It seems it pays to be older in the world of car insurance. Research by the product comparison website moneysupermarket.com this month shows that in terms of car insurance for us Brits, it gets cheaper the older we get. The study took identical criteria (excess of £250) from a number of individuals but only altered the age of the driver. Results showed that a sixty-year-old driver could pay up to half the amount for their yearly policy than that of someone half their age.

Some people might be somewhat surprised at these results, as elderly people are often seen as more susceptible to accidents. Indeed, poor vision, slower reaction speeds and higher health risks contributed to research results at the start of 2007 by the Association of British Insurers (ABI), which revealed that drivers aged over 70 are three times more likely to have an accident on the road than those between 45 and 60. However, this doesn’t seem to be the opinion of the insurance companies.

Other findings show that more elderly people represent a surprisingly small proportion of claims per year compared to younger drivers and, as a result, the younger drivers are the ones bearing the brunt of the costs.

The director of moneysupermarket.com, Richard Mason, explained the results: “Clearly insurers feel that people in their 20s and 30s are a far greater risk than those in their 60s and 70s. This is because they tend to drive more frequently and at busier times. Insurers also deem younger drivers as being more aggressive on the road, in comparison.”

More good news for elderly drivers looking for good insurance rates came in May 2007 when the charity Help the Aged partnered up with mutual insurer Liverpool Victoria to offer special reduced rates on all manners of insurance. Intune Group Ltd are a subsidiary of the Help the Aged charity, providing help with price comparisons for people over 50 and donating all profits from their service to charity.

Porsche has been crowned King of the ‘Rich Cars’ for a second year running, thanks to swiftcover.com. After trawling data from 2.7 million quotes, researchers at the car insurance firm have revealed the top ten vehicles which Britain’s highest earners – those whose salaries exceed the £43,300 threshold for full income tax – are more likely to be driving than the rest of us.

German auto makers, considered by many to offer the ultimate in comfort and engineering, continue to dominate the ‘Rich Car List’, with Mercedes, Audi, BMW and Porsche all appearing in the top ten. However, 2007 has also seen a surge in the popularity of Japanese vehicles among the UK’s highest earners. Brands such as Honda and Toyota, placed 12th and 16th respectively, are for the first time within striking distance of the top ten, and luxury brand Lexus has risen five places since 2006 to occupy the number four spot.

Another surprise entry came in the shape of the Smart car, which fills ninth place in this year’s list. Highly praised for its fuel economy and green credentials, its inclusion on the ‘Rich List’ could represent a change of mindset for Britain’s high rollers.

According to Swiftcover’s Craig Staniland, “The car you drive is very much a status symbol and, traditionally, is a clear indication of the money you earned. However, our analysis shows that over time, smaller and greener cars are becoming popular with higher income earners, as more of us are recognising the importance of conserving cash and helping to protect the environment.”

Not all small cars have fared so well as the Smart, however. The BMW Mini, which once (in 2006) occupied sixth place on the ‘Rich Car List’, has since dropped 28 places in the space of a year – making it the third ‘least likely’ car to be driven by British high earners in 2007.

Swiftcover’s 2007 ‘Rich Car List‘

1. Porsche
2. Jaguar
3. Mercedes
4. Lexus
5. Saab
6. Audi
7. Jeep
8. BMW
9. Smart
10. Alpha Romeo

Supermarket giant Tesco last week launched a price comparison site for motor insurance, called Tesco Compare. The number of such comparison sites has mushroomed in recent years, with independent websites like Moneysupermarket.com, Comparethemarket.com and Confused.com now household names. With so many comparison sites already in existence and concern that Tesco might “push” its own financial products, how is Tesco Compare planning to compete?

Firstly, Tesco is quick to point out that there is no favouritism when it comes to car insurance recommendations. The site does obtain quotes from Tesco Car Insurance, but they are treated in the same way as any other car insurance product. So, according to Tesco, their new site is as independent as the rest. The site makes its money by acting as an introducer for car insurance providers and therefore earning a commission. The client pays the same price as going direct.

Tesco Compare does appear to differ in a couple of areas, which may help to set it apart. Firstly, quotes are obtained which take into account all the personal details which are entered by the customer. Other comparison sites make more assumptions, and are therefore less tailored to the individual. Tesco Compare works on the principle that the more information you give, the more accurate the calculated premium will be.

