Simon Douglas, director of AA Insurance says: “Nationally, the damage to cars caused by potholes in February alone cost insurers around £2.85 million, the equivalent of about 1,900 claims.

“But that’s just the tip of the iceberg, because it takes serious damage to make it worth [an] insurance claim. Garages and tyre centres are dealing with countless thousands of punctured tyres, damaged tracking or broken springs which don’t justify making a claim.”

North Yorkshire county council has been forced to introduce a ‘pothole tax’, the equivalent of a weekly 8p increase in council tax to fund its repair programme which, the AA says, local people will find hard to swallow, especially pensioners and families who do not drive.

Commenting on the tax, AA president Edmund King says: “Local roads are in a dreadful, dangerous state and emergency funding is desperately needed to stop the plague of potholes. However, with the motorist already paying £46 billion per year in various motoring taxes and only a small proportion spent on the roads, it would be highway robbery to demand more money from local people.

“The government intends to increase fuel duty on April 1 by approximately 2.5p per litre. If this fuel windfall was diverted into pothole repairs then all of the UK’s potholes could be funded and filled in 100 days.”

According to a poll the car insurance provider carried out earlier in the year, 33% of motorists in the UK would like to save money on their car insurance in 2010. When asked what their New Year’s resolutions would be, 13% said they wanted to keep the roads safer by avoiding speeding (13%) and losing their temper (19%), but the majority were focused on reducing their car insurance premiums.

According to Be Wiser Insurance chairman, Mark Bower-Dyke, drivers could do this by using its services. “When motorists say they want to pay less for car insurance they may just be looking for a better deal,” he says. “This is something they may not always get from large comparison sites which tend to focus on the lowest price.” Added to this, he points out, all Be Wiser Insurance policies come with free legal protection and RAC cover as standard.

“The poll shows some motorists may feel they don’t get value for money from their car insurance,” continues Mr Bower-Dyke. “Making sure you are fully covered, whatever happens is always the most important factor when thinking about car insurance.

“New Year’s resolutions have a habit of being forgotten about. Yet getting a good deal on car insurance is a new year’s resolution which could stick.”

Overall, 18% of motorists have at least one conviction, while 4% have two or more. This compares with 14% in a similar AA survey carried out a decade ago.

Simon Douglas, director of AA Insurance, says: “The vast majority of convictions—85%—are for speeding offences. [The] second most likely offence is for jumping traffic lights (9%), while a worrying 2% are drink-drive offences. Men are more than twice as likely to have a drink-drive conviction than women.” Driving without insurance or while using a hand-held mobile telephone are also common offences.

The UK’s most law-abiding motorists are in Northern Ireland with just 9% of men and 6% of women holding motoring convictions. Drivers in the Midlands topped the list with 31.5% of men and 16.6% of women having been convicted for a driving offence.

Mr Douglas adds: “Most people won’t be surprised to find that younger drivers are most likely to have convictions. Almost a quarter of men in the 25-34 age bracket (23.4%) have at least one motoring conviction. Men aged 25-34 and 35-44 are equally likely to have two or more convictions (6.3%). But for women, those aged 35-44 are more likely to have picked up a motoring offence with 18% overall having done so and 4% with two or more to their name.”

Mr Douglas adds that the rising number of speed cameras could be a significant factor in the increase in driving convictions over the last ten years. “It’s also noticeable that the gap between men and women with convictions is closing,” he says. “A decade ago, 11% of women had convictions; today it’s 15%, a rise of 4%. And today, 20% of men have a conviction, a rise of 3%.”

Mr Douglas concludes: “Whatever your age or sex, insurers take notice of driving offences, especially multiple offenders and this is reflected in premiums. That’s because regular offenders are much more likely to make an insurance claim than those who have a clean license. Keeping the right side of the law is one of the best ways to keep your insurance premiums in check.”

Conducting a survey to find out exactly what people aspire to give up for Lent, Tiger.co.uk found that many drivers said they would be giving up bad driving habits.
The responses it received explaining what people have decided to give up included: “developing a mad rage toward other drivers”; “talking so much I get distracted”; “threatening my husband with things I later regret”; “snoozing at red lights”; and “trying to spray the obnoxious convertible in front of me with wiper wash”.

While almost half of males claim to be perfect drivers (41%) compared with just 35% of women, research by Tiger.co.uk shows men have greater room for improvement when it comes to driving distractions. Almost twice as many male drivers (17%) admitted needing to stop eating and drinking, reading maps and even changing clothes behind the wheel than their female counterparts (10%). According to the company, 6% of men admitted to checking out good looking drivers while they are behind the wheel compared with just 3% of women.

