Monthly Archives: November 2011

MoT tests toughening up

Following announcements a few months ago that the Government are considering altering the frequency of the MoT to every two years instead of one and delaying the first MoT for brand news cars until they are four years old, more changes are now afoot for the MoT test.

The Vehicle and Operator Services Agency (VOSA) have announced plans to make the MoT test even tougher, in order to ensure recent advances in car technology and engineering are working as they should be.

Cars will really be put through their paces now with a whole host of new rules being implemented to comply with EU requirements, all in a bid to make sure the latest innovations and developments on newer cars are sound.

Some of the new checks, to be implemented in January 21012 will include:

  • Ensuring power steering has a minimum level of fluid
  • Inspection of the dashboard warning lights
  • Checking anti-lock brakes and electronica stability systems
  • Looking at the headlights to ensure they are not so powerful that they blind oncoming traffic

If a car fails the new test, they will initially be given a grace period to go and get the work done, to ensure the car meets the new standards.  However, this period of grace will be taken away by the end of the year and the work will need to be carried out there and then for the MoT certificate to be issued to the car owner.

A spokesperson from the AA has commented on the impending changes, “The test is being brought in to make sure that all this new technology works properly.  It means if you buy a nearly new car you will have to double check that all the warning lights are working properly, or you could be left with a hefty bill.  The upside is that if you buy a car with an MoT you will know that these things have been tested properly”.

The Chief Executive of VOSA explains more about the announcement, “The MoT test is designed to make sure that a vehicle is fit to be on the road and so it needs to be updated to reflect new vehicle technology.  We have worked with the industry to prepare them for these changes to make sure that the measures are introduced in the least burdensome way possible”.

This article was brought to you by Think Insurance, specialists in Motor Traders Insurance cover.

Britain’s potholes set to get worse

The AA’s Streetwatch initiative, where volunteers hit the roads in Britain to monitor potholes, has found that the problem is getting worse, and is only going to go downhill as we approach the winter snap.

One thousand of the AA’s streetwatchers were dispatched to see if the roads have improved since the repairs were made this year.  But the survey has actually shown that the roads are getting worse, and local councils are clearly struggling to keep on top of the problem.

In last year’s survey, each streetwatcher found on average 12.9 potholes on their watch, while this year the average reached 14.9.  The North East of England and Scotland seem to be the hardest hit, with approximately 20 potholes found in each neighbourhood.

The AA’s president, Edmund King comments on the survey, “The AA Streetwatch volunteers have once again shown that the UK has a pothole plague which has not gone away despite extra repairs this year.  Highways authorities need to get to grips with the pothole problem, as compensation claims will soar when cold weather strikes and roads start breaking up again placing greater burdens on already strained budgets”.

King goes on to say that drivers in the UK shouldn’t have to spend the winter months avoiding potholes, or forking out to pay for repairs to their cars as a result of poorly maintained roads. He also warns of the severity of potholes on bikers, when potholes can prove to be fatal.

Edmund King from the AA concludes, “Although we are sympathetic with the plight that councils find themselves in austere times, the fact remains that we are seeing the legacy of a ‘Cinderella’ approach to road maintenance funding over many years”.

The AA findings follow the study released by the RAC showing that four out of five councils had cut their spending on road maintenance. Also reports have suggested that Stockport councils issued a directive for motorists to measure potholes and report them so they can be fixed.

Junior transport minister, Norman Baker has spoken out in defence of the Government, “Local roads are managed by local highway authorities and they are best placed to use their local knowledge and experience to decide how to prioritise expenditure across all their services including their local roads. Despite the current severe fiscal restraints we are providing £3 billion to councils for road maintenance over the next four years and an additional £6 million for longer term strategies”.

Baker goes on to say, “This Government is still providing more funding in cash terms on road maintenance than in the previous four years. It follows that any cuts that have been made lie fairly and squarely with the local authorities concerned. On top of this we have exceptionally provided an extra windfall of £200 million to repair potholes on the local road network following the severe winter weather at the end of last year”.

This article was brought to you by Think Insurance, specialists in Motor Trade Insurance.

Motor Trade Insurance and the motor insurance database (MID)

Motor insurance law has changed and unless the vehicle you own (and is registered in your name), has been declared as ‘SORN’ and has a DVLA Statutory Off Road Notification (and therefore is officially ‘off road’) then it must be insured at all times. If you are not insured or have not declared your vehicle as SORN, your insurance policy record will not appear on the Motor Insurance Database (MID), which means you can expect to receive a warning letter – followed by a fixed penalty fine for no insurance.
Those who drive without adequate insurance or no insurance cover are costing the UK motorist £500 million per year. This means that every insurance policy sold in the UK includes an amount to pay for these uninsured drivers. To tackle this issue head on, the insurance industry and the motor insurance bureau (MIB) developed the motor insurance database (MID)

The MID is the only central record of all insured vehicles in the UK and holds the insurance records of over 34 million vehicles. It is used by the police and DVLA to enforce the law. It is updated over 10,000 times an hour. The police use Automatic Number Plate Recognition (ANPR) technology with information from the MID to identify and catch people driving uninsured vehicles (insurers are readily identified using just the registration number). More than 500 are seized every day and every three minutes one person is convicted for
uninsured driving.

