Tag: insurance

Double disaster: flooding can invalidate both car and home insurance

With The Met Office forecasting this week’s weather will be a mix of floods, snow and gale-force winds, motorists and home owners are warned to take extra care by preparing where possible and being aware of what their insurance policies do and don’t cover when protecting their home and car.

While motorists with fully-comprehensive car insurance should be covered for any damage caused by debris during high winds and storms, they may not be covered for water damage caused by driving through flooded roads.

One of the UK’s largest car and home insurance comparison sites, Quotezone.co.uk, warns that some car insurance policies include clauses advising policyholders not to drive through flooded roads, and may specifically exclude from coverage any water damage to the car if the motorist goes against this advice.

Flood damage can also affect your home and if you haven’t declared your location accurately your policy could be invalid.  If your house is located within 400 metres of a river, stream or coastline you will need to have informed your insurance provider.  Even if you’ve never experienced flooding yourself, your house could be classed as a ‘flood-risk property’.

Online flood maps – such as this one from the UK government – allow homeowners to check their property’s level of flood risk before taking out buildings insurance or building and contents insurance.

Many insurance providers do take anti-flood doors and other permanent flood defence features into account when calculating insurance premiums – provided they meet the appropriate industry standards and have been installed by an industry professional.

With the worst of the winter weather ahead it is important for policy holders to be aware of the legalities, keep their insurer up to date and protect their policies both home and car.

Insurance comparison expert and Founder of Quotezone.co.uk, Greg Wilson, advised: “Some car insurance providers stipulate that motorists must not drive the vehicle through flooded roads, and this clause is often present in fully-comp policies as well as less comprehensive levels of cover – rendering the policy invalid should this advice be ignored.

“With the added possibility of snow and ice, it’s also sensible to make sure your car is roadworthy by checking tyres, oil, water and petrol before you set off.  Investing in a winter emergency survival kit for your boot is also advisable; thermal blanket, torch, phone charger, emergency food/water rations, first aid kit – some of our insurance providers offer these as standard.

“With home insurance it’s always best to be honest with your provider, use the online flood map tool if you’re unsure of the exact distance to nearby rivers and double check your home for any potential issues especially in relation to the colder weather, such as added insulation for pipes.” 

Quotezone.co.uk compare prices from over 110 UK car insurance providers and over 50 home insurance proivers – helping over 3 million users find a more competitive deal on their insurance. 

Advice on both home and car insurance products and suggestions for surviving the winter weather can be found on the guides section – quotezone.co.uk/guides.

Meerkat misery: big fine for ComparetheMarket

The CMA has fined ComparetheMarket £17.9 million after it found that clauses used in the company’s contracts with home insurers breached competition law.

An investigation by the Competition and Markets Authority (CMA) has concluded that, between December 2015 and December 2017, the price comparison website ComparetheMarket breached competition law by imposing wide ‘most favoured nation’ clauses on providers of home insurance selling through its platform.

These clauses prohibited the home insurers from offering lower prices on other comparison websites and protected ComparetheMarket from being undercut elsewhere. They also made it harder for ComparetheMarket’s rivals to expand and challenge the company’s already strong market position as other price comparison websites were restricted from beating it on price.

As a result, competition between price comparison websites, and between home insurers selling through these platforms, was restricted. The CMA found that this is likely to have resulted in higher insurance premiums.

ComparetheMarket’s clauses meant:

  • The insurers bound by the contracts were prohibited from offering cheaper deals on other price comparison websites. In turn, this limited competitive pressures on all home insurers competing on price comparison websites.
  • Rival comparison sites were restricted in gaining a price advantage over ComparetheMarket, for example, by lowering their commission fees to encourage those insurers to quote lower prices on their platforms.
  • The competitive pressures ComparetheMarket itself was subject to were weakened. Without the clauses, it would have had to compete harder to get lower prices from the home insurers, for example by reducing the commission fees it charged.

