The automaker said the sensors – which are designed to detect vehicle roll angle – can malfunction and inadvertently cause the side curtain airbag and seatbelt to be activated.

The sensor malfunction does not prevent the airbag from deploying during a collision, Toyota said in a statement.

A Toyota spokesperson said the Japanese automaker has received defect-related reports of “minor injuries, including a report of a person’s hand being cut by a seatbelt in March”.

The recall affects 214 000 RAV4 vehicles and 94 000 Highlander and Highlander HV vehicles from the 2007 and 2008 model years. – Sapa-AFP

Also view:

Vehicle Recalls and Car Insurance

Should owners of recalled Toyota’s fear higher car insurance premiums?

Related posts:

1. Chrysler recalls 150,000 trucks and SUVs
2. Toyota recalls another 1.7m vehicles worldwide
3. Toyota agrees to $32.4 million in fines after recalls investigations

Why are so many buyers opting for SUV’s?

We need to reflect on some of the reasons for the shift in purchasing tendencies:

* They are more spacious/ comfortable;
* Being higher, they offer better visibility;
* They can go anywhere, which suits outdoor SA lifestyles;
* They are seen as safer for their occupants in a crash;
* They can ride the potholes better [road conditions off the main roads have deteriorated];
* The best equal or exceed the luxury of the best saloon cars;
* They convey an adventurous “tough guy” image.

Analysts have disclosed that the SUV segment is growing in size, but the 4×2 SUV sub-segment is becoming a very popular option. It is also interesting to note that 4X4 vehicles have increased their market share from 8%-12% during three years of desperate recession.

What is an SUV?

A sport utility vehicle (SUV) is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. Usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle, some SUVs include the towing capacity of a pickup truck with the passenger-carrying space of a minivan or large sedan. [Wikipedia]

SUV/ 4X4 and insurance risks

Many SUV owners might not buy the vehicle for its 4×4 ability, but having these capabilities at hand, might provide additional safety concerns. We have referred to purchasing considerations as including the ability to go “anywhere” and the perceived “tough guy image”. This is exactly where the additional vehicle insurance risk can be found!

Owning and driving a 4×4 vehicle does not mean that the driver is capable of driving off-road safely. Without proper training a 4×4 could be dangerous in the hands of the inexperienced driver. Too many 4×4 vehicle roll-overs occur when drivers drive these vehicles at incorrect speeds and without the proper technique on gravel roads!

Insuring your 4×4 vehicle and communication with your insurer

The vehicle owner needs to pay special attention when insuring his SUV and 4×4. The type of vehicle that you drive and the purpose of use are important considerations in calculating the insurance premium payable! If the SUV is not to be used for rough 4×4 driving, you might need to communicate this to your insurer – or at least confirm that this vehicle does not attract a very expensive car insurance premium from your insurer.

Car Insurance Advice and suggestions for the SUV/ 4X4 Owner

The Car Insurance Blog at carinsurance.arrivealive.co.za would like to advise the following:

• Pay close attention to insuring your 4×4 or SUV.
• Shop around and compare insurance quotes from several providers
• Avoid additional risks and 4×4 insurance claims through a focus on safety.
• Focus on safety and driving skills on off-road and 4×4 terrain
• Improve your skills through accredited 4×4 driving courses
• Ensure that additional drivers also gain safe 4×4 driving training as well.
• Do not overload your vehicle and be especially cautious when towing

The Arrive Alive road safety website has made available several pages of content on 4×4 driving safety. We would like to urge all 4×4 vehicle owners to view the following section:

• 4×4 Off-Road Driving Techniques & Safety
• 4×4 Vehicle Insurance
 

Related posts:

1. Is the vehicle on the road to the matric farewell correctly insured?
2. Significant increase in October vehicle sales
3. NAAMSA reveals increase in vehicle sales

• I don’t think it is necessary – I am insured

The car insurance industry has experienced significant changes over the past 10 years. The internet has made possible new business models and has increased competition in the industry. Direct insurers and insurance aggregators/ comparison websites have provided competition to the traditional business models, benefitting vehicle owners both on product range and price.

