Holidaymakers have £1.61bn of uninsured electronics

AXA says UK Holidaymakers will take more than £7bn worth of electronic gadgets on holiday with up to £1.61bn uninsured as only 77% have travel insurance and only 49% have personal possessions cover on their home insurance.

The average adult will take £424 worth of kit including phones, laptops, MP3 players, DVD players, cameras and camcorders. A group total will reach on average £738 of electronic equipment. And with children add another £100 or more to include electronic games such as Nintendo DS or Gameboys.

No cover in the hold

And 29% of people will pack some, or all, of these items in their hold luggage where potentially neither their home or travel cover will protect them.

AXA calculates that the average suitcase of holiday clothes is worth around £450, roughly the same as the electronic luggage we carry with us although per item considerably less.

Nearly 90% will take a mobile while only 58% will take a watch and 48% any jewellery. The average holiday party will take at least two phones with them.

Motor premiums rise at fastest-ever rate during second quarter

Fraud is helping to push car insurance premiums up at their fastest-ever rate, according to the latest AA British Insurance Premium Index.

During the quarter ending 30th June, premiums rocketed by more than 11% – the biggest increase recorded by the benchmark study since it started tracking quarterly car and home insurance premium trends 16 years ago. The index’s average Shoparound premium topped £704 for an annual comprehensive car policy, up 11.5% in just three months. The previous biggest increase was only six months ago.

The Shoparound average for policies sold through price comparison sites rose even more sharply, by 12.7%.

Shoparound premiums for third party, fire and theft cover (TPFT), often bought by young drivers, climbed by 15.9% and by 17.1% on the price comparison site Index.

Edmund King, AA president, says: “The latest British Crime Survey (published 15 July) suggests that crime levels are falling, but crucially, it misses a new 21st-century wave of fraud such as providing false information and claiming for non-existent personal injuries which just isn’t being picked up.”

He points out that premiums on price comparison sites have been rising fastest.

“It’s now much easier to get an insurance quote on-line, for example, comparison sites can enable dishonest individuals to manipulate information to get a lower premium. Insurers are increasingly charging higher prices to these people to cover the increased fraud risk.”

“This quarter’s record increase comes on top of previous record rises. For those shopping on comparison sites, average premiums have climbed by an eye-watering 32.8% – or £193 – in just nine months. Even those taking the cheapest prices have typically seen them rise by £98.”

“Last year, the cost of meeting claims exceeded premium income by 22% and the spiralling increases we’re seeing show that insurers are trying to fill that chasm.”

EDBL picks up new motor affinity partnership

Equity Direct Broking has picked up Mazda UK’s car insurance schemes in a three year deal.

EDBL will provide fully branded policies through Mazda’s network of 153 UK dealerships, as well as administering its on-line quote and buy system.It also involves a tie-in with Equity’s existing affinity partner, Santander, which provides consumer finance to Mazda buyers via the Mazda Financial Services brand.

Neil McCallum, Equity Direct’s relationship manager said: “We see the brand as a perfect fit for our affinity business.”

Uwe Fischer will be General Manager and will be joined by Alejandro Ferrin and Guido Wolman, all formally from Glacier Re. The Latin America office intends to service business from 1 October 2010.

Latin America

Bob Stuchbery, chief executive officer, said: “I am delighted to announce the launch of our new Argentina office and welcome a great new team to Chaucer.

“Building on their extensive property facultative capabilities, we are confident that we can develop a high quality and successful business in Latin America.”

Lloyd’s strength

Fischer said: “As a team, we recognise the importance of being able to offer clients regional service and international underwriting excellence, underpinned by the secure financial strength of Lloyd’s.

“This initiative provides an excellent opportunity for Chaucer to develop our underwriting in Latin America.”

In July 2009 Durham Constabulary approached the Insurance Fraud Bureau (IFB) with large amounts of paperwork related to insurance claims highlighting anomalies with suspicious links to local businesses.

Following further investigation, the Bureau found multiple member insurers were affected by the scam and was able to provide Durham Constabulary with valuable intelligence.

The investigation involved a specialist team of detectives within Durham Constabulary who investigated the information provided by the IFB regarding the alleged scams in operation in the local area.

A “substantial sum” of money is thought to have been accumulated by the individuals involved in the scam, who are suspected of making false insurance claims around vehicle accidents.

Detective Sergeant Amanda Henderson said: “Our enquiries have been underway for several months and are continuing.”

“We are very pleased with the arrests, which follow on from two men being arrested in April as a part of the same investigation after Police raided two businesses and two houses in the Derwentside area. We take insurance fraud very seriously and will continue to work to tackle serious and organised crime.”