Michael Grenfell, the CMA’s Executive Director for Enforcement, said: “Price comparison websites are excellent for consumers. They promote competition between providers, offer choice for customers, and make it easier for consumers to find the best bargains.

“It is therefore unacceptable that ComparetheMarket, which has been the largest price comparison site for home insurance for several years, used clauses in its contracts that restricted home insurers from offering bigger discounts on competing websites – so limiting the bargains potentially available to consumers.

“Digital markets can yield great benefits for competition, and therefore for consumers. We are determined to secure those benefits, and to ensure that competition is not illegitimately restricted. Today’s action should come as a warning – when we find evidence that the law has been broken, we will not hesitate to step in and protect consumers.”

Further information on this investigation can be found on the case page.

Rocio Concha, Director of Policy and Advocacy at Which?, said: “The actions of ComparetheMarket have fallen well below the standard you’d expect from a company who claims to be working in the best interest of consumers, so it is positive to see the CMA intervening to protect consumers and issuing this large fine.  

“Customers should be able to trust that they can find the best deals when using price comparison sites, and any business found to be flouting the rules should be held to account.”

Make room! Drivers need to give cyclists space during lockdown

As bicycle use spikes during local lockdowns, drivers need to be aware of the 1.5 metre rule which encourages motorists to make room and protect cyclists.

During the first 30 days of lockdown in March, the Department for Transport (DfT) found that cycling fatalities were more than double the number compared to the same periods from 2015-18 – even though the level of vehicle traffic had dropped to 36% of its pre-lockdown level.

Of the 15 cyclists in the UK that lost their lives from 23 March – 22 April all but two incidents did not involve a motor vehicle. 

Various road safety initiatives have launched to raise awareness of the Highway Code’s Rule 163 that there should ‘plenty of room’ when overtaking – often recommend as 1.5 metre distance or roughly the width of a car.  It also states that drivers should overtake only when it is safe and legal to do so.

Motorists who flout the rule face a careless driving charge from the police, which can result in three penalty points on their licence and a £100 fine, or  in some cases, a more serious criminal conviction.  Undercover policemen on bicycles have used helmet-mounted cameras to help apprehend offenders

Research commissioned by Cycling Scotland found that 34 per cent of the population don’t always leave a 1.5 metre gap from cyclists, while almost 64 per cent were unaware of the three-point penalty on their licence if they are caught driving too close

Motorists should also bear in mind that insurance premiums generally increase by around 5% for the first three points on a licence, shooting up to as much as 25% for six points – premium loading can continue to apply until the points come off the licence after five years

The latest figures from DfT show cycling use jumped 10% during the week beginning 12th October compared to a week earlier.

Greg Wilson, founder of Quotezone.co.uk – which launched one of the UK’s first price comparison services for bicycle insurance – says: “We’ve seen an increase in traffic to our bicycle insurance comparison website since lockdown began – with people keen for socially distanced transport and exercise. 

“I would also expect an upcoming spike in December anuary with many putting bikes at the top of their Christmas list this year.

“This increase signals potential dangers – while there may be fewer cars on the road, the reduced congestion levels could encourage some motorists to increase their speed.   With so many people taking up cycling during lockdown a greater number of cyclists on the road may be relatively inexperienced, so making sure drivers make room with the 1.5 metre rule has never been so important

“We work hard to get drivers the best policy at the best price, and even when a driver has received penalty points we still have panel members that can offer them competitive quotes. However, the best plan is to ensure you don’t get those endorsements in the first place, which is why we recommend that drivers take their time, keep their distance and use the 1.5 metre rule when it comes to cyclists – that way we can ensure we all stay safe on the road.”

Quotezone.co.uk is one of the UK’s largest insurance comparison websites – comparing a wide range of competitive quotes across both car and bicycle insurance – helping over three million users.

