Protect Your Delivery Items With Courier Insurance
December 1st, 2011A definition of Courier insurance (a legal requirement for people in this line of work) is a commercial vehicle policy that covers for the carriage of other people’s goods for hire and reward on a multi drop basis.
If you are not just transporting your own tools & equipment or carrying goods that are to be sold elsewhere but transporting other people’s goods and are delivering them directly, you will need a specialist courier insurance.
As with most types of motor insurance there is the option of Comprehensive, Third Party, Fire & Theft or Third Party Only cover and you may choose from insured only, named drivers or any driver cover depending on the type of business you are running.
A key aspect to your courier insurance might be ”Goods in transit” cover. This will give you and your customer’s peace of mind. It may also be a requirement of your employer so that they know their goods are covered. This type of cover generally ranges from £10,000 to £50,000.
Introductory discounts may be available from your qualified insurance intermediary.
An experienced driver can receive up to 60% discount for their courier insurance with proven driving history. Think Insurance may also be able to give discounts to those that can demonstrate no claims history on other policies.
MoT tests toughening up
November 29th, 2011Following 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
November 29th, 2011The 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)
November 28th, 2011Motor 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
November 28th, 2011The 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
November 25th, 2011Drivers 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.
Look Into A Fleet Insurance Policy For Your Business
November 23rd, 2011If you are running a business with multiple cars needing insurance cover – for example taxi cabs or estate agency; then a fleet insurance policy will probably be the ideal option. When you insure all of your cars as a fleet rather than individually, you may save both time and expense. You will have insurance with one company only, and be able cut down on administration costs and paperwork. You may even obtain a lower premium than if they were individually insured. There is also need to remember multiple renewal dates. The available insurance cover that you would expect to find on an individual car policy, can be obtained for the entire fleet.
Cost will vary depending on what type of cover is required. It will also depend on who is driving the vehicles, the ages of the drivers, the type of cars, where they will be kept and what they will be used for. Apart from covering your employees, other road users and the general public, you may need to consider insuring goods carried in the vehicles. Whether this is for items to be delivered, or to cover loss and damage incurred to any client`s property, will be down to your particular needs and the insurer. Where fleet cover will be similar to a single car policy, is if any accident happens or damage is incurred, then the policy owner will need to pay the excess on each claim.
One of the options that may be available to the employer/owner, is legal protection insurance. Whilst this is not a necessity for operating a business, it may prove to be invaluable if you or one of your employees is involved in a dispute or accident caused by another vehicle/driver, but not covered in your insurance policy; particularly if you have third party only car insurance. This can give you access to an individual or organisation with legal skills and experience, who can make sure that your business does not suffer because of another drivers actions. They could make sure a hire car is available for you allowing you to continue business without financial losses. For companies who have fully comprehensive insurance and may already have access to a hire car, then legal protection insurance can advise you on claiming back any excess costs incurred.
Always make sure that you are fully aware of what is covered by your company fleet insurance, and what is not covered. For instance, if a windscreen becomes damaged would it automatically be covered by your policy? It is pretty much standard these days for a car not to be covered if you leave the keys in the car and it is subsequently stolen – something to make perfectly clear to all of your drivers! A reputable insurance company will always be willing to take the time to explain the different cover required, and clearly answer any of your queries.
UK roads to get busier
November 23rd, 2011According to the RAC, over the next 25 years we could expect to see a whopping 4 million cars joining our roads, as car production continues to grow.
It is predicted that by the year 2035, traffic will increase by around 43%, the East Midlands are expected to see the largest increase according to the research.
So with an extra 4 million cars hitting the roads, can we expect even more delays and slower journey times? Speculation that the Government have cut spending on infrastructure suggests that perhaps our roads won’t be able to cope with the predictions.
The RAC have made claims about the Governments plans, spokesperson comments, “The Government has significantly reduced road transport investment because of the recession and ministers have not explained what plans they have to cope with the bleak picture painted by their own numbers”.
The RAC Foundation and a consultancy firm (Arup) carried out some research, which is thought to have uncovered 96 plans to build more roads ‘sitting on the Department for Transport’s shelves’. The research suggests that these unfunded plans could make significant money if they were to be implemented.
Garrath Hussey, Chief Executive at Think Insurance, comments on the predictions, “It is encouraging to see that the UK motoring industry is continuing to grow, this is great news for Motor Traders and Car Dealers across the country. However it is concerning to hear that the road infrastructure may not be able to support such growth”.
Referal Fees
November 17th, 2011Taxi Insurance premiums have increased by nearly a third in 2011 – a shocking statistic when compared with previous year’s rises. Much of this increase has been blamed on the soaring cost of personal injury claims as a result of road traffic accidents.
Current arrangements (where everyone in the chain is accused of taking a cut of the profits) have led to high costs, encouraged a compensation culture and led to the growth of an industry which pursues claimants for profit. Insurance companies inevitably pass the costs on through increased compensation claims directly onto motorists and those with other insurance policies.
Referral fees have subsidised the profits of the people involved – from lawyers to brokers, to insurance companies to police forces – there has been a lack of control on the costs and people involved. Would some of these businesses be able to survive without this supplemental income?
The current system in which personal injury details are sold on by insurance companies to lawyers is about to change as the Government is now set to ban the payment of referral fees in personal injury claims in an attempt to curb this compensation culture. Whether or not there will be exploitable loopholes and the practice carries on is anyone’s guess.
Starting a hairdressing business – What insurance do I need?
November 17th, 2011Once you have decided that you would like to open your own hairdressing salon the start up costs and questions you need to ask can vary greatly from business to business. Will you own or rent the premises? What area will be suitable and can it sustain another hairdressing salon? What equipment will you need? How many members of staff will you employ, and what costs will this entail, including holiday pay etc? Before you open your doors to the public, you will also need to ask the question, what insurance do I need?
Because of the nature of the business, public liability will be indispensable. This will cover the client against any accidents whilst inside your premises and any area you own or are responsible for concerning the business. Hairdressing salons will inevitably be faced with hazards such as water spillages and other wet substances such as shampoo and conditioner. If one of your customers falls and injures themselves, then public liability insurance will cover you and your business in case they choose to apportion blame and sue for compensation.
Employers` liability insurance is absolutely necessary if you are going to employ staff. This will cover you (subject to policy cover) and your employees should they suffer an accident whilst working for you, or develop an illness during their time in your employment that they feel is work related. This insurance can cover you for any claims made against by your employees. (Injuries or illness sustained whilst driving for work purposes may be covered under a separate motor insurance). As an employer, you could be fined if you cannot produce a current certificate of insurance for employers` liability – a legal requirement.
It may be advisable to obtain professional indemnity insurance – most likely you will be mixing up chemicals and hair colours and applying them to the client`s hair as part of the services you offer. PI covers the employer against negligence and claims made through lack of professional care. It can help you rectify a mistake before involving the courts.
The amount of cover needed and the types of cover will vary greatly from business to business, and not only will you need to make sure that you have the correct insurance but also the correct level of insurance. When you ask the question- what insurance do I need? You need to know that you are receiving honest and correct professional advice, from a company who also wants the most suitable cover for you and your business.