Protecting Collectible Cars

Baby boomers are fueling a growing interest in classic car collecting, with membership in the country’s largest antique car club now reaching 60,000.

But while most car collectors know there’s a big difference between the vehicles they collect and the ones they drive every day, not everyone insures his or her collectible and everyday vehicles differently. Experts say that could leave collectors in a financial bind should they need to file a claim.

So how can you be certain your collectible car is insured properly? Here’s a closer look:

Think Actual Market Value

Like any other commodity, collectible vehicles—which include antiques, classics, street rods, modifieds and exotics—change in value on a frequent basis and their insurance should reflect that. For instance, a 1967 Shelby Mustang, which just a few years ago could be bought for as low as $35,000, is fetching around $200,000 at large auctions today.

Daily-use vehicles are insured on an ACV (actual cash value) basis, which means if you have a total loss, you’ll be paid the original purchase price of your car less all depreciation to the date of loss. But collectible cars should be insured based on something known as an agreed value basis.

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Car insurance costs up 5.8%

The average car insurance premium is now £514.36, according to Sainsbury's car insurance index, the first time it has exceeded £500 since the measure was launched in 2005.

Joanne Mallon, Sainsbury’s car insurance manager, said: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs."

The index reports significant differences in premium increases based on age in the last 12 months.

Motorists aged over 65 saw an average rise of ten per cent, the highest of any age group, while motorists aged under 25 who typically pay the most saw their premiums rise by just by 2.47 per cent since July 2007. This was the lowest of any age group.

Men continue to pay more for their car insurance than women on average - £540.49 compared with £470.47.

Ms Mallon added: "Given that car insurance premiums are rising and the cost of driving is now at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance."

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Cars have 283 bacteria per cm

A study by Aston University shows drivers with pets and children are more likely to have high levels of bacteria riding along with them.

The most populated place with 356 germs identified per cm2 was the gear stick.

In one case a car had over 850 bacteria present per cm2, while bacterial traces of excrement were found in the boot of the car, in the same spot as weekly food shopping was regularly placed.

Dr Anthony Hilton, Aston University director of biology & biomedical science, said: "Whilst most of the bacteria we've found are unlikely to cause serious health problems, some cars, particularly those which regularly carry children and animals, play host to potentially harmful germs.

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Car insurance premiums will rise, warns insurer

The company, which owns insurance brands Diamond, Elephant and Confused.com, predicted premiums will rise a few percentage points over the next few months.

Admiral reported a 16 per cent rise in profit before tax to £100.3 million for the first half of 2008, while turnover rose 13 per cent to £472.5 million.

David Stevens, chief operating officer, said: "Rises in market premiums and a relatively benign claims experience over the last 18 months mean that, for the first time in seven years, we see a real prospect of falling underlying loss ratios in our core UK business."

The motor insurance industry is highly competitive and premiums have remained virtually flat over the last few years, despite a rise in the cost of claims.

But insurers have been saying that this is unsustainable, and are starting to raise their premiums.

Rising crime inflates insurance premiums

The comparison website has linked rising car crime with rising premiums and found in areas of high crime a policy can cost over £250 more than in an area of low crime.

With the most vehicle crimes per household, the north-west and London are paying more for their car insurance compared with other regions in the UK.

On average, motorists in the north-west pay £844.74 and Londoners, £804.68 per year, an indication that crime, among other factors, may be keeping insurance premium rates disproportionately high, comparethemarket.com said.


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Motor insurance costs twice as much for young men

Research from broker AA Insurance shows premiums for newly qualified young male drivers have continued to rise, while they have been falling for women.

The AA has calculated the average quote for a 17-year-old man driving a three-year-old Ford Focus CL 1.4-litre five-door in Cambridge is £3,462, while the same quote for a 17-year-old woman is £1,810 – almost half the amount.

Once the same driver hits 21, the quote falls to £565 for a man and £333 for a woman.

However, the high cost of insurance is reflected in accident statistics, the AA said.

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Getting the best deal with insurance comparison sites

In a recent review of 17 websites, the Financial Services Authority found "mixed evidence in terms of the clarity, fairness and accuracy of the information given to customers" and warned consumers to check the cover they are receiving is right for them, and not just at the best price.

The regulator said it will follow up its report with visits to the companies involved and test whether the information they provide to consumers is appropriate.

Price is certainly uppermost in people's minds when looking for insurance. A Datamonitor found price was the number one criteria for people looking for insurance in 2007. After being bombarded with advice from the media and consumer groups to shop around for financial products, clearly the message is getting through.

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Credit crunch lessons lost on Brits

Brits are ‘budgeting blind' through the credit crunch, according to new research from Norwich Union. Despite spending millions of hours researching financial products, most Britons have little idea about what more than half of their hard earned cash is buying.

The research shows that despite the growing list of high profile credit crunch casualties splashed across the headlines every day, Brits are failing to look after their own finances. The UK's largest insurer found that despite 53p in every £1 being spent on financial necessities such as insurance and mortgages:

72% don't know what type of mortgage they have (tracker, fixed rate, etc.)
67% don't know what their monthly mortgage payment is
78% don't know the interest rate of their mortgage
59% don't know the basic details of their contents insurance policy
One in ten (9%) don't know how much their utility or council tax payments are

The study also revealed that Britons spend 180 million hours each year researching essential financial purchases suggesting that the more time we spend researching our financial purchases, the less we know about what we end up buying.

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Customer Satisfaction with Dealer Service for Four- and Five-Year-Old Vehicles Increases Slightly As Service Mix Continues Shift from Repair to Maintenance Work

Customer satisfaction with dealer service has increased slightly among vehicle owners, compared with 2007, in part due to a continuing increase in the proportion of maintenance-related service visits vs. repair-related visits, according to the J.D. Power and Associates 2008 Service Usage and Retention StudySM (SURS).

The study, now in its 12th year, measures customer satisfaction of vehicle owners who visit a dealer service department for maintenance or repair work during the fourth or fifth years of ownership, which typically represents the period after the manufacturer's vehicle warranty expires. Overall customer satisfaction is based on six factors (in order of importance): service initiation; service advisor; service quality; user-friendly service; service delivery; and in-service experience.

Overall satisfaction with dealer service among original owners of four- and five-year-old vehicles averages 866 on a 1,000-point scale -- up three points since 2007. Among the 34 dealer brands included in the study since 2007, nearly seven in 10 (68%) have improved since the previous year. Contributing to this increase in overall satisfaction is a shift in the proportions of repair and maintenance service visits since 2007. In 2008, 58 percent of customers report visiting the dealer for maintenance work, while 42 percent report visiting for repairs. In comparison, 54 percent of customers in 2007 visited the dealer for maintenance and 46 percent visited for repair work. Satisfaction is higher when customers visit the dealer for maintenance work (878, on average) than it is when customers visit the dealer for repair work (849, on average).


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Insurer shows competitors' car quotes as well as their own

The UK's largest insurer has launched a brand new web and phone service that gives customers the prices and products of its rivals - even if they're cheaper.

Customers seeking a motor quote, on norwichunion.com, will be offered new simple ways to check the insurer's motor policy and price against its competitors. They will also be offered the chance to check policy cover and feature details with over 140 other insurance providers in the market.

By giving people an instant service that benchmarks its policy against other providers, Norwich Union believes it will give customers confidence in the price and product it is offering.

David Tyers, director of marketing at Norwich Union, said: "The truth is no insurer is cheapest all of the time; the difference is we will tell customers when we are and when we are not.

"But clearly we hope that we will be competitive for many customers and we know, as a package, our motor insurance represents great value and people will choose to buy from us."



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