Give us a No-Clowns Bonus

DISILLUSIONED people in Scotland would love to be able to take out insurance against incompetent politicians and a rubbish love life, according to a new study. 

They make the top ten list of things we wish we could take out a policy on, which includes noisy neighbours, being cheated on by a partner and being a victim of online bank fraud. 

Other weird things people would like to insure include a wig, a pert bum, buying fashionable shoes that hurt when you wear them, and even happiness, according to research by comparison site Money Expert. 

When it comes to more serious cover, it’s no surprise that one in ten people questioned in a poll of 160 adults in Scotland would like to have insurance related to Covid-19, especially against financial loss and disrupted travel plans. 

Despite almost all of us having some form of policy, many of us don’t think insurance is worth it and one in ten have no idea what common terms like “excess” and “premium” actually mean. Shockingly, almost nobody bothers to read the small print all the way through. 

Money Expert boss Jason Smith (www.moneyexpert.com) said: “There are some things in life you just can’t insure against unfortunately. But the more conventional policies are key to peace of mind, protecting us if we fall ill and covering some of the more expensive items in our lives. 

“It’s also vital that people research the types of policy available and then take time to read the fine print so there are no nasty surprises if they have to make a claim.” 

TOP 10 THINGS WE’D LIKE TO INSURE AGAINST  

Online banking fraud……46% 

Incompetent Politicians…18% 

Noisy Neighbours…………14% 

Bad romance……………….12% 

Career Insurance………….12% 

Lack of Common Sense…11% 

Misuse of Social Media…..11% 

Foreign Affairs…………..……9% 

Bad Weather…………………..8% 

Public Transport Exposure..8% 

Beware Covid insurance scams

Public urged to watch out for insurance claims scams exploiting financial losses caused by Covid-19 disruption

  • The Insurance Fraud Bureau (IFB), the City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are urging the public to be alert to Covid-19 insurance claims scams.
  • Experts are concerned there may be a rise in insurance claims scams that aim to exploit the financial losses individuals have suffered during the pandemic.
  • Nuisance scammers claiming “you may be entitled to compensation because of      covid-19 financial losses” could become the ‘new PPI’.

The Insurance Fraud Bureau (IFB) in partnership with City of London Police’s Insurance Fraud Enforcement Department (IFED) and the Association of British Insurers (ABI) are warning the public to be alert to a potential rise in insurance claims scams that offer to recover financial losses caused by the pandemic.

With big numbers of people across the UK taking an economic hit because of the disruption caused by Covid-19, there are concerns members of the public will be financially desperate and more susceptible to falling victim to insurance claims scams.

Fraudsters or unscrupulous claims management companies (CMCs) could cold call or message victims with unrealistic offers to help recover financial losses caused by the disruption of Covid-19.

Insurance claims scams could appear in the form of claims phishing, where a victim is told they are entitled to compensation and then asked to provide their personal and financial information in order to process a claim. The scammer can then use these details to steal their identity or attempt to gain access to funds from their bank account.

Another insurance claim scam tactic is claims farming, where a victim is told they are entitled to compensation and encouraged to make an insurance claim. Often there is no ground to claim so the person is manipulated into providing false or misleading information leaving them implicated in a criminal act of insurance fraud.

With several big-name firms now marketing legal services for those who have suffered financial loss due to the pandemic, there is an indication that insurance claims for Covid-19 disruption may become common practice.

Considering the possible audience reach of sophisticated fraud networks and existing unscrupulous CMCs, there is a worrying potential for a nuisance covid-19 insurance claims scam culture to emerge.

“With the pandemic causing so many people to lose out financially, scammers and unscrupulous companies could try to exploit the situation. Nuisance Covid-19 claims scams could become the new PPI. We encourage everyone to be vigilant and to report evidence of insurance fraud to the IFB’s confidential Cheatline”. – Stephen Dalton, Head of Intelligence and Investigations at the Insurance Fraud Bureau (IFB).

