Lawyers Drive Up The Cost Of Car Accident Claims.

Car insurance premiums have risen steeply in the last year at a rate of 5.9%, which is almost three times the rate of inflation as measured by the Consumer Price Index. The cause of this rise is being touted as an increase in the amount of compensation being paid out to accident victims. Higher medical bills and ongoing care arrangements are costing insurers huge amounts in compensation and this is being reflected in the premiums they charge.

In the mid 1990s the European New Car Assessment Programme was brought in as a measure of car safety across all car categories. It is now the accepted method for rating cars according to their ability to minimising the effects of a side or head on collision. Most new cars nowadays receive a 3 or 4 star rating due to better vehicle design and more safety features. The good news is that the likelihood of surviving a car crash is significantly higher in today’s vehicles. The bad news is lawyers are cashing in on this by pushing for higher sums of compensation even for accident victims with minor injuries.

Legal costs have also increased significantly over the years earning traffic accident lawyers the title of ‘ambulance chasers’. The insurance industry claims that the cost of car accident claims is rising by 10 per cent every year, in part because of the legal fees involved. At present the average claim takes just under a year to settle with some cases being open for up to two years. Two years of legal representation is going to cost a lot of money, which ultimately the insurers will end up paying. It seems like the legal system at the moment is too much in favour of the lawyer and until a simpler method of sorting out claims is devised compensation payouts and the insurance premiums which pay for them will continue to rise.

The Association of British insurers is currently lobbying the government to allow a quicker method of sorting out claims to be introduced. For small claims under £25,000 it has been suggested that a straight forward streamlined way of handling claims will mean fewer lawyers will need to be involved and bring down the costs of administering the claim.

However, it must be noted that the rising cost of compensation claims is not entirely due to increased compensation for the accident victim, but also due to the fact that newer safety features in cars cost more to fix and replace. Larger crumple zones and more airbags add to the cost of repairing the vehicle and this cost must be passed on to the drivers. Although due to the competitive nature of the insurance industry, premiums still need to be attractive in order to gain customers, not all of this cost will be charged in higher premiums.

But with 40 pence out of every £1 in a compensation claim going to the lawyers, it is clear that the rising cost of insurance premiums is down to the legal system and if we want this to change, a way needs to be found for handling compensation claims more effectively and with less legal intervention.

Danielle is an author of several articles pertaining to Car Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Warning About Life Insurance Lies

Millions of people have put their life insurance at risk because they lied about their health status. They face the possibility of having their life insurance and critical illness policies cancelled.

People cover up being a smoker or a healthy drinker, and people regularly give false information on their weight or health problems.

A study by Norwich Union of 2,500 customers found as many as one in 14 provided false information relating to their health or lifestyle. Other research showed a higher 15% of people who are not truthful when applying for insurance cover.

Currently insurers reject as many as 20% of claims due to misinformation, but this doesn’t deter people, where as many as 52% of men and 43% of women say they routinely lie about the state of their health in everyday life. Those who lie on insurance policies risk personal and financial disaster if they are found out.

Life insurance is a simple form of protection, which pays out a lump sum on the police holders’ death. These policies can be ‘for life’ or for a fixed term eg.25 years.

Over the past few years, life insurance premiums have fallen sharply as life expectancy has risen and competition amongst insurers has grown. But anyone outside the 'norm' - such as those who are overweight and those who smoke - will increasingly pay more for cover. According to financial website find.co.uk, a 20-year level term policy with a sum assured of £100,000 would cost about £13.50 a month for a 35-yearold male smoker. A non-smoker of the same age would pay about £8 a month - a saving of £64 a year or nearly £1,300 over 20 years.

There are other more simple ways to get better value of your life insurance premiums and save money without being fraudulent.

Insurers calculate your life insurance premium by using information about your health, age, occupation and lifestyle. Most people are unwilling to do measures such as losing weight or giving up smoking to get cheaper life insurance. To be eligible for discount you have to have quit smoking for at least one year to be classed as a non-smoker, but can wipe many pounds off your monthly premiums.

Recently a new life insurance policy was launched offering lower premiums to vegetarians. Animal Friends Insurance offered a 6% discount on its life insurance for non-meat eaters, because medical evidence suggested they were less likely to suffer from major illnesses than those who ate meat.

Norwich Union is now considering challenging the rest of its two million UK customers to come clean about their health status. People who have found to have been dishonest could see sharp increases in their premiums or even have the policies cancelled. Insurance fraud is covered under the Fraud Act 2006, which defines fraud as being committed when a person makes a ‘false representation.’ Using a fraudulent health insurance policy could result in up to ten years imprisonment, a fine, or both.

So its better to be honest on your life insurance, make steps to get discounts and seriously shop around for the cheapest policy.

Drew is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Global Warming Affects Home Insurance

How much you pay for your home insurance premium could be affected in the future by global warming. With the number of freak weather incidents rising, with gusting winds, severe storms and flooding now more common place, then good home insurance is an even more valuable investment.

