Vehicle insurance coverage costs at two-year high

Vehicle insurance costs have hit a 2-year higher, according to MoneySuperMarket information.

Typical premiums are now at their highest levels because December 2012, following 3 months of steep increases.

It tends to make typical costs 10% far more pricey than they have been this time last year and £25 far more pricey than in October.

Even though the graph beneath shows a steady decline overall since March 2011, the price tag inflation in the last 3 months could signal greater prices next year.

Kevin Pratt, our insurance professional, said: “Motorists have benefited from competitive pricing in the insurance coverage market place lately, but it looks like low fees are a thing of the past, as motoring cover has been steadily creeping up because August this year.

“Premiums in November averaged out at £456, the highest we’ve noticed since December 2012 when premiums had been at £465. Premiums are 10% greater compared to this time last year, and are increasing rapidly – November saw an uplift of £25 from October.

“Although typical premium rates aren’t at the record levels we saw in the initial quarter of 2011, it is worrying that we have observed automobile insurance coverage premium inflation running at a greater level that we saw then. Nevertheless, according to our information, premium prices do rise towards the end of the year but if this inflation continues, we could see typical premiums break the £500 mark in 2015.”

As automobile insurance costs continue to rise, it is more crucial than ever to shop about for your cover, and guarantee you are receiving the ideal policy for your income.

Many drivers are getting stung on renewal charges, which are frequently much more costly than options on the industry, so it truly does pay to shop about for cover to find the ideal value cover for you. The average saving made by drivers using MoneySuperMarket is £237.

Vehicle insurance coverage costs at two-year high

Is legal costs cover worth the expense?

Who would foot the bill if another driver crashed into you, injuring you and making it impossible for you to work?

Or if you had to pursue the other driver’s insurer through the courts to recoup money spent on taxis or hiring a vehicle while your car was being repaired?

Your car insurance might – but only if you’d taken out legal expenses cover as an add-on to your policy.

So should you pay extra to add this type of insurance to your annual motor policy.

Let’s take a closer look at the reasons for and against…

What is legal expenses cover?

The legal expenses cover you can buy alongside car insurance is designed to cover legal bills that could arise from the use or ownership of your vehicle.

Circumstances that could result in legal costs include

• having to take action against another road user for negligence, or


• needing to defend yourself against accusations made by another driver.

Legal expenses cover can also be taken out as an add-on to a home insurance policy, in which case it typically covers legal proceedings relating to your home, your employment, your death or personal injury and the supply of goods or services.

Insurer LV estimates that 40% of its customers choose to add this type of cover to their home insurance policies.

Whether it’s an add-on to car or motor cover, the maximum you can claim is usually limited to say £50,000 or £100,000.

How much does it cost?

The cost of adding legal expenses cover to your car insurance policy is generally around £20 to £25 a year.

Some deluxe policies offer it as standard for no extra charge.

When you’re shopping for car insurance, make sure your final quote does not include legal expenses (or any other add-on) unless you actually want it.

You might have to untick a box if you decide you don’t need the cover.

What are the advantages?

The cost of legal proceedings can be huge. So taking out legal expenses cover would prove a very worthwhile move if you needed to take legal action for any reason, for example following a car accident.

Legal expenses cover can also be used to recover any excess you have to pay as a result of a crash in which you were not at fault.

Plus, it usually entitles you to access to a free legal helpline, which could be a valuable source of advice on legal matters.

Are there any downsides?

One of the main issues with legal expenses cover is that there are no guarantees your claim will be accepted.

You will, for example, only be allowed to make a claim if it is completely clear who was to blame for the accident and the insurer expects the legal action to go in your favour.

Claims may also be rejected if too much time has passed since the incident, or the insurer does not feel the amount being contested is high enough to warrant court action.

This would be the case if the amount involved was £500, but the insurer expected the case to cost say £1,000.

Do I need it?

Some 25 million households already have legal expenses insurance, according to figures from the Office for National Statistics – although there’s a question as to how many actually know they have the cover, having inadvertently gained insurance as an add-on or as a benefit of employment.

The main benefit is the peace of mind that comes with knowing they won’t have to cover the cost of pursuing legal action should that become necessary.