Graeme Kalbraier, managing director at Tiger.co.uk, said: “It’s understandable that people will get into bad driving habits over the years, but it’s really encouraging to see many of these bad habits cast aside for Lent, or hopefully longer.”

He added: “As a gesture of good will at this time, we are donating £1 for every policy bought in the month of March on the Tiger.co.uk website to tiger conservation.”

Clare Francis, site editor at moneysupermarket.com, said: “After months in the cold and dark, spring is just round the corner and what better time to take charge of the family’s finances by checking to see that you’re making the most of your financial products. There are some really easy savings to be made, just by spending half an hour reviewing where you’re at financially. It’s easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant.”

While insurance is essential for financial security and peace of mind, moneysupermarket.com is urging people to opt for the best value cover at a level that is relevant to their needs. Many people make the mistake of overestimating the level of cover needed on their home and car insurance, it claims.

Moneysupermarket.com points out that paying annually for cover instead of monthly can cut the cost of a premium. Meanwhile, adding a partner to a policy can help cut car insurance costs, as can adding an older driver if you are a younger driver.

On average, consumers who use moneysupermarket.com to switch car insurance provider alone can save £196, it claims.

The campaign, which launched last August 2009, has driven a 20% increase in customer numbers to Gocompare.com over the last six months and, during the first two months of 2010, has helped generate more than four and a half million insurance quotes.

The campaign stars opera singer Wynne Evans, who recorded the reworked George M Cohan classic ‘Over there’ as well as acting in the adverts.

Gocompare.com’s head of marketing, Nick Hall, said: “We’ve seen a dramatic increase in brand awareness since the campaign started, up by 450%, which puts us at the top of the price comparison category, and this has ultimately converted into record customer numbers. The aim was always to differentiate the brand and put some fun and personality into the ads, and to-date it has worked exactly as planned.

“Gio is a great character with huge audience recall and we are looking forward to developing the campaign further in 2010. It will be interesting to see how Gio evolves.”

‘Fronting’ occurs when people lie on their insurance application forms in an attempt to secure a cheaper car insurance policy. However, esure points out that this type of fraud is a false economy and is likely to result in the policy becoming invalid in the event of a claim.

Mike Pickard, head of risk and underwriting at esure car insurance, said: “Fronting is fraud despite many people thinking it is a legitimate way of massaging premiums down with a few white lies. The simple rule is that if you’re deliberately trying to give your insurer the impression of a low risk set of circumstances when you know that the truth is different, you are probably fronting.

“Cases where parents are effectively trying to transfer their own no claim discount to an inexperienced driver on a car they simply don’t drive are fronting, plain and simple. Parents may be tempted to do this to slash the cost of their son or daughter’s car insurance but, if detected, insurers could treat the policy as invalid. Honesty is the best policy when it comes to car insurance.”

The company trains its staff to be on high alert for tell-tale signals of fronting at both at the point of sale and at the claim stage.

According to the company, many drivers hit the road in their new vehicle without fully understanding how the car works. The poll found that only 12% of car drivers read the manual properly before driving off in a car (new or used) for the first time. Furthermore, 35% don’t read the manual at all and 51% just flick through it. M&S Car Insurance found that women are more likely to drive a car without reading the manual (40%) compared with 30% of men.

Almost a fifth (19%) of drivers work out how to use the car’s features, such as the windscreen wipers, hazard lights and CD player, as they drive along. As a result, only 21% of drivers feel very confident they know how everything works before taking their car out for the first time.

M&S Car Insurance’s research showed that the top five issues drivers struggle with are: finding the handle to open the bonnet; working out how to use the CD player or radio; working out how to alter the seat position; finding the headlights switch; and working out how to use the windscreen wipers.

David Wells, head of insurance at M&S, said: “Whether it’s a brand new car or a used vehicle, most garages should talk you through a vehicle before you drive it away. To avoid taking risks and potentially causing an accident, it is important to take time to familiarise yourself with the features of a car that’s new to you.”

A consumer study involving motorists across ten European countries revealed that UK drivers take to the roads more frequently and cover more distance than many of their European counterparts. Furthermore, the study suggests UK motorists are more resistant to ‘green’ initiatives and are only really likely to make a change if there is a financial implication.

The study showed that 84% of Brits drive every day compared with the European average of 78%, while 54% of motorists in the UK drive more than 10,000 km each year compared with 51% in the rest of Europe.