Last years storms were a prime example of this. During 2007 more then 1.5 million British homes' roofs were damaged due to high winds, which caused £4.5 billion of damage. The report undertaken by Halifax Home Insurance quoted the average cost of wind damage reached £2,800. Damaged gardens, sheds and destroyed garden furniture were all claimed on owners' home insurance policies.

Wind damage can often lead to future costs if homeowners do not take immediate action.

Martyn Foulds, senior claims manager, said, "It is advisable for homeowners to conduct a thorough inspection from ground level following high winds, the problem could be exacerbated by water coming in through missing or broken tiles."

Climate change will increase the number of dangerous weather conditions, and homeowners need to prepare for future storms by evaluating the existing home insurance. Even with the damaging recent storms, 36% of homes are not insured. Advice has been given for homeowners to prepare their homes by securing lawn furniture, and checking, trees, gutters, tiles and roofs. They should also ensure they are adequately insured for any foreseeable problem.

There are often long delays for insurance payoffs after major incidents, so insures are recommending having an emergency repair fund to make necessary repairs and prevent further damage whilst awaiting the insurance payout.

The Association of British Insurers (ABI) warns that if nothing is done then the current value of claims could double or even triple by the middle of the century. The ABI wants climate change to be taken into account during designs of flood defences, and for building regulations to be changed so properties are more resistant to extreme weather. They also warn that its not just home insurance which may be affected by climate change. Motor insurance could be hit with extreme weather leading to more accidents.

John Parker, head of general insurance at the ABI, said "Managing risk is central to our industry, and insures must be equipped to analyse the new risks arising from climate change, and to help customers protect against them."

Last Years major floods, and the repeat incident earlier this year has brought flood insurance to the forefront of peoples minds. For many people, flooding is a fact of life. There are more than 2 million homes at risk from coastal or inland flooding (10 % of total homes in the UK), and around 400,000 homes at very high risk of flooding. Climate change will increase winter rainfall, the frequency of heavy rainfall, and sea levels and storm surge heights. With no change in Government policies or spending, climate change could increase the number of properties at risk of flooding to 3.5 million.

In the modern competitive insurance market, premiums reflect the risks that customers face. This enables insurance to be offered at very competitive prices to customers living in low flood risk areas.

Preparation is key, with homeowners needing to evaluate their existing home insurance premium, and with the vast number of insurance companies offering cheaper deals and vying for your money then you should shop around and find the best deal which will cover all possible incidents which could affect your particular home in the unpredictable future.

Drew is an author of several articles pertaining to Home Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Tips on Fire Insurance Claims

If you are suffering from damage as the result of a fire, then you are likely to have many different questions. One of the major questions you have is how can you go about filing a fire insurance claim. The first thing you want to do is look over your policy and carefully find out what is covered, how much it is covered for, and what else might be included in your coverage.

It is important to fully understand what type of coverage you have and how to file a claim before you actually start. Going about things in the wrong way may be cause for denial or lengthening the process of your claim. Filing fire insurance claims is not easy, in fact, there is so much to do that it could be easy to forget or miss a step. What is more, there could be more damage than really meets the eye, so what you need is someone on your side.

Yes, when you get the claim process started, the insurance company will send out a loss adjuster. It is important to understand that the adjuster is an employee of the insurance company. They are not on your side; rather they are on the side of the insurance company and are looking to save them money. So, it is really important that you understand the role of the loss adjuster.

When you file fire insurance claims there are many things you will want to know and what to find out. First, you will want to understand if the insurance company covers you having to stay in a hotel. If not, you will likely need to make other arrangements. Most insurance policies cover this or at least offer it. While the repairs on your home are being performed, you will have to stay elsewhere, but you will also want to find out how long it will take for the work to be performed.

Many insurance companies have a list of contractors and surveyors that they work with. In most cases, they will try to push you into using these people, as it will save them money. You may or may not be required to use their affiliates; this is where you will need to check your policy closely.

Many people involved in this type of situation look to a claims consultant to help them in this matter. Somewhat like the loss adjuster works for the insurance company, the claims consultant works for you. This is a group that is on your side and will help you determine and handle the many tasks that must be performed when filing fire insurance claims.

Claims consultants can help you determine just what needs to be done, who is going to do the work, and essentially takes care of all the behind the scenes tasks. They will ensure that everything is being attended to correctly, they will make sure you are getting everything that you are entitled to, as well as dealing with all of conferences, calls and meetings that must take place with the suppliers, contractors, surveyors, loss adjuster and insurance company.

Filing fire insurance claims is no easy or stress-free task. Having someone on your side is the first step in making sure that you get exactly what you need, when you need it.

Derek Rogers is a freelance writer who represents a number of UK businesses. For Loss Assessors and Domestic Fire Insurance claim services, he recommends Morgan Clark.

Home Insurance Risk For FloodPlain Areas

The insurance industry has warned that many new homes could be left on the housing market and become uninsurable unless the government introduces new rigid planning controls for flood risk areas.