Your car insurance premium should recognize these changes. By not comparing car insurance quotes – and communicating with your existing insurer – you might be missing out on significant savings.

• My broker knows best – I trust my broker with my car insurance

This might well be true – but even if you have a very effective and professional broker, you need to ask whether he is comparing car insurance quotes on your behalf. Your broker might have a long standing relationship with a specific insurer – and only market the products of that car insurance provider.
Ask your broker with which car insurance provider he has contracts with – and ask him to provide you with some comparative quotes.

Should you only rely on the advice of your broker – you will be missing out on offerings from the direct insurers who are cutting out the broker or “man in the middle” in an effort to reduce the costs of car insurance. Reducing or cutting out broker commissions could provide huge savings.

• I am afraid to do the car insurance comparison myself

Many might fear not being able to compare car insurance quotes. We do not all have the same level of financial expertise and might fear being lead on the wrong path. It might be worthwhile to test the car insurance aggregators or comparison websites. These are designed to allow for easy and swift comparison of car insurance quotes for basic needs.

You should be able to do so with ease. It is important to recognize that you can still use a financial adviser to assist in comparing these quotes. Rather pay him a fee for his professional services in assisting with car insurance quotes – and then save on the monthly broker fees and reduced premiums gained!

• I am not computer literate / Not comfortable with the internet

Many older vehicle owners might not be as comfortable doing business online as our younger generation. Car Insurers and especially direct insurers have however made the process of acquiring and comparing car insurance very simple.

You need not fear the internet – and even if you are cautious of technology – you can ask a broker or financial advisor to assist in using the internet. The internet could be used not only to compare prices – but also to do find and read more information about car insurers and their products.

• I am loyal to my broker

Many people have a blind loyalty towards their broker. They would stay with that broker or might even have “inherited” them from their parents. They will tend to stay with that broker come hell or high water – and might believe that raising the request for comparative quotes might be regarded as a lack of loyalty.
Times have changed however – and there is much less loyalty towards brands. If your broker is not comparing car insurance quotes or not keeping you updated on new products and possible savings – your loyalty might be misplaced.

There is nothing wrong with loyalty – but the professional broker or advisor will respect your desire to receive more information and to compare insurance quotes in the search for the correct product to meet your needs!

• I do not know how to compare car insurance quotes

There is no shame in admitting that you are not comfortable with the “How to?” of comparing car insurance quotes. This recognizes that you are someone not jumping into the process of making financial decisions. On the Car Insurance blog we will guide you towards making the correct comparisons. With the correct approach you will be able to find either confirmation that you are adequately insured – or will make big strides towards financial security and saving on expensive car insurance premiums.

• I have recently compared my car insurance

This is the best answer to the above question. We would advise that this comparison be made every year – either by yourself –or your broker. There is increased competition in the car insurance market, and “new generation” products are developed every year. Keep in mind that there are many other variables on the side of the vehicle owner as well, such as changes in occupation, marital status or even changes pertaining to your vehicle.

Compare your car insurance yearly to ensure that you have the best car insurance for your specific vehicle!!

Related posts:

1. Comparing car insurance by going online
2. Finding the very best car insurance quotes with caution
3. Are insurers making it difficult to compare car insurance quotes?

Before you switch your insurance, it is worthwhile to check with your existing insurer to see if he or she can match or do better than the new quote. Should you decide to continue with the switch – you would need to ask a few questions:

What do I need to know when switching car insurance?

It is important to recognize that once you have decided to commit yourself to changing car insurance providers, you need to be alert to potential pitfalls and dangers. Even though you might save on your monthly insurance premium – you might suffer financial harm if you take short cuts and not pay enough attention to performing this switch.

Communication and Notification of switching car insurance

You can only “switch” car insurance if you are insured. This brings us to the most important aspect of car insurance cover – you will need to consider what your existing car insurance policy says about termination of the agreement with them…

What does your car insurance policy say about termination?

