Insuring Your Car: Increasing Premium And Avoiding Scams

9 November 2021

     Any car, whether it’s just a run-around for your daily commute or a luxury vehicle, needs to be insured if it’s used on public roads – it’s the law. In any case, it’s to your advantage to have insurance, as it means you’re covered financially if you’re involved in a car crash or other type of road accident, or you’re a victim of car theft. If you’ve been involved in a car accident, whether as a driver, a passenger or a pedestrian, and you believe someone else was at fault, you can consider your right to make personal injury claims for a car accident in Glasgow. Personal injury claims in Glasgow stand a much better chance of success if you have all the right paperwork and the assistance of professional, experienced legal expertise.

One of the main factors includes the group your vehicle falls into. All makes and models of vehicles are scored by the Association of British Insurers’ (ABI) advisory service, Thatcham Research. That score determines which insurance group your car or van falls into. In short, the higher the group, the higher your premium will be. The cars at the higher end of these insurance groups tend to be ones that are considered to be top of the range models. They usually have expensive component parts and typically need specialist knowledge and training to repair. These are also often the ones that are most targeted by thieves and the most expensive ones to replace if not recovered.

Less expensive, less complicated vehicles, therefore, tend to fall into the lower groups and owners don’t typically need to pay out as much in insurance premiums.
Cars are then also scored across a range of categories, including safety, power, security features, and price. As noted, likely repair costs in case of an accident are also one of the more significant factors considered when scoring a particular make and model of vehicle.
Researchers also consider crash impact tests, damage resistance, and how much it would take to restore the vehicle to its original condition if it sustained damage in an accident.
So the groups are there to indicate to insurance companies what level of risk there is with each type of car, and therefore how much they are likely to have to pay out if the owner makes an insurance claim. The higher the risk, the higher the group number it is assigned to, and the lower the risk, the lower the premium.

There are about 50 of these car insurance groups, and the Group Rating Panel determines which of these groups your vehicle falls into. Vehicles in group 1 are the cheapest to insure, while group 50 is the most expensive. Insurance providers accept the Panel’s recommended grouping when setting their prices.
So are there any ways to lower the cost of your insurance? Well, you could consider opting for a higher voluntary excess. This means you will have to pay more towards any repairs needed after an accident, thus reducing the amount your insurance company will have to pay towards the bill. You could also invest in additional security features like an approved alarm system, a steering lock, and/ or an immobiliser. These tend to reduce the chances of your car being stolen and all the inconvenience that entails – and from your insurer’s point of view, it again mitigates the risk of them having to pay out.  
However, before you shell out any money on such additional security features, check with your insurance provider to make sure what you’re installing will, in fact, lower your premiums.
Having a so-called “black box” or equivalent telematics may also help reduce insurance costs. This means that data about your driving is shared with your insurance provider, which is often enough of an incentive for drivers to conduct themselves more safely on the roads.
You can also take steps to reduce the mileage you typically do in a year if possible, using public transport or walking instead. This can cut the cost of your premium because insurance companies tend to assume that the less you are on the road, the less of a risk you present.
However, it’s important to be honest about the number of miles you do because if you make a claim and your insurer finds out that you’ve underestimated your mileage, this may invalidate your policy entirely.
If you’ve been injured in an accident on the road and you don’t believe it was your fault, speak to a solicitor specialising in personal injury claims for a car accident in Glasgow as a matter of urgency. We may not be able to reduce your insurance premiums, but we can help make it more certain that you’ll receive the compensation you deserve.

Police Warning Over Fraudulent Insurance Deals

In recent months, a growing number of people, particularly young men, have fallen victim to a scam that might have cost them £2,000 or more.
From January to August 2021, Action Fraud, the UK’s fraud and cybercrime centre, states that it has received 351 reports of ghost broking.
While the number of these scams has decreased by 23% this year compared to last year, young people continue to be victims of these fake car insurance deals. 34% of those affected fall within the 17 to 29-year-old age group, of which 61% were men.

Each victim lost an average of £2,250 while so-called ghost brokers have profited by an estimated sum of £786,700 this year alone.
Ghost broking is the term used for fraudsters who offer cheaper insurance premiums through social media or word of mouth. They pose as brokers for legitimate insurance companies and say that they can provide car insurance at much lower prices.
In fact, though, the insurance documents they provide are forged or have been secured by supplying false information, which results in the insurer dropping the price of the premium. The insurance policy looks all too genuine, but victims only find out when they are stopped by the police or try to make a claim that their policy has been cancelled soon after they paid for it. Alternatively, they may find that their insurance policy has been invalid all along.
Police are advising younger drivers, and students in particular, to check the authenticity of the insurance they are taking out.
Young people are subject to especially high insurance premiums, and the police acknowledge that cheaper deals are bound to be more attractive. But if it looks too good to be true, it probably is. And falling victim to this kind of scam will almost certainly cost you more than a genuine insurance premium would in the first place. You might have to pay a fine, get points on your licence or even have your car seized if you don’t have insurance coverage under a valid policy.

Insurance Claims Assistance

While you may hesitate to make an insurance claim after damage to your car to protect your no claims bonus, you should always consider bringing a personal injury case for compensation if you’ve suffered life-changing injuries in a road traffic accident that wasn’t your fault. This is where experienced solicitors can help.
At OJ Solicitors - Personal Injury Claims Glasgow, we have a wealth of experience in helping with personal injury claims in Glasgow. Our expertise can ensure that you get the compensation that is rightfully yours.
Our team is composed of individuals who have extensive experience and skills to help you with car accident claims – as well as personal injury claims after accidents at work or in public places – or medical negligence. We are always ready to assess your case and offer you detailed legal advice to make sure your claim is presented in the best possible way.