Car Insurance Black List
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Added: 31-01-12
- It is becoming apparent than car insurance companies are secretly blacklisting certain postcodes which is why honest motorists are facing soaring premiums as a 'fraud epidemic' sweeps the country.
Motorists have seen a record 40% hike in premiums over the past year, with the average annual comprehensive policy forecast to break the 1,000 barrier within the next 12 months. Car insurance companies say a major reason for this increase is fraudulent claims that are estimated to cost 2.7bn a year, adding 44 to the annual premium of honest motorists.
David Ward, Liberal Democrat MP for Bradford East has said that the situation for some areas of Bradford is now 'fast becoming ridiculous.' The Nunn family have now been forced to sell the car, simply as the insurance costs were unaffordable. My Nunn has commented: 'My son is car mad like me, but now his aspirations of running his first car at 17 have been blown right out of the water because companies are charging extortionate prices because they want to get their losses back."
3. Marital Status - regardless of driving history, married people would still pay less car insurance premiums compared to single people.
Birmingham is the worst 'blackspot' and generates almost one in ten of the suspicious claims. This compares with fewer than one in a hundred in West London. This analysis, which is given to car insurers, also shows huge variations within individual towns and cities. For example, the postcode B8 - east of Digbeth in Birmingham - generated almost 13% of suspicious claims in the city. Meanwhile, B15 Edgbaston in Birmingham accounted for just over 1%.
In response, the Association of British Insurers has said it welcomes the chance to discuss what needs to be done to ensure people in Bradford get the very best possible motor insurance deal. Unfortunately, it appears that most feel that the reason there are so many uninsured drivers in the area is of course due to the obscene
The result of all of is that even law-abiding drivers without a claim to their name who live in these areas can struggle to find affordable insurance. Stories of drivers having their
The cost of your car insurance policy is based on your age, sex, zip code, driving history, coverage type, make, model, engine size, the car's safety car insurance rates record and the likelihood of it being stolen.
4. Accident Claims - certainly, when you have more car accident claims under your belt, then you're more likely to pay higher insurance compared to those who've clean records.
Some insurance companies take a drivers' credit history into account when configuring the car insurance quote. If you have a low credit score, it is more likely that you will stop making payments on your insurance. However, once your credit score is factored in, most people end up with a lower rate
6. "I only need the minimum coverage."
Each state has set the required minimum level of insurance coverage, here in California it is $15,000 per person injured, a maximum of $30,000 per accident and $5,000 property damage liability. These limits are very low. Emergency medical services are very expensive and car insurance rates $5,000 worth of damage can be exhausted in a very minor fender bender between two relatively new vehicles. It is a serious mistake to maintain these low coverage levels. You could face a serious financial collapse if you find yourself paying out for medical bills and property damage as a result of being under-insured. Being under-insured could make you vulnerable if another driver decides to sue after an accident.
7. "Insurance companies make up their prices and charge whatever they want."
Insurance companies are required to describe how the rates are calculated and then the rates must be filed for review and for approval or rejection. Any increases or decreases must be filed through the state of California department of Insurance for a review and then the rate is accepted or rejected.
8. "My insurance covers any car I drive."
Some insurance polices, called broad coverage policies, transfer coverage to a vehicle that is made available to you on an incidental basis. Every policy is different. Some companies only transfer the minimum state liability requirements while others are a true broad coverage policy that transfers your specific liability limits. However, many insurance policies are restricted policies or named-operator insurance policies that only cover the named drivers, everyone else is automatically excluded and coverage is not afforded.
9. "If my car is stolen, my insurance company will pay off the loan."
If you bought GAP Insurance when you bought your vehicle, this is true. However, if you have comprehensive insurance and your car is stolen or totaled in an accident, the insurance company will establish the fair market value of your pre-accident vehicle and pay you the actual cash value. This estimation excludes finance charges, interest rates, licensing fees, taxes and other charges you may have accrued throughout the lifetime of your loan.
10. "My insurance company will pay for my car rental."
Your insurance company will not pay for your car rental unless you have purchased car rental expense. This coverage is typically sold only in conjunction with comprehensive and collision coverage.
It is important to car insurance rates read and understand your insurance policy. It is also important to ask questions and address your concerns to your agent.
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