Secondly, Tesco Compare includes Royal Bank of Scotland (RBS) products. Tesco Personal Finance is partnered with RBS, presumably the reason that the bank is releasing its products to Tesco Compare when it has withheld information from other price comparison sites. As the parent company for Churchill, Nationwide and Privilege, RBS offers a lot of insurance products. In addition, Tesco Compare will give quotes on Lloyds TSB, Prudential and Virgin motor insurance products, none of which are currently featured on price comparison sites.

Debra Williams, Managing Director of Confused.com, believes the range of products being compared by Tesco is smaller than it seems. She believes that the high proportion of RBS-linked products make Tesco Compare one of the “least comprehensive” price comparison services. She adds:

“Unless Tesco significantly increases its panel of insurers it is highly likely that many, perhaps even most, of its customers are missing out on the cheapest deals.”

With plans in the pipeline to expand the price comparison service, incorporating home insurance and other financial products, it seems that soon there won’t be much you can’t buy through Tesco!

It might seem strange, but these days insects seem to be causing as much of a problem to British insurance companies as unruly drivers. Half a million motorists – a sizeable portion of drivers in the United Kingdom, have been involved in accidents due to disruptions caused by insects. Not only have lives been lost due to insect-related mishaps but £44 million worth of damage has also been caused as a result.

In a recent survey, www.esure.com found that three in four motorists claimed to have been distracted by insects at some point during the summer. Alarmingly, these distractions caused a portion of affected motorists to behave in a manner that endangered themselves and their fellow passengers.

One in five drivers admitted to relinquishing control of the wheel in an attempt to swat or kill the offending insect. Women are more likely than men to be distracted by insects. 80% of drivers in Birmingham claim to have faced an insect-related distraction at some point during the last two months. On the other hand, a mere 16% of Londoners demonstrated signs of being distracted by bugs when driving.

Analysts at esure believe that a warm and wet summer has been behind these startling figures as flying insects such as mosquitoes, hornets and ladybirds thrive in such conditions.

What can you do to reduce insect-related distractions when behind the wheel? Well, there are a few options. You could always make use of your car’s air conditioner rather than rolling down your windows. If this doesn’t appeal to you, however, esure has developed a device known as a ‘spider-web’ which is designed to stop insects from entering cars via open windows. It is hoped that this device will also offer a more pleasant driving experience to those motorists who would otherwise refrain from opening car windows during the summer months for fear that their vehicle will be infiltrated by winged visitors.

Worried that insects could cause you unwanted bills? Here are a few tips to help you drive safely in the face of winged visitors.

• Never lose sight of the road in front of you. Slow down if you need to.
• If an insect has entered your car, don’t try to kill it whilst driving. Stop your car by the side of the road and then kill the bug.
• Whatever you do, don’t wave your hands to shoo away the bug whilst still behind the wheel. Such hand movements tend to frighten and agitate insects, making them more likely to sting you.

The insurance agency expects that it will have to deal with above average insurance claims in light of the situation. However, by following these simple steps, you’ll reduce the likelihood of being a victim of an insect-related accident.

Considering the financial annoyance that is car insurance, it is probably not surprising that a new survey sponsored by research company uSwitch has revealed that around one in ten people have lied to car insurance companies in order to lower their premium costs.

According to the results of the survey, consumers often try and bend the truth on what they consider to be minor details such as age, address, and whether the car is usually parked overnight. Moreover, 3% of those surveyed revealed that they have even lied about whether they have received warnings or bans for drink-driving and speeding.

It is important to realise that this is a serious issue and if you choose to lie to get cheaper cover, it could invalidate your policy. Even though purchasing car insurance may be, in the words of Aron Thompson, head of insurance at uSwitch, a “grudge purchase,” it is simply not worth the hassle of being caught.

Furthermore, not only is it likely to result in repercussions for yourself, it is certainly going to put others at a great disadvantage. According to the Association of British Insurers, those who are not genuinely insured add an average of £30 a year to the premiums of those motorists who have paid as much as they owe. In fact, uninsured drivers ultimately cost the insurance industry millions of pounds and it is the consumers that end up suffering the effects of this, as it means higher premiums for everyone.

Not only that but should victims suffer terrible injuries in car crashes, it is often a very difficult and slow procedure trying to settle a claim with an uninsured driver. For this reason, a fund was set up by the Motor Insurance Bureau to compensate victims of accidents where the drivers responsible were insured. They paid over £500m last year and the fund is entirely financed by a tax on all UK insurance companies.

Therefore, whilst lying to insurers might be a tempting and common activity, the losses will end up biting the dishonest consumer and damage the entire industry. If you are unsure of the terms of your policy or the definitions of the words used by the company, make sure you ask so that you avoid giving out incorrect information and putting yourself and others at risk.