It’s not all doom and gloom in the world of car insurance, at least not for the insurers. Admiral has just reported pre-tax profits of £215.8 million for the 12 months up to December 31, a massive 7% rise from 2008 figures. This healthy amount is due in large part to the rise in premiums over the last year.

We’ve heard no end of the rise in car insurance premiums across the board over the last few months. All groups of drivers have been affected, although younger drivers are suffering the most.

But that is good news for the insurers, as Admiral has proved. Admiral owns a number of companies, including Confused.com, but its car insurance division is by far the biggest money maker. Out of its total profit, £206.9 million came from the car insurance division, a rise of 15% compared to last year.

On top of its huge profit figures, Admiral also made over £1 billion in turnover for the first time in its history, with a total of £1.07 billion. This is an 18% rise compared to 2008.

Admiral claimed that premiums went up by 12% on average last year, making it the biggest annual increase in premiums for nearly 10 years. Many insurers’ premiums have been going up by record amounts, mainly as a result of a rise in the number of claims being made, but also as a result of increasing fraud. In order for the insurance companies to make any profit, they have to put their premiums up accordingly.

Admiral insures in the region of 2 million cars across the UK, giving it a market share of 7%. Its employees are set to benefit from the record profits, with about 3,000 of its 3,500 staff set to receive shares worth £2,500 each.

Following the icy conditions recently, the number and severity of potholes across the nation’s roads has got worse. The main problem with potholes is the damage that they can inflict upon vehicles, which can increase the chances of drivers having to make a claim on their car insurance.

Tyresafe, the main tyre safety organisation in the country, has now issued some advice to motorists to help them take care of their vehicles and reduce the likelihood of making a claim.

According to the organisation, an easy way to reduce the chances of facing damage and having to claim on insurance is to make sure the wheels of the vehicle are aligned properly. Driving over potholes can have many negative effects on the vehicle, such as altering its steering and causing further damage that can make it less safe to drive. Making sure the wheels are properly aligned can help to prevent damage from occurring.

Pothole damage is a major cause of car insurance claims. During last February’s cold snap, claims rose by 250% according to the AA. This recent cold weather has been more prolonged, so the number of claims is expected to be even higher.

The chairman of TyreSafe, Stuart Jackson, said that if the wheels are not correctly aligned it could pull the vehicle "to one side or cause vibrations in the steering wheel”, making it “difficult to control”. A simple trip to the local garage can make sure that the wheels are aligned properly and lead to greater safety whilst driving.

Correctly aligned wheels also prevent tyre wear because they are pointing in the right direction, as well as reducing resistance, leading to lower fuel expenses, so the overall running costs of the vehicle will go down.

Virgin Money Car Insurance has revealed a surprising statistic regarding car insurance claims. It has studied all the claims made on cars for its insurance service, and has discovered that the highest number of claims comes from vehicles that are five years old.

Five-year-old cars make up 9.6% of the total number of claims on Virgin’s database, the highest number for any vehicles. Virgin also revealed that cars between three and six years old make up 37% of claims, despite only accounting for 24% of the total number of cars in use.

Other results from the research show that cars which are 10 years old make up 6% of claims, and cars that are less than one year old make up just 2% of the total number of claims.

This has prompted Virgin to issue a reminder to people purchasing a second-hand car that they must check that it is in good condition first. A spokesperson said that “drivers tend to change their car every three to five years and on this evidence they have some justification”, and that people buying a second-hand car should take necessary action “to ensure that the car meets all of the road standards”.

But Virgin was also keen to reassure drivers that just because a car is five years old, it does not mean that it is necessarily more dangerous. It is just that cars of this age seem to be the most prone to being involved in an incident which results in a claim. The important thing is that people should always check that a second-hand car is in good order before purchasing it.

Swinton Car Insurance has just carried out a survey of drivers’ car maintenance habits and revealed that a shocking 70% of drivers in the UK never check their oil.

The online survey was completed by more than 1,300 drivers, and the results paint a worrying picture of car maintenance habits across the country. It is understandable that a small proportion of people will never get around to checking the oil, but 70% is quite a shocking figure.

Oil is essential to the health of the engine, lubricating it and keeping it cool, as well as keeping it free from rust. As vehicles get older, they tend to use up more oil, so it is especially important to keep the oil levels topped up if you are driving an older car.

The problems that can be caused by a lack of oil are quite serious. In the very worst cases, careless drivers who have not bothered to check their oil level run the risk of ending up forking out for a completely new engine. And to make matters worse, engine damage is not usually covered by car insurance policies.

According to the research, women are the worst offenders with 83% confirming that they never check their oil levels. Men fared better, with 52% claiming to check the oil levels.

The insurer development manager for the car insurance provider, Steve Chelton, said that they advise people to check their oil “at least every two weeks” and that they should also “carry a spare canister in the car at all times.”