Car Insurance Claims Effects on Premiums
The latest Home Office statistics of a Crime Survey show that car crime is down 23% since 1999. But the total number of claims is still high, car thefts amounted to 400,000 in 2003. Personal injury claims are also rising quickly and the sophistication of new cars mean that repair costs are much higher.
Car repair expenses also has an impact on car insurance premiums
The car insurance repair research centre at Thatcham is the body that sets the rating group for private cars and light vans. Through its research, Thatcham provides 70% of the information used in the rating of cars. Recent research shows that safety and security are advancing rapidly. For example it is now compulsory for all new cars to have immobilisers fitted.
Car Manufacturers such as Volkswagen are looking to make it cheaper to repair their cars. The new VW Golf has module doors, in the event of damage, there is no need to replace the whole door, and instead the outer skin panel can be detached for repair.
This makes commercial sense for the car manufacturers, for example Volvo drivers pay extra because of the reputation of Volvo as safe cars.
Personal injury in relation to car insurance
Soft tissue neck injuries cost the insurance industry more than £1.6 billion a year. This is usually referred to as whiplash. Researches are trying to manufacture cars that will reduce this amount. In particular passenger safety and rear end impacts are being studied. Allianz in Munich is studying the causes of whiplash and preventative counter measures. As part of this they are calling for an international standard for head restraints and seats.
Car theft can be reduces by tracking devices
One of the biggest problems for car insurers is the theft of car keys from houses. The theft of car keys from a house is one of the areas that continue to cause problems for car insurers. One of the irritants is that the police class this kind of theft as a burglary and not as car theft. Few cars currently have trackers installed as standard. Thatcham is working on a standard for trackers. Once more cars have these installed it will make car crime substantially easier to deal with, and reduce car insurance premiums.
These days it is harder to steel vehicles the old fashion way. For one the class windows are much stronger and harder to break into. The worrying side effect of better vehicle security has been the rise of car jacking as it is now harder to steal a vehicle the old fashioned way. This can be countered by laminating the glass in the car.
This treatment costs around £400 and makes the glass in a car much more difficult to break. In the future some insurers such as Norwich Union are looking to give discounts where laminated glass is fitted.