Glen Marr, director of the IFB said: “The success of this operation sends a very clear message to those criminals who are targeting innocent motorists - we know who you are and we are coming after you.

“The IFB has been working closely with Durham Constabulary on this investigation and these arrests are testimony to the power of a collaborative partnership between Police and Insurers. Can I urge anyone with information on insurance fraud or who fears they may have been a victim of a staged accident to call our free confidential hotline on 0800 328 2550 or online at www.insurancefraudbureau.org/report.”

The three people arrested are currently being questioned at Consett and Durham Police stations.

However, insuring a classic or vintage car is not as black and white as insuring a more standard vehicle, so it’s important to understand how the policies differ and what restrictions to watch out for.

The first thing to consider is whether your vehicle is classified as ‘classic’. This is, admittedly, a loose term but generally speaking it can be broken down to vintage cars (circa 1900 to the 1930s) and historical cars (made before 1973).

Knowing how to insure your classic car will largely depend on the way you utilise it. Most insurers will accept older vehicles on their mainstream car insurance policies, but you may face high premiums. In addition, you won’t benefit from what is, arguably, the biggest advantage of buying specialist insurance – the agreed value clause, or the amount that will be paid out should your vehicle be written off in an accident or stolen.

Mainstream insurers will look at current market prices to determine how much to pay out. For classic cars, this could present a problem as determining market value of this type of vehicle is notoriously hard. In many cases, the insurer may end up undervaluing your motor.

An agreed value policy is, therefore, more suitable for older cars as it will take factors such as the condition of the vehicle and its ‘collectable’ value into consideration. You should, however, make sure that the agreed value is guaranteed and, if possible, find out how often the agreed value is reviewed as, clearly, classic car values will change over time.

However, in order to benefit from a classic car insurance policy that includes an agreed value clause, you will have to adhere to strict insurance guidelines. Most classic car insurance policies are aimed at drivers who do not use their cars very much. In most cases, there will be an annual mileage cap – often 3,000 miles.

For this reason, if your classic car is your main vehicle and you do drive more than 3,000 miles a year, then specialist insurance is unlikely to be suitable for you. If you drive a 1970s MG, for example, and notch up around 12,000 miles a year, you are unlikely to qualify for classic car insurance. However, while mainstream insurance would probably be quite cheap – the main thing you’ll be missing is the agreed guaranteed value benefit.

Classic car policies are also likely to stipulate that the vehicle is kept locked in a garage whenever it is not in use, rather than parked in a driveway or on the road.  If you intend to take your vehicle to motor shows, then you’ll also need to look out for a policy that allows this, as not all will as standard. Other restrictions might include adding security measures – trackers, alarms or demobilisers, for example – which might not fit with your car, or restricting which garages you can take your motor to.  But again, making sure this insurance includes an agreed value is vital for owners of classic cars, simply because market values can vary so dramatically. He gives the example of an E-type Jaguar, which can cost anything from £25,000 to £200,000.

The classic car market is very price sensitive, if your car is in mint condition, is limited edition or has providence – being owned by a 1950s film star, for example – an agreed value policy is a must!

Although the economy appears to have emerged from recession, the recovery is gradual and consumers remain highly aware of the importance of value for money.

This has led some to consider going without travel insurance, as many view it as an optional extra.

Some 44% of claims made during last Easter related to medical issues, and cost an average of £2,640 per person.

Damaged or lost luggage affected a fifth, and cost around £240 on average, with slightly more (22%) affected by cancelling or cutting short a holiday, which averaged £700 per person.

Consumer Marketing VP Paul Thilo has said that going without insurance altogether or opting for the cheapest coverage, regardless of whether it meets a traveller’s needs, is a risky decision.

Earlier this month research from Aviva showed that 31% of travellers were either intending to skip travel insurance or were considering going without it.

Underneath this amazing mirrored bodywork is a MINI Cooper S. It’s a well equipped MINI, granted, but it’s so flash that its owners can’t get insurance cover.

Ian Grice, a builder from Nottingham, bought the car as a Valentine’s gift for his wife Toni. He was so dazzled by it, literally, that he happily paid the £38,000 asking price when it caught his eye in the showroom.

Without options, the list price for a MINI Cooper S is £17,000 - meaning the value of the chrome paintjob could be more than the car itself.

But it has caused a massive headache for the couple, because insurance companies won’t provide cover, at any cost. Temporary cover was initially provided by the London MINI dealership so it could be driven home by the happy buyers.