For motor traders it’s important to add all vehicles insured on your motor trade policy and all trade plates owned by you to the Motor Insurance Database (MID). Thus demonstrating to the authorities that you have a motor insurance policy in place which covers you. This includes permanent vehicles registered to, owned by, or leased to you  and other temporary vehicles. Vehicles kept less than 14 days do not necessarily need to be added to the database. Customers’ vehicles whilst in your custody or control for your motor trade business should also be included where applicable. It is a legal obligation on the policyholder’s behalf to ensure that vehicle details are kept up to date and all vehicle records are kept for a period of 7 years. It is a criminal offence if you fail to comply with these regulations with a possible maximum fine of £5,000. Regulations also state that any detail needing to be updated to the motor insurance database (MID) should be done so immediately.

You are able to check the Motor Insurance Database for free to see if you have a valid insurance record at www.askMID.com

Part Time Motor Traders On The Increase

The part time motor trade insurance industry is officially booming. Recent statistics have shown that more and more people across the country are looking to the industry to bring in extra income. There are many reasons as to why this is happening and you could probably write a book on that subject alone.
Examples include the economy – a deteriorating economic climate means people are looking to other methods of income generation. Whether it is because they don’t feel secure in their job or because they are suffering being self employed – the public is fighting back.

The advent of ebay has made it possible for amateur traders to test the waters at very little cost. You can post a vehicle for sale for a minimum charge and only really have to pay out a significant sum if the vehicle sells – a kind of guarantee or safety net.
The public has also become aware that they can purchase suitable insurance while not being a full time business. This can enable them to drive their own cars and customer’s cars legally.

Recent clampdowns by the government and police – including the MID database – means that a lot of people have been taken off the road or punished for having inadequate cover. This has filtered down into the publi psyche meaning most traders now strive to be 100% legal. Unfortunately, there is another reason and that is where people just try to insure all their own private vehicles for minimum cost. This should be avoided as you are basically paying for cover that will never pay out. We must stress that to have such a policy you must have a link to the industry (your insurance broker can explain the ins and outs to you upon request).
So, if your thinking about how to get better off this year and want to join thousands of other like minded people then consider purchasing a part time motor trader insurance policy.

Young drivers to be kept off the roads at night

Drivers under the age of 25 could find themselves unable to drive at night, if the plans from the Association of British Insurers (ABI) are to be imposed.

The ABI are proposing that all drivers under 25 have restrictions placed on when they can drive in a bid to reduce the number of accidents on the roads, which often lead to fatalities and serious injuries.  They also believe that there should be a ‘zero-tolerance’ approach taken when dealing with young drivers caught for drink driving.

It is easy to understand why the ABI are pushing for such a radical change when you look at the statistics on road traffic accidents.  Each day there are 16 people injured and 2 people killed in road accidents involving drivers under 25.

It tends to be the male young drivers that are seen as the highest risk category by insurance companies.  According to statistics, male drivers under 25, are 5 times more likely to be involved in a road accident than male drivers between the ages of 30 and 59.  Insurance premiums for young drivers are on average around £3,700 per year.  Drivers who have just passed their tests can expect to pay £6,000 to insure their run-arounds!

The ABI are pushing for all learner drivers to go through a minimum period of a year of learning to drive before they are able to take their test. Following passing their test, the new drivers would then be given a driving licence for just 2 years.  At the end of the 2-year period they must then pass a second driving test, to prove that they are safe to drive on the road.  A further restriction would also be placed on how many passengers a young driver is permitted to carry.

The Director of General Insurance and Health at the ABI has commented that he would like to see young drivers off our roads between 11pm at night and 4am in the morning, “Our proposals are not designed to drive young drivers off the road, but to ensure that they become safer drivers. We must act to reduce the tragic loss of young lives on our roads”.

As expected not everyone is in support of the proposed changes, Simon Douglas from the AA doesn’t believe that the plans are practical, or able to be policed.  He comments, “The plans would alienate young people who rely on their car to drive to or from late-shift work or who find themselves having to drive at night for other practical reasons. And does it tell drivers it’s OK to risk a drink and to drive after age 25?”.

But the ABI have received support from Which?, the Insurance Analyst, Paul Davies comments, “The situation has reached the stage now where many young drivers can’t afford the insurance premium rates being quoted by companies, with the price often running into thousands of pounds. Anything that seeks to bring down the cost of cover for younger drivers and ensures that they aren’t tempted to drive uninsured must be a good thing”.

This article was brought to you by Think Insurance, specialists in tailored motor trade insurance policies.