Just 19% of UK drivers cover less than 5,000 km a year compared with an average of 23% elsewhere in Europe, and 30% said they are totally against a reduction of the speed limit to help reduce CO2 emissions and pollution. In other European countries the average is 25%. Just 16% of UK motorists would be very favourable towards a speed reduction to reduce emissions and pollution compared with a European average of 19%. This compares with 30% of Italian drivers who said they are very favourable towards the proposal.

UK drivers are likely to drive less when it costs more. The study showed 76% would reduce mileage if there were fuel increases compared with the European average of 64%. However, once fuel costs return to normal levels, they are likely to return to the roads.

Tina Shortle, marketing director at AXA Insurance, says: “It is clear that environmental matters are less of a concern for British drivers, but is that because we don’t care as much or because our public transport system cannot always give us an equivalent alternative?

“AXA is committed to reducing the effects of climate change and establishing how we, as one of the world’s largest companies, can make a difference in the markets in which we operate.”

The company recently launched a new direct car insurance product and offers discounts for those who drive less. “But we will be looking carefully at how we might further incentivise British motorists to reduce their CO2 emissions,” Ms Shortle says.

With the new ‘10′ car registration plates having launched on March 1, it is prime season for motorists to renew their car insurance. However, the comparison site’s research reveals drivers are set to waste £180 each, or £1.3 billion collectively, by sticking with their existing insurer and not shopping around.

The research shows that more than one in five drivers (22%) automatically renew their car insurance policy with their existing provider rather than seeking out a better deal. Of these, 14% don’t believe they can find a better deal, and 8%, or 2.7 million motorists, will automatically renew their insurance because they cannot be bothered finding out whether they could save money.

Drivers in London (30%) and the North East (28%) are the worst culprits for not shopping around, according to the study. The research showed drivers remain faithful to their provider for an average of 2.8 years, with motorists aged 55 and over the most loyal of the age groups, sticking with their providers for an average of 3.5 years. Geographically, motorists in the North East are the most loyal, continuing their policy with the same insurer for an average 3.4 years.

Steve Sweeney, head of car insurance at moneysupermarket.com, says: “When newly insuring a car, providers may lure drivers in with a competitive deal or special discount in the first year which is not ordinarily available to existing policy holders. Rest assured if you can’t be bothered to shop around in the second year, the providers will be rubbing their hands with glee as a renewal price will often include a hefty premium; hardly the thanks deserved for being a loyal customer.”

Mr Sweeney adds: “Providers count on customer apathy to reap the profits, so it is alarming so many motorists are prepared to waste their hard-earned cash by not looking for a better deal. Even if you think your quote can’t be beaten, it only takes a few minutes to make sure you really do have the best value policy to suit your needs. In addition, if you have not made a claim in the past twelve months, you should normally expect to pay less than you did the previous year.”

The company’s database reveals that 9.61% of all motor claims were made by drivers with five-year-old cars compared with 2.3% for cars that are less than a year old. Four-year-old and six-year-old cars weren’t far behind (9.56% and 9.08%, respectively).

Cars that are between three and six years old account for nearly 40% of all claims, despite representing less than a quarter (24%) of cars on the road, Virgin Money Car Insurance says.

Data from the Society of Motor Manufacturers and Traders shows that 7.4 million of the 31.2 million cars on UK roads are between three and six years old. However, the insurance provider found from its own database that these cars account for 37.3% of all claims.

Spokesman for Virgin Money Car Insurance Grant Bather says: “Drivers tend to change their car every three to five years and on this evidence they have some justification.

“This is not to say that cars [of] five years old are the most dangerous, but that they are more likely to be involved in an incident that leads to a claim being made. This may be a traffic accident, breakdown or theft.”

Mr Bather concludes: “Looking at these statistics, people looking at buying a second-hand car should also make sure that they have taken the necessary action to ensure that the car meets all of the road standards.”

It claims an estimated 36,000 parents are illegally adding their children to their car insurance policies as a spouse or partner, a practice known within the industry as ‘fronting’. It also believes this type of fraud has almost doubled in the last two years.

According to swiftcover.com, one in four policy holders it contacted to raise concerns about their motor insurance cover admitted they had added their son or daughter as a spouse or partner rather than as a named driver. Although these drivers claimed they had done this by accident, the majority chose to cancel their policies and seek insurance elsewhere rather than agreeing to pay a higher premium.