By the year 2020, a third of the 3 million proposed homes set to be built in Britain, could be on a flood plain according to the Association of British Insurers (ABI). If this is the case the ABI have warned their members that they may not be able to continue to offer flood cover as standard on home insurance policies.

The ABI’s assistant director, Justin Jacobs said, “The government’s ambitious housing plans are in jeopardy unless we reduce the flood risk. In the last year, thirteen major developments have been given the go-ahead despite Environment Agency advice on the flood risk”

Jacobs insists that insurers do want to continue to provide flood cover for homeowners, but warned that poor decisions on planning would create homes that would become too hard to sell, insure and live in, he said, “Where a local authority plans to ignore flood risk advice, the government should step in and review the proposals and be compelled to publish their decision.”

The government though, claim they have introduced the strongest planning rules ever to ensure that councils are properly managing the risk of flooding. They have done this by handing down power to the councils who will decide on whether to give planning permission for new housing developments, but only after consultation with the Environment Agency.

The cost of clearing up after the flooding in Yorkshire and Gloucestershire during the summer of 2007 was put at £3 billion, with the ABI claiming that its members had paid out up to £1 billion towards meeting the claims.

15,000 families were left in temporary accommodation with three quarters of them having to wait over 4 months before they could return to their homes.

Representatives from the ABI met with Members of Parliament to discuss its ‘Statement of Principles’, which included a pledge for the continuation of flood insurance to be offered to its existing policyholders who lived in an area where the risk of flood was being managed.

Director General of the ABI, Stephen Haddrill said, “The statement can only continue if the government commits to addressing the lessons learnt from the summer of 2007. That will require major new total investment from government and others.”

Homeowners who live on floodplains have been warned that they face a ‘hefty hike’ in home insurance premiums following the continued flooding which is being linked to climate change.

This advice came from Richard Mason of price comparison website Moneysupermarket.com, he said, “From the figures presented by Defra, the average cost of settling a claim for flooding has now jumped to between £70,000 and £200,000 per household. This amount is unsuitable for the insurance industry to bear in the long term unless insurance premiums rise.”

He went on to say that anyone looking to buy a property should check first with the Environment Agency’s flood map and consider the repercussions financially from buying property in a designated flood zone.

Phil Benson is an author of several articles pertaining to Home Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Increased Life Insurance Premiums For Smokers And The Obese

People who are perceived to be unhealthy as a result of smoking or obesity are facing increased life insurance premiums as a result.

Consumers who smoke could pay over £2,000 more on their insurance policy than non-smokers according to price comparison website, Moneysupermarket.com.

And insurance companies are to introduce a ‘fat tax’ for people who are overweight which could be as much as 50 per cent higher on new premiums, with the threshold at which the higher rate starts, set to be lowered.

Moneysupermarket.com revealed that a 35 year old man wanting cover of £100,000 over 25 years would be paying £17.68 a month with Scottish Provident if he was a smoker, where as if he was a non-smoker, he would only be paying £9.91 a month which equates to 44 per cent saving or £2,331 over the term.

Life insurance premiums can be as much as half the cost for people who don’t smoke, with insurers not recognising someone as a non-smoker until after twelve months of giving up the habit.

Head of protection at Moneysupermarket.com, Lousie Cuming said, “In order to be classed as a non-smoker and qualify for life insurance premium savings, insurers insist smokers have kicked the habit for a full year. The difference in premiums between a smoker and a non-smoker is vast and there are significant additional savings to be made simply by shopping around for the best deal to suit your circumstances.”

With the NHS Stop Smoking Service reporting an increase in the number of people quitting smoking since the introduction of the smoking ban in public areas on July 1st 2007, Cuming went on to say, “Smokers often benefit from a higher income from pension payouts in retirement due to lower life expectancies. However, most people value the health and lifestyle benefits of quitting early and a significant slice off your life insurance premiums could simply be the icing on the cake.”

Icing and cake however, should be avoided by anyone with a body mass index of 30 or more as this is the point at which insurance companies declare people as medically obese. According to Legal and General, 13 per cent of new applicants face paying higher premiums because they fall in to this bracket.

For a man aged 55 years old who is a healthy non-smoker with no weight problems, life insurance for £150,000 on a 25 year policy will cost around £1,000 a year. If he were classed as obese, the annual payment figure would increase by an extra £500.

Legal and General’s director of underwriting claims, Russ Whitworth said, “Most people understand that poor diet and lack of exercise can lead to health problems but they might not realise that being significantly overweight would also make their life insurance more expensive. Although it is not an exact science, we find that body mass index (BMI) is the best indicator of the risk of being overweight, so it pays to stay in shape.”

An Association of British Insurers spokesman said, “If you are obese, you are at greater risk of contracting certain diseases. It is just the same as increasing the premium for a smoker or somebody with previous medical conditions.”

Phil Benson is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.