On the road this Easter?
April 13th, 2011The AA have released survey results which show that 49% of motorists are cutting back on how much they drive as a result of rising fuel costs. With the Easter holidays upon us, this could result in fewer people hitting the roads for a break away.
Petrol now costs a whopping £1.34 per litre on average, compared to £1.19 last year. Diesel has also gone up, with the average cost per litre currently at £1.40 compared to £1.20 last year.
Hardly surprising then, that many motorists will be opting to stay put this Easter, despite weather reports predicting soaring temperatures. British seaside and holiday resorts are set to suffer as a result, and are likely see a slower Easter season than in previous years.
However, motorists who do plan to venture out on the roads this Easter are being warned about potholes, and are being urged not to over-pack their vehicles.
According to a new report, Britain’s roads are sporting a record number of potholes and surface damage as a result of a harsh winter. Drivers who over-pack their vehicles are more likely to suffer from suspension trouble and breakdown when driving on damaged roads.
Britannia Rescue have carried out a survey among 1,400 motorists and found that 10% of families admit that they will cram as much as possible into their car to cover all possibilities. 20% of drivers admit that they wouldn’t even think to consider the weight of their car when loading it up.
What is most alarming in the survey is that 1 in 7 drivers have admitted to driving despite having the rear view mirror obscured by luggage. The report concludes that a massive 180,000 drivers have broken down as a direct result of overloading their cars.
At Think Insurance, the motor trader insurance specialist, we were not surprised to hear that fewer motorists would be hitting the roads over the next couple of weeks, as a result of fuel prices. It’s tough for everyone at the moment and so many families will be opting to stay at home this Easter in a bid to keep costs down.
For motorists who will be venturing out on the roads we would urge them to pack carefully and make sure that the vehicle is checked over before heading off. The roads will still be busier than usual and we want all motorists to be safe this Easter.
Government plans to change MoT system
April 13th, 2011The government is currently considering a change in the law surrounding MoT tests for vehicles in the UK. If the proposed changes get the thumbs up, motorists will only need to MoT their vehicles once every two years, compared to the current requirement to test cars annually.
And not only that, owners of brand new cars could be granted an extra year before they need to get their vehicle tested. Currently new cars are put through an MoT at three years old, but new plans from the government could see this being changed to four years.
The MoT system was first introduced in 1967. Only vehicles deemed to be roadworthy and safe are issued a certificate. The government have recognised that vehicles have come on a long way since the sixties, both in terms of design and safety.
Phillip Hammond, Transport Secretary is in favour of the changes. He believes that cars are much safer now than fifty years ago. He explains “Car technology has come a long way since the 1960s, that’s why we think its right to look again to check whether we still have the right balance of MoT testing for modern vehicles. We want to work with the industry and motorists to get the decision absolutely right”.
These proposals could save motorists hundreds of pounds. Over the course of ten years a vehicle may only need to be tested four times, compared to the eight times under the current law.
While potentially good news for motorists, the new rules could have a huge impact on the 1,900 MoT garages in this country who will undoubtedly be affected, in an already rocky economy. Many garages rely on the annual MoT tests for additional income.
And its not just garages who are concerned about the possible changes, expert analysts have predicted that the new rules could lead to thirty extra deaths on the road each year.
Which?, consumer champions, believe that the financial savings for drivers won’t be great, and the safety implications overweigh the slight reduction in annual motoring costs. Senior Motoring Research at Which?, David Evans, explains, “Increasing the period between MoTs is unwise and will, in my view, lead to poorer safety on UK roads”.
The government is currently reviewing three options in terms of changes to the MoT system:
Option 1 – New cars to be put through an MoT at four years, and then an annual MoT thereafter.
Option 2 – New cars to be put through an MoT at four years, then a second test after two years, then annual testing thereafter.
Option 3 – New cars to be put through an MoT at four years, then three tests at every 2 years, followed by annual testing thereafter.
