Posts Tagged ‘Cheaper car insurance’

UK based car insurer Coverbox partners with Ctrack for Insurance Telematics

Ctrack Intelligent Solutions

The Car Insurance industry is abuzz with developments in technology and ways to better measure driver behaviour. The accurate measurement of driver behaviour through vehicle telematics is seen as the best way to reduce car insurance premiums for safe drivers. In the UK, where vehicle owners may not drive uninsured, special concern has been raised about the affordability of car insurance premiums for younger drivers. Additional pressure on Car Insurers have come from the European High Court when it was decided that it amounts to discrimination to make a distinction in car insurance premiums based merely on gender.

This makes it even more important for Car Insurers to select the best vehicle telematics partner.

UK based Pay As You Drive Insurer Coverbox

A partnership between pay-how-you-drive insurer Coverbox and vehicle tracking & movement monitoring technology market leader Ctrack looks set to drive vehicle insurance telematics forward two generations.

A clear demonstration that Ctrack is able to comply with Coverbox’s 18-point device strategy means that Ctrack’s massively-advanced interactive devices will soon be establishing new levels of data provision from vehicles to which they are fitted as part of pay-how-you-drive insurance products.

“We’re developing and progressing our soon-to-be-launched behavioural insurance product at an exciting rate, and it’s all hot in the wheeltracks of a resounding report which looks set to change the way car insurance premiums are set. This moves vehicle insurance telematics two or three generations beyond current equipment capabilities,” said Johan van der Merwe, deputy chairman of Coverbox on the eve of Insurance Telematics 2012 in London.

“We have a clearly-defined device strategy – built around financial and supply security of the device company, as well as installation standards and control of tamper and removal security – and Ctrack meets and even exceeds our requirements.

“We know we shook a lot of people in the insurance industry by commissioning a report which reveals that there’s an overwhelming case for changing the way the insurance industry sets premiums – but the re-insurance industry simply cannot ignore the level of information and quantities of data the Coverbox-Ctrack combination will make available through a highly advanced interactive device and supporting monitoring and analytics.

“The Holy Grail of the vehicle insurance industry is analysing and concluding the cause, process and effect of a vehicle accident or event – without giving the game away, we’re currently piloting absolutely tamper-proof interactive devices which provide previously unheard-of levels of data, but which also monitor and record driving behaviour and vehicle movement for a significant period before any sort of harsh or severe event.

“There is also the potential – even now – of incorporating overt or covert video recording into the system.

“We have also carried out tests to assess various on-board telematics devices’ response to being swapped in and out of vehicles, and we’re actually quite surprised at some of the results and responses.”

CtrackDriving Vehicle Insurance Telematics forward two generations

Saleem Miyan, managing director of Ctrack Europe Holdings Limited, said: “Pardon the pun, but we’ve been looking for a vehicle for our two-generations-on insurance telematics technology, and it is pretty clear that Johan van der Merwe and his Coverbox team have a vision and understanding which provides that vehicle.

“Coverbox’s team are not ‘make-do’ guys – we’ve walked into an environment in which not only do they recognise Ctrack’s potential impact, they’ve embraced it and catapulted it forward even further.”

Coverbox’s report into the vehicle insurance sector will be presented to a select panel of leading insurance companies in due course.

“What it reveals is that there’s an overwhelming case for changing the way the insurance industry sets premiums: we can record, analyse and compare driving behaviour as against applying insurance ‘proxy ratings’ – we get factual driving information, and base rates on driving style and location rather than lifestyle and home address,” said Johan van der Merwe.

“Ctrack’s technology is simply jaw-dropping in the context of pay-how-you-drive as Coverbox sees it.

“The report illustrates that both insurers and drivers will be better off if insurance is rated on driving style rather than lifestyle, and that good drivers don’t suffer from the behaviour of bad drivers – and Ctrack’s product and technology takes monitoring and recording to an utterly higher plane.”

Coverbox pay-how-you-drive insurance allows drivers to take out comprehensive cover paid for by the mile, with the price per mile varying according to the time of the day or night: off-peak, peak or “super-peak” times, and how the driver drives.

All Coverbox policyholders have a personal website enabling them to see precisely how many miles they are driving, and what the cost is. The technology behind Coverbox is based on proven equipment and technology.

