CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 25 JUNE 2014:
Whether you’ve got classic car insurance on your early Fiat 500 or just third party cover on your Vauxhall Astra, you’re in for some pain sometime soon.
You would think that most people who own classic car insurance would be content with just renewing their cover year-on-year without a thought to the value of their vehicles, simply because most classic cars aren’t really worth that much unless they’re rare or in especially flawless condition. However, the truth is that the value of many a classic car has rocketed lately, leading to such maddening and curious scenarios such as an £8,000 Porsche 911S being re-valued at £80,000 less than twenty years later!
In other words, you’re going to be in some serious financial pain if you ever do prang that favourite classic car of yours and discover that the amount of cover you’ve been paying for is nowhere near the value of the car. You’re up the creek in that situation, aren’t you pretty boy?
Of course it’s not just classic car owners that have to worry about rising costs. The kind of motor car insurance you would take out on your daily driver to ensure it has proper cover is also going to get more expensive – thanks to the tender mercies of the UK’s cadre of scammers. These fraudsters have been working around the clock to make false and spurious accident claims, driving costs up for insurers who then raise their rates to recover those costs.
Don’t believe me? Just talk to Aviva, one of the largest insurers out there. They said that over the past year, fraud has risen by a ridiculous rate. There were more than 800 instances of faked crashes in 2013 alone – and out of those crashes there were arose more than 2,200 false claims. Those were just the ones Aviva knows about – think about the ones that have slipped through the cracks! You’ll be guaranteed to never sleep again – especially if your renewal date is coming up.