Despite the possible savings, it would appear that the majority of drivers would prefer to stick with the current rules surrounding the MoT, according to the AA. Edmund King, AA President said ‘We have surveyed 60,000 drivers and most of them think we should stick with the current regime. Rather than being a burden on the driver, we think it’s a good safety reminder for once a year”.
Think Insurance, the specialist motor trade insurance provider, were surprised to hear of the proposed changes. Garrath Hussey, Chief Executive explains “ We are all in favour of anything that can save motorists money, but not at the expense of safety”.
Hussey goes on to explain that the impact it will have on garages in the UK is also a major concern. “Many independent garages in this country will be worried about the proposed changes to the MoT system. The new rules could see a significant drop in revenue for these businesses. The economy is a tough place for independent businesses and we would urge the government to take this into consideration when finalising the plans.
UK Car Production halted as Earthquake continues to impact industry
April 8th, 2011Carmakers, Honda and Nissan, have both confirmed they will be halting car production in the UK as a result of the recent earthquakes in Japan.
Honda have announced that their Swindon site will be running at 50% capacity from Monday 11th April, as a result of the recent quake. Despite much of Honda’s parts coming from Europe, the shortage of supply from Japan is still having a huge impact. In fact, Honda were the first to announce the cuts in production.
Ken Keir, the executive vice-president of Honda Europe, explains, “We’ve decided to reduce our production volumes as it enables us to continue with our manufacturing activities”.
The Nissan factory in Sunderland, have also announced that their production will stop for three days from the 26th April. They too have confirmed this is largely due to the shortage in parts and car components coming from Japan.
“Despite an unavoidable interruption to production schedules, Nissan is wholly focused on minimising any impact on customers or staff throughout this period, and every effort is being made to return to normal operation as quickly as possible,” Nissan said.
Relieved staff at both firms have been reassured that they will not be affected by the cuts. Staff at the Honda plant will continue to receive full pay, with plans for them to make it up later in the year through flexible working. Nissan have simply brought forward planned non-production days to ensure staff are not impacted.
Honda hope to have production back to normal by the end of May, and Nissan are confident once Japan are back to ‘business as normal’ they will be able to make up for any lost volumes quickly too.
It is thought that approximately 500 component makers have been affected by the quake and tsunami, resulting in shortages of electronic, rubber and plastic components. Some believe the impact of the disaster could see global car production down by 30%.
Toyota seems to have been the worse hit by the quake with much of the production in Japan stopping completely.
And it’s not just the Japanese carmakers being hit by the shortages in production. Ford and Peugeot have also had to slow their outputs down.
The impact of the quake is already raising questions about the stability of the ‘lean manufacturing’ models in the industry.
David Raistrick of Deloitte, has commented, “In terms of global production levels this is just a blip. But in a wider sense the industry will likely look at lean manufacturing because this is the result of having just enough parts held in stock, a limited number of suppliers and absolutely no excess capacity”.
This article was brought to you by Think Insurance, the specialist motor trade insurance provider.
DVLA cashing in on drivers data
April 7th, 2011A shocking report by BBC Watchdog has revealed that the DVLA has been selling drivers names and addresses to car parking companies. It is reported to have made the DVLA a whopping £2.7 million last year alone.
While the selling of the data is legal, the report has discovered that some of the car parking firms in question are somewhat unscrupulous, and have in fact broken the rules devised to keep them in check.
Back in 2009, the DVLA implemented “strict new measures to protect registered keepers against misuse of their details”. All companies requesting names and addresses of registered keepers had to be members of the British Parking Association (BPA) Approved Operator Scheme. Companies who were not members, or compliant with the Code of Practice would be deemed ‘not eligible’ to apply for the data.
It is important to note, as private parking firms do not have any power under the criminal justice system, they are restricted from using the terms ‘fines’ or ‘penalties’ when talking about their fees. They must instead ‘charge’ drivers for parking too long in a particular area, such as a shopping centre.