D du Rand - 2011 head & shoulders

Deon du Rand, Executive Director Strategic Projects, Ctrack

Ctrack in the UK and Ireland are divisions of DigiCore Holdings, a global company listed on the Johannesburg Stock Exchange. Founded in the 1990s, DigiCore specialises in the research, development, manufacturing, sales and support of technologically advanced tracking and resource management solutions.

Under the Ctrack brand, DigiCore offers a wide range of vehicle location, personal and lone worker tracking, fleet and work flow management, satellite navigation and security tools – with cost effective and scalable solutions that offer a unique combination of flexibility, reliability and functionality. As a result, more than 600,000 systems have been fitted in 50 countries across five continents, making DigiCore the most comprehensive industry service provider worldwide.

Also view:

Telematics Expert to address European Conference on Reinventing Telematics and Vehicle Insurance

For more on vehicle and insurance telematics also view:

What is Insurance Telematics and how will it impact on car insurance?

Vehicle Insurance Telematics

Driver Intelligence to be measured by Discovery with Discovery Insure

Outsurance activates technology to reward safe driving behaviour

Pay As You Drive and Car Insurance

Vehicle Telematics, Accident Investigation and Fleet Management

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Driver Behaviour Measurement the Path to Affordable Car Insurance Premiums

Written on February 14th, 2012 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, Car Statistics, Pay As You Drive

ctrack

It appears that even the politicians have seen the light on the path towards affordable car insurance premiums! The Independent reports that in the UK Prime Minister David Cameron is adding his voice of support to the process of using “black boxes” as a tool to measure driver behaviour and reduce car insurance premiums, especially for the younger drivers. We would like to share some information from the story by Nigel Morris that appeared in The Independent.

It is expected that the insurance premiums for newly-qualified young drivers in Britain could be cut by as much as up to £700 (R3500) a year if ‘black boxes’ are fitted in their cars.

What are these “black boxes”?

This is not a unique device and I am proud to say that they have been used in South Africa for quite a while. These devices are an extension and refinement of technology that has long been used in the fleet management industry.

These tamper-proof smartboxes, usually installed under the bonnet, use satellite navigation and G-force technology to monitor the cars’ speed, braking, acceleration and cornering and how often they are driven at night. Full details of their drivers’ behaviour on the road are regularly updated.

Does it help young drivers?

It is important to recognise that drivers are by law required in the UK to have car insurance and that especially the younger male drivers find it extremely difficult to find affordable car insurance premiums.

Co-operative Insurance, which launched the scheme last year, said drivers aged 17 to 25 with a black box in their car were less likely to be involved in a crash. They can typically receive more than £500 (R6000) reduction in their initial premium in return for having the device fitted.

Support from Government for Insurance Telematics

Prime Minister Cameron will back calls for ‘telematics’ to be rolled out more widely across the industry.

David Neave, the Co-operative’s director of general insurance, said: “The cost of insurance has hit an all-time high, especially for young drivers who feel that they are being priced off the road.

“Many young motorists who drive safely are picking up the tab for the ones that drive recklessly. However, the black box allows people to pay a fair price for their cover, determined by how well they drive.”

2416_1437_Durban - 09 June 2011 (2)

Insurance Telematics and Car Insurance in South Africa

All the major South African Insurers have recognized the potential and importance of insurance telematics as the best way to individualize car insurance and provide accurate premiums based on the scientific data of how a person drives. Some of these may be more advanced than others, but there is no denying that the premiums calculated according to the very real risks you present is the way forward for car insurance!

It is well worth noting that even expertise from Formala 1 is at present used in some of these most advanced driving behaviour measurement systems. I would like to quote from a post on Insurance Chat:

“There are thousands of pieces of very precise scientific numbers and data provided by the Formula 1 Racing car to the racing engineer from which very important decisions have to be made is splits of a second. This begs the question – What if such data could also be delivered to benefit a mutually beneficial relationship between the owner of an insured vehicle and his car insurance company?

With this in mind Rory Byrne has been appointed as Special Engineering Advisor to Discovery Insure. Rory Byrne has assisted in applying his expertise in motor vehicle dynamics to develop the methodology behind the Driver Quotient™, which uses the latest motor vehicle telematics technology and proprietary algorithms to develop a scientific measure of driver behavior, the Driver Quotient, or DQ.

