The EU has been discussing this issue for 10 years at a huge cost to the tax payer, no doubt the insurance companies lobbied hard to water down the regulation.

Research that was recently conducted by a notable insurance provider has determined that one out of ten vacation travelers will have the correct insurance.  That leaves a whopping nine out of ten people that are incorrectly insured or not insured at all.  Travel insurance is often the forgotten, yet most needed insurance, especially when traveling abroad.  The study showed that 25% of those polled said they think travel insurance is a complete waste of money while over thirty percent of those that did purchase the insurance waited until the very last second.

Travel Insurance is important in covering a number of events that can be completely out of the hands of the traveler.  Most travel insurance policies will cover problems occurring during or before the trip that cause disruption.  Disasters such as earthquakes, hailstorms and in some cases just severe inclement weather can be enough cause to keep your travel plans grounded.  Those that are not insured could lose hotel deposits, reservations could be cancelled causing a reservation cancellation fee amongst many other factors. 

There are other riders that can be attached to travel insurance depending on where you are traveling or what your specific needs are.  Some may go for kidnapping insurance, mostly for major corporations that purchase it to protect their employees.  There are also special policies in regards to healthcare and those that are elderly or need specific medical coverage for their illness.

Travel insurance is most often purchased on an annual or per trip basis.  Policies can be custom tailored to the region you are travelling or your specific needs and there may be portions of policies that can be removed to cut down on costs.  If you are interested in saving money and protecting your financial well-being, then purchasing a travel insurance policy may be the best way to go about it.

Motorists are finding it more difficult to maintain vehicles with the rising cost of fuel and insurance premiums. This article discusses the statistics and ways of reducing your insurance costs.

Car insurance premiums have risen by 40% in the last 12 months which is bad news for motorists. According to the AA British Insurance Premium Index the typical comprehensive car insurance premium is now approximately £892.

While this premium is quite high, young drivers aged 17-22 have taken a bigger hit. Premiums for this age group have increased more than 64% over the last 12 months. A typical premium is now £2,430. Premiums for Third Party, Fire & Theft (TPFT) have also increased by a huge amount – 82% over the last 12 months. The average TPFT premium has risen to £1,532.62.

The fluctuation of premiums is recorded across the UK, by the index, for 2,800 car insurance customers. An increase in fraud and injury claims is cited as the reason behind the increase in premiums.

Car insurance premiums have been increasing for some time but industry experts say that insurers are still operating at a loss despite the large increase in premium rates.  

Ian Crowder of the AA has stated that insurance has been an unsustainable business for many years. According to Crowder insurance claims have exceeded premiums by 22%.

Driving is becoming more and more unaffordable due to record amounts in costs of fuel and rising premium rates. Simon Douglas, director of the AA, says that higher driver costs are “leading to more people withholding information when taking out a policy or exaggerating personal injury claims to try and reduce their costs. But this simply piles on costs for insurers and results in yet higher premiums for honest motorists.”

Swiftcover.com has done research regarding households that have more than one car. This research indicates that these households could be paying 29% more by purchasing multi-car policies which allow more than one vehicle on a single policy. According to swiftcover.com research, single policies may be a better benefit for multi-car households.

Multi-car households have accepted the idea that your premiums are lower when you have a multi-car policy with some insurers offering discounts of up to 30%.

The motor director at swiftcover.com, Sarah Vaughan, negates the idea that multi-car discounts offer the best value. While these discounts are good for many households it isn’t the case for everyone. Having multiple cars under one policy is easier but multi-car households need to decide if paying hundreds over the odds is worth it.

A new law which will take effect December 2012 will turn the insurance industry on its head. Insurers will no longer be able to consider gender as a risk factor when determining insurance premiums. The insurance industry will have to radically change how insurance policies are priced. This radical change will raise the premiums of women under age 25 by up to 25% according to the Association of British Insurers (ABI).

Despite the rapid rise in premium costs there are ways that will help reduce the amount you pay.

1. Don’t buy sports cars or vehicles that have a powerful engine. According to statistics these types of vehicles have a high accident rate.
2. Add alarms and steering locks to your car for better security.
3. To reduce the risk of theft, park your car in a garage.
4. If you are under age 25 consider adding an experienced older driver to your policy. Just remember that listing someone else as the main driver of the vehicle is considered fraud.
5. Shop around and get as many quotes as possible when looking for a new insurer.
6. Instead of paying your premiums monthly, pay a lump sum.