The parking firms who manage the car parks for places like shopping centres, airports and supermarkets, use the details purchased from the DVLA to chase up drivers who owe them outstanding monies. Some of the companies have since been found to be breaking the DVLA’s rules while following up the debts.
The Watchdog investigation, broadcast tonight, has found that some of BPA members who have used the DVLA data have in fact been using the restricted terms ‘fines’ and ‘penalties’. It is only as a result of the BBC Watchdog investigation that the companies have since changed the terms used.
Not only that, but the operator of a number of airport car parks was recently found to have breached the Code Regulation, by taking three months to respond to a driver’s appeal. The Code clearly outlines that all appeals should be answered within in 14 days. The company has since made an apology, putting the incident down to an administrative error.
The BPA have commented that they do investigate complaints but would urge anyone who feels a parking firm has breached the Code of Practice to flag it to the BPA immediately.
The DVLA have fought back and claim to have made no profits from the sales of the data. They also maintain that any data sold is done so under strict controls to firms who are compliant with the Code of Practice. Any incidents brought to their attention of a firm failing to meet the standards are investigated and appropriate action taken.
Stephen Glaister, RAC Foundation, calls for the government to be the body regulating the private parking industry.
Think Insurance, the specialist motor trade insurance provider, echo these sentiments and would welcome a government Code of Practice to prevent underhand or unscrupulous activities in this industry.
Good news for Motor Traders
April 7th, 2011Yesterday, Think Insurance, the specialist motor trader insurance provider, brought to you the news that Tesco had launched their latest venture, Tescocars.com. Unsurprisingly it has caused a stir in the used car industry, but concerned motor traders might be reassured by the latest survey results, released today by Manheim Auctions.
The survey has revealed that a massive two thirds of motorist would not be happy to purchase a car online. Most motorists admit to spending a whopping 18 hours online researching their next car purchase, but the majority wouldn’t go as far as to hand over the money without some sort of face to face interaction and seeing the car in person. The survey, which polled 3,000 people also revealed that 25% of motorists would go as far as agreeing the price on line, but still wouldn’t close the deal without seeing the car themselves.
Marketing Director at Manheim Auctions, Craig Mailey explains “There is no question that the internet has become the primary research tool for motorists looking for a car. But when it comes to actually buying online, without seeing the vehicle first, consumers are just not ready to take the plunge”. He goes on to comment that despite the rising number of used car websites it would seem that motorists just do not have the confidence to make such a large and important purchase online.
Think Insurance are sure motor traders will take some comfort from the findings of Manheim’s survey. While the internet is without doubt an important tool for all car dealers, it would seem even the world wide web can’t replace the car forecourt and the good old test drive!
Who needs a motor trade insurance policy?
April 6th, 2011If you work within the vehicle industry in any way then you shouldn’t underestimate the importance of having the right motor trade insurance policy. It is vital to the smooth running of your business, but it is equally important that you understand what you need from your policy and therefore, ensure that you are covered adequately.
Not everyone will be able to purchase a traders policy, it is a niche product with some very definitive criteria and restrictions. It goes without saying that to purchase one of these policies, you need to run a business that is working with vehicles. For example, a used car dealership, a valeter or a motor mechanic business. Worryingly, there are many businesses operating in the UK that need traders cover, but are not aware of the requirement. Businesses are putting themselves at unnecessary risk through lack of research into the matter. For example, a trade policy can also extend to businesses such as car scrap dealers, car electricians and sometimes even vehicle sign makers to name a few.
The type of policy you purchase can be as basic or as comprehensive as you feel you require. You may choose to simply cover yourself to drive your customers cars or you may go as far as covering your premises and tools. Often motor trade insurance policies will cover both full time and part time traders.
