New UK Car Insurance Laws - April 2011

From April 2011, it will be illegal to own a car in the UK that is not insured even if you don't drive or keep it on a public road unless you have a current and valid Statutory Off Road Notice (SORN) registered with the Driver & Vehicle Licencing Agency (DVLA).

This new law is being introduced in an effort to clamp down on the over 1 million un-insured drivers using their cars on UK roads every year. With the cost of insurance rising every year due to the increased number of claims involving these vehicles with no 3rd party insurance cover and a minimum of £30 added to the premium of law abiding citizens, the government and the motor insurance industry is finally taking the bull by the horn and dealing with this public menace.

Once the new car insurance laws come into effect, every car that is registered with the DVLA will have its details checked against the Motor Insurance Bureau (MIB) database, and the registered keeper of any vehicle that does not have insurance will automatically be contacted via an Insurance Advisory Letter (IAL), giving them steps they need to take to avoid action being taken against him/her.

Failure to get the car insured could result in:
1. A fine of £100.
2. The offending vehicle being immobilized, impounded and eventually destroyed.
3. The registered owner facing prosecution with a possible maximum of £1000.

In order for you not to fall foul of these new car insurance laws, you need to either get a minimum of 3rd party insurance cover on any vehicles registered in your name, or if the car is not being currently used, file a Statutory Off Road Notice with the DVLA informing them that it is kept off road (driveway, garage) and not currently being used or driven.

The government and the motor insurance industry is hoping that these new laws will drastically cut the number of un-insured cars being driven on UK roads and as a result a drop in insurance premiums for all law abiding citizens.

By Shola Ogunlokun

How To Keep Your Car When The Money Runs Out

Politicians are great at making promises, but they simply have no quick solutions to the current economic crisis and the resulting unemployment. For many jobless people the expense of owning a car is a survival tool, not a luxury. While fit urban dwellers can switch to bicycles or public transportation, this solution is not practical or even possible in many situations.

When faced with long-term unemployment, the best advice is to become totally realistic. Food and shelter come first, followed by long-term commitments such as car payments. When there is not enough money left over to pay that particular bill, one of the first things to do is to call your creditors, and explain exactly what has happened.

Do not skip car payments without permission. This may lead to repossession, and complete loss of credit. If your payment record has been generally good, there is the possibility of a one-time loan deferment. Before calling your bank, have the necessary documents at hand, including your loan and vehicle identification numbers.

A payment deferment is only a short term solution. In addition, cut down on unnecessary trips. Arranging all errands into one excursion can save not only gasoline, but also reduces wear and tear, and that means fewer regular repairs. Shop for the cheapest gas in your area on line, and make it a point to fill up at that station.
Accidents can happen to anyone. While eliminating auto insurance sounds tempting, that can be a very serious and costly mistake. Insurance is not a luxury, but a mandatory requirement in most areas. The first step in cost-cutting is to examine your policy to see if you are paying too much for your current vehicle.

Collision and comprehensive coverage is necessary when a car is new, but older cars generally are worth less, and the cost of repairing one can be more than its total value. Some cut back on liability coverage during unemployment, a risk that is not recommended, but one which can be necessary in dire circumstances. Do not, however, put yourself in danger of being financially ruined due to an accident.

Talk to your current insurance company about reducing expenses, without necessarily telling them you are currently unemployed unless required to. Use the Internet to comparison shop. While all companies advertise the lowest prices, there are many individual discounts available. As a last resort, do not be afraid sell that expensive car and get an more economical used vehicle that costs less to operate.

By Allan Koenen

Car Insurance Quote - Mere CTP Is Never Enough

A person who has purchased his or her first automobile after saving for a long time may be forgiven for presuming that automobile insurance is an unnecessary expense. Why should anybody bother about any other form of insurance when compulsory third party coverage is a part of the vehicle registration fees? An Australian driver will not be permitted to use the vehicle on the road without obtaining CTP insurance.

Why bother finding a car insurance quote on the internet for any other form of insurance? Well, it is important to understand the level of protection that CTP insurance offers. The third party protection is restricted to personal injury alone. Simply put, this insurance policy will pay for any liability that arises due to any injury suffered by a third party in a car accident involving you. What are the chances of the third party suffering personal injury without any damage to the vehicle whatsoever? You will admit that any severe accident causing an injury to the other driver will automatically damage his or her vehicle as well.

If you are at fault, you will have to bear the cost of repair of the other individual's automobile as well. From where are you going to get money for this expenditure? Compulsory third party insurance required by the law will not cover this. This means that your decision to save money and opt for CTP insurance alone will actually enhance your risk. You will have to pay money for insurance but will enjoy very little returns in the long run.

Lowering the premium you pay today is only going to create complications later. Paying a higher premium will help you avoid financial ruin when an accident does occur. Considering the increase in vehicles on the road, chances of new drivers suffering an accident is always very high.

If you want to reduce the cost of protecting yourself from other risks, check out various websites that offer affordable car insurance quote. Assess your risk and choose the level of protection you want. Make sure that your liability towards third party is taken care of comprehensively. Other risks like fire, theft or damage to one's own vehicle can be adjusted and altered as and when required. You would do well to use the internet to educate yourself about the basics of automobile insurance before proceeding. Lack of knowledge is always going to be a dangerous problem for a new driver.

By Corwin Smith