CompareNow Financial News

Motorists supporting whiplash clampdown

Tue, 22 May 2012 12:15:11 GMT

The government's decision to clamp down on whiplash claims is being supported by British motorists, according to a survey by MoneySupermarket.com.

In an opinion poll by the price comparison website, nine out of ten respondents said they would welcome a strategy to reduce the number of people making erroneous claims for whiplash.

Recent research by the AA found that people making fraudulent claims for the injury cost the insurance sector £2 billion a year as well as pushing up the average protection premiums by £90.

The government is planning to introduce regulation that means that whiplash victims need to be assessed by an independent doctor before making a claim.

Peter Harrison, car insurance expert at MoneySupermarket, said: "This clampdown is a step in the right direction for motorists who want to see the cost of their car insurance reduced. We hope to see changes implemented quickly and efficiently but, until then, it is vital drivers shop around for the best deal."

Brits heading to Greece for holidays

Tue, 22 May 2012 12:14:36 GMT

Holidaymakers are choosing to head to Greece for their summer breaks as travel website Travelzoo has revealed that bookings have soared by nearly a third.

Despite the country's ongoing economical problems many Britons are planning to head to the nation over the upcoming summer period.

Travelzoo's European managing director, Stephen Dunk believes that the hike can been attributed to the strong performance of the pound to the Euro.

He revealed that Brits can now get ten per cent more money to spend abroad, while a number of tour operators have been slashing their Greek deals to entice people to holiday in the country.

Mr Dunk also highlighted the popularity of all-inclusive deals saying: "The heightened consumer interest in all-inclusive deals is a real sign of the times, as people attempt to protect themselves ahead of their holidays and ring-fence the amount they spend."

A recent report by Tourism Concern revealed that all-inclusive holidays were damaging the economy of the local areas of these vacation hotspots.

MoT tests scrapped for classic cars

Tue, 22 May 2012 12:14:06 GMT

Owners of classic cars love nothing more than taking their vintage vehicle out for a spin, and now they have been given an extra boost by the government.

Young drivers counting the cost of car insurance

Mon, 21 May 2012 12:10:26 GMT

Younger drivers are facing increasing car insurance costs, as new figures have revealed that 17 to 20-year olds pay 18 per cent more than the national average.

Research by Confued.com has found that the youngest motorists on the UK's roads face an average annual comprehensive cover of £2,499. This is compared to just £597 for those aged between 36 and 40.

The figure is even higher for young men, with an average premium setting them back £3,635. With research by the Office for National Statistics (ONS) revealing that the income for 18 to 21-year olds stands at an average of £13,972 a year; car insurance is putting a large dent in their disposable income.

Gareth Kloet, head of car insurance at Confused.com, said: "Each age group is costed by their statistical risk and this includes the value of the car itself, the experience levels of the driver, past history and where they live among other factors."

While premiums high remain the Institute of Advanced Motorists (IAM) has encouraged policyholders to haggle with their current provider to get the best deal.

Brits warned of hidden credit card charges while abroad

Mon, 21 May 2012 12:09:34 GMT

British holidaymakers are being warned of the hidden charges of using their credit cards while abroad.

Research by uSwitch.com has revealed that Brits vacationing in different countries could potentially run up over £53 million in fees simply by going shopping and leaving the payment to plastic.

With a double bank holiday coming up at the beginning of June to commemorate the Queen's diamond jubilee, many Brits will be looking to take an extended break abroad, but using a credit or debit card could land people with hefty charges.

Figures show that 22 per cent of Brits are forced to take out cash on their credit card which carries fees of 2.99 per cent and leads to people owing high costs to companies after returning home.

Michael Ossei, personal finance expert at uSwitch.com, said: "Fees from using your credit or debit card abroad can be the holiday souvenir from hell, but there are a number of ways to avoid them."

FTB lending soars before stamp duty holiday ends

Mon, 21 May 2012 12:09:00 GMT

First-time buyers (FTBs) have been taking advantage of mortgage lending prior to the end of the stamp duty holiday.