A car insurance policy is an agreement between the policyholder and the insurer. In this you agree to specific terms and conditions and both have specific prescribed obligations. No switch should be performed without first considering the implications thereof on your existing insurance agreement!

Ask the following questions:

• What does my policy stipulate about termination?
• Is there a prescribed notice period? Do I have to provide a written note of cancellation?
• If I pay a yearly premium – will I receive a refund if I terminate early?
• Are there any cancellations fees?
• Is there perhaps a “cooling off” period?

What are the pitfalls and dangers when switching car insurance?

• The Uninsured Black Hole / Coverage Gap

If you are not cautious with regards to the dates when your existing car insurance policy is terminated, and when your new policy takes effect – you may find yourself in an uninsured black hole. Vehicle loss or damage during this time could spell financial disaster. If you leave a gap, even the slightest of accidents while you’re uninsured could wipe out any new policy savings you had anticipated.

• Cancellations fees / Loss of refund

You will need to take note of the terms and conditions of the existing policy to avoid paying more than is necessary on cancellations fees or risk losing refunds. Even if you don’t have to pay a penalty, when you cancel in the middle of a policy term you’ll have to wait on any refund of already paid premiums. Keep in mind that your old insurer will make the calculations on exactly when coverage ceased, meaning you could end up with less of a refund than you expected.

If the contract is not effectively terminated, you might incur further administrative effort and unnecessary time clearing your name as a bad creditor! Never just stop paying your premium – this could show up badly on your credit report.

Advice/ Suggestions

• If you proceed with the switch, make your cancellation a clean one!
• Notify your existing insurer and follow the cancellation steps as outlined in your policy.
• Be careful and coordinate the dates between termination of the old policy and activation of the new one.
• Give notice of cancellation in writing – This will protect against confusion and give you a record to fall back on if there’s any problem with the change.
• Ask for confirmation in writing as to the date that cover will be there no more!!
• Never cancel your existing policy until you know exactly when your new one begins.

With the necessary caution you should easily switch your car insurance to the new provider. Pay a little bit more attention in doing the research on providers – and a lot more attention to the terms and conditions of your car insurance policy! This should allow you the necessary cover and financial protection you deserve!

Related posts:

1. Finding car insurance by switching car insurance providers
2. Where do I find car insurance advice and educational information?
3. Car Insurance Blog celebrates a year of sharing information and advice

Car Insurance and making disclosures

The vehicle owner will only be able to find car insurance if he discloses a few secrets about himself. A car insurance contract is an agreement between a vehicle owner and an insurance provider that the insurer will provide cover in return for a [monthly] premium from the vehicle owner. This premium is calculated and quoted by the insurer after taking into consideration all the risks of insurance claims.

Calculating the risk of an insurance claim

The car insurer will take into account all the material facts to calculate the premium payable. Most of these facts are only known by the vehicle owner – and it is required that they be disclosed by the vehicle owner.

We would distinguish between the information only known by the vehicle owner, and the facts known by the insurer.

Material facts only known by the vehicle owner when applying for car insurance

These facts would include the following:

Personal details

• Name and surname
• Home address
• Identity number
• Years driving experience
• Accident record and info on traffic violations
• Driver impairments etc

Vehicle Details

• Make and model of vehicle
• Colour of the vehicle
• Kilometres on the clock/odometer
• Whether vehicle has been in an accident
• Whether vehicle is to be insured at market value
• Vehicle security features

Usage details

• Whether vehicle is for personal or business usage
• Who the regular drivers will be
• Estimated distance to be travelled
• Where vehicle is to be kept / garage etc

Material facts to be established by the car insurer

Not all the material facts are known only by the vehicle owner. The car insurer will have specific risk models to enable the insurer to calculate risks. The car insurer will have available information on the following:

• Vehicle accident statistics
• Vehicle crime statistics
• Geographical information and statistics pertaining to this specific area
• Vehicle market and replacement values
• Cost of vehicle repairs
• Cost of processing insurance claims
• Details on effectiveness of vehicle security systems and tracking companies etc..

