Author: Vincent
How does the MoneyHero and Bolttech partnership impact car insurance? The recent collaboration between MoneyHero, a digital insurance broker, and Bolttech, a leading insurtech company, is set to revolutionize the car insurance industry. This partnership aims to enhance consumer experience by integrating Bolttech’s insurance exchange technology with the MoneyHero platform. This innovative solution allows users to compare a wide range of car insurance options more efficiently. It streamlines the process from comparison to purchase. The platform already launched in Hong Kong. It will probably also expand to other markets, including Singapore and the Philippines, within the next year. As a…
How does the new risk rating system affect car insurance costs?The introduction of a new Vehicle Risk Rating system (VRR) in the UK reshapes the way car insurance premiums are calculated.The new risk rating system replaces the outdated Group Rating System that had been in use for over 25 years.The updated model now considers modern automotive technology when determining insurance costs.Thatcham Research is the firm responsible for the system. It notes that features like collision alerts, automatic braking, and lane-keeping functions are now factored into risk assessments.These innovations significantly enhance driver safety and reduce the likelihood of accidents and insurance…
Why are car thefts driving up insurance costs?Car theft is on the rise in Canada, particularly in northern Ontario. This surge now has a direct impact on car insurance premiums.Insurance companies paid out an alarming $1.5 billion in claims related to vehicle thefts in 2023 alone.According to a report by RATESDOTCA, the comprehensive premium portion of car insurance for vehicles like the 2024 Dodge Ram truck can be nearly seven times higher than for a 2018 model of the same truck.The increase in vehicle thefts has forced insurers to hike premiums to cover the costs of these massive losses.This counts…
Why are car insurance premiums skyrocketing in 2024?Car insurance premiums are spiking across the United States in 2024. Many drivers are wondering why.According to a recent report by Insurify, the average cost of full car insurance surged to $2,329 in the first half of the year. This marks a 15% increase from 2023 and a giant 48% rise since 2021.Some states are facing even steeper hikes. Projections show that rates could climb over 50% by year-end.Several factors contribute to these surges, like increased vehicle repair costs and a shortage of skilled mechanics.But also, the aftermath of insurers’ losses from fatal…
Why are car insurance costs high despite dropping car prices?Car prices for new, used, and rental vehicles, are steadily decreasing. Used car prices dropped by 10.9%, rental cars by 6.2%, and new cars by 4.4%This offers consumers a welcome relief. However, the cost of car insurance has remained stubbornly high. It has risen by 18.6% over the last year.According to experts, the relationship between car prices and insurance costs is complex.Scott Shapiro, head of KPMG’s US insurance division, explains that there is a correlation between a vehicle’s price and the insurance rate for physical damage.However, other factors also significantly influence…
How will UK’s new law impact car insurance? UK drivers have received a significant boost with the introduction of the 2024 Automated Vehicles Act. This law outlines new policies around self-driving vehicles. It introduces a paradigm shift in liability for accidents involving autonomous vehicles, or driverless cars. According to the new guidelines, British motorists will “not be liable” if their self-driving vehicle crashes while they are behind the wheel. This move will probably save car insurance policies for vehicle owners, because it removes them from the equation when a driverless vehicle is involved in an accident. Yousif Al-Ani, principal ADAS…
How will the traffic laws impact car insurance premiums?Recent changes to traffic laws have ignited a debate about their potential impact on car insurance premiums.In July, several U.S. states, including California and New York, implemented stricter penalties for traffic violations.Amongst these traffic violations are speeding, distracted driving, and driving under the influence. These changes most likely reduce traffic accidents and enhance road safety.Insurance experts predict that the traffic laws may lead to lower car insurance premiums in the long term.The main reason for that is the fact that safer driving conditions and fewer accidents could reduce the number of claims…
Why are Aviva and Sonnet leaving Alberta?Two prominent car insurers, Aviva and Sonnet, have announced their departure from Alberta. It is a significant shakeup for Alberta’s car insurance market.Aviva Direct will cease offering car and home insurance services in Alberta from January 2025. This requires customers to seek alternative insurers upon policy expiration.Similarly, Sonnet will phase out its car insurance coverage by the end of this year. These exits underscore the ongoing challenges within Alberta’s insurance landscape.The departures are driven primarily by escalating litigation costs and claim expenses that have outstripped premiums.Both companies cited the unfavorable operating conditions and financial…
What led to CDK Global’s shutdown? A significant cyberattack on CDK Global has disrupted operations nationwide. CDK Global is a prominent provider of cloud-based software for car dealerships. The attack occurred on Wednesday. It prompted CDK to shut down most of its systems “out of an abundance of caution” to protect its customers, according to spokesperson Lisa Finney. Although CDK managed to restore some systems later that afternoon, another cyberattack later that evening forced a renewed shutdown. This ongoing disruption compelled dealerships to revert to manual, handwritten forms to continue their operations. The restoration process began on Saturday, and they…
Why is Labour calling for an investigation into car insurance costs? Labour has taken a firm stance against the rapidly escalating cost of car insurance in the UK. It promises to investigate what they term “unfair” practices within the industry. Shadow Transport Secretary Louise Haigh has criticized the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA) for not adequately addressing the issue. She urges them to scrutinize the sector. According to Labour, the average quoted price of car insurance soared by 56.4% in the year leading up to February. This sharp rise has significantly impacted millions of…