If you’re thinking cover might be worthwhile, remember to check whether you already get free legal advice through your trade union or being a named driver on someone else’s car insurance. There’s no point in doubling up.

Is legal costs cover worth the expense?

What are the costs to transfer income overseas?

In order to transfer money overseas, and depending on what type of money transfer service you use, you may be charged a combination of fees. If you need to transfer money regularly, these can add up fast – so it pays to do your homework. Some of the common fees to watch out for include:

A sending fee – This can go under many names but is essentially the fee that your financial institution will charge in order to send the money – either via a bank branch or online – to an overseas account.

A receiving fee – Financial institutions may also charge you for the privilege of receiving funds from overseas into the nominated bank account.

Cancellation fee – You might also be charged cancellation fees if the transaction needs to be cancelled for any reason.

An amendment fee – Similarly, if a change of payment details is required, there may be a cost attached.

An enquiry fee – Should you need to follow up with your bank to ensure that the funds arrived safety, this may elicit another fee.

In its recent International Money Transfers star ratings assessment, CANSTAR found the following minimum, maximum and average fees on the products assessed for the rating:

	Sending fee		Cancellation fee	Amendment fee	Enquiry fee
	Online	Branch
Minimum	$ 20	$ 20	0	0	0
Maximum	$ 30	$ 35	$ 32	$ 30	$ 30
Average	$ 21.46	$ 27.87	$ 25.50	$ 23.29	$ 25.58

Source: Canstar International Money Transfer star ratings 2014 

And finally…

Another fee to watch out for is the fee charged to send money from one institution to a completely different one. Fees are easy to predict if the money transfer is sent and received by different branches of the same bank. They are much more difficult to unravel if your bank sends to a third party.

It’s difficult to give examples of these fees, as they vary greatly between institutions. Being aware and asking about this fee beforehand is the most sensible approach.

What are the costs to transfer income overseas?

Car insurance coverage costs rise for 1st time in 3 years

Motorists warned of costlier cover as the most recent Confused.com vehicle insurance price index shows the initial quarter-on-quarter value rises since June 2011.

Motorists are being warned of an end to falling auto insurance coverage prices as the newest figures suggest the cost of cover is set to rise.

These new statistics are taken from the quarterly Confused.com vehicle insurance coverage value index.

The index analysed far more than 4 million quotes from the third quarter (Q3) of 2014 – July to September – to reflect what prices drivers have been paying for cover.

The typical cost of extensive vehicle insurance coverage now stands at £582, up from £579 in the second quarter (Q2) of 2014 – April to June this year.

Costlier cover

Even though on the face of it this is a modest increase – just .4% or £3 on the standard policy – it is the initial time that quarterly automobile insurance premiums have elevated because June 2011. 

Nevertheless, although rates have crept up this quarter, general comprehensive automobile insurance coverage premiums are nonetheless down year-on-year. 

This time final year the typical expense of extensive cover stood at £652, compared with £582 at present – a 8.7% drop and a £70 saving for motorists.

But given the rise shown by the most current figures, car insurance coverage professionals are warning motorists to prepare for pricier premiums in future.

‘Prepare for pricier premiums’; 

Steve Sanders, finance director at Confused.com, said: “The decreases in vehicle insurance coverage costs that we’;ve been experiencing for the last 3 years have been welcome news for motorists. 

“However, over recent months the heat has surely come out of these price reductions. 

“Our most current figures suggest that these price tag drops are now levelling out, with premiums truly rising more than the last quarter to now stand at £582. 

“Although this is just a marginal quarterly increase of £3, this is the 1st time premiums have increased given that June 2011.”

Auto insurance rates ‘a mixed bag’;

Sanders added: “All round, it is been a mixed bag over the last quarter, with cost movements affecting consumers in various approaches. 

“These movements are probably to fuel further speculation that the insurance coverage pricing cycle may possibly turn in the close to future. 

“With rates shifting around either way, as they have been over the final quarter, we’;re urging consumers to shop around and evaluate prices to make certain they get the best deal.” 

Most significant price tag rise for 66-year-olds

With the expense of car insurance coverage falling regularly over the final 3 years, motorists across the board have benefited from lower premiums. 