Once back in Nottingham, however, they were left with what Ian describes as “the world’s most expensive mirror.” Talking to The Sun newspaper, he said: “It’s a MINI Cooper for crying out loud, not a Ferrari.”

The car’s shiny paint makes it an obvious target for thieves, though the Association of British Insurers has advised the couple to seek specialist cover. It has warned, however, that they ’should expect to pay a considerable amount’.

Aviva is paying £300,000 to repair a 220mph Pagani Zonda S, damaged in a test drive accident near Aberdeen last September after the car hit a telegraph pole and smashed through a fence. Aviva has shipped it to the manufacturers in Modena in Italy for repair. Aviva said it is thought to be one of the highest ever pay-outs in the UK. A spokesman said: ”This is the biggest insurance pay-out we have had for repairs to a private car in the UK. This is out of the ordinary for an insurer.  ”An Aviva representative was asked to inspect a badly-damaged supercar after the insurer’s policy-holder, who had been test-driving the supercar, lost control on a narrow country road and collided side-on with a telegraph pole before careering through a fence.

Repairable

‘Although the vehicle was badly damaged, Aviva decided that the car may be repairable and set about making arrangements for the car to be shipped across to Modena, Italy, home of Pagani, the vehicle manufacturer. ”There are roughly only 10 Zondas produced per year and they are painstakingly constructed.” The insurance claim was lodged by the test driver, not the owner of the car!

Insurer responds to Chilean earthquake and Windstorm Xynthia exposure

Lloyd’s insurer Chaucer has estimated a combined net loss of £25m from the Chilean earthquake and European Windstorm Xynthia.

In a statement, Chaucer said. “As widely reported, these are major catastrophe events, whose magnitude and complexity make the precise ultimate loss difficult to quantify. We estimate a combined net loss to Syndicate 1084 of approximately £25m. The cost of these losses will be contained within our annual catastrophe loss budget.”

The insurer said that Syndicate 1084 has limited exposure to European Windstorm Xynthia.

It added: “Our Chilean exposures arise primarily from our direct and facultative property accounts, for which we have completed a contract-by-contract review and have provided specific provisions against all risks in the affected areas. We do not expect our net losses to increase with any deterioration in the total insured market loss.

“Reinsurance will cover any further deterioration on our direct and facultative property accounts and we have actively avoided Chilean treaty reinsurance programmes due to dissatisfaction with terms and conditions.”

Telling a few white lies to cut the cost of your car cover might seem tempting right now; even Jeremy Clarkson has joked that it’s a fair idea! But even the smallest porkies could have serious consequences. Here are five lies everyone should think twice about telling…

Now the recession is in full swing, few British wallets are feeling as full as they did a few years ago. With that in mind, the appearance of your car insurance renewal quote might be enough to have you reaching for the scotch.

Surely there must be some way to cut the price of your premium? Maybe bending the truth a little wouldn’t hurt…

Sadly, the truth is that telling your insurer any sort of lie - no matter how small - could have very serious consequences.

If you tell any of these five fibs to your insurer, you may be refused an insurance payout when you need it most, might face a massive fine and could even end up with a prison sentence!

1. Fronting
When Jeremy Clarkson joked in an episode of BBC2’s Top Gear that parents should simply claim to be the main drivers of their children’s cars, he probably didn’t intend for this to be taken as serious car insurance advice.

Fronting - the practice of an experienced motorist fraudulently insuring a vehicle that a younger person will drive - is actually no laughing matter. If you’re caught, your insurance policy is likely to be deemed invalid and any claim you make could be rejected.

Young people found to be fronting may be prosecuted for driving without insurance. Conviction for this offence can result in a hefty fine or six penalty points being added to the driver’s licence - which, in the case of a newly-passed individual, would effectively mean an automatic ban.

The older person involved in any case of fronting is also likely to face punishment. He or she could be prosecuted for insurance fraud and may even be sent to prison if found guilty.

2. Keeping quiet about modifications
If your car is modified, it will probably cost more to insure than a ’standard’ vehicle. This is because many insurance companies’ calculations show modified motors are more likely to be involved in accidents, and may cost more to repair if they are damaged.

Failing to tell your insurer that your car is modified can be classed as fraud if you have withheld the information on purpose.

Remember: if you deliberately fail to disclose any facts that may affect the price of your car insurance premium or your company’s decision to cover you, it has the right to cancel your policy completely in the event you need to claim.

Even ‘negligent misrepresentation’ of your vehicle (where you mislead your insurer by accident) can create problems if you need a payout later down the line.

This might happen if you buy a second car and are unaware modifications have been made to it.

