The number of people buying cars is about to increase, according to reports from the AA.

However, people are planning to spend less money on a car than previously. Of those questioned, 32 per cent said they are planning to spend between £5,000 and £10,000 on a vehicle this year, which marks a three per cent drop on 2009.

More people are also planning on spending less than £5,000 on a car this year, with 23 per cent looking in this price bracket compared to 19 per cent the year before.

Mark Huggins, director of AA Financial Services, said: “I have no doubt that the extension of the car scrappage scheme to the end of February 2010 is helping – but if this isn’t extended again new car sales could slow down again.”

Taking out a new insurance policy may be a priority for many this year, following the bad weather seen recently. The AA reported that on December 21st last year it received 644 claims.

©2012 MoneyBlog. All Rights Reserved.

It has been reported that thousands of drivers may be cancelling car, van and motorhome insurance policies in order to save more money during the recession.
In a study by Friends First, more than one in ten consumers have cut back on their insurance coverage in order to fund household bills and buy food during the winter.
Of the number of people who have reduced their insurance spending, one in four have stopped paying for vehicle insurance, the study revealed.
Friends First also reported that individuals have also been cutting back on their travel, life, home and income protection policies.
Head of marketing at the firm, Eamonn Twomey, said the results of the study were “quite alarming’, given the problems caused by such drivers in the event of an accident.
Last month, Ajay Shah, head of motor customer service at ICICI Lombard General Insurance, said consumers could save money on their insurance policies by shopping around and assessing the market.

©2012 MoneyBlog. All Rights Reserved.

According to Which? Car, customers who choose to buy their new cars online could be making big savings for themselves.
The consumer group described the option as a “win-win situation” and stated that buying a car online provided financial benefits as well as offering additional legal protection when it was compared with purchasing a vehicle from the forecourt.
After doing comparison research between the online prices and the showroom, Which? Car found that 12 out of 14 new cars are cheaper online, with five of the models being offered for £5,000 less when bought over the web.

Buying a car online also offers the seven-day protection of the Distance Selling Regulations, when consumers can decide to reject the vehicle and get a refund.

Richard Headland, editor of Which? Car, said: “Not only can buyers find bargain prices online – without haggling with a salesperson – they have better legal rights too.”

©2012 MoneyBlog. All Rights Reserved.

According to recent reports, car insurance providers are increasingly refusing to provide cover for young motorists.
According to the BBC, insurance firms are concerned about rising claims costs and are becoming increasingly unwilling to accept the greater risks associated with drivers aged between 17 and 22.

The news provider reports that some providers are offering no deals for such motorists, while others are “simply pricing them out of the market”.

The BBC added: “There is a particular problem with young drivers crashing with their friends in the car with them – accidents that lead to large liability payouts,”

As a result, few providers are offering male, first-time drivers a quote of under £3,500 a year, it is claimed.

Last week, Steve Chelton, insurance development manager at car insurance provider Swinton, said young drivers are particularly at risk of accidents on UK roads, meaning it is vital they gain sufficient experience before taking their test.

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A warning from uSwitch advises motorists to stay on the lookout for carjackers when they de-ice their vehicles.
They estimate that as many as 42 per cent of motorists will keep their car running while they are waiting for the ice to clear off their windscreen, leaving the vehicles at risk of ‘frost-jacking’.
Many people start their vehicle and go indoors while waiting for their car to de-ice, which leaves them in a vulnerable position should someone choose to take their vehicle, despite 16 per cent of people admitting that they are concerned about the safety of their vehicle when it is left unattended with the engine running.
Insurance expert at uSwitch.com said: “Insurers are likely to take a dim view on a claimant who has left themselves vulnerable to crime in this way.”
Having their car stolen might not be the only thing worrying drivers lately. The price comparison site has noted that the roads have been damaged by the bad weather seen this winter, which is making driving conditions difficult.

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Many businesses are now encouraging their employees to use their own vehicles, but are not advising them about taking out business insurance on their cars.