A Discovery Insure client’s Driver Quotient encapsulates the key measures of their driver intelligence. VitalityDrive measures the Driver Quotient based on the number of DQ Points earned and will reward safe driving behaviour!

Rory Byrne has confirmed that during his visit to South Africa several working sessions have been held with Ctrack, the vehicle telematics partner of Discovery, and there will be continuous development as more feedback from the insured clients and their vehicles become available.

Vehicle telematics technology will measure parameters such as excessive breaking, harsh cornering, speeding etc. This data, along with the traditional parameters of distance travelled, time of day travelled, area of operation etc will provide a very accurate risk profile to the insurer.

One of the biggest benefits of this advanced technology will be that drivers will be motivated to drive in manner that is safe and responsible. This will be done 24/7 and will not only reduce the financial risks to vehicle owner and insurer – but might save lives and prevent injury to other road users as well!”

Also view:

Can Insurance Telematics fill the missing link for effective traffic enforcement?

Will Insurance Telematics settle the eternal debate of who is the best driver?

Conclusion

The critics who have always made an argument against “black boxes” on the potential threat of privacy now has to acknowledge that not only the harsh financial reality has favoured a shift towards insurance telematics –but so too the fairness of a tool for calculating premiums based on scientific data! It is only fair that you should not be thrown into a specific risk category – if you drive safely and responsibly you should be rewarded with a more affordable car premium than the guy who simply do not care!

For more on how data from traffic flow is used in insurance products also view:

Hollard and Pay As You Drive  - see “Pay As You Drive”

Outsurance and Safe_Driver@Out  – see “Outsurance activates technology to reward safe driving behaviour”

Discovery and Vitality Drive – see “Drivers have an IQ, EQ and now with car insurance also a DQ”

MiWay and MiDrivestyle http://www.miway.co.za/midrivestyle

B23 Hollard_PAYD_578x90

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Petrol price increases to affect transportation costs and the way we drive!!

Written on April 28th, 2011 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, Pay As You Drive

pertol_increaseRoad users are having to pay more and more for their driving! The fuel price will increase by 29 cents a litre on Wednesday.

The diesel price is also going up by 16 cents a litre from next week.

The increases come as new figures show that Producer Price Inflation, the increase in prices at the factory gate, has risen.

New figures released on Thursday show that PPI was 7.3 percent year on year in March, up from 6.7 percent in February.

PPI measures the average changes in prices received by domestic producers.

Economist Chris Hart said this will lead to higher food prices.

“This number would be quite a bit higher if the rand had been weaker. The big saving grace for South African inflation so far has been the strength of the rand,” he said.

[Info from Eyewitness News]

It is expected that vehicle owners will have to consider closely how they drive, how far they drive and how they can reduce unnecessary travels.

We would like to urge vehicle owners to pay close attention to their car insurance in the same way that they do with their other vehicle costs. If you drive less – consider an insurance product that allows you to pay for how much you drive!

Also view: Pay As You Drive and Car Insurance

Vehicle and Insurance Telematics

What is Insurance Telematics and how will it impact on Car Insurance?

B23-Hollard_PAYD_578x908

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Why do I pay more for car insurance in Johannesburg than elsewhere in South Africa?

JHBWe have discussed on the Car Insurance Blog the factors contributing to the cost of car insurance premiums. These include driver characteristics, vehicle characteristics, purpose of use and usage, area where the vehicle is to be driven etc.

But why is the area important?

Car insurance premiums are paid to cover the risk of vehicle loss and damage – and claim statistics reveal to car insurance companies that there is a greater risk of claims in specific areas! These greater risks can be attributed to:

-          More vehicle accidents on the roads in a specific area

-          Increased criminal activity and incidents of hijacking, vehicle theft and smash-and-grabs

Why do we have more accidents in a specific area?