If you intend on using a caravan on holiday there are things that you need to consider when purchasing caravan cover. This article will give ideas and points to remember when getting an insurance quote and purchasing your policy.

For most people, the worst case scenario regarding their caravan would be its complete destruction. The negative financial aspects can be mitigated by insurance. There will inevitably be emotional and psychological involvement but having comprehensive insurance will help alleviate most of that.  

Shopping around makes sense when purchasing insurance. Finding the cheapest insurance is important to people and saving money is a strong motivator but reading the small print in any policy is essential. If you find a caravan insurance quote that is low cost and is a good deal, it may not be a good deal for you. There are many variations in insurance policies and finding the right one does not necessarily mean the cheapest one.

When choosing a caravan insurance policy, the first thing to look at is the amount it covers. Caravan insurance claims involve large amounts of money and an amount that looks good on paper may not actually be sufficient.

Insuring your vehicle itself is important but you need to make sure that everything inside the caravan is also covered. Stoves, gas bottles, microwaves and any other cooking utensils will need to be covered. Also, you don’t want to forget any electronics that you have as well as awnings, steps and anything else that may be stored in or on your caravan.

Enjoying holiday time only on home soil isn’t the intent of most caravan users. At some point many will pay a visit to the continent. If this is in your holiday plans then you need to make sure that your policy includes European cover. This is an optional extra and should be added to your caravan policy before you head for the continent. This and many other points should be at the forefront during your decision making process when purchasing insurance.

In order to choose the best cover for your caravan, and not forget any important points, it’s best to sit down and think about what you will be doing with and where you will be taking your caravan on holidays. Knowing your plans ahead of time will enable you to work up a list for the type of insurance that works best with your needs.

Once your list is in place you can begin to shop for caravan insurance and when you have the questionnaire that asks what you want in your insurance policy there won’t be any wasted time in thinking about it. Saving time isn’t the only reason for having a list. You’ll also be able to avoid add-ons that are unnecessary and you won’t fall prey to “what if” thinking.

The usual risks that most people want covered are fire, theft, and vandalism. Other risks to consider are natural ones like storms and floods. While natural risks do not occur very often, the frequency of this type of event seems to be increasing. Lastly, if you intend to take your caravan on public roads you need to remember that you are legally obligated to carry third party liability insurance.

Owning a motorcycle has become trendy in recent years. Those who are fashion-conscious like to be seen on the smaller scooter/moped type of cycle but despite the increase in popularity a lot of insurance companies do not offer motorcycle insurance due to the increased risks. Finding a good insurer will take research.

The recent rise in motorcycle ownership, unfortunately has not led to an increase in companies offering insurance. Increased risk is usually the reason for insurance companies to avoid offering motorcycle insurance. The few companies that do offer this insurance manage the risks by having high insurance premiums.

There are several insurance companies that specialize in motorcycle insurance so their policies tend to be cheaper. These specialized companies allow the bike rider to purchase good value policies based on individual circumstances. It also allows the bike rider to satisfy the legal obligation of having insurance for their motorcycle. Not all policies are the same so it is important to get several quotes, compare them and then choose the one that best suits your circumstances.

Rider only and motorcycle only are the two main types of motorcycle insurance. Rider only policies cover only the rider not the motorcycle. This type of policy will usually specify the size of motorcycle you are insured to ride. The motorcycle only policy covers the motorcycle and not the rider. In situations where there is more than one rider for a motorcycle, this would be the best policy.

No claims discounts are difficult to find from motorcycle insurers. Companies are not as generous with motorcycle insurance as they are with car insurance. If you find a company that offers the chance to reach 50% no claims discount then you are very lucky. Building up a no claims discount normally does not start until after the first year of claim free biking. Paying a small extra on the premium can protect from losing the no claims on your motorcycle the same as for car insurance. A 50% discount will provide cheaper insurance so paying the small extra fee will be worthwhile and easily regained through the premium savings.

