Statistics show that 1 in 20 people drive with no insurance, which costs law-abiding motorists an extra £30 on their annual bill, not to mention the 23,000 people injured by them each year.

While it is already illegal to drive on the roads with no insurance, new regulations in the pipeline will now make it an offence to simply own an uninsured vehicle without a SORN (Statutory Off Road Notification).

New legislation aimed to tackle this issue, is expected to be in place by June this year.  Soon, drivers with no insurance run the risk of having their car clamped in their own driveways, seized and possibly even destroyed, all in a bid to put a stop to this mounting problem.  And it’s not just serial offenders who need to watch out, honest motorists who innocently forget to renew their insurance will be dealt with in the same way.

It is thought that the new regulation will see the DVLA and Motor Insurers’ Bureau (MIB) working together to target people with no insurance.  Drivers breaking the law will receive a letter to warn they will be fined if they do not arrange insurance for the vehicle.  Anyone choosing to ignore the letter will be fined £100 initially.  If the warnings continue to be ignored the uninsured vehicles can be seized and destroyed.   Motorists can only claim their vehicles back once the insurance has been arranged.

Experts in the motoring industry are skeptical about whether the new legislation will work, calling it a mere ‘slap on the wrist’.  If a motorist chooses to pay the fine early it will be halved to £50… some are questioning if this is harsh enough to be a deterrent.  The other major flaw in the system is they will only be able to focus on drivers who have registered their cars with the DVLA in the first place.

So with the new legislation impending, do we think drivers will be making sure they have all their insurance requirements in order?  Unlikely, given a recent survey by the AA has shown that nearly two thirds of us don’t even know it is coming!

Think Insurance, the specialist motor trade insurance provider, will watch this with interest and will be keen to see the impact, if any, this new law has in June.

Despite fuel prices having reached an all time high in the UK, the most fuel inefficient vehicles seem to be thriving in the used car industry.

Contrary to what you might expect, premium car sales are positively thriving!

Adrian Rushmore, Managing Editor at Glass’s comments on the unexpected trend “Given the series of fuel price increases, it is perhaps surprising that there has not been any kind of backlash in the premium sectors this time around”.

Rushmore goes on to say that 4×4’s have exceeded all other vehicles in terms of holding their value.  In fact, Glass’s claim that while the family car has enjoyed a 2% increase in value since January, 4×4 vehicles have doubled this percentage increase!

And it’s not just the large 4×4’s that are seeing this unprecedented increase, supercars and luxury cars are also performing well in the used car sector.

So with the pumps currently selling fuel at record levels and the prestige car sector outperforming the market, leading industry experts are asking why.

Rushmore believes the success in this sector, despite fuel prices reaching an all time high, can be attributed to the following, “Firstly, there is less of the ‘feel-bad’ factor that pervaded the economy and the market in the summer of 2008. Back then there was also an added buying disincentive in the shape of the large VED increases planned for the following April and plentiful used car supply”.

He goes on to suggest that although fuel is at an all time high, the latest increases came about very gradually and so may not have even registered with many motorists yet.  He also believes that motorists could be choosing to ignore the fuel price issue altogether and plough ahead with their purchases regardless.

Rushmore concludes by advising motorists that when making such an important purchase they should think about how fuel costs could increase over the next few years, and the impact this could have on their finances.

This article was brought to you by Think Insurance, the specialist motor trade insurance provider.

With no less than 4 bank holidays coming up over the next two weeks, it’s no surprise that many businesses are grinding to a halt over the Easter weekend and the Royal Wedding festivities.

The country will as good as shut down for business over the next couple of weeks, with literally millions of people taking advantage of the extra bank holiday.  Many lucky workers will take just 3 days of annual leave to get an 11 day break!

But not everyone is as thrilled. In fact the economic impact could be massive according to some experts, as many businesses are left with no choice but to shut up shop.

So April is set to be a tough trading month for many, and the used car industry is sadly no exception.

Adrian Rushmore from the Glass’s Guide says, ““Everyone we have spoken to believes that general market conditions will become more challenging this month”.

Rushmore believes that the extra holidays in April will certainly have an impact on the industry with less people showing an interest in buying used cars.  April traditionally is a strong month as it follows the March registrations, so there will be an expectation for used car dealers to produce good figures, which will be tougher than ever this year.

Rushmore goes on to say “Given the uncertainty about the extent to which prices will fall – and no one is predicting that they will recover in the short term – the best advice for trade vendors is to accept all reasonable offers at the first time of asking.  Trade buyers are firmly in the driving seat with plenty of choice and little urgency to buy”.