Robin Reames, claims director at swiftcover.com, says: “Trying to buck the system by fronting is not only illegal, it actually ends-up costing law-abiding motorists if they are involved in an accident with a fronted driver who is actually an uninsured driver.”

He adds: “The expense of uninsured drivers and fraud is pushing up the cost of insurance premiums for everyone, so parents who think they are helping by fronting for their children are both breaking the law and making car insurance more expensive for everyone else. We understand that insurance is costly for younger drivers, but premiums reflect the number of claims they are involved in and therefore the level of risk they pose.”

The company explains that insurance companies share information to help spot attempted fraud. For example, older policy holders who add a spouse or partner who is much younger are likely to have their insurance reviewed and face additional checks.

If fronting is proven, the younger driver’s insurance policy becomes invalid, the driver faces a fine and penalty points for driving without insurance and any insurance claims they make will be rejected. This not only leaves them out of pocket, but could potentially see them face further legal action if any third parties are involved in an accident. Added to this, the younger driver and policy holder committing the fraud face much higher insurance premiums in the future and may even be turned down by some insurers.

According to Sainsbury’s Car Insurance, a third of drivers—around 11.4 million in total—do not bother to check the weather forecast before setting off on a journey despite poor driving conditions in many areas. Even more worryingly, more than a quarter (27%) drive without clearing frost or mist off their windscreens properly.

The company’s research showed that an estimated 800,000 claim to have had an accident after ignoring advice that motorists should stay off the roads unless it is absolutely necessary.

During previous periods of snowfall, Sainsbury’s Car Insurance has recorded year-on-year spikes in insurance claims of up to 45%. It adds that drivers should be aware of ‘frosting’ car crime, where opportunist thieves take advantage of drivers who leave their cars unattended while warming up the engine. An estimated 15,000 households could fall victim to ‘frosting’ this year, its research suggests.

Ben Tyte, Sainsbury’s Car Insurance manager, says: “UK motorists have a typically stoic approach to driving in wintry conditions, and if they start to become complacent and think the worst weather is behind them, they could increase their chances of having an accident in the coming days and weeks. Drivers should continue to take basic steps to ensure their own safety and that of other road users, especially while wintry conditions persist.

“They should also be alert to the risks of leaving their engines running whilst unattended. If their car was stolen with the keys in the ignition they would most likely not be covered by their insurance policy.”

Figures from the Transport Research Laboratory (TRL) reveal that the proportion of drivers guilty of this offence has risen from 2.6% in 2006 to 2.8% in 2009. The company implies that using mobile phones while driving distracts drivers, making them four times more likely to crash.

The findings were surprising considering the increased penalties that have been introduced. Until two years ago, people using mobile phones while driving simply received a £30 fine. However, the latest regulations mean that drivers caught talking on their phones can be fined £60 and may receive three points on their licences.
Edmund King, president car insurance provider AA, told the BBC: “I think we need more police campaigns, I think we need more publicity campaigns. If you think back to seat-belt wearing, ‘clunk, click, every trip’ gradually had an effect but it does take time.”

Young Marmalade recently introduced a lower-cost car insurance scheme for 17- to 25-year-olds providing they do not drive between the hours of 11pm and 5am. Those who drive at these times incur a £45 charge.

The company will use the ikube, a GPS system developed by Motaquote and Royal & Sun Alliance Group, to monitor when young drivers are on the road. Because a high proportion of accidents happen late at night, it is hoped the scheme will help to combat the problem.

According to spokesperson for the Association of British Drivers Nigel Humphreys, the scheme is undoubtedly a good one in theory, but in practice it will depend on whether the highest-risk drivers take it up.

“I think it’s something that young people are going to go for. I would prefer to see this formalised. However, people who would take it up are probably the people who wouldn’t have any accidents anyway. That’s the danger of these things.”

The car insurance provider has issued the warning following the news that Chelsea striker Didier Drogba was caught driving without a valid insurance policy or licence last week.

The footballer was pulled over in his Mercedes SLR near his home in Oxshott, Surrey, and although he passed his test in his native Ivory Coast homeland and holds an international driver’s licence, he has not passed a test in the UK. The Chelsea striker also wrongly believed he was covered under his French car insurance policy.

Swinton explains that international and European drivers who have lived in the UK for a year or more must ensure they have a valid UK driving licence and have adequate insurance or they could face a ban and fine of up to £5,000.

Steve Chelton, insurance development manager at Swinton, said: “Didier Drogba can expect a hefty fine and penalty points for driving without insurance and a licence. Driving without insurance is a serious offence which can result in an immediate disqualification from driving. A driving ban can often be in the region of 28 days but can also be substantially longer for repeat offences.”