A lot of bike owners cancel their motorcycle insurance in winter months and also when they will not be using the motorcycle for long periods of time. This is a common mistake that bike owners make. On average 10,000 bikers cancel their insurance while the motorcycle is in storage. This may seem the cost effective thing to do but bike thieves take advantage of this fact and steal on average 600 bikes a month from garages and storage facilities. In the long run keeping the insurance year round may be the best option.

There are many factors taken into account by insurers who offer motorcycle insurance. Location is a big factor when determining premiums. Higher premiums are found more often in inner city locations than suburbs or rural areas. Increased risk of theft is the main reason for the higher premiums in inner city locations. Other factors include the make and engine size of the motorcycle, the bike value and where the bike will be parked.

Female bikers, as with female car drivers, are statistically less of a risk on the road than males. This means that motorcycle insurance offered to women is usually discounted to reflect the reduced risk. It’s possible for women bikers to get motorcycle insurance that can be discounted up to 15%.

Finding car insurance is much easier than finding motorcycle insurance however, the rules are the same for both types of insurance. First, get as many quotes as possible and compare them on a like-for-like basis. Second, read the small print so you understand everything that is included and everything that is excluded. Lastly, it is always best to be over-insured rather than under-insured.

A new idea arising in the insurance industry is the development of car insurance policies designed specifically for women drivers. Previously niche car insurance was specific to classic or sports car owners but companies have shown interest in women only insurance policies.

Looking at recent insurance company advertising has shown that more and more insurers are offering car insurance specifically for women. These companies appear to be brand new but are actually some of the UK’s most popular insurers. They have embraced the idea of car insurance for women and have created new brands catering to females. Insurance companies are using trendy ads and TV commercials to appeal to the younger female driver. They are aimed at selling lifestyle brands to the average “Urban Miss.” Underlying the lifestyle brand is the message that car insurance specifically for women can be much cheaper than a regular policy.

Behind the branding and marketing done by the insurance companies is the fact that women, on average, tend to be safer drivers. This means they pose a much lesser risk on the road. Car insurance policies are based on assessing risk so anything that lowers the risk results in cheaper car insurance. Female drivers pose less of a risk on the road which results in lower insurance costs.  

Another aspect in lower car insurance for women is that their insurance claims are much less costly than claims from males. This could be attributed to the fact that women travel less, travel with greater care and concentration , and also drive at lower speeds. Statistics do show that the number of claims made by women is very similar to the number of claims made by men, however it is the amount paid out in claims that allows women the opportunity to purchase cheaper car insurance.  

Male and female drivers have a marked difference in their car choices. Women, on average, prefer cars with modest engine size and cars with a lower spec. This is a benefit since repair costs will be cheaper, parts are easier to find and damage to the body of the car costs less than damage to high performance cars.

Men account for almost 90% of all convictions and driving bans on Britain’s roads. With women being statistically safer drivers, it was inevitable that insurance companies would see the benefit in offering them cheaper car insurance.

Car insurance companies take into account the losses they have sustained through claims when they cost their product. This gives drivers who have never filed a claim the feeling that they are paying for others recklessness. Car insurance specifically for women fixes that problem. The majority of women who purchase female only policies will not be subsidizing the larger claims since they tend to have much smaller claims. They will simply be covering the loss of the smaller claims. This means insurers can pass on this savings and offer cheaper insurance to women.

These policies are designed for women but do take into account that there will be boyfriends and husbands that may need to drive the car. There is an option to name them as drivers but the understanding is that the main driver of the vehicle will be the woman. This allows the purchase of cheaper insurance based on women’s lower risk.

The same options will be offered for women’s car insurance as that offered by standard policies. The most common are Fully Comprehensive and Third Party Fire and Theft. There are some extras that are added to women’s car insurance in order to offer peace of mind while on the road. Breakdown assistance is routinely offered since safety on the road is very important to female drivers. This extra is frequently included for free or offered for a small charge. If this is an important extra to you then look for polices that offer it or ask that it be added.

Female only car insurance makes the marketplace more competitive and also solves the problem of the majority subsidizing the minority. It seems that it is a good thing however, whether or not it offers cheaper insurance in all cases still needs to be proved. It is possible that the high mileage women in high spec cars will be the true beneficiaries. Insurance companies will still offer cheaper insurance to women but be sure to shop around and get as many quotes as possible before purchasing car insurance.