Even so, predictions that ongoing price decreases have been unsustainable seem to be appropriate, with motorists in some regions and age groups hit tougher than other individuals.

For example, motorists in the south of England have noticed their insurance premiums enhance by 2.6% or £12 compared with last quarter.

This is the highest boost of any region in the UK.

Meanwhile, motorists aged 66 have experienced the greatest price enhance of any age group, seeing their premiums rise by 6.1% – £19 – quarter-on-quarter. 

Best 10 quarterly price increases by age

Age	Quarterly % improve from Q2 2014 to Q3 2014	Quarterly £ improve from Q2 2014 to Q3 2014	Q3 2014 cost
66	6.1%	£19	£324
19	3.7%	£56	£1,571
20	3.%	£41	£1,412
69	2.9%	£9	£331
32	2.8%	£15	£558
70	2.6%	£8	£333
58	2.4%	£9	£391
34	2.2%	£11	£498
33	1.9%	£10	£525
71+	1.9%	£6	£348

3 prime suggestions for more affordable automobile insurance

1. Your selection of vehicle

Your car’;s worth, variety and engine size all make a difference to your insurance coverage premium. The general rule is the smaller sized the car, the reduce the premium. If you haven’;t bought a vehicle but, verify insurance quotes for the vehicles you are taking into consideration. Confused.com’;s QuickQuote app can assist.

2. Boost your voluntary excess

The excess is the very first component of a claim that is paid by you. Increasing the amount you’;ll spend in voluntary excess can reduced your premiums.

3. Check your mileage

The number of miles you drive every single year can have a massive influence on your premiums. If you are unsure of the number of miles you drive every single year, you can get an estimate by comparing the mileage on your final 2 years’; MOT certificates.

Compare vehicle insurance – you could uncover a deal in minutes Get a vehicle insurance quote

Car insurance coverage costs rise for 1st time in 3 years

Additional costs stall flight rewards

Numerous flights paid for by rewards points threat not obtaining off the ground if consumers disregard the correct price of flights. Why? Due to the fact CANSTAR study shows that, in some situations, the actual points required to fly can be virtually double the airline’s advertised points tally if travellers concentrate on the “flight only” headline and disregard the extras, they could be in for a nasty shock – and a lot significantly less spending money!

Extras incorporate taxes, fees and carrier surcharges. CANSTAR Research shows that, on average, you will need to tack on thousands much more points to the points required to redeem the flight alone, whether or not it is a domestic or international flight. Often, it could finish up becoming a case of portion points-portion cash, but not all airlines offer you this, or indeed even make it effortless for you to realize what “extras” you are probably to be hit with until it’s also late.

In the table beneath, CANSTAR has calculated and compared the number of points presently needed for different well-liked domestic and international flight routes – one column concentrating on flights only, the other column which includes all government taxes, charges, charges and carrier surcharges.

Points required inclusive and exclusive of charges
Location	Flight	Flight Only	All Expenses
Sydney – Melbourne	Domestic	16,700	24,582
Sydney – Perth	Domestic	34,950	42,756
Sydney – Singapore	International	76,786	125,872
Sydney – London	International	150,317	228,303
Sydney – Los Angeles	International	124,625	191,774

Supply: Airline sites. Quotes based on economy seat with at least 20kg luggage, travel domestically 4 March, return 8 March 2015, internationally 4 March, return 27 March 2015. Typical of points needed from 4 airlines on domestic routes and 8-9 airlines for international routes.  All fees consists of all applicable  taxes, fees, and carrier surcharges, and were estimated primarily based on dollar worth where inclusive points quote was not obtainable.

So – when saving up your points for a distinct vacation location, it pays to know what you actually want upfront to stay away from disappointment at booking time. What sort of rewards plan are you looking for? Compare some rewards cards here.

Additional costs stall flight rewards

Car insurance costs rise for very first time in 3 years

Motorists warned of costlier cover as the most recent Confused.com car insurance cost index shows the initial quarter-on-quarter cost rises considering that June 2011.

Motorists are getting warned of an finish to falling automobile insurance prices as the latest figures recommend the cost of cover is set to rise.

These new statistics are taken from the quarterly Confused.com car insurance coverage price tag index.