Full and Complete Disclosure as requirement for Car Insurer

If you would like to find car insurance – You will need to disclose all the material facts to the car insurance company. Failure to do so might not only lead to a finding of car insurance fraud, but will also result in your claim being dismissed and the contract declared null and void.

The car insurance contract is an agreement based on good faith – and requires obligations from both parties. There should be no secrets when it comes to the obligation of full disclosure. Once you are ready to disclose all that is required – we can continue with the next step towards finding car insurance!!

Related posts:

1. Vehicle checks reveal alarming number of non roadworthy vehicles
2. Photos reveal funny truth about dangers of driving with paint in your car!!
3. Driving experience crucial to finding cheaper car insurance

Your Job/ Occupation and Car Insurance

The relationship between your job / occupation and car insurance is perhaps less obvious to most. It is however a factor to be considered by car insurers as it does provide an indication as to the amount of time you will be spending on the roads.

We have also shared some interesting insights on this topic in an earlier post titled “Which occupation has the worst drivers?” The answer to this question revealed some interesting findings from a UK insurer when analyzing accident claims and the occupations from the claimants. A similar study in the US revealed somewhat different results and even found that lawyers tend to be frequent claimants!

How does a change in occupation/ employment affect your car insurance?

We could answer this question only be getting back to the basics of car insurance. One of the material facts to be disclosed to the car insurer is the purpose for which the vehicle will be used. There is an important difference between whether the vehicle is to be used for personal and business use.

Once it has been made clear that the vehicle is to be used for business use, it becomes important in the risk assessment to categorize the use of the vehicle in a specific industry and the amount of exposure to risks on the road.

A medical sales representative would be on the road far more than the doctor or surgeon spending most of his time in the hospital theatre, only driving home after work. It is only logical that the increased risks of exposure on the road should be reflected in higher insurance premium. In the same manner that it is much more expensive to purchase life cover for a truck driver –it should be more expensive to find car insurance cover for someone that is on the roads most of the time.

Advice to vehicle owners changing jobs/ employment

In this tough economical climate, it is a blessing to have a job – and a risk to resign before having a new job lined up. The affect that a change in occupation might have on your car insurance premium might be the last thing on your mind. It is however important – not necessarily from an insurance premium point of view – but rather when considering the disclosures required from the vehicle owner / policyholder.

It is very important to communicate life changes such as the change in job / occupation with the car insurance company so that the insurer can update your details and confirm whether there is a change in premium.

It might well be that there is no change to our car insurance premium – but you will have the peace of mind that you are not in breach of contract and have made all the necessary disclosures!

Should you be in a “higher risk occupation”, but your daily activities do not necessitate much driving, this also needs to be communicated to ensure you are not paying too much for your car insurance premium.

You could also consider Pay as You Drive car insurance to reflect a fair premium for the reduced mileage that you travel!

We would like to urge all vehicle owners to check whether their car insurance profiles are updated. Do not risk having your car insurance claim challenged on the basis of inadequate disclosure!

Related posts:

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2. Pay As You Drive car insurance to benefit from changing work environment
3. City of New York looks to Pay As You Drive Insurance to change driver behaviour

Few drivers are comfortable driving on snow and ice. This is something seldom experienced on South African roads, and mostly only in specific parts such as the Eastern Cape. We have shared advice on the page Driving in Winter , but since most drivers have a lack of experience on driving in these conditions, it is important to share on the Car Insurance Blog some advice and safety tips from our road safety friends in other parts of the world.

It is always best to avoid driving in these challenging conditions if possible, and rather to stay at home. Unfortunately for many drivers this is not an option, and they have to be on the roads. We would like to share advice on how to correctly deal with driving in the snow. These tips are provided by an international driver with a vast experience of driving on snowy roads.