At Think Insurance we are hopeful that April doesn’t prove to be as bad as some of the gloomier predictions suggest.  Motor traders have weathered some tougher storms of late and we are confident that the challenges that April will present will be no different.

Soaring petrol prices have been hitting us hard in recent time. In fact the Office of National Statistics have revealed that fuel is the single biggest reason for the increased cost of living in this country.

Recent inflation statistics have also revealed that the cost to run a car has risen by a whopping 15.9% in the last year.

So motorists will be pleased to hear that Morrisons have decided to ease the burden for customers over the next couple of weeks.  With the impending Royal Wedding as inspiration, the supermarket chain have launched their ‘Fuel Britannia’ campaign, offering customers 6 pence off per litre when they spend £40 or more in store.

And they are not the only supermarkets to launch campaigns like this, in fact both the Co-op and Sainsburys have introduced similar offers recently, all in a bid to secure a piece of the bank holiday action.

The cost of petrol is at the highest we have ever seen, and Morrisons have responded by introducing a deal that will bring petrol down from £1.34 per litre to £1.28.

Richard Lancaster of Morrisons said: “We know that over the Easter holidays and the royal wedding, motorists will want to travel further to visit friends and relatives, but will be put off by the cost of petrol”.

This offer is available until the 8^th May. So any motorists planning on hitting the roads over the next couple of bank holidays could save themselves some money if they fill up at the right supermarket.

With such fierce competition between the large supermarket chains, motorists could be fooled into thinking they are offering the lowest prices at the pumps.  But that isn’t always the case, says Brendan McLoughin from petrolprices.com.

Petrolprices.com is a website that allows motorists to search for the cheapest fuel in their area.  Mclouglin advises customers to shop around and claim that although supermarkets are often on average cheaper, it is not always the case.

Think Insurance, the specialist motor trade insurance provider, welcome any offers and promotions that will save not only customers, money, but will also help ease the burden for car dealers, motor traders and anyone else working in the motor industry, albeit for just a couple of weeks.

And that certainly seems to be the million dollar question, following the recent statistics released by the Home Office.

According to their latest batch of data, in 2009, 935,000 people were caught speeding, by roadside cameras.  And while this is certainly not an insignificant figure, it is actually the first time in over 10 years since this figure has fallen below one million.

In 2005 the cameras caught a massive 1.8 million people speeding, that’s almost double the number of motorists caught in 2009.

So why are we seeing these numbers drop?  Have motorists stopped speeding, or are drivers just becoming more savvy about the location of the cameras and simply slowing down as they pass?

One thing we can be certain of is that these figures are likely to drop further as more and more cameras are being disabled across the country.

Many motorists will have noticed the number of speed cameras in their areas that have been covered over, or removed altogether.  Last year, following the election and the newly formed Coalition government, many councils took the decision to disable the cameras in a bid to save money.

Robert Gifford, Executive director of the Parliamentary Advisory Council for Transport Safety is also having difficulty understanding the drop in figures. “Are people becoming more compliant? Do they merely slow down for the camera? Has the emphasis on educational alternatives encouraged people to obey the law?”

“Whichever of these is the answer, it is good to see fewer people issued with speeding tickets”.

And he won’t be the only person happy to see that fewer tickets are being issued.  In the past, drivers have been incensed by the increasing number of fines and points been handed out.  Many blaming the government, accusing the cameras of an underhand way of collecting more taxes from the public.

Think Insurance, the specialist motor trade insurance provider, were surprised to learn that the number of people being caught for speeding had fallen so significantly. Garrath Hussey, Chief Executive at Think said, ‘It would appear that no one really knows why these figures have fallen, but whatever the reason, we hope it indicates that Britain’s roads are safer.  We are optimistic that these figures will continue to fall, and hope it will be because less people are speeding, not just because there are fewer cameras to catch them.

Used car dealers and motor traders need to think smarter to win over new customers.  With the influx of manufacturers offering extended warranties, independent dealers need to step it up a gear if they want to compete successfully.

With the rising cost of motoring hitting everyone’s pockets hard, customers are constantly striving to get the best deal when it comes to purchasing a car, and that’s beyond just getting a good price.  Motorists want more for their money including guarantees and extended warranties.

Today’s consumers are demanding and savvy, and will happily shop around to get themselves the best deal.  They are looking for more than just a bargain, in fact they want to be treated in the same way that they would be treated at a brand new car showroom. Motor traders need to respond accordingly and come up with new ways of attracting customers and getting them to sign on the dotted line.