If you have ever had a sick pet and had to make the decision between the money or euthanizing the animal, you can understand the heartache and pain that so many others have had to experience.  There is an alternative to costly procedures for your pets and that is to carry pet insurance.  Vet bills, even just a visitation can be costly, but breaking it down into a smaller monthly payment towards the insurance carrier can mean the difference between your pet’s health and not being able to afford treatment.  There are even some pet insurance policies that go above and beyond in their coverage.  Some instances of extra coverage could be boarding fees or even cancelled trips due to a pet problem. 

There are several options when it comes to pet insurance so it is imperative that you choose the right kind of coverage for you and your pet.  Each pet is different so make sure to read the possible policy very carefully to make certain that your pet is covered for every situation that it might be engaged in.  If you are a dog breeder, you may want to look into extended coverage to protect you and your dog.  If you have a show dog, then make sure that they are covered while in competition. 

Carry liability insurance.  This is the type of insurance that will protect you should your animal damage property or brings harm to someone.  If you have an animal other than a cat or dog, then you may need to seek out a pet insurance company that offers insurance for exotic animals.  These may include ferrets, birds, rabbits, snakes or even llamas.  Make certain that you are aware of how long the animal will be covered for.  If your pet should have a long-term illness which has been covered by the insurance, yet the policy expires or comes to the end of the pre-determined term, then you could be stuck with paying for medicines and treatments out of pocket.

Age limits are an unfortunate aspect of some pet insurance policies.  Not every insurance provider has this limitation, but some do include a limit as to how old your pet can be.  What you want to look for is a policy that covers the lifetime of the pet.  If your pet travels with you, then also make sure that the policy covers out of town or overseas travel depending on which you most often take part in.  Your pet can also be protected against running off and even dognapping.  This type of insurance is especially important if you own a high value animal such as a purebred or a special breed as they can be targets for theft.

A good pet insurance policy will not only cover your pet, but it will also give you peace of mind.  Knowing that your beloved pet is protected is just another way in which you can give back to the animal that has given you so much in their life.

Moneysupermarket.com has recently revealed a study which showed that stopping smoking could save the average man more than 8,000 and a woman more than 4,800 on a combined critical illness and life cover policy. This substantial saving is added to the average 1,394 per year which is saved by not buying the cigarettes in the first place.

The reasons for this are clear: smokers put themselves at higher risk of heart disease, lung conditions and other potentially life threatening illnesses. This represents an increased risk to insurers who then increase premiums accordingly. For insurers to reduce these premiums smokers need to have kicked the habit for more than twelve months.

ASDA Life insurance have stated that premiums for non-smokers could be as much as 50% cheaper than those for smokers, however they do point out that ex-smokers must ensure that their health has not been affected long term, which may still place them in a high risk category.

The Government is also seeing the benefits of encouraging people to give up smoking. They are quick to point out the obvious health and financial benefits and are considering if offering monetary rewards to those giving up would be a good option. Smokers in Dundee are currently being given 12.50 in shopping vouchers every week that they do not smoke.

The financial implications of being a smoker are increased in ways which may not be quite as obvious. Smokers tend to buy other products which go hand in hand with smoking such as lotions, special toothpastes, dry cleaning and so on could have smokers spending more than 600 a year on “smoking extras”.

Insurance companies work out their premiums based on a number of factors including age, weight, sex and if they are a smoker. Many of these factors are impossible to change but being smoker is one area where a simple change can make a huge difference. A 35 year old man who is a smoker can expect to pay 15.75 per month for life cover, an increase of 78% on the premiums of an equivalent aged man who is a non-smoker. A woman’s premiums would increase by 72% to 12.45 per month.

Health Insurance company, Benenden Healthcare, has said that since the smoking ban came into force they have seen an increase in the numbers of people quitting smoking and therefore saving money on their policies. It seems that this government initiative is one which has had a real positive impact on what is an expensive social problem.

Being a smoker in 2009 is a very impractical habit to have and according to some figures, 70% of people wish they could give up. Probably why tobacco manufacturers are having to target younger and younger markets as all these incentives to quit are not available people are older.

