Driving 2012: Rise in Insurance Costs and New Laws

The previous year was hard on motorists with the increasing living costs and several changes in insurance laws. Does this mean 2013 will be quiet? Let us examine how these changes may have an impact on you.

Gender Ruling

A new ruling on gender is likely going to be the biggest news headline in 2013. Judges in Europe determined that gender-based insurance premiums were unlawful. This means each car insurance provider must adapt its pricing according to the new ruling before 2012 is over.

This new law can have an impact on anything from annuities to car insurance. Female drivers should be ready to see a rise in insurance premiums to match that of their male counterparts. The increase in prices will be effective in December 2012 as providers get ready to make an even transition.

Car Insurance Cost

Because of the great increase in premium costs, the Office for Fair Trading (PFT in the UK) has made plans to investigate the inner workings of the car insurance business.

The cost of insurance has risen significantly in 2012. The Towers Watson price index showed premiums have risen by as much as 12% around the UK.

Motorists in Ireland are well advised to consult with car insurance experts such as 123.ie. European laws affect us all and whilst insurance continues to rise on average, many of us can still find savings by switching providers, or by finding an insurer that fits our particular needs.

This has been blamed on the price increase of personal injury claims. Besides the rise in price associated with personal injury claims, other factors that will be investigated include third-person vehicle repairs and courtesy vehicles.

This investigation has been given a warm welcome by the Association of British Insurers.

Nick Starling, the general director of the Association of British Insurers (ABI) says the car insurance business has mentioned for a long while that there are extra costs and deficiencies in the system which needs to be looked into. They are pleased the OFT has acknowledged this in their research.

It is anticipated that the cost of fuel will drop slightly and the government said it is making plans to eliminate the increase of fuel by 3p set to occur in January 2013.

You should expect 2013 to be a great time for telemetrics. To assist motorists with the rise in costs, a few UK car insurance companies have integrated a black box system that controls driving habits. Drivers are awarded with lower premiums in return. It will be no surprise if this technology spreads to Ireland and further.

Acceleration and breaking are things the black box system monitors. The device essentially sends data back to insurance companies to help them determine premiums. The technology is targeted at younger drivers.

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