We would like to offer the following contributing factors:

-          Greater number of vehicles on the roads

-          More licensed and unlicensed drivers

-          Increased traffic congestion

-          Hectic lifestyles contributing to speeding, road rage and frustrated driving behaviour

-          Road conditions, road works and potholes in a specific area

-          Weather conditions and road hazards from rain, hail, mist, smoke etc

All of the above could result in more expensive car insurance premiums payable for driving in Johannesburg. Car Insurance companies have very detailed claims and crime statistics at their disposal to calculate the risks in a specific area – and car insurance in Johannesburg is definitely more expensive than the smaller cities and towns

There could however, on a lighter note, also be enough other reasons why drivers in Johannesburg should expect to pay more for insurance. A regular visitor to the Arrive Alive website shared the “Rules for driving in Johannesburg” – examples of unsafe behaviour on our roads!!

Rules for driving in Johannesburg

1. Never indicate – this will give away your next move. A real Johannesburg driver never uses them.

2. Under no circumstance should you leave a safe distance between you and the car in front of you, this space will be filled by at least 2 taxis and a BMW, putting you in an even more dangerous situation.

3. The faster you drive through a red light, the smaller the chance you have of getting hit.

4. Never, ever come to a complete stop at a stop sign. No one expects it and it will only result in you being rear-ended.

5. Braking is to be done as hard and late as possible to ensure that your ABS kicks in, giving you a nice, relaxing foot massage as the brake pedal pulsates. For those of you without ABS, it’s a chance to stretch your legs.

6. Never pass on the right when you can pass on the left. It’s a good way to check if the people entering the highway are awake.

7. Speed limits are arbitrary figures, given only as a guideline. They are especially not applicable in Johannesburg during rush hour. That’s why it’s called ‘rush hour….’

8. Just because you’re in the right lane and have no room to speed up or move over doesn’t mean that a Johannesburg driver flashing his high beams behind you doesn’t think he can go faster in your spot.

9. Always slow down and rubberneck when you see an accident or even someone changing a tyre. Never stop to help – you will be mugged.

10. Learn to swerve abruptly. Johannesburg is the home of the high-speed slalom driving thanks to the town council , which puts holes in key locations to test drivers’ reflexes and keeps them on their toes.

11. It is traditional in Johannesburg to honk your horn at cars that don’t move the instant the light turns green. This prevents storks from building nests on top of the traffic light and birds from making deposits on your car.

12. Remember that the goal of every Johannesburg driver is to get there first, by whatever means necessary.

13. On average, at least three cars can still go through an intersection after the light has turned red. It’s people not adhering to this basic principle that causes the big traffic jams during rush hour.

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Car Insurance only covers the Market Value of your Car

Written on October 25th, 2010 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, Cheaper car insurance

MARKET VALUEToo view insured vehicle owners keep a close eye on their vehicle insurance. Every month the debit order amount reduces our bank balance – and we tend to see this car insurance premium as a “necessary evil”.

We often do not even open our correspondence from the car insurance company – and only comment with disgust when receiving an alert of escalating costs.

On the car insurance blog we have given advice on how to find cheaper and affordable car insurance – and recognize that there are indeed many ways to save on car insurance premiums at the time of purchasing car insurance.

Can we save on car insurance premiums once we are already insured?

A very important aspect to consider is the yearly depreciation of the insured vehicle. Your vehicle is insured at market value of the vehicle and this value depreciates or reduces as time goes by and the vehicle gains more and more mileage…

It is important to recognize that if your vehicle is damaged, stolen or written –off/ totalled, the car insurer will consider the market value of that vehicle at the time of such damage and loss – and not the value at the time when you first insured the vehicle.

What is the market value of your vehicle?

Market value is also often referred to as “fair” value. It can be described as the price an item can be sold or bought for between an agreeable (willing) and knowledgeable buyer and seller in an open market transaction. It is the current value of an item, if it were to be replaced by an identical item, being of similar age and wear and tear. This value is calculated at a specific time – the time the loss took place.

A better understanding is possible if we take a closer look at 3 different values:

* Retail Value: Refers to the price a car dealer might be able to sell the car for.
* Trade Value: Refers to the price a dealer might pay you should he buy the car from you.
* Market Value: Is halfway between the Retail and Trade Values.

Why is this market value and depreciation important for my car insurance premium?

Most insurers will only insure your vehicle at the current market value. You need to ask whether your car insurance premium keeps track of the depreciating market value. If you insured the vehicle at the time of purchase for the purchase price of R200,000 but now, 5 years and 150,000 km later the vehicle is only worth R80,000 – there is no sense in still paying the insurance premium that was required to cover an asset of R200,000. Your insurance premium should provide cover for an asset to the current market value of R80,000!!