The IFB, IFED and the ABI which work in tandem to tackle insurance fraud, are urging the public to be alert to insurance claims scams and to take action to report suspicious activity: 

  • If contacted out of the blue, never provide personal or financial information.
  • Only make a claim directly through the insurance provider and only use the contact details provided at the point the policy was taken out.
  • If support is required to manage a claim, use a reputable FCA-registered (Financial Conduct Authority) company or SRA-regulated (Solicitors Regulation Authority) Solicitors firm.
  • Report any suspicions of insurance fraud to the IFB’s confidential Cheatline service.
  • Take steps to protect personal data from being stolen to help to prevent being targeted. Guidance can be found at the Information Commisioner’s Office.

“Criminals will use whatever means they can to try and exploit innocent members of the public and will have no qualms in using national tragedies, including COVID-19, to commit fraud. It is therefore vital that people remain vigilant to the threat that fraudsters pose and be wary of unsolicited calls, text messages or emails about COVID-19-related insurance claims and offers of compensation. If in doubt – do without! Report any suspicions to the IFB’s Cheatline.” – DCI Edelle Michaels, Head of City of London Police’s Insurance Fraud Enforcement Department (IFED).

“Scammers thrive in times of economic uncertainty and target the vulnerable. The key is to be on your guard – if someone approaches you out of the blue with an offer that seems too good to be true, then it probably is. If in any doubt, then walk away.” – Mark Allen, Manager of Fraud and Financial Crime at the Association of British Insurers (ABI).

Insurance fraud can be reported confidentially and anonymously to the IFB’s Cheatline via its phone service which is powered by CrimeStoppers on 0800 422 0421 or online at insurancefraudbureau.org/cheatline

Lockdown easing triggers boom in new drivers learning with school of mum and dad

RAC Insurance records highest-ever demand for flexible policies covering learner drivers


The gradual easing of the coronavirus lockdown has seen more new drivers than ever opting to learn with another family member, analysis of RAC Learner Driver Insurance data suggests.

With driving instructors unable to start giving tuition again until 4 July as a result of the pandemic, figures show just how eager new drivers were to get behind the wheel with RAC Insurance recording its highest-ever weekly demand for learner driver insurance during the first week of June – up on the same week last year marginally, and a significant 37% up on 2018.

And despite driving schools now back in operation the desire to take lessons from a family member shows no signs of abating, perhaps in part fuelled by a long backlog of students wanting to learn to drive with an instructor.

The average number of learner driver policies bought each week through June and the first half of this month is up 27.5% on pre-lockdown levels and is also higher than the RAC would expect to see at this time of year, up 6% on the same period in 2019.

The figures also reveal provisional drivers are now opting for longer policies of 36 days, up from an average of 30 days over the same period last year* – suggesting those starting out on their driving careers are keen to make up for time lost earlier in the lockdown when they were unable to learn to drive.

Separate RAC research conducted earlier in the lockdown showed that a third of drivers aged 17 to 34 felt having access to a car was more important than ever during the pandemic. The ongoing message from national and local governments for people to avoid public transport up until now could also have had the effect of accelerating new drivers’ interest in having lessons, and passing their test to give them the freedom they need.

RAC Insurance spokesperson Simon Williams said: “As lockdown began to be eased but learning to drive with an instructor still wasn’t possible, we saw demand for our learner driver insurance grow as this was the only way new drivers could continue to get experience on the roads at the start of their driving careers. The fact we have seen demand for policies hit an all-time high is remarkable, given just what an abnormal year 2020 has been so far.

“But interestingly, while driving schools have been allowed to reopen since 4 July, our figures show there’s still strong demand for lessons from mum and dad, perhaps driven by fears over sharing a vehicle with somebody else – or perhaps because professional instructors are being inundated with requests for lessons and are struggling to cope with demand.