Please don’t be tempted to apply for this type of policy if you are not in the trade – eg if you have a high performance car that you are struggling to insure. In the past, insurers have been caught out by people abusing the system. They have certainly wised up to this now and it is very unlikely this type of policy would ever slip through the net. Companies will often check for evidence of trading and if evidence cannot be provided the policy would be cancelled. It could also be deemed as attempted fraud and the police may be involved.
Think Insurance, the specialist motor trade insurance provider, urges businesses to do their homework before they purchase a policy. Make sure you have done your research on the company and don’t be tempted to cut corners on the policy. Don’t underestimate the value of your business.
And if you are still not sure whether you need a policy, give us a call! We would be happy to talk you about your business.
We run our company along small brokerage lines so we value your business, never take you for granted, and can always guarantee you we will try our best.
Tesco launch ‘Tescocars.com’
April 6th, 2011Last month, Think Insurance, the specialist motor trader insurer, brought to you the news that Tesco were planning on entering the used car market. Rumours and speculation were rife in March, despite Tesco refusing to pass comment on the subject. But it would seem that this particular rumour mill was spot on, when yesterday saw the launch of Tescocars.com.
With the new service clients are able to browse the online showroom, which gives them exclusive access to thousands of used cars before they enter the market. Customers will be able to search through up to 3,000 former hire or lease cars each week on the website. And for added peace of mind, the supermarket giant has come up with the ‘Tesco Cars Standard’ where every car will be inspected by the RAC to ensure a consistency across all vehicles offered.
The new website boasts a unique supply of cars, with each vehicle typically somewhere between 6 months and 3 years old and with just one previous owner. Add to that the promise of competitive prices and 2,000 Clubcard points, it looks set to be another successful venture for Tesco. Shoppers who use the service can expect their own customer services advisor who will deal with any queries and after sales. They can also opt to collect the car from a national handover centre or pay £149 and have the car delivered direct to their door.
Tesco’s Chief Executive, Andy Higginson, said that the site has been designed to provide a “convenient, easy and safe” alternative to traditional used car forecourts. He claims that the cars will be around 20% cheaper than forecourt-sold cars due to low overheads.Higginson goes on to explain the reasons for entering into the used car industry “It is about following the customer into areas of spend. It is a £24bn market and we will have a tiny proportion of it. We can bring trust. A lot of people find it intimidating with the hard sell. There is no hard sell here”.
This news seems to have evoked a mixed reaction, with some applauding the move and others criticising Tesco’s car sales venture. It is without question going to cause some lively debate within the motor industry. Think Insurance will continue to watch this new venture with interest.
Your Motor Trade Insurance Could Help With The Increasing Risk of Potholes
April 4th, 2011A recent RAC survey conducted with 20 local councils around the country, has been published by Aviva and highlights a worrying increase in the problems caused by potholes in the nations roads. The facts that are shown in the survey only strengthen the needs for traders to make sure that they are covered by the right motor trade insurance policy.
Obviously one of the major factors that has lead to more problems on our roads is the fact that we have had yet another harsh few months over the winter period, with most of the country covered by snow and ice. However, a somewhat more worrying finding is that a lot of the problems can be put down to the spending cuts brought in by the Government.
One of the main aspects that is reported indicates that 60% of local councils (82% for rural areas) are resorting to short term repairs to the surfaces of roads due to the Governments budget cuts. This is clearly not going to be cost effective in the long term as it means that the repairs will simply need to be done over again. With half of the councils surveyed stating that there was still outstanding repair work from last year’s winter weather it is easy to see why the roads are becoming worse as the damage has been added to.
The RAC’s figures show that the number of call outs that they have received due to potholes or poor roads has increased by 25% over the last 12 months. The most common damages that had occurred where as follows;
- Wheel & tyre damage
- Suspension
- Steering
- Windscreen
- Bodywork
If you are driving your own trade vehicle or, even worse a customers, and it ends up damaged then you could be out of business for a few days or be faced with a hefty bill.
