharp end of helping people recover from the human and financial consequences of road accidents. The massive cost is met through insurance premiums. It is in everybody’s interests to make sure that the UK ’s record on road safety continues to improve.”

Britain ’s insurance industry is playing a leading role in improving road safety:

• insurance premiums are priced according to risk, giving everyone
  a direct financial incentive to drive safely;

• insurers support the Pass Plus scheme to improve the driving
  skills of newly qualified drivers;

• insurers have driven up standards of vehicle safety through the work
  of the Motor Insurance Repair and Research Centre (Thatcham) and
  their vehicle rating schemes. This work includes improved seat design
  which is reducing the number of serious whiplash injuries;

• insurance companies have invested in safe driving campaigns and
  working with young people on road safety.

Source – abi.org.uk – April 2004

 

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