“The impact of the coronavirus on people’s travel habits has thrown into sharp focus the essential role the car plays in allowing us to get about, whether that is to do a weekly shop at a local supermarket or travel further afield to see family and friends. We know dependency on the car was already increasing before the pandemic,** and for young people having access to a car can literally be a lifeline to getting out and about, whether that’s for work or pleasure.

“So it’s understandable that so many new drivers are desperate to build their experience and confidence sat next to a family member they can trust, and then get on with taking their test. The backlog of driving tests built up since the country went into lockdown might mean they are having to wait longer than they’d like for one, but while frustrating provisional drivers can use this time to get in some extra experience on the roads.

“Learner driver insurance can offer a convenient, good value and flexible means of giving those starting on their driving careers peace of mind when behind the wheel.”

The RAC has published a guide on teaching a learner driver which can be found here.

What is learner driver insurance?

Traditionally, provisional drivers were added to their parents or other family members’ policies so they could practise their driving after a few lessons with an instructor, but now a provisional driver can take out their own, short-term policy to cover any period from a few hours to several months.

This type of insurance is ideal for getting more experience under the belt before taking the test and can be more cost-effective than being a named driver on another driver’s policy. It also doesn’t affect the main driver’s no-claims discounts on their own policy. Go online to find out more about RAC Learner Driver Insurance.

Thefts of vehicles rise by more than 50% to hit highest level in four years

More than 150,000 motor vehicles were stolen in Great Britain in the year 2018-19, 10,000 more than the year before and a 56% (54,932) increase compared to four years earlier, according to data analysed by RAC Insurance.

All but three of the police forces that responded to a Freedom of Information request recorded an increase in the numbers of vehicles stolen in their force areas from 2014-15 and 2018-19, with some stark differences across the country.

The largest increases in terms of vehicle numbers were in the Kent Police (up 12,550 to 40,726 thefts in 2018-19, a 45% increase), Metropolitan Police (up 9,635 to 30,773 thefts, a 46% increase) and West Midlands (up 5,677 to 10,372 thefts, a 121% increase) force areas.

Six forces recorded a more than doubling in the number of vehicles stolen between 2014-15 and 2018-19, with the biggest jumps in Suffolk (up 172% from 347 to 945 thefts), Surrey (up 133% from 661 to 1,543 thefts) and the West Midlands.

Only Lincolnshire, the City of London and Police Scotland recorded a reduction in thefts over this period however, with reductions of 28, 29 and 473 thefts respectively.


Year-on-year comparisons (2017-18 to 2018-19)

Most police forces (32) also recorded a rise in vehicle thefts year-on-year, between 2017-18 and 2018-19. Kent again saw the largest rise as well as the largest number of overall vehicles stolen in 2018-19 (up 2,575 to 40,726 thefts, 7% more than in 2017-18), followed by Essex (up 1,056 to 5,409 thefts, 24% more than in 2017-18) and the West Midlands (up 836 to 10,372 thefts, 9% more than 2017-18).


When looking at the biggest percentage increases over this 12 month period, Suffolk witnessed the highest jump with 44% more thefts (945 in 2018-19 compared to 655 a year earlier), followed by Bedfordshire (37% increase, from 1,056 to 1,445 thefts) and North Wales (32% increase, from 464 to 612 thefts).

RAC Insurance spokesperson Simon Williams said: “These figures paint a rather disturbing picture – vehicle thefts are on the rise almost everywhere, and in some parts of the country numbers are rocketing.

“It’s also not the case that the rises in crime are confined to a few larger urban areas, with many police forces covering more rural areas also seeing big increases.

“While vehicle crime is at far lower levels today than it was in the early 1990s, thanks to improvements in vehicle security, and the number of vehicles licensed to be driven on the UK’s roads is higher than at any point in the past, it’s still concerning that so many more vehicles are being stolen than just a few years ago.

“One crumb of comfort from the data however is that the increases might be starting to plateau, and it will be interesting to discover just what effect the coronavirus lockdown has on vehicle thefts when the data becomes available.