The index analysed more than 4 million quotes from the third quarter (Q3) of 2014 – July to September – to reflect what rates drivers have been paying for cover.

The typical cost of extensive car insurance now stands at £582, up from £579 in the second quarter (Q2) of 2014 – April to June this year.

Costlier cover

Whilst on the face of it this is a modest boost – just .4% or £3 on the standard policy – it is the 1st time that quarterly auto insurance coverage premiums have enhanced since June 2011. 

Nonetheless, while costs have crept up this quarter, all round extensive vehicle insurance premiums are nevertheless down year-on-year. 

This time last year the typical expense of extensive cover stood at £652, compared with £582 currently – a 10.7% drop and a £70 saving for motorists.

But provided the rise shown by the most recent figures, car insurance coverage professionals are warning motorists to prepare for pricier premiums in future.

‘Prepare for pricier premiums’; 

Steve Sanders, finance director at Confused.com, mentioned: “The decreases in car insurance prices that we’;ve been experiencing for the final 3 years have been welcome news for motorists. 

“Nevertheless, over recent months the heat has surely come out of these price reductions. 

“Our latest figures suggest that these price drops are now levelling out, with premiums really rising more than the last quarter to now stand at £582. 

“Though this is just a marginal quarterly increase of £3, this is the 1st time premiums have improved since June 2011.”

Car insurance costs ‘a mixed bag’;

Sanders added: “General, it is been a mixed bag more than the final quarter, with cost movements affecting consumers in various approaches. 

“These movements are likely to fuel further speculation that the insurance pricing cycle could turn in the near future. 

“With rates shifting around either way, as they have been over the final quarter, we’;re urging customers to shop about and examine costs to make sure they get the very best deal.” 

Greatest value rise for 66-year-olds

With the cost of car insurance coverage falling regularly over the last 3 years, motorists across the board have benefited from reduced premiums. 

Even so, predictions that ongoing value decreases had been unsustainable appear to be right, with motorists in some regions and age groups hit harder than other folks.

For instance, motorists in the south of England have noticed their insurance premiums enhance by 2.6% or £12 compared with final quarter.

This is the highest increase of any area in the UK.

Meanwhile, motorists aged 66 have seasoned the greatest price tag improve of any age group, seeing their premiums rise by 6.1% – £19 – quarter-on-quarter. 

Top 10 quarterly cost increases by age

Age	Quarterly % improve from Q2 2014 to Q3 2014	Quarterly £ boost from Q2 2014 to Q3 2014	Q3 2014 cost
66	6.1%	£19	£324
19	3.7%	£56	£1,571
20	3.%	£41	£1,412
69	2.9%	£9	£331
32	2.8%	£15	£558
70	2.6%	£8	£333
58	2.4%	£9	£391
34	2.2%	£11	£498
33	1.9%	£10	£525
71+	1.9%	£6	£348

3 prime guidelines for more affordable car insurance coverage

1. Your choice of auto

Your car’;s value, type and engine size all make a distinction to your insurance premium. The common rule is the smaller the automobile, the reduced the premium. If you have not bought a vehicle yet, check insurance coverage quotes for the cars you happen to be contemplating. Confused.com’;s QuickQuote app can aid.

2. Increase your voluntary excess

The excess is the very first portion of a claim that is paid by you. Escalating the quantity you will pay in voluntary excess can lower your premiums.

3. Check your mileage

The number of miles you drive each year can have a large effect on your premiums. If you are unsure of the number of miles you drive every single year, you can get an estimate by comparing the mileage on your last 2 years’; MOT certificates.

Evaluate auto insurance coverage – you could find a deal in minutes Get a automobile insurance coverage quote

Car insurance costs rise for very first time in 3 years

AA reports lull as fuel costs rise - Confused.com

21/06/13

By James O’;Brien

The AA has revealed fuel prices are as soon as once again on the rise, with diesel motorists suffering much more than drivers who fill up with petrol.

The typical price of petrol in Britain has gone up from 133.35p per litre in the middle of May to 134.61p in the middle of this month. For the duration of that time, the price tag of diesel has elevated from 138.17p per litre to 139.16p.