Admiral questioned 3,000 motorists and discovered that 73% had left personal items on display in their unattended cars this year, up from 71% last year.

The most common items left on show were coats and jackets; 59% of motorists admitted they had left these in their unattended cars, up 3% from 2008. Other items that are more frequently left on display than last year are CDs, handbags and MP3 players.

Admiral managing director, Sue Longthorn, said: “It’s a worrying trend that more motorists are happy to leave expensive items on show in their cars. It only takes seconds for an opportunistic car thief to break a car window and grab what’s inside.

“At this time of year, people will often leave their Christmas shopping on show on the back seat of their car. For a criminal this is an open invitation. Think how heartbroken you would be if you had your presents stolen.”

Admiral’s research also showed fewer motorists are concerned about car crime this year. It found that 76% of motorists frequently or sometimes worry about their car being broken into or stolen compared with 80% in 2008. Furthermore, only 30% said they thought car crime has increased over the last year compared with 37% in 2008.
Admiral’s own statistics back this up. The percentage of its customers who have made a theft claim has fallen year-on-year since 2005, it says. However, the company is concerned that this trend could be reversed if too many motorists become complacent.

More than this, moneysupermarket.com claims it has transformed the way people handle their money. Now people can research products such as car insurance, pensions and mortgages before they buy, comparing hundreds of deals before they commit to buying. While ten years ago consumers were walking down the high street looking for the best financial deals, they can now compare deals without even leaving the house. This gives consumers greater control over their money and less pressure to sign up to a specific deal. For example, car insurance customers can choose between deals from more than 100 brands before they buy.

According to moneysupermarket.com, 63 million customers visited the site in the first half of 2009. It estimates that customers will save more than £400 million by using the site this year alone.

Ian Williams, director of communications at moneysupermarket.com, said:

“Moneysupermarket.com has prospered and made it from dot com start up to being a FTSE 250-listed business in ten years because it is genuinely useful to customers.

“Before moneysupermarket.com, shopping around for financial products, for those that could be bothered, meant giving up a Saturday morning to tour branches or work your way through the Yellow Pages. Today, shopping around for financial and travel products is as quick and painless and millions of our customers have benefited by using our site to switch and save money.”

“Young drivers have traditionally had a tough time finding affordable car insurance, but all that’s about to change,” says Paul O’Gorman, group director of Quoteline Direct. “Insurance premiums are calculated to reflect risk and because young drivers are statistically more likely to have accidents their premiums are understandably higher.”

The company noticed there was a trend when it came to the number of car insurance claims being made and decided to respond.

“If you dig a little deeper into the figures they make for illuminating reading,” Mr O’Gorman says. “Traffic accidents peak after dark, making daylight drivers both safer and less likely to make an insurance claim.”

He explains that the company’s aim is to help these safer drivers avoid paying for accidents caused by young, night-time drivers. “It’s this group of statistically safer daytime drivers that we are appealing to,” he explains. “All we ask is that you don’t use your car between 11pm and 5am and in turn we can arrange comprehensive cover at a much lower cost.”

To ensure that motorists stick to the agreed hours, a small GPS device is fitted into the car and an additional fee of £45 is charged if the vehicle is used during these forbidden times. Whatever time the driver is on the road, they will be fully insured and will be able to build up a no-claims discount as with a standard car insurance policy.

“The feedback has been really positive,” Mr O’Gorman claims. “Young drivers would rather be on the road in the daytime than off the road and saving up. Parents have welcomed the product as it’s easier on their pockets and gives them peace-of-mind. And road safety campaigners have also lent their support.”

Author of the ‘Web Aggregators 2009: The bubble is about to burst’ report, Mike Powell, who is insight analyst for general insurance at Defaqto, said: “Although most sites allow the user to change the voluntary excess to a level that is more acceptable before quotations are provided, it is an easily missed question. It is certain that there are some customers who either do not read the question or simply do not understand what is asked of them. Automatically defaulting to a higher excess takes away the need for the customer to understand what is being asked.”

He continued: “For example, if an aggregator defaults to a voluntary &poiund;500 excess, quotations that are provided are based on this level of excess. If the customer chooses an insurance provider whose compulsory excesses are not clearly stated, they could find themselves with an excess of &poiund;600 or more when they need to claim. This clearly is not treating customers fairly and aggregators must remove the automatic defaulting of excesses and allow the customer to make their own choice.”