1. Get a grip. To have adequate snow traction, a tire requires at least 6/32-inch deep tread, according to The Tire Rack. (New passenger-car tires usually have 10/32-inch of tread.) Ultrahigh-performance “summer” tires have little or no grip in snow. [Those living in snowy areas in other parts of the world might have special snow tyres.]
2. Make sure you can see. Replace windshield wiper blades. Clean the inside of your windows thoroughly. Apply a water-shedding material to the outside of all windows, including the mirrors. Make sure your windshield washer system works and is full of an anti-icing fluid. Drain older fluid by running the washers until new fluid appears.
3. Run the air-conditioner. In order to remove condensation and frost from the interior of windows, engage your air-conditioner and select the fresh air option: It’s fine to set the temperature on “hot.” Many cars automatically do this when you choose the defrost setting.
4. Check your lights. Use your headlights so that others will see you and, we hope, not pull out in front of you. Make sure your headlights and taillights are clear of snow.
5. Give yourself a brake. Learn how to get maximum efficiency from your brakes before an emergency. It’s easy to properly use antilock brakes: Stomp, stay and steer. Stomp on the pedal as if you were trying to snap it off. Stay hard on the pedal. Steer around the obstacle. (A warning: A little bit of steering goes a very long way in an emergency) If you drive on icy roads or roads that are covered with snow, modify your ABS technique: After you “Stomp” and the ABS begins cycling — you will feel pulses in the pedal or hear the system working — ease up slightly on the pedal until the pulsing happens only once a second.
   For vehicles without ABS, you’ll have to rely on the old-fashioned system: You. For non-ABS on a mixed-surface road, push the brake pedal hard until the wheels stop rolling, then immediately release the brake enough to allow the wheels to begin turning again. Repeat this sequence rapidly. This is not the same as “pumping the brake.” Your goal is to have the tires producing maximum grip regardless of whether the surface is snow, ice or damp pavement.
6. Watch carefully for “black ice.” If the road looks slick, it probably is. This is especially true with one of winter’s worst hazards: “black ice.” Also called “glare ice,” this is nearly transparent ice that often looks like a harmless puddle or is overlooked entirely. Test the traction with a smooth brake application or slight turn of the wheel.
7. Remember the tough spots. Race drivers must memorize the nuances of every track, so they can alter their path for changing track conditions. You must remember where icy roads tend to occur. Bridges and intersections are common places. Also: wherever water runs across the road. Drivers have lost control on ice caused by homeowners draining above-ground pools and by an automatic lawn sprinkler that sprayed water onto a street in freezing temperatures.
8. Too much steering is bad. If a slick section in a turn causes your front tires to lose grip, the common — but incorrect — reaction is to continue turning the steering wheel. If the icy conditions end and the front tires regain grip, your car will dart whichever way the wheels are pointed. That may be into oncoming traffic or a telephone pole. Something very similar happens if you steer too much while braking with ABS. Sadly, there are situations where nothing will prevent a crash, but turning the steering too much never helps.
9. Avoid rear-tire slides. First, choose a car with electronic stability control. Fortunately, ESC will be mandatory on all 2012 models. Next, make sure your rear tires have at least as much tread as your front tires. Finally, if you buy winter tires, get four.
10. Technology offers no miracles. All-wheel drive and electronic stability control can get you into trouble by offering a false sense of security. AWD can only help a vehicle accelerate or keep moving: It can’t help you go around a snow-covered turn, much less stop at an icy intersection. ESC can prevent a spinout, but it can’t clear ice from the roads or give your tires more traction. Don’t let these lull you into overestimating the available traction.

[Advice from Mac Demere]

It remains most important to adjust speed to the driving conditions. Drivers need to be alert to the road conditions and allow them more time and space to avoid safety threats. Failure to do so might lead to more than just car insurance claims, but could also lead to loss of life!

Also view on the Arrive Alive road safety website:

• Driving in Winter, Driving on Snow and Ice

Related posts:

1. What is HD Traffic and how can it help me to avoid accident claims?
2. Avoid car accident claims from crashing into pedestrians!
3. Avoid unnecessary accident claims from potholes this rainy season

Perhaps the most important aspect remains however to increase awareness of the relationship between car insurance and road safety, and to urge vehicle owners to insure their vehicles against the risks of property damage and loss!