The most high-priced petrol can be discovered in Northern Ireland, with a litre typically costing 135.8p. Drivers in London advantage from the cheapest petrol, which costs 134.61p per litre on average.

Northern Ireland is also property to the most high-priced diesel at 139.8p per litre, with London and south-west England at the other finish of the scale with a typical price of 139.1p.

The AA has described the steady enhance in average petrol rates as “some thing of a lull” following considerable changes in prices in the final year. However, it stated retailers have usually been “creaming up to £1 a tank further off diesel automobile drivers and up to £1.40 a tank added off diesel van owners” in 2013.

The AA added: “At present, the 1p-a-litre premium that fuel stations are typically adding to the cost of diesel adds 5,500 miles to the break-even point for a new auto buyer who chooses diesel instead of petrol.

“Diesel vehicles usually expense £1,500 far more but the saving from far better fuel efficiency should ultimately recoup that.”

AA president Edmund King pointed to “much greater variation” in the expense of diesel rather than petrol, from retailer to retailer. Even so, he said the profit margin on diesel tends to be a minimum of a penny higher.

“The clear message to diesel drivers is to take benefit of the higher range of prices locally. Some forecourts are more diesel-friendly than other people,” added Mr King.

AA reports lull as fuel costs rise - Confused.com

Do hospital parking costs make you sick?

Are we getting ripped off by hospitals charging extortionate parking fees? More than 3-quarters (79%) of UK hospitals now charge for parking and many are now raking in more than £1 million a year.

And whilst most will agree the NHS needs all the funding it can get, it looks like motorists are as soon as much more getting used as a cash-cow to assist make up shortfalls in funding.

Sick bays

A series of Freedom of Information (FoI) requests from the Everyday Express to Well being Trusts across England have revealed that as a lot of as 74 hospitals raked in more than £500,000 in parking costs in the course of the 2013/14 economic year, although a additional 46 produced a lot more than £1million.

And although these figures want placing into point of view – there are about 2,300 hospitals across the UK, a quarter of hospitals in England do not charge, and charges have been abolished completely in Scotland and Wales – it does seem that some hospitals see on-site parking as a funds-generating chance.

Nottingham City Hospital, for instance, charges £4 per hour. That is twice as significantly as the city centre!

If you venture to London’s Royal Free Hospital, meanwhile, the parking charges may lead you to feel the institution’s name is somewhat ironic. They variety from £3 per hour, to £72 per day, to a trip-to- A&E-inducing £504 per week.

The FoI requests discovered 2013/14’s most significant earner was Birmingham’s Heart of England NHS Foundation Trust, which created just under £ 4million in parking fees, closely followed by the University Hospitals in Leicester, which pulled in just more than £3.5 million.

The parking charges lottery

It seems your hospital’s catchment location can have a enormous bearing on how much you spend to park there, as the infographic from MacMillan Cancer Help, highlights…

…but is something being completed about it?

MPs examine ‘rip off’ charges

In 2010 the government published a consultation on bringing an finish to hospital car parking charges, concluding it should be up to NHS regional trusts to choose no matter whether they charge for parking. It also recommended that charges should be proportionate and concessions must be obtainable.

But the suggestions look to have fallen upon deaf ears in some NHS trusts, though, prompting Robert Halfon, Conservative MP for Harlow, to raise the concern in the Commons as soon as far more. The most recent enquiries discovered it is not just individuals and visitors who are footing the bill: hospital staff are paying up to £200 a month just to park at work.

The situation is now being examined by Jeremy Hunt, the Health Secretary, who stated:  “I do share your [Robert Halfon’s] issues that the automobile parking charges in some hospitals are just as well higher.

“I recognize hospitals have economic pressures, as do numerous components of the NHS, but I am satisfied to talk to you at another stage about what specifically can be carried out on this concern.”

These ‘financial pressures’ consist of the estimated £200 million a year the NHS would drop by providing free of charge parking at all hospitals across England. But certainly it shouldn’t be down to hospital staff, patients and visitors to subsidise the overall health service through inflated car parking costs?

What do you feel? Let us know…

Do hospital parking costs make you sick?

Driving licence costs set to fall this autumn

Driving licence fees will fall by up to a third (32%) as part of government plans to assist cut the price of motoring and save drivers about £18 million a year.