Britain has become the whiplash capital of Europe, with an average 1,200 claims a day.

Whiplash accounts for 75% of the UK’s motor insurance claims – the average for the rest of Europe is 40%.

Solicitors pick up 88p for every 1 their clients receive and the insurance companies feel the government should peg their fees to keep car insurance premiums down.

Besides the insurance cost, treating whiplash also costs the NHS 8 million a year.

Whiplash is neck pain caused after stretching soft tissue in the following a forceful jerk. Whiplash is often caused in road accidents when a vehicle comes to a sudden stop throwing the driver and passengers forward.

Scores of no win – no fee legal firms have set up to chase whiplash compensation claims, which is the main reason why claim figures and the amount of compensation awarded has risen.

The Association of British Insurers (ABI), which represents most of the UK’s major insurance companies, says whiplash claims account for 14% of every driver’s premium – or an average 66 a year.

Claims are up 25% over the past five years, with 430,000 cases reported in 2007.

The ABI claims whiplash reports are rising at the same time as government figures show roads are becoming safer.

The ABI also cite poor driving, badly adjusted head restraints and doctors giving out medical certificates too easily to patients with no real injury as other reasons contributing to high claims.

To put the problem in to perspective, only just over 70,000 workplace accident injury claims are made each year.

The Insurance Fraud Bureau (IFB) blames organised fraud, which is where an innocent motorist is crashes in to the back of the fraudster’s vehicle when they pull up sharply in front of them.

The accidents are followed by claims against the innocent motorist’s insurance for fictitious whiplash injuries often by people who were not even in the fraudster’s vehicle.

The IFB has calculated these bogus claims net about 200 million a year.

Although no one supports fraud, the argument that insurance companies are losing too much money because people are claiming compensation from policies designed to pay out if they are injured in a car crash seems trite.

The ABI stance looks more like sour grapes because solicitors are effectively working for their clients to claim compensation and getting paid for the results.

The fact that people get a solicitor to help them deal with an insurance claim of whiplash speaks volumes about people’s lack of trust in insurers to be treated fairly. If insurers want to reduce costs, blaming claim-happy solicitors seems a bit hypocritical as it is the insurer’s refusal to pay out in most instances that demands a solicitor be involved.

In contrast, one soldier was paid just £5000 after losing part of his foot in 2004 and another received just £102,000 after suffering horrific injuries to his arms and legs while fighting in Iraq. The MOD have said that civil litigation and the Armed Forces Compensation Scheme are two different entities and should not be compared. They also pointed out that those injured receive a monthly pension for life.

Aviva has announced that most of the bonuses it usually pays to its with-profits investors will be put on hold this year. The unitised life and pension policies taken out since 2003 will remain at 2.75% and 3.25% respectively, while conventional policies will also be held. With-profits income bonds and those in the ex-GNU funds can expect to see their returns cut. Some policy holders will benefit however, from a final special bonus. Aviva have pointed out those who invested in the company will still see a better return than if they had invested in a bank. Investment experts have expressed disappointment.

Young persons car insurance specialist Young Marmalade, has suggested that while the ability for people to compare insurance policies online has improved competition, it has brought to an end the advantages of loyalty to one insurer. Nigel Lacey, the co-founder of the insurer, said that the problem has contributed to the high cost of insurance for young people. The insurer can no longer rely on having the young person as a customer for several years and therefore must charge more to recoup any losses incurred while the driver is young and inexperienced. He also points out that this has meant that many insurers simply will not cater for young people at all.

Meanwhile Aviva have released research which shows that young people often receive no instruction from their parents at all when learning how to drive. One in three young drivers had less than ten hours driving with a family member and 9% described themselves as unready for the road even though they had their license. Contributing to this was the fact that some instructors were simply teaching the students the test route, not general skills. Aviva believe that parents should be more involved with their child’s tuition.

Recent weather conditions have had an impact on the types of car insurance searches customers have been making, according to moneysupermarket.com. They have found that those interested in cover for a 4×4 has increased by 42% since January 5. Head of car insurance at the comparison site, Steve Sweeney, commented that it is understandable that people might want to prepare themselves for any future adverse weather conditions.