Not all contributing factors to the car insurance premium depreciate!

Even though the depreciating market value should also reduce your car insurance premium – it is important to note that the reduction might not be as significant as you might expect. There are other factors that will, as time goes on also add upward pressure on the premium.

These include:

* Normal inflationary pressure can increase car insurance premiums by anything between 5% -15% yearly
* Increased perceived risks as a result of vehicle damage [accidents , potholes] or vehicle loss [accidents, crime]
* Even though your vehicle might reduce in market value – the costs of repairing such a vehicle after an accident might still increase.
* Vehicle parts needed for repairs might continue to become more expensive despite the market value of your car decreasing.

This is perhaps an explanation of why there is not an automatic reduction in the car insurance premium in line with the depreciation of your vehicle – and also why it might be a good idea to tie down the insurance premium for 2 or 3 years.

Advice to vehicle owners

Car Insurance should not be seen as a once-off but rather as something that requires more regular attention. We would like to advise that vehicle owners pay closer attention to the correspondence from their insurers or brokers.

Communicate more regularly with your insurer, and keep your ear to the ground for “newer generation products” etc. Do a yearly quote request and compare your existing insurance with products available that could provide the exact same cover at more favourable rates.

The car insurance industry is highly competitive – and this should benefit vehicle owners. Do not let laziness or apathy make you pay much more than you need to!!

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Many vehicle owners lie to find cheaper car insurance

Do-you-lie-to-find-cheaper-car-insuranceWould you lie to save on your monthly car insurance premium? We have written many blog posts on car insurance fraud and how this blue collar crime is increasing the car insurance premiums.

This most often focuses on fraudulent statements made at the time of making the car insurance claim.

These lies are usually related to disclosures of the following:

• Details of the driver at time of the accident
• Details of security features active during time of vehicle theft/ alarm systems etc
• Details of how the vehicle was lost or suffered damage
• Details of where the vehicle was parked, etc

These lies are most often motivated by fear that the accident claim could be rejected on account of the vehicle owner not complying with some of his obligations under the policy contract.

It is however also at the time of purchasing a car insurance policy that many vehicle owners resort to making untruthful statements/lies! It is important that we focus on the dangers of these fraudulent statements and warn consumers about the possible consequences.

Research in the UK on car insurance lies

Recent research in the UK has made available some shocking revelations:

• 38% of UK drivers have admitted lying to get a better premium.
• Men are more likely to be dishonest than the fairer sex, with nearly half admitting to fibbing to get cheaper cover.

What do they lie about?

• Drivers are most likely to lie about annual mileage (14%)
• Where they keep their car (8%)
• The value of the car (7%)
• Adding named drivers onto policies whom the owners suspect will never drive the car.

What motivates vehicle owners to lie when purchasing car insurance?

• 71% of those who lie on their car insurance (http://www.confused.com) applications say that they do it to save money
• 12% consider it worth the risk of having to pay out in the event of the accident to save on their premium.

Conclusion and advice

We would like to recognize and quote from Confused.com who made available these interesting research findings:

Will Thomas, head of motor at Confused.com, says: “When it comes to motor insurance, lying really doesn’t pay. By failing to tell the insurance provider your true circumstances you are risking invalidating your cover entirely, which ultimately means you are uninsured. Whilst it’s easy to think you will never be caught out, insurance companies are getting savvier, particularly in these hard financial times, and lying is a type of fraud. Having your cover invalidated not only has ramifications for you and the repair of your car, but also for any other driver involved in the incident – there is no limit to the costs that may be incurred in the event of an injury”

Perhaps keeping a clear conscience and acting with integrity in business dealings do count for more than a few rands in savings on your monthly car insurance premiums.

Do not tell the truth merely because you are afraid of your claim being rejected – tell the truth because it is the right and honourable thing to do!!

We would like to urge all vehicle owners to view the following:

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Lazy consumers will not save on car insurance!

to_lazyLazy is perhaps too strong a word to describe some consumers – perhaps apathy would be a better description. Apathy can be described as a sense of indifference, a lack of interest displayed and often such a person might exhibit sluggishness. We would like to argue that many vehicle owners display apathy with regards to their car insurance cover.