In South Africa car insurance is not enforced through legislation – and the sad truth is that only approximately 30% of vehicles on our roads are in fact insured!

Where do I start if I need car insurance?

The good news is that you have already started! By reading this blog post you confirm that you have either considered finding car insurance – or you are trying to find out more about car insurance. We could briefly summarize the early steps as follows:

Considering what is car insurance

There is no value in searching for something if you have no idea what you are searching for. We cannot guide you to right place to find something if you do not know what to look for when you get there.

You would either have been asked about whether your vehicle is insured, were urged by someone to find car insurance or have experienced a situation prompting you to find car insurance.

For anyone who has become a vehicle owner, it is most important to understand the basics of car insurance and to start the process of discovery that will ultimately lead to the correct car insurance product for that owner!

Why do I need car insurance?

In South Africa we are threatened daily by the risk of property damage and loss. We have grown up in this reality and live in gated communities, have alarm systems installed in our houses and observe security guards patrolling our neighbourhoods and shopping centres.

It is only logical that a vehicle owner will also reflect on his car and how to protect this car. Not only should it be protected from criminals and vehicle theft through layered vehicle security systems – but also through a car insurance policy!

With 10million vehicles on our roads, many driven by unlicensed drivers – the risk of accidents are considerable! In 2008 we suffered no less that 14,057 road fatalities – and tens of thousands more accidents took place on our roads.

Past versus present car insurance

The process of finding car insurance might differ significantly to that of the vehicle owners of 20 years ago. In the early years of vehicle ownership there were only a few well known brands around – and they were the trusted brands for our parents. You would most probably have approached an insurer on the recommendation of a parent or friend who have been loyal to that brand for a number of years.

There were only limited choices available amongst both providers and products. This has changed significantly with the development of the internet and online businesses.

Today we find hundreds of insurers competing for a limited number of vehicle owners. We can find car insurance through brokers, direct insurers, insurance aggregators, comparison websites etc. You can do so by meeting with a broker, requesting a quote online or merely making a telephone call!

Conclusion

Car Insurance has become a maze of products and providers. Even though competition is good for the consumer, and every owner should be able to find the appropriate product for his specific needs – this might be challenging for the less skilled vehicle owner. There are simply too much jargon, clauses, and finer technical details to allow for easy comparison of terms, conditions and benefits.

We will strive to assist our vehicle owners in a short series of blog posts titled “Finding car insurance”, and discuss the process of finding car insurance in an easy to understand manner from the very start to signing on the dotted line!!

Related posts:

1. Finding car insurance – but only if you are willing to reveal secrets
2. Driving experience crucial to finding cheaper car insurance
3. Finding the very best car insurance quotes with caution

Basics of the Car Insurance contract

To understand why your marital status is important for car insurance, we need to briefly reflect on the basics of how your car insurance premium is calculated. The actuaries at insurance companies have developed mathematical/ statistical models to establish specific risk categories.

This will determine the risk that a specific group of insured clients will present to the insurer – or in simple terms – the chances of receiving accident claims from these clients. These risks are covered by the car insurance company at the payment of a car insurance premium.

It is important to recognize that these risks vary from time to time – and this could be explained with reference to a few of the following variables:

Changes in the insured vehicle

The cost of the insured vehicle might depreciate – or a more expensive vehicle might be purchased and might need to be insured, additional vehicles added etc

Changes to the regular/ designated driver

• The regular driver might change or a new regular driver might be added etc
• The regular driver will get older or a child might be added as a regular driver

Changes in usage of the vehicle

• The vehicle might be driven in a new “risk area”, i.e. new town or city.
• The purpose of use might change from business to private use or vice versa

Change in vehicle security considerations

• The vehicle might have security systems/ tracking devices removed or added.
• The safekeeping of the vehicle might change from an enclosed garage to an open bay parking etc.