Sainsbury’s Finance have conducted research which shows that more than one third of household insurance policies will not cover a home which is left unoccupied for longer than 30 days. They suggested that 4.1 million people in the UK have extended holidays each year, many of which will not have adequate insurance cover for their home. They advise that anyone planning a long trip to contact their insurer to check they are properly covered.

Kwik Fit has produced a new calendar for 2010 showing 12 pictures of tyres, which they have dubbed “The Tyre Wall of Shame”. The calendar depicts tyres which are lacking in tread, are ruptured and worn down – all of which came from customers cars on one single day last month. The calendar was produced in response to a recent survey conducted by the recovery service, which showed that one third of drivers had not checked their tyre pressure in the last 6 months and one in ten were driving without the correct tread depth.

Statistics from Yahoo Finance have shown that in some cases insurers are paying out more in claims than they receive in premiums. This is the case in particular for Life Insurance which, according to the website, pays out £1.60 in claims for each £1 paid in premiums. It is pointed out that this shortfall is made up through investments, but that it is unlikely that this situation could go on for long. Motor insurance comes in very close at 84p per £1 spent and accident and health insurance also cuts it fine at 70p. This makes these insurances very good value for money. However, PPI seems to have the worst ratio at just 19p for each £1 spent and came in significantly behind its closest rival, travel insurance at 40p.

Meanwhile figures from EMB confirm that the insurance industry had one of its worst years on record in 2009. It claims that £1.20 was paid out on retail motor insurance for every £1 received in premiums. Commercial motor insurance fared slightly better with £1.10 paid out. A consultant at EMB points out that the change in claiming culture, in particular with regard to compensation has impacted the industry. They say that it can be expected that motor insurance premiums will need to rise by 20% in order to minimise the losses incurred.

Lukasz Borowski has received £8.35m in a compensation claim after he was paralysed from the neck down in a car crash where he was the backseat passenger. He has also suffered head injuries and needs long term care. He was awarded the money by the Motor Insurance Bureau who pay out compensation in cases where the driver is uninsured. Mr Borowski was to be paid more, but accepted a 20% reduction as he was not wearing a seatbelt at the time of the crash.

Gocompare can at last claim the dubious honour of having the most irritating ad campaign of the year, with their overweight and annoying opera singer. With a tune you simply cannot get out of your head, the ad topped the Adwatch annual list, closely followed by Cash4Gold. Other insurance companies and comparison sites didn’t fare much better. Swiftcover and Confused.com came in at numbers 4 and 5 while Churchill managed 7. Nicholas Hall from Gocompare agreed that the ads are unique, but that they have significantly boosted their profile this year. He also points out that it is better to be recognised, than not at all.

A new study by Post Office Life Insurance has found that just 34% of people in London have life insurance compared with 62% in Scotland and 42% in Northern Ireland. It also found that 8% of Londoners used to have life insurance but had let it lapse, perhaps due to financial pressures. The insurer advised people to take out life insurance policies to ensure they protect their families. It also pointed out that people need to be certain they are adequately covered for all their debts if they die.

With skiing holidays increasing in popularity, Directline has released a report from the Association of Mountain Doctors in France, which showed that they dealt with 140,000 injuries last year. 16,439 of these were collisions on the slopes, which were often put down to inadequate preparation for the conditions. The Mountain Doctors recommend that skiers have at least three weeks physical training before their trip and that they ensure they get professional advice regarding the weather and clothing required. Directline point out that travel insurance should cover air ambulances, personal liability, physiotherapy and bad weather. They suggest taking out their “Ski Pack” cover.

Broker and financial services group Brightside, are to become the first private sector business to advertise on the MET office website. They will be advertising their eGroup insurance products with homepage branding, adverts and links across the website. Brightside chief executive Paul Chase-Gardener, said that they believe the collaboration will give them a competitive edge and increase online sales.

Research from Zurich has suggested that financial advisers have some concerns about the financial security of the providers they recommend. 36% of the 500 surveyed said they rated financial strength as the most important factor when recommending, while just 26% put the price first. 29% said that the reputation of the provider was most important and was the top factor for those recommending life products. 34% of those who responded thought that life providers were the most trustworthy, compared to just 5% who chose banks. Richard Howells from Zurich, commented that the research shows that financial strength and reputation are more important than ever in these uncertain financial times.