Consumers are not afraid to complain about escalating costs and bad service. They are far less likely to share compliments and tell one another of their good experiences with service providers such as insurance companies, cellular phone providers and rental agencies.

We tend to console our friends who have experienced treatment that is not fair. We also share our advice and personal expertise in these matters. In many of these cases there is little that we can do i.e. when we are caught at the mercy of a specific body corporate or local municipality. There is however also opportunities where a bit of extra homework and effort could lead us to a better or more affordable provider of services to meet our needs.

Criticism of increased car insurance premiums

If you are one of those consumers/ vehicle owners who are criticising the car insurance companies for increases in your car insurance premiums – we would like to consider your scenario and reflect on possible solutions.

We could perhaps start by asking 3 simple questions:

• Do you know the exact amount of your car insurance premium?
• When last have you checked your short term insurance statement and the specific amount payable for your car insurance premium?
• What would you have paid for your car insurance premium with 2 other insurance companies?

Even though many consumers are complaining about expensive premiums – it appear that few are doing something about it! They simply continue with the status quo and seldom put in the effort to look for alternatives.

Research undertaken by price comparison site in the UK – oneysupermarket.com, discovered that a quarter of drivers didn’t bother seeking out cheaper car coverage, even though they could save more than £230 a year on average by doing so.

UK Research on comparison and automatic renewal of car insurance

• 10% of motorists said they simply couldn’t be bothered shopping around for a better price
• 15% were under the misguided impression that they wouldn’t be able to find a cheaper provider.
• Across the UK, 36 per cent of motorists were willing to hunt out a less expensive policy, with the savviest savers based in Yorkshire and the Humber (46 per cent), Wales (44 per cent) and the West Midlands (41 per cent).
• Younger motorists – aged 18-34 – were more willing to change car insurance providers, switching suppliers on average every 1.8 years.
• Drivers over 55 were more likely to stick with their current provider, staying loyal to them for an average of 3.5 years, although this loyalty doesn’t seem to translate to cheaper prices.

Steve Sweeney, head of car insurance at moneysupermarket.com, said:
“Our research shows people can save £233 on average a year by scouring the market – that’s nearly £100 more compared with last year. Providers count on apathy to reap the profits and do not reward loyalty with a cheaper premium. In this current climate, it is shocking to see the sheer scale of drivers who won’t spend a few minutes to see if they can save money when renewing their car insurance.”

Conclusion and advice

It is not only the consumers in the UK who fail to regularly monitor their car insurance premiums and compare their premiums with other policies on the market. South Africans also are often blindly loyal and oblivious to huge savings available.

On the Car Insurance Blog we advise vehicle owners on finding the correct car insurance. This is however not to mean that the insurance product that you have found 5 years ago- and which was perfect for your needs at the time – is still the correct and most affordable premium at this time!!

There are many reasons – including life changes – why it might be important for you to review your car insurance cover. We would like to advise that you either do comparisons yourself by going direct – or, if you still work through an insurance broker – that you ask him to provide you with at least 2 car insurance quotes from competitors in the market!!

Also view:

Pay As You Drive

Cheaper Car Insurance

Comparing Car Insurance

B25 Hollard_PAYD_705x90

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Effective history checks could provide cheaper car insurance premiums

historyCar insurers are constantly reviewing strategies and investigating measures that could reduce the pricing pressures on car insurance premiums.

Inflationary pressures will not go away – and there will always be rising costs in employment, administrative costs, cost of repair, vehicle parts etc.

Not much can be done to reduce these escalating costs – but there might be other initiatives to reduce car insurance premiums!!

One of the most important measures is to ensure that the risks of accident claims are measured correctly. It is important that car insurance clients are correctly insured and that they pay the correct premium for the “claims risk” that they present!

If some vehicle owners pay too little and claim often – they will add to the pressure of expensive car insurance premiums for the whole client base.

Claims history and disclosures made by the client

Not only is car insurance fraud during the claims process hurting car insurers – but also the failure to make proper disclosures on signing the car insurance policy!
Too many clients – especially younger vehicle owners – try to gain cheaper car insurance premiums by not making a full disclosure of all the material facts. If this is discovered after a claim has been submitted, the claim could be rejected by the insurer as it amounts to breach of the policy agreement.