“Some of the increases in recent years can be put down to a rise in thefts of vehicles that are easier to steal, such as motorbikes and mopeds that are less likely to have immobilisers.

“Government data also shows that thieves generally use keys to access vehicles in around half of crimes, which suggests perhaps some drivers could do more to keep their keys safe. And in an estimated fifth of cases (18% in 2018), thieves were able to access cars because one or more cars weren’t locked in the first place.

“Based on these figures, it’s vital drivers take steps to protect themselves and avoid being an easy target. Three of the biggest factors that determine whether a car is stolen or not come down to how it’s secured, where it’s kept and the time of day.

Criminals appear to prefer stealing vehicles at night, with those parked at owners’ homes, presumably where there is easier access to a key, also being favoured.

“While organised criminal gangs are responsible for a large proportion of crime, thieves will also be opportunistic in nature so the more a driver can do to make their car a less likely target the better.

“It’s also critical motorists buy quality motor insurance policies that will cover them in case the worst happens. A strong, comprehensive policy can go a long way towards giving peace of mind in the event a vehicle is stolen.”

Lessen the chances of your car being stolen

RAC Insurance offers drivers this advice:

  • Don’t make your car an easy target. Always lock your car securely when you leave it, even for a short time. Ensure all doors, windows and any roof opening (sunroof or hood) are locked, and keep your keys with you. Consider buying a steering wheel lock for extra (visible) security. This can make it easier for a would-be thief to pass over your vehicle. It’s also a good idea to keep the car’s logbook secure at home, rather than in the car
  • Find the right place to park. Most vehicle-related theft takes place at night. When away from home, park in locations that are well-lit and open to public view – car parks that have security patrols and are covered by CCTV can be safer, and it’s also a good idea to look for the ParkMark logo at car parks that have met that certain security standards
  • Double-check your car is locked when you leave it. Make sure you see and hear your car locking before you leave it – look for the tell-tale flashing indicators and click of the locks engaging 
  • Does your car use a keyless entry/start fob? Avoid being a ‘relay attack’ victim. Thieves can use a technique to copy the key signal to another device that’s placed close to a vehicle. This can fool the car into thinking the genuine key is present and can mean a thief can drive away in the car. If you have a keyless car fob, always keep it well away from doors and windows in your house. Keeping it in a metal (Faraday) box or signal blocking wallet can stop thieves copying the signal
  • Consider security when you next change your vehicle. If you are buying a car on the second-hand market make sure it has an immobiliser and, ideally, a Thatcham-certified alarm. You can also use Thatcham Research’s Consumer Security Ratings to help work out how secure certain models are
  • In winter: Icy morning? Don’t leave your car while it’s defrosting. The majority of vehicle thefts take place at vehicle owner’s home. Always stay in your vehicle while the car is warming up and demisting the windscreen – if you leave it, there’s a risk someone could get behind the wheel before you do!

Sun setting 73 minutes earlier sees 36% increase in evening rush-hour accidents

Scotland, the West and Northern counties see the biggest increase in risk of accidents in the evening rush hour  

The latest data from insurethebox, the UK pioneer of telematics insurance, reveals the true cost motorists pay for an extra hour in bed, with an overall 14% increase in accidents across the UK.

And the loss in daylight in the evening appears to have a particularly marked impact with a 36% increase in accidents between 5.00pm and 8.00pm.  Continue reading Sun setting 73 minutes earlier sees 36% increase in evening rush-hour accidents

Insurance: customers paying the price for loyalty … or laziness?

Savings to be made by shopping around

The Financial Conduct Authority (FCA) has published the interim report of its market study into the pricing of home and motor insurance. The FCA found that competition is not working well for all consumers in these markets. It sets out concerns about how pricing in these markets leads to consumers who do not switch or negotiate with their provider paying high prices for their insurance.

Continue reading Insurance: customers paying the price for loyalty … or laziness?