- False E-car-nomies -

There’s no two ways about it, saving money is at the forefront of everyone’s minds at the moment. However, many motorists are missing out on some easy savings when it comes to the cost of running their cars and some are actually making false economies – perceived quick savings that actually carry greater costs in the long run. Norwich Union (http://www.norwichunion.com), part of Aviva, understands that times are tough and the costs involved in running a car are joyless, yet necessary, expenditures. To lighten the load and help drivers save what pennies they can, the UK’s leading insurer offers motorists some useful tips on how to make savings and why false economies should be avoided. FALSE ECONOMIES The law of the lane Motor insurance is a legal requirement in the UK, yet an estimated 1.5 million people currently drive uninsured. If your car is essential to your work or family life and you have an accident when you’re uninsured you’ll either be forking out for repairs or scrabbling to find money to buy a new vehicle altogether, neither of which are an affordable prospect. FACT: One in five drivers has an accident every year so the chances of it happening to you are much greater than you think. SAVING: The average motor insurance claim is £1,800. Honesty is the best insurance policy To the best of your ability you should always give clear and accurate information when taking out any insurance policy. First and foremost it’s fraudulent to deliberately supply incorrect information. Secondly and just as importantly, supplying inaccurate information could make your policy void in the event of a claim. The result? You may reduce your premium in the short term but you’ll have been paying it for absolutely no cover when you actually need it. FACT: Insurance fraud costs the industry over £1.6 billion a year. SAVING: This equates to the average honest customer paying up to £60 more per motor insurance policy. A reduction in insurance fraud would lead to a reduction in premiums for all motorists. Be honest and be covered •   Declare the full status of your licence including any penalty points and convictions •   Accurately declare who the main driver will be, e.g. if you know your teenage son or daughter will be the main driver then they really need to be declared as the main driver. •   Only provide the postal address of the residence the car is kept at the majority of the time •   Specify honestly where your car is kept when not driven eg: driveway, garage, or roadside. •   Check your current level of No Claims Discount, around 25% of customers declare an incorrect No Claims Discount entitlement •   Declare any previous accident history SAVVY SAVING TIPS Insurance, insurance, insurance Yes, insurance is important but you only need one policy. It may sound unbelievable but some people unwittingly have cover through their motor insurer, their bank and potentially their employer.  Keep an eye on your bank statements and make sure you are aware of all direct debits coming out of your account. SAVING: The average motor insurance policy costs just £40 a month*, not something you want to be paying out for unnecessarily.   Driving down the detail of your cover On average people only review the detail of their motor insurance policy every 3 years.   Review all areas of your motor insurance policy and see if your requirements are still the same as when you first took out the policy. •   If, in a bid to save money, you don’t think you’ll be going abroad in the next twelve months on holiday, then you won’t need additional driving abroad cover •   Do you need courtesy car cover or could you use public transport if your car was out of action for a short while?  If not having your car for any length of time is going to have a detrimental effect on your work commute or school run it may be worth your while spending an additional £14 a year on courtesy car cover to ensure life will go if your car is off the road. •   Check your mileage every year on your MOT certificate, you maybe insuring your car to drive many more thousands of miles a year than you actual need to. •   If you have a garage, why not clean it out and actually use it to keep your car in? This will reduce premiums. •   Though it may sound counter-intuitive, it may save you money to have your partner or spouse as a named driver on your motor policy (assuming they have a clean driving record). •   Have your personal circumstances changed?  Do you now cycle to work?  Or are you now retired?  If so, you won’t need to cover your car for the commute into work which will save you some money. •   And finally, if you can, buy online. Currently Norwich Union is offering discounts to purchase your motor insurance online at http://www.norwichunion.com/car-insurance - most other insurers will also offer online discounts (average you should expect is at least 10%). SAVING:  You could save up to £25 a year by removing continental motor insurance cover and around £60 by removing European breakdown cover.   Slow down and save money Speeding is a criminal offence that can result in a fine and even penalty points being added to your licence. Yet the benefits of driving more slowly and particularly within the speed limit carry a significant financial saving. FACT: 8 million licence holders have been convicted of speeding in the UK SAVINGS: •   Driving more slowly and efficiently will save you money on fuel. In fact, driving at 56 mph uses 25% less fuel than driving at 70 mph •   Having two or more speeding convictions can increase your insurance premiums by up to 20% •   Anecdotal evidence suggests that slower driving reduces the incidence of accidents, which in turn reduces insurance claims. Ultimately fewer insurance claims means lower premiums overall for all motorists and particularly for individuals with no claims at all Taking even just one or two, if not all of these steps, will make tangible savings to the cost of running your car – make them today and you could have some extra pennies to put towards Christmas, a time when everyone feels the pinch. ENDS Notes to Editors * Average motor insurance policy taken from the 2008 RAC Cost of Motoring Report Norwich Union is the UK’s largest general insurer with a market share of around 15%, with a focus on insurance for individuals and small businesses. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers.  FAs provide over 70% of the company's long-term savings business in the UK. In the summer of 2009 Norwich Union will change its name to Aviva.  Aviva is the world’s fifth largest insurance group and operates in 27 countries.  Aviva is to become the customer brand worldwide, thus enabling the company to compete even more effectively on a global scale for the benefit of customers, staff, business partners and shareholders. Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at http://www.aviva.com/media.


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About Norwich Union: Norwich Union UK, an Aviva company, offering Car, Motor, Home, Travel, Health, and Life Insurances.

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