More and more dealers may find themselves considering warranties and guarantees as added value to their customers, to compete with the manufacturers on a level playing field.

Ian Simpson, Sales and Marketing Director for The Warranty Group says, “The continuing shortage of used cars and the resulting increase in prices mean that buyers are, effectively, getting less for more. As a result, dealers of all kinds are having to look at ways of making their used car proposition more attractive and increased warranty provision is one solution”.

The recession brought about a very clear shift in consumer behaviour, and the industry saw motorists leaning towards products with extended and more comprehensive warranties to safeguard their future finances.  Based on this, it would seem sensible and logical for motor traders to include these guarantees in their offering.

Think Insurance, the specialist motor trade insurance provider, believe that used car dealers and motor traders have a real advantage in todays market.  If they can provide a service that customers will respond to, combined with a competitively priced, quality used vehicle, they will undoubtedly win over those all important buyers.  Selling quality used cars with added value services has to be the Holy Grail for so many motorists in this tough economy.

It has been predicted that the value of electric cars are likely to take a nose dive by the time they reach 5 years old, this is according to ACF Car Finance Limited.

The depreciation in value is expected to be extremely significant, in fact it is thought that electric vehicles will only be worth 10% of their original value at around 5 years old.

When an electric vehicle reaches the ripe old age of 8, it will probably need to have its battery replaced.  This could set the lucky owner back a whopping £8,000!  So it’s no surprise the value will have hit rock bottom by the time the car hits the second hand car market.

And things are not likely to change anytime soon, unless manufacturers of electric cars can come up with a plan to increase the life expectancy of the battery past the estimated 8 years, or at the very least bring down the cost of the replacement.

The future success of electric cars, and the number we can expect to see on Britain’s roads, is largely dependent on the success they achieve in the second hand car industry.

Given the shocking figures already mentioned, it is unlikely that these cars will be high on many motorists list, especially if they are older than 2 or 3 years.  Any drivers intending to sell or trade in their electric car will need to brace themselves for the bad news.

Granted, buyers could grab themselves a bargain second hand model, but there is a good chance they will be stung when the car reaches 8 and needs the battery replacing.

ACF’s Divisional Group Buying Manager, Leyton Cooper explains, ‘We sell thousands of cars each year, and I’m sure that the percentage of electric models will start to rise dramatically as the second-hand market comes on-line”.

Cooper goes on, “We estimate that by around 2013 there will be a major rise in the number of second-hand electric cars coming into our showrooms. If the market isn’t going to stall at that point, manufacturers will have to start addressing the battery problem now”.

At Think Insurance, the motor trade insurance specialist, we are hopeful that manufacturers of these electric vehicles, focus their efforts on resolving the issues with the car batteries sooner rather than later.  We want to see these vehicles thriving in the second hand car market, rather than being a drain on everyone’s pocket.  It is important that all dealers and traders in the used car market are reassured before the influx of these electric cars hit the forecourts.

Data released by Hire Purchase Investigations (HPI), the vehicle history experts, has shown that clocked vehicles are much more common in the UK than originally estimated.  In fact the study has revealed that a staggering 1 in 17 vehicles in the UK have been clocked.

This is a huge jump from the 1 in 39, which was the original estimate from the Vehicle and Operator Services Agency (VOSA).

According to HPI, their shocking figure, of 1 in 17, is much more accurate than that of VOSA, who exclude vehicles less than three years old, and vehicles with MoT’s carried out before 2005.

HPI are keen to highlight the issue to dealers and motor traders, making sure they are aware that the problem, unfortunately, is much worse than originally anticipated.  In fact, dealers are being encouraged to seek professional advice to ensure they are not caught out by such unscrupulous activity.

Daniel Burgess from HPI believes that the problem of clocked cars is largely down to the ease in which vehicle mileage can be adjusted now, using tools and equipment, which are readily available on the Internet. He goes on to say, “Consumers are just as likely to be clocking the cars as unscrupulous traders, doubling the danger to dealers”.

He goes on to explain to dealers that the Office of Fair Trading will not accept mileage disclaimers, and that real proof that a dealer has done everything in their power to validate a vehicles mileage is now required.  This is perhaps another compelling reason why motor traders should consider using an expert in this field.

Burgess claims “A sound mileage verification strategy which is backed by a thorough investigations process is not only best practice but can provide them with a sound legal defence”.

At Think Insurance, we feel it is important that dealers and motor traders are aware of how common this problem has become.  We would urge all dealers to implement strategies to safeguard themselves against this fraudulent activity to ensure future success for their businesses.