Excellent news for young drivers

The plans are contained in a public consultation on driver licensing costs that will see the expense of a initial time postal application for a licence drop from £50 to £43, whilst on the internet applications will be reduce even additional to just £34 – which will come as a welcome respite for young drivers who feel they are acquiring priced out of motoring.

Cost of renewals to be reduce

It’s not just young drivers who’ll feel the benefit if the proposals are provided the go ahead as the expense of licence renewals are set to fall from £20 to £14 for online applications, or to £17 if you apply by post.

For an additional £4.50 the Post Office will take a digital photo and signature from you at the counter and then approach your application. Far more information on that service can be discovered right here.

And it is worth remembering you need to have to renew your driving licence each 10 years – and if adjust your name or address. If you are caught with an out-of-date licence or the particulars on it are incorrect, you could locate oneself on the getting end of a £1,000 fine.

DVLA’s digital drive

The consultation is due to close on August 25, 2014. If the proposals are authorized, the government hopes to have the new fees introduced by the end of October this year.

The truth on the internet applications will see a higher reduction than postal applications is further proof of DVLA moving towards a completely digital service, following the announcement that car excise duty (VED or ‘road tax’ to most) is to go digital from October 1, 2014.

Kevin Pratt, insurance professional at MoneySuperMarket stated: “The price of owning a vehicle can be important, specifically for young drivers, but if these proposals are provided the green light then it will go some way to easing the economic burden on motorists.”

Driving licence costs set to fall this autumn

Value Verify: Mercedes Costs All-New 2015 C-class Sedan, GLA-class Crossover

Value Verify: Mercedes Costs All-New 2015 C-class Sedan, GLA-class Crossover

Kentucky Mayor Attacks High Gas Costs by Opening City-Run Fueling Station, Gets Accused of “Socialism”

Proper as we’ve lost all faith in our leaders, the people operating Somerset, Kentucky, have proved that government can actually do some thing excellent for the folks it represents. In 2 words, here’s what they have accomplished: Inexpensive gas!

Somerset, situated about 130 miles southeast of Louisville, refurbished a shuttered municipal gas station and opened it to the public last Saturday. Following complaints from some of the city’s 11,000 residents about unfairly higher gas rates in the course of the summer, Mayor Ed Girdler decided to run his own station. City officials told the Related Press that gas stations in surrounding regions have usually been charging 20 to 30 cents much less per gallon and that a city-run gas station would bring far more individuals to Somerset, which draws vacationers heading to Lake Cumberland. Nearly immediately right after the Somerset Fuel Center opened with a $ 3.36-per-gallon cost, the key private gas stations a half-mile away reduce rates by about 10 cents to try to match it.

The 10 pumps—all regular grade, plus a single for compressed natural gas—are owned and operated by Somerset and the prices set by the mayor’s workplace. To keep charges low, the fuel comes from a nearby refinery, there’s no candy for sale and no bathrooms, and the 10 attendants (to deal with money) are city personnel on rotation from other departments. The city spent $ 75,000 to upgrade the pumps and set up credit-card machines, and that is it.

“We’re not placing anybody out of enterprise, we’re just attempting to lower costs,” station manager Melody Price tag told us. “Everyone out here is content.”

But although drivers adore it to the tune of 300 fill-ups per day, nearby gas station owners and petroleum groups are grumbling over the city’s power play, even crying “socialism.” Girdler says he does not care to make a profit and is charging only adequate to cover fees. But there’s no telling how low cost it’ll stay. As opposed to practically every other state, Kentucky’s gasoline excise tax varies with the average wholesale expense of fuel. Just this month, the tax shot up from 28.7 cents per gallon to 31.1 cents and probably will change again during the fall.

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Though a single tiny station in Kentucky is not exactly fodder for a Venezuelan-style government gas monopoly, it does raise questions about how—or if—municipalities can compete in private spaces. Count on the subsequent Somerset city-hall meeting to be packed.

Kentucky Mayor Attacks High Gas Costs by Opening City-Run Fueling Station, Gets Accused of “Socialism”

Louisiana Law to Increase Costs for Uninsured Drivers Next Month

Louisiana drivers will quickly face stiffer penalties for driving with out vehicle insurance following Gov. Bobby Jindal signed Act 641 into law on Thursday.