It is however also important for car insurers to pay closer attention to the disclosures made by the vehicle owner when his premium is calculated and before the policy document is signed! Applicants attempting to secure car insurance could be subject to additional background checks, which could keep premiums down in the future.

Insurance representatives are in agreement that greater attention be given to effective history checks of claims records and driving behaviour. One of these experts has noted that “It is not fair that safe, law-abiding drivers should pay higher premiums to subsidise people who lie about their previous claims to get cheaper insurance”.

Conclusion

Vehicle owners need to be active participants in this process – and blow the whistle on car insurance fraudsters. Cheaper car insurance requires that no client is able to take “short cuts” at the cost of other vehicle owners.

We would like to urge all vehicle owners to pay close attention to the terms and conditions of the car insurance policy and to make a full disclosure of all the material facts that have an effect on the car insurance premium. Be alert to others who pride themselves in saving money at the cost of honest policyholders – and alert the insurers to these consumers!!

Also view:

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Searching for cheap car insurance gets fast…very fast!!

fastMore and more vehicle owners go to the internet in the search for affordable car insurance. Car Insurance companies have in recent times discovered that that they simply cannot do without an online strategy – and millions are now spent on websites, search engine optimization and content management.

Google and faster searches

Most of these searches are performed on the Google search engine – Google is the world’s No.1 search engine, but is facing increased competition from Microsoft Corp’s Bing search engine.

Google has recently revealed that searches are getting faster and faster. I have come across interesting insights shared via the website of FOXnews.com and a story titled “Web searches just got faster, Google claims”

I would like to share some insights from this story:

Google Searches and Predictive Text

How is web search speed measured?

Web search speed used to be gauged by how many mouse clicks they took. Google has not taken the click out of the equation. After several enhancements to its Internet search engine the new Google search engine will predict your query as you type and deliver results simultaneously — no more clicking for results.
Google claims its Google Instant technology will shave two to five seconds off every web search.

“Our key technical insight was that people type slowly, but read quickly, typically taking 300 milliseconds between keystrokes, but only 30 milliseconds (a tenth of the time!) to glance at another part of the page,” the company explained. By presenting results as you enter your search, “you can scan a results page while you type.”

Search Rankings and Search Results for the Keywords “Car Insurance”

What is the affect of these changes on Car Insurance Companies and their SEO strategy?

With so many car insurance providers and advertising strategies – it is of extreme importance for car insurance companies that their offerings can be found with ease and that they feature prominently in search results.

These changes and enhanced speed could have a significant impact on the bottom-line of some direct insurers. According to Adam Bunn, head of search at independent search and social marketing agency Greenlight, some websites may suffer a drop in traffic thanks to the changes.

Many sites buy advertising space based on long multi-word keywords, he explained, and as people see results that may be appropriate before they finish typing such keywords, those ad dollars may be wasted — and traffic may suffer.
Website optimization and the keywords “Cheap Car Insurance”

The experts believe that online marketers from car insurance companies will have to review the keywords used in their search engine optimization strategies.

“If a website has optimized for and holds good rankings for ‘cheap car insurance UK,’ that term may lose search traffic as UK users find that the shorter ‘cheap car insurance’ returns several relevant looking results, negating the need to finish their sentence,” Bunn said.

On the other hand, should less common topics should see even fewer page visits, the cost of buying ads that target those pages may drop, he pointed out.

Conclusion and advice

Google said the technology will also be available in many more countries in several weeks. This will be noted by local car insurance companies and we can conclude that South African car insurers will work closely with the experts in the online industry to ensure that their products can be found fast and with ease.

The car insurance industry can only benefit from faster search results. It is important that more vehicle owners on our roads are insured – and if they can use the internet to find the correct affordable car insurance -so much the better for road safety!!

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Finding car insurance – but only if you are willing to reveal secrets

Written on June 21st, 2010 by admin
Categories: Car Insurance Advice

Finding-car-insurance-but-only-if-you-are-willing-to-reveal-secretsIn this series on finding car insurance we would like to take the potential client through the process of acquiring a car insurance quote – from the very start to signing on the dotted line. We would like to do so in an insightful but easy to understand manner, not only to provide an easy solution – but also to shed some light on why we provide the advice we would like to offer.

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!!

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