Insurance World

Car insurance takes a significant portion out of a lot of people’s incomes, but for younger drivers it can be beyond reach on a low income. Under normal circumstances a new driving licence is a clean one, with penalty points for motoring offences not making an appearance until after at least a little time on the road. These two facts make motorcycle ownership a much more attractive proposition for impecunious young people.

There is however a noteworthy exception to this. It is only relatively recently that mini motorbikes have made an appearance, and their use has been taken up avidly by juveniles, but already legislation has had to be amended to deal with their illegal use. This is resulting in the motorbikes being confiscated and in some cases crushed; and their owners being prosecuted.

There would appear to be little point in prosecuting a juvenile as a result of a motoring offence, but the authorities have decided to use the law to enable them to deal with offenders in a fairly unique way. Even though the offenders are usually children, who are several years from being old enough to hold a driving licence, they are hit with penalty points. These are placed on record, and when a first licence is applied for the penalty is applied and the licence endorsed.

The offences being committed which give rise to these penalties are usually based on laws relating to vehicle use. It is illegal to use any vehicle unless the driver has a licence and the vehicle is taxed and insured; if these requirements are not met then use is only permitted on private land and is subject to the land owner giving permission.

The problem is that the majority of mini motorbikes are used on public land, pavements and roads, and it is doubtful if the (usually) youthful riders are aware that any offence is being committed. It is however even more doubtful if the riders have contributed to the cost of the motorbike in any way. So the machines have mostly been bought by parents who should be aware of the law and should show a greater sense of responsibility.

A number of accidents have already occurred when riders have collided with pedestrians, road users and miscellaneous obstructions. Make no mistake – these machines may be small, but modern engine design has ensured that they are capable of speeds which are out of all proportion to their size. Both riders and their victims have ended up in hospital, and in some cases in intensive care as a result of their injuries.

Bad enough if the damage ended there, with an injured child or pedestrian, distraught parents and a costly motorbike confiscated and crushed, but the delayed effect can also be traumatic. It is likely that all parties to the accident will have forgotten about the other penalty until the young person applies for their first licence on reaching qualifying age.

If the licence is granted it will carry the record of the forgotten penalty points. O.K. so where’s the problem, you may ask. A licence was wanted and has been issued. The problem lies in the next requirement which is insurance. Every company approached for a quotation will ask about the driver’s record, and when they learn that the licence has penalty points on it their interest will fade rapidly.

There will be an instant and fairly savage mark up in the premiums to be paid. This is likely to vary according to the severity of the offence, from a relatively mild but still pricey cost increase for minor offences to swingeing increases for more serious offences such as dangerous driving. Any mention of a drink driving offence will make insurance almost impossible to obtain due to the prohibitive cost, assuming that cover is not refused outright.

An insurance company spokeswoman has given some examples of actual costs. A youthful male Fiesta driver with a penalty free licence is quoted as facing comprehensive insurance payments of around Ј37 per week, but the same lad with a dangerous driving conviction has to find almost Ј48 per week. This is a 29% increase and is a considerable sum to pay out every week.

Note that whilst a young female driver in the same position would pay the same 29% increase for a dangerous driving conviction, the relevant figures in her case would be under Ј24 per week on a clean licence or over Ј30 per week with the conviction. This is because of the higher accident risk for young males.

So generous parents need to consider carefully. They could be doing their offspring no favours in the long term by splashing out on a mini motorbike for them before they obtain a licence and can then ride legally.

Looking for Insurance? Lots of people do every day, and they all want the best deal on what ever kind of insurance they need a the moment, price and fast, in that order. And because of the hurried pace of society today not many people read the fine print on insurance contracts, although they should. Knowledge when it comes to insurance is very useful. The more you know, and the more you understand about insurance, the more likely you will be to choose insurance that not only gives you the coverage you need, but that will save you money in the process. Too often people purchase insurance after being influenced by clever advertising campaigns. Or they choose the cheapest insurance available, not really understanding what coverage they will be receiving.

Insurance is something purchased in the hope of never having to use it. But when a time comes that it is needed, that a claim needs to be filed for what ever reason, then is not the time to discover that the policy you purchased and have been paying to keep, for however long, isn’t adequate to cover you need. If a peril is worth insuring against, then it is worth taking the time to make sure it is properly covered. Please use our site as a stepping stone to finding insurance to cover you specific need. There is no easy one size fits all when it comes to getting the proper coverage. Insurance needs to always be a tailored fit.

What a lot of people don’t know about, or don’t think to check into are the exclusion clauses of insurance policies. This area of the policy or contract might be the most important part of the policy to read. We all know the reasons we purchase insurance, beyond the simple answer that in most cases it’s required. But what is contained in the exclusions of the policy may well mean that for all particular purpose the insurance, even though you purchased it in good faith and kept up the payments, might be worthless to you. Are you aware under what circumstances certain exclusions in your policy might apply to you? Is there a possibility that the insurance company might have legal grounds to deny your claim, due to what is in the exclusion clause?

Is there an exclusion rider attached to the policy that you received after you purchased it? Have you read it? Do you know what it contains as far as exclusions go? Many times companies after getting your information will, because of certain items in your insurance history, add specific exclusions to an individuals policy to limit their liability in what they might determine is a questionable claim history. These exclusions could make your policy next to worthless in regard to the reasons the insurances was purchased in the first place.

Not knowing about these tiny little clauses can have a big impact if and when it comes time to file a claim. It is wise to read your policy from front to back. And if the company sends you any addendums for a policy that is already in force, keep them with the original policy, be sure to read them thoroughly. If you are not sure you understand what the terminology is saying, then it would be wise to find someone who does. Believe it or not, an insurance company’s first and foremost goal is not to pay claims out. It’s to make money, by taking in more premiums then they pay out in claims.

So the next time you get ready to purchase insurance, take time to read the fine print, it may surprise you at what you didn’t know was in your policy.