Starting July 1, owners of uninsured cars will have their automobiles impounded and their license plates and registration revoked. The new law also increases the reinstatement charge for these products and establishes a separate minimum $ 75 fine for driving uninsured.

The following table compares the old and new reinstatement costs, which are based on the length of time the car was uninsured:

According to a legislative fiscal report, the new costs set below the law are anticipated to raise $ 53 million in additional revenue.

$ 53M in Income to Go to Verification Method, Public Safety Salaries

Element of Act 641 uses the charge hike to fund an auto insurance verification technique.

The program will use a database containing info about Louisiana auto insurance policies and drivers. It will permit authorities to check regardless of whether drivers have auto policies and verify no matter whether or not they have had lapses in coverage. The system will contain “real-time”  data for police to reference throughout traffic stops.

Some of the improved fees that are collected will go to an “Insurance Verification System Fund” that would back the “creation and maintenance” of such a database.

Uninsured motorists have faced clampdowns in other states with similar databases, which includes Maryland, Texas, Montana, and Rhode Island.

Other components of the charge hikes are marked to improve law enforcement and public security salaries and applications.

Louisiana Law to Increase Costs for Uninsured Drivers Next Month

Period that vehicle was uninsured	New reinstatement charge (efficient July 1)	Earlier charge
1-30 days	$ 100	$ 25
31-90 days	$ 250	$ 100
91 days or much more	$ 500	$ 200

Soaring vehicle maintenance costs nearing new vehicle instalment levels

As a general guide costs of running a vehicle should not exceed 30 percent of gross monthly income

With vehicle owners already feeling the pinch of higher expenses due to the rising cost of fuel, coupled with interest rate hikes, the focus should now be on managing less obvious maintenance costs that slowly add up and eat away on monthly income.

Glenn Stead, Head of Products for Vehicle and Asset Finance at Standard Bank, says consumers should look at the overall maintenance costs when considering buying a new vehicle – not just the monthly instalment repayments. Consumers need to be realistic about what they can afford – and bear in mind that as vehicles depreciate in value – their running costs appreciate.

“As a guideline, costs of maintaining and running a vehicle should not exceed 30 percent of gross monthly income,” advises Mr Stead.

Fuel costs, which often vary depending on the length of the consumer’s daily commute, are one of the obvious costs. But there are the additional, less obvious costs that slowly add up, such as monthly insurance premiums, regular wear and tear on the vehicle, and e-toll fees etc.

“Added together, these running costs could end up being double the monthly instalment value, or even equal the value of monthly repayments for a new vehicle in a higher price range,” warns Mr Stead.

“Gone are the days when vehicle owners only had to worry about the petrol price, and increasing instalments due to interest rates going up. Escalating maintenance costs are also taking their toll on the costs associated with owning a vehicle,” says Mr Stead.

Mr Stead advises vehicle owners to consider these tips to better manage costs associated with maintaining and running their vehicles:

• Fixed rate vehicle financing option – although marginally higher than the variable rate, by utilising this option vehicle owners can be assured that they will not be affected by further interest rate hikes. It may be better for the first time buyer to use this option: it will be a bit more expensive, but at least it gives them peace of mind.

• Reward programmes – reward programmes offer an opportunity for vehicle owners to save on their monthly running costs. By filling up at select filling stations, account holders can get back as much as R1 for every litre. For example, Standard Bank’s UCount Rewards programme which started in 2012 has paid back R77 million in redemption point to customers through its UCount Rewards fuel reimbursement option.


•  Reduce bills without compromising insurance - faced with the increased costs of maintaining their vehicles; owners should not be tempted to compromise on their insurance options – by either switching to an option with lower premiums, or cancelling their vehicle insurance completely. 

Because many vehicle owners do not read the ‘fine print’ in their policies, which may contain exclusions such as high excess amounts, this can disadvantage them in the case of damage or loss of the vehicle.

Prospective vehicle owners should carefully examine the terms of their insurance contracts, to be clear on what is covered, and what isn’t – and whether they will need supplementary ‘top-up’ insurance.