If you are driving your own vehicle for business purposes, you are at risk of driving uninsured, according to Gocompare.com.

Research by Gocompare.com, the price comparison site, found that 72 per cent of people have used their cars for work purposes in the last year, although only 35 per cent knew they were supposed to have insurance coverage specifically for using their cars for business.

The owner of the vehicle may be left to pay the bill for any repair work if a car is not insured for damage sustained when being driven for business reasons.

Business development director of Gocompare.com, Lee Griffin, said: “Employers have a legal responsibility to ensure that, irrespective of its owner, vehicles used on company business are safe to use – this includes being fully insured for business usage.”

Insurance costs are also hitting young motorists, with £5,371 being the average sum needed to get an individual on the road, the price comparison site reported recently.

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A second bout of cold weather as people return to work after the holidays could double the number of accidents on UK roads.
According to Swiftcover, a car and motorhome insurance firm, the expected increase in accidents today will result from a combination of bad weather and millions of extra cars on the roads during rush hour.
Adding to the pressure on Britain’s roads is the school run, which accounts for 18 per cent of peak traffic.
According to Swiftcover, the increase in claims made during the first two working days of 2010 will be much more than the standard 21 per cent rise in claims associated with the winter months of November to February.
Underwriter director at Swiftcover, Craig Staniland, said that many motorists fail to adapt to the conditions and drive too quickly. “Drivers should take this onboard as they head out onto the roads on January 4th and 5th; leave a bit earlier and drive more carefully. That way you hopefully won’t see the New Year in with your car in for repair.”

Co-operative Insurance urged drivers to plan ahead when making journeys by car.

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According to Stayeley Head, a specialist van and motorhome insurance firm, now could be a good time for firms to consider expanding their fleet. They say investing in a new fleet can save firms money and they can actually avoid paying excessive mileage expenses to employees who use their own vehicle for business purposes.

Another benefit, according to this firm, is that having a dedicated fleet of cars or vans means the company can guarantee their vehicles are roadworthy, correctly taxed and insured.

“With many businesses struggling at the moment, the cost savings which are to be had by investing in an in-house fleet of vehicles make it a sensible option,” according to a spokesperson for Flintshire-based Stayeley Head, “The example of public sector organizations, who have managed to slash costs by employing a fleet is one which the private sector would be wise to follow.”

The spokesman also said that fleet vehicles are always more closely monitored than private vehicles and are usually more likely to be environmentally friendly.

Using nitrogen to inflate company car tyres helps improve pressure retention, which improves handling and durability, according to recent research from America.

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According to Devon and Cornwall police, car and van owners should not give thieves the opportunity to steal a vehicle or its contents by leaving their vehicle unlocked and unattended while it heats up.

Car and van owners could invalidate their motor insurance if they leave their vehicle unattended while they wait for it to defrost in the morning, it has been claimed.

Mark Humphries, police constable said: “Unfortunately, if a vehicle is stolen in this manner, people will also get a frosty reception from their insurance company as loss from leaving keys in an unattended vehicle leaves policies void. Many people are caught-out this way… don’t get complacent because your car is parked on your driveway or directly outside your house.”

At the end of last year, the Financial Ombudsman Service reminded car and motorhome insurance policy holders that most insurers have a clause that invalidates cover if drivers leave their keys in or on their vehicle.

It is recommended you stay in your car while it is warming up.

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The number of claims for stolen cars has increased over this holiday period, according to the AA.

Claims received by the insurance provider are up 40 per cent due to the bad weather, so far this winter.

Many drivers who had to abandon their cars in the snow are finding they have been damaged or broken into.

Motorists are also warned that thieves often wait for a person to turn on their car engine and then leave the car unattended, in order to steal the vehicle, especially expensive vehicles.

Cars that have been left with their keys in the ignition by the driver are not covered by insurance policies.

The AA has already reported a large increase in the number of claims due to the bad weather, with December 21st seeing over 500 claims, almost twice the average figure for a Monday in winter.

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