3. Using your car for business purposes
If your car is insured for personal use, it is crucial that you don’t begin to drive it for business purposes.

If you used your vehicle as a minicab or to provide delivery services, for example, you would risk being uninsured in the event you had an accident.

This is because using a car for business, rather than personal, reasons means it is likely to be driven longer distances, parked in a wider variety of locations and perhaps used more frequently.

These are all factors that would, if your insurer knew about them, affect the price of your premium.

4. Being dishonest about previous claims and convictions
Failing to tell your insurer that you have previously had an accident or been convicted of a driving offence could also invalidate your policy.

If you’ve been involved in an accident within the past three years - even if it was not your fault - you must make sure your insurer is informed.

Likewise, any motoring convictions you have had in the past five years must be disclosed to your insurer.

5. Whiplash claims
Finally, be aware that ‘cash for crash’ scams are now a very real danger to all drivers.

Groups of fraudsters plan and execute accidents deliberately, then claim for personal injuries - usually whiplash - on the other person’s insurance. Most often, it is rear-end bumps that are staged.

It’s crucial to try and protect yourself from falling victim to this kind of con. Being involved in any sort of accident is likely to inflate the cost of your car insurance in future, so when you’re out and about always make sure you leave plenty of distance between your vehicle and the one in front.

However, you must also resist the temptation to claim for a personal injury yourself if you haven’t genuinely been hurt as the result of a crash.

Making a false claim could lead to prosecution, a large fine or even a prison sentence.

Contracts based on trust
All drivers should remember that insurance policies are contracts based on trust. It is your responsibility to give your car insurer accurate and honest information, and you are obliged to reveal anything which may affect the insurer’s decision to offer you cover.

In the end, insurance fraud is likely to be a false economy. Remember: if you are refused a payout when you need one, every penny you’ve spent on cover will have been wasted!

What’s more, the long term effects of insurance fraud can be severe. Not only could you lose thousands of pounds if your vehicle is written off; you may find it impossible, or incredibly expensive, to get car cover in future if you have an insurance policy cancelled

Irish Financial Regulator steps in to protect “policyholders”

Administrators have been appointed to Quinn Insurance, following intervention by the Irish Financial regulator.

The Irish Financial Regulator has ordered Quinn Insurance UK to cease writing new business after the High Court today appointed joint provisional administrators to Quinn Insurance Limited.

The Irish TImes reports that Justice John Cooke appointed Paul McCann and Michael Ateer of Dublin accountancy firm Grant Thornton as joint provisional administrators.

The Financial Regulator has taken this action in the interests of the firm’s policyholders, it said.

“Irish policyholders of Quinn Insurance Limited can continue to renew policies, carry out new business and make claims in the normal way.

“The appointment of joint provisional administrators will better protect policyholders. It will allow the firm to remain open for business, to continue to be run as a going concern under different management and to put the business on a sound commercial and financial footing.

“The Financial Regulator has an onsite presence in the firm to oversee its actions and to work with the new management. At the same time the Financial Regulator has commenced an investigation into certain matters within Quinn Insurance Limited that have very recently come to light.”

It continued: “Existing UK policyholders will not be affected by this decision as existing policies will remain valid. Customers can make claims in the normal way.”

“The effect of this action is to prevent Quinn Insurance Limited suffering further financial losses from its currently unprofitable UK business.”

It added that Quinn Life is unaffected by these measures, as it is a separate entity.

Audi has unveiled the A1 e-tron, an innovative electrically-powered design study based on the A1. The new study has taken centre stage at Europe’s first major motor show of the year in Geneva. The A1 e-tron is an innovative Mega City Vehicle (MCV). Like the previously unveiled e-tron sports cars, it is electrically propelled and has a range of more than 30 miles in heavy traffic. With a peak power output of 102 PS, the A1 e-tron is also fun to drive.

When the battery’s energy supply is exhausted, it is recharged by an exceptionally compact ‘range extender’ consisting of a single-rotor Wankel (rotary) engine and an electrical generator with a charge rating of up to 15,000 WattsThis device gives the A1 e-tron an additional range of 125 miles. This means the vehicle’s average fuel consumption is 148mpg and has CO2 emissions equivalent to only 45 g/km.

Nissan is to build its new electric car - the Leaf - at its Sunderland plant, the Japanese company has announced.

Production is due to begin in 2013 as part of a £420m investment in electric cars.

The investment is backed by a £20.7m government grant and up to £220m from the European Investment Bank.

Senior Vice President of Nissan Europe, Trevor Mann, said the investment is “good news” for Sunderland.