• Understand the different types of vehicle financing products – it is important for vehicle buyers to understand the different types of vehicle financing options, and the financial implications of each: including the implications of residual payments at the end of the contract’s term. Banks offer a range of options and solutions to assist customers facing financial pressure. This includes structuring a grace period for repayments.

 While the above list is by no means conclusive, these tips can go a long way to help vehicle owners to manage the escalating costs associated with running and maintaining their vehicles.

“Vehicle owners should not wait until things worsen, the minute they realise they are in dire straits they should talk to their financial advisor to identify a solution to help them through the difficulty,” says Mr Stead.

Also view:

Buying a vehicle, Vehicle Finance and Car Insurance

Vehicle Maintenance, Repair and Road Safety

Soaring vehicle maintenance costs nearing new vehicle instalment levels

Soaring vehicle maintenance costs nearing new vehicle instalment levels

As a general guide costs of running a vehicle should not exceed 30 percent of gross monthly income

With vehicle owners already feeling the pinch of higher expenses due to the rising cost of fuel, coupled with interest rate hikes, the focus should now be on managing less obvious maintenance costs that slowly add up and eat away on monthly income.

Glenn Stead, Head of Products for Vehicle and Asset Finance at Standard Bank, says consumers should look at the overall maintenance costs when considering buying a new vehicle – not just the monthly instalment repayments. Consumers need to be realistic about what they can afford – and bear in mind that as vehicles depreciate in value – their running costs appreciate.

“As a guideline, costs of maintaining and running a vehicle should not exceed 30 percent of gross monthly income,” advises Mr Stead.

Fuel costs, which often vary depending on the length of the consumer’s daily commute, are one of the obvious costs. But there are the additional, less obvious costs that slowly add up, such as monthly insurance premiums, regular wear and tear on the vehicle, and e-toll fees etc.

“Added together, these running costs could end up being double the monthly instalment value, or even equal the value of monthly repayments for a new vehicle in a higher price range,” warns Mr Stead.

“Gone are the days when vehicle owners only had to worry about the petrol price, and increasing instalments due to interest rates going up. Escalating maintenance costs are also taking their toll on the costs associated with owning a vehicle,” says Mr Stead.

Mr Stead advises vehicle owners to consider these tips to better manage costs associated with maintaining and running their vehicles:

• Fixed rate vehicle financing option – although marginally higher than the variable rate, by utilising this option vehicle owners can be assured that they will not be affected by further interest rate hikes. It may be better for the first time buyer to use this option: it will be a bit more expensive, but at least it gives them peace of mind.

• Reward programmes – reward programmes offer an opportunity for vehicle owners to save on their monthly running costs. By filling up at select filling stations, account holders can get back as much as R1 for every litre. For example, Standard Bank’s UCount Rewards programme which started in 2012 has paid back R77 million in redemption point to customers through its UCount Rewards fuel reimbursement option.


•  Reduce bills without compromising insurance - faced with the increased costs of maintaining their vehicles; owners should not be tempted to compromise on their insurance options – by either switching to an option with lower premiums, or cancelling their vehicle insurance completely. 

Because many vehicle owners do not read the ‘fine print’ in their policies, which may contain exclusions such as high excess amounts, this can disadvantage them in the case of damage or loss of the vehicle.

Prospective vehicle owners should carefully examine the terms of their insurance contracts, to be clear on what is covered, and what isn’t – and whether they will need supplementary ‘top-up’ insurance.

• Understand the different types of vehicle financing products – it is important for vehicle buyers to understand the different types of vehicle financing options, and the financial implications of each: including the implications of residual payments at the end of the contract’s term. Banks offer a range of options and solutions to assist customers facing financial pressure. This includes structuring a grace period for repayments.

 While the above list is by no means conclusive, these tips can go a long way to help vehicle owners to manage the escalating costs associated with running and maintaining their vehicles.

“Vehicle owners should not wait until things worsen, the minute they realise they are in dire straits they should talk to their financial advisor to identify a solution to help them through the difficulty,” says Mr Stead.

Also view:

Buying a vehicle, Vehicle Finance and Car Insurance

Vehicle Maintenance, Repair and Road Safety

Soaring vehicle maintenance costs nearing new vehicle instalment levels