Marital Status and Car Insurance

The above variables are closely related to the marital status of the vehicle owners. We can discuss this with reference to the following scenarios:

Getting married

Shortly after the fairy tale wedding a couple will need to consider their financial and insurance needs. Most couples will cancel individual policies and initiate new ones as a married couple. There might well be significant savings by insuring your home as a married couple and by having two drivers on one car insurance policy.

Moving into a house together might also provide evidence to better vehicle security in an enclosed security complex, enclosed garage etc, depending on the unique circumstances of the couple. The couple might purchase a new vehicle or both might become regular drivers of both their vehicles.

Getting divorced

Divorce can also affect the price you pay for car insurance. After the divorce you and your former spouse will both need to get your own car insurance policies. Depending on your circumstances, you may need more or less coverage. The parent who has custody of a teen driver, for example, may need to pay more.

It is of the utmost importance to carefully consider the terms of a court order or agreement between the parties. Such an agreement would stipulate who is responsible for the payment of a vehicle, car insurance premiums and whether the monthly payment for a vehicle tracking system is catered for etc.

It might well be that one of the parties relocate to another town or “risk area”, change employment or move in with another party who might also become a regular driver of such an insured vehicle.

Advice to people changing their marital status

It is important to remember that these facts are only known by the insured vehicle owner and not the car insurance company. The car insurance company has no way of guessing what is going on in the personal lives of their clients – and only provide cover under the terms of the insurance contract based on the material facts disclosed by the vehicle owner.

If these material facts change, the insured vehicle owner is contractually obliged to disclose this to the car insurer. Failure to do so could result in an car insurance claim being dismissed on account of breach of the car insurance contract.

When last have you checked your car insurance contract?

We would like to advise all vehicle owners to ensure that the information on their car insurance policies is indeed correct. Life changes and shit happens – avoid tears and frustration by communicating with your car insurance company to secure your financial well-being!!

Related posts:

1. How does depreciation in the value of my car affect my car insurance premiums?
2. How much does my home address affect my car insurance premium?
3. Your colour does affect car insurance in South Africa

What is “fronting”?

Vehicle owners regard fronting as a method to get a better deal on their car insurance. Parents with children who drive are the biggest culprits for fronting, and do so in an attempt to cut the cost of young drivers’ car insurance.

This is also used by young and new drivers confronted with expensive car insurance premiums. By allowing an experienced driver to become the main driver on their insurance policy, they find that they pay significantly lower car insurance premiums.

Research on car insurance fronting in the UK

Newly released research results in the UK reveal that high numbers of “fronting” take place on roads in the UK. Parents are claiming to be the main drivers on the policy, when in fact it is one of their children who are the main driver, or owner of the car.

New figures suggest that 41% of parents deliberately lie when filling out policy applications. Research by Co-operative Insurance found that 41% of parents were actually fronting policies at the moment, and 61% would do so in the future.

What are the risks of Car Insurance Fronting?

• Car insurance fronting constitutes fraud and parents risk criminal prosecution
• Parents reduce their chances of obtaining insurance in the future
• Insurers could refuse cover, and deny insurance in the future.
• If the driver of “the insured vehicle” is at fault in causing injury to a third party, such insured fronting party will have to pick up their costs as well.

The survey revealed that hard times may be forcing parents to try and save money on insurance. But it warns that if they do so illegally, the ultimate price could be prosecution.

Conclusion

The Car Insurance Blog would like to emphasize focusing on the terms of the contract. Always remember that the car insurance policy is a contractual agreement between the vehicle owner and the car insurance company. The monthly premium required is based on a FULL DISCLOSURE of ALL MATERIAL FACTS!
Should you fail to disclose all these facts – you will be in breach of the contract and the claim under such contract would be rejected.

Also view:
What is car Insurance Fronting?

Related posts:

1. What is car insurance “fronting”?
2. Car insurance premiums should sometimes come down!
3. Would you lie on your car insurance claim?