Motor insurance

Motor insurance If you own a vehicle you are legally obliged to have motor insurance. Even if you do not use your vehicle you are still required to insure it, unless you officially declare it off the road. Motor insurance covers: cars vans motorcycles Types of motor insurance There are three main types of motor insurance: third party this is the minimum cover required by law in the UK. It covers you against costs that arise as a result of injuries you cause to other people and damage to their vehicles third party fire and theft basic third party cover with added protection against your vehicle being damaged, stolen or destroyed in a fire comprehensive this is the highest level of cover available. It protects against: injuries to other people and damage to their vehicles your vehicle being damaged, stolen or destroyed in a fire medical expenses and accidental damage the cost of replacing your vehicle's contents Third party and comprehensive policies cover you regardless of who is at fault (you or the other driver). Third party policies do not cover costs that arise as a result of damage to your own vehicle – for this you need comprehensive motor insurance. Guaranteed asset protection (GAP) policies can be bought in addition to, but are not a substitute for, your motor insurance policy. GAP insurance protects against your vehicle decreasing in value and covers any outstanding finance debts if your vehicle is written off or stolen. ABI members transacting motor insurance business and the motor syndicates of the Lloyd’s Market Association (LMA) have made a recommendation to their members concerning the use of policyholders’ private vehicles on the business of their employer, such as Government Departments, local authorities and voluntary organisations. The recommendations, when adopted by the insurer, allow a policyholder with motor insurance that includes use for personal business to use his or her own vehicle for the business of their employer. They also provide that the receipt of a mileage allowance will not constitute use for "hire or reward". This is to ensure that individuals in receipt of such an allowance continue to be covered under their insurance policy, notwithstanding any general exclusion of hire and reward use. Please note that adoption of these recommendations is voluntary and entirely at the discretion of each individual member. It is important that policyholders check with their insurer that they are properly covered for the use of their vehicle. How insurers calculate the price of your premium The cost of motor insurance varies significantly from driver to driver. It is worth shopping around to find the best deal for you. A number of factors affect the price of your premium including: your age your occupation your insurance claims history the type of vehicle you drive where you store your vehicle at night if your vehicle is fitted with an alarm or immobiliser fraudulent claims made by other motorists Gender and the cost of insurance Insurers can no longer consider gender when calculating insurance premiums, under a ruling by the European Court of Justice which came into force on 21 December 2012. This may affect the cost of your premium when you go to renew your motor insurance. For example, a young woman may pay more for motor insurance in 2013 (compared with how much she was paying in 2012) because her risk is shared with the risk of young male drivers who are more likely to have an accident. Think about It is important to consider other factors as well as cost when buying motor insurance – never buy a premium based on price alone. what type of policy best suits you do you need to include any named drivers on your policy? will you need extra cover if you take your vehicle abroad? will your policy cover you if you rent a car or other vehicle? For advice on reducing the price of your premium go to our tips on cutting the cost of motor insurance. To find out more about motor insurance take a look at our guide: Driving with confidence – making sense of car insurance (pdf 452kB). Latest news CMA U-turn on cost of replacement vehicles bad news for consumers The Competition & Markets Authority’s (CMA) failure to tackle the excessive charges made by credit hire firms for replacement vehicles is... 24/09/2014 Motor insurance application fraud backfiring on nearly 3,500 motorists a week according to the ABI Lying or deliberately not disclosing full information to a specific question when applying for motor insurance is costing dishonest motor... 17/09/2014 Reducing unnecessary costs is key to sustained lower motor insurance premiums says the ABI Tackling the cost of whiplash claims is essential to ensure UK motorists continue to benefit from lower average motor insurance premiums,... 05/08/2014 ABI responds to announcement on fixed fees for whiplash medical reports Justice Secretary Chris Grayling has announced that from October new fixed costs will apply to all medical reports produced in support of... 03/08/2014 ABI comments on Government plans to allow driverless cars on UK roads by 2015 The Government will today announce new laws allowing driverless cars on UK roads by 2015. 30/07/2014 A new deal at renewal – ABI proposal to further improve clarity for customers The ABI has today (10 July) written to the Financial Conduct Authority (FCA) to propose an initiative that could further improve clarity ... 10/07/2014

Life Insurance Gap

By Mark E VonMoss

The term coverage gap is one of those terms in the insurance industry that really does not have a classic definition. The term can be used to describe the gap between what you have a piece of property, like your home, covered for and what it would actually cost to replace said property.

It can be used to describe the shortfall of liability coverage for a business if they get sued.

It can indicate specific types of coverage that may be missing from an insurance program, like flood or earthquake coverage.

It also can refer to the amount of life insurance coverage a person actually has versus what they say they need. Statistical studies indicate that the amount of coverage insured say they need and the amount of coverage they purchase are not the same.

A recent study by New York Life indicates that the average coverage gap is $320,000!

This varies by generation with the gap being the smallest for Baby Boomers. The Baby Boomers is the generation born from 1946-1964. This generation reports a shortfall of $260,000.

Generation Xers, born from 1965 to 1983, report that they think they need in excess of $750,000 in life insurance coverage and only purchase an average of $260,000, leaving a substantial coverage gap of $490,000. This generation seems to have been hit the hardest by the recent financial crisis. Their average coverage amount has fallen from $400,000 to $260,000 in recent years.

Oddly enough, the youngest generation currently in the workforce falls somewhere between the Xers and the Boomers. This generation was born between 1984 and 2003. They report an average coverage gap of $370,000.

This study is based on two separate surveys, one online and the other one a phone interview with over 1,000 respondents.

Overall the estimated coverage gap in life insurance today is $15.3 trillion dollars. That's a lot of money by any standards.

Most people when asked why they do not have enough life insurance say the reason is that they cannot afford it.

The only way for families to close this coverage gap is buy additional coverage.

Having been in the insurance business for a number of years, I have seen a lot of changes in the way that life insurance is marketed and sold to the general public. When I first entered the business, most life insurance purchases were made across the kitchen table over a cup of coffee. This type of sales situation has gone the way of the rotary dial telephone. With technology and changing consumer behavior the way life insurance is purchased has changed dramatically.

In my mind, these startling statistics bring into question the way life insurance I bought and sold in today's social media world. There are ads for life insurance all over the airwaves and online sources from Facebook to LinkedIn and the old standbys or radio and television. Yet, the amount of coverage being sold doesn't seem to be keeping up with the potential demand. The coverage gap continues to widen. It makes one wonder if the old ways were better after all.

What is your coverage gap? Spending a little time figuring it out now could mean everything to your family later.

This information is being provided by Mark E. VonMoss, Mgr. Financial Serv. Div., The Insurancenter.

For more information on this or any other insurance questions, contact me at mvonmoss@theinsurancenter.com, http://www.theinsurancenter.com

Article Source: http://EzineArticles.com/?expert=Mark_E_VonMoss

Article Source: http://EzineArticles.com/8119279