With increases in road tax and the seemingly never ending rises in the price of fuel, damages like those reported in the RAC survey are the least thing that anybody will want to have to fork out for. This is even more true for traders who often rely on their vehicle to earn a living and it only highlights how important it can be to make sure that you have a sufficient level of motor trade insurance cover. If you are unsure about any aspects of your policy then it as always advisable to speak to you broker and they will be able to provide you with all of the necessary information.
Lower Your Motor Trader Insurance With A No Claims Bonus
April 4th, 2011It is a well known fact amongst private car owners that a very good way of getting a reduced price for your premium is by building up a good few years worth of no claims bonus. However, what people who are working within the motor trade industry may not realise, is that they may also be eligible for a discount on their traders insurance policies via the same means. You will generally find that the bonus will work in the same way for both trade and private cover – you can find some general information below.
For anyone that is just starting out in the motor trade and is taking out their first trade policy, you should find that you can use any bonus that you have accrued on your personal vehicle cover to get a reduction. Your discount may be able to be used for trading purposes without it having any affect on your private cover.
When it comes to the levels of discount that you will be able to get, it can be different depending on which insurer you are getting a quote from. In the majority of cases you should find that you can get a maximum of five years bonus and the actual discount received will depend on the number of years. You may well find that if you have got a full five years bonus then you are entitled to a discount of up to 60% – clearly worth looking into!
As with a no claims bonus on a private vehicle, you may be able to take out bonus protection. The difference with this though is that if you do end up having to make a claim on your policy and you then decide to swap your insurer, the new company might not necessarily give any credit to the fact you had protected your bonus. Without any protection you will find that if you make a claim your bonus will get moved backwards by two years or more – or alternatively it may be taken down to zero!
Whether you have managed to build up a bonus on your own private vehicle or if it is on your trade vehicle, you should find that you can get a good discount on your motor traders insurance policy. The fact that you could potentially get up to half of the overall cost of the policy discounted should be enough to make people drive that little bit more carefully to make sure they remain claim free.
Think Insurance can provide you with a cheap insurance quote today, if you are looking for motor trade, home, taxi or commercial insurance then get in touch with one of our team members.
Savings to be had for ‘greener’ dealerships
April 4th, 2011Research carried out on behalf of The Society of Motor Manufacturers and Traders (SMMT), in conjunction with the RMI and the Carbon Trust, has revealed that dealers could expect to save up to a massive £10,000 every year if they were to simply reduce the amount of energy they consume.
The research has outlined simple, cost effective steps that dealers could implement to save themselves money. It is believed that if dealers implement these simple measures, they could save up to 25% off their annual energy spend. 30 dealers, of varying types and sizes, representing a cross section of the industry, were visited as part of the research. Each dealer inspected had different levels of energy consumption, to ensure the research was representative of the dealership sector as a whole.
The report has outlined practical steps in the form of a 7 step action plan that every dealership can implement to reduce their carbon footprint. Steps such as resetting heating controls on boilers, repairing doorseals and adjusting air conditioning settings are suggested. It is believed that some of these measures could actually lead to a saving of more than £4,000, without dealers having to spend a single penny.
Paul Everitt, Chief Executive of SMMT, believes that the reduction of energy costs will not only help dealers sustain their businesses, but it will also help improve the motor industry’s carbon footprint as a whole. In fact, it is estimated that up to £50m could be saved across the automotive retail network each year, based on the number of dealerships in the UK, which amounts to a reduction of 300,000 tonnes of C02. Certainly not insignificant!
Tom Delay, Chief Executive of the Carbon Trust has praised the SMMT for taking the initiative to help dealers to make savings. Delay said “All businesses can save significant amounts of money by cutting down on wasted energy. Car dealerships are no exception”.
Think Insurance, the motor trade insurance specialist, felt it was important to bring the findings of this research to all traders in the UK. These simple, cost effective measures could mean a greener business as well as a healthier bank balance.