Figures from the Council of Mortgage Lenders (CML) revealed that before the government slammed the window shut, the amount of mortgage borrowing grew by 74 per cent, as people moved to take advantage of the system on houses priced between £125,000 and £250,000.

Chancellor George Osborne closed the stamp duty holiday window on March 24th in a move that split allegiance in the coalition party. It led to a flurry of people looking to beat the closure, and the CML discovered that the amount of people taking out these mortgages was 57 per cent higher in the previous year.

CML director general Paul Smee said: "We expected this significant increase in borrowing for March because of the stamp duty holiday. However, if lending follows the same pattern as after previous stamp duty concessions, we will likely see a drop in activity in the next few months."

Incomes not matching cost of home energy bills

Fri, 18 May 2012 11:23:43 GMT

Consumer income is not matching up with rising household energy bills, according to new research by uSwitch.

The organisation found that there was a substantial gap between what people earn and what they have to pay just to remain comfortable in their home. uSwitch revealed that household bills increased five times faster than the average income since 2004.

Figures have shown that while the money coming into homes grew by 20 per cent in the past eight years, energy bills soared by 140 per cent, meaning that the cost accounts for 3.2 per cent of a household's income, doubled from 2004.

The increasing bills have forced 83 per cent of people to "go without" over the winter period to cut down on costs.

Consumers falling foul of payday loans

Fri, 18 May 2012 11:23:00 GMT

More and more Brits are falling into debt by taking out payday loans to pay for everyday items such as food, petrol and household bills.

Research by consumer group Which? has found that 60 per cent of people that took out these high interest loans were using the money for these amenities plunging them further into debt.

The company found that 45 per cent of people admitted to incurring greater financial problems after taking out the loans. An investigation by Which? of 34 payday loan companies found that one firm was charging consumers £150 for being ten days late with a repayment.

In April, Stella Creasey, MP for Walthamstow, called on the government to implement better regulation checks on these companies to stop more people being plunged into unmanageable debt.

Richard Lloyd, Which? executive director, said: "People are getting caught up in a debt trap, whacked with high penalty charges, or encouraged to roll over payments and take out more loans at inflated rates."

Buying tyres online could be cost-effective

Fri, 18 May 2012 11:22:00 GMT

Motorists could make savings when it comes to purchasing tyres by buying them online, according to the Centre for Retail Research (CRR).

A survey by the organisation found that 80 per cent of drivers were unaware of the savings they could be making if they chose to buy tyres on the internet as opposed to buying from stores.

CRR officials highlighted the lower prices and vast range of tyres in stock online while 80 per cent of people said that the convenience of being able to order products at a time which suits them was attractive.

At a time when owning a car is becoming more and more expensive with increasing insurance premiums and the rapidly approaching fuel duty tax hike in August, motorists are looking for numerous ways to make savings.

Rainer Binder, chief executive at Delticom, an online tyre retailer operating in the UK as mytyres.co.uk, said: "An increasing number of motorists across Europe are appreciating the benefits of buying tyres online."

Over 6m Brits have no pension plan in place

Thu, 17 May 2012 11:21:06 GMT

Many Brits are running the risk of receiving less than minimum wage upon their retirement, according to a new study.

Research by LV revealed that over six million Brits over the age of 50 have no sufficient pension plan in place and will have to rely on funds from the state to help them live out their retirement.

The government has been moving to get the country auto-enrolled on company pension schemes in time for the next general election, but research by the Office for National Statistics (ONS) revealed in February that only 48 per cent of workers were saving into company pension schemes.

As part of the government's annual state pension people are due to receive £9,672 a year which is up to 51 per cent lower than the pay packet for someone on minimum wage per annum.

Ray Chinn, LV head of pensions, said: "While working hard up to their retirement to bring home a decent wage, I'm sure many will be disappointed to retire with an income equivalent of less than the minimum wage."