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Drivers want cheaper insurance in return for greener cars

Many drivers are prepared to pay extra for a new car that is better for the environment, new research shows - but they want cheaper car insurance in return.

The Virgin Money Car Insurance poll discovered that on average, drivers would pay 4.8 per cent more for a new car if it was proved to have low carbon emissions, which would add as much as £611 to the price of a Ford Focus LX, for example.

However, while 41 per cent of motorists would pay more for a greener car, 73 per cent said that being entitled to cuts in road tax would sway their decision, followed by 71 per cent who wanted lower insurance premiums and 32 per cent who wanted faster green cars.

Jason Wyer-Smith of Virgin Money Car Insurance said: "It is encouraging that drivers want to go green and are willing to put their money where their mouths are by paying a bit extra.

"However there needs to be more carrot and less stick to encourage more people to make the move into lower carbon emission motoring. Insurers can do their bit by looking at special deals for greener cars but the government has to play its part too."

Van insurance customers 'would be lost without their vehicles'

The majority of van insurance customers believe that their vehicle is essential for their business to operate smoothly, according to new research.

AA Insurance surveyed 200 commercial van insurance customers in the UK and found that 59 per cent believe their business would suffer from the loss of their van, while nearly one-quarter said they would lose money.

Rhiannon Parker, head of van insurance at AA Insurance, said that the important role of the vehicles in business highlights the need for van insurance.

"Love them or hate them, vans are a big part of our culture and contribute enormously to the UK economy," she remarked.

"Whether they're sparkies or plumbers, drivers face significant loss of earnings if their van’s out of service, so it's essential to ensure they're properly covered when the worst happens."

The study also revealed the most popular professions of those who drive commercial vans; builder was the most common, followed by delivery driver, shopkeeper, electrician and handyman.

Women were revealed to make up a significant proportion of van insurance customers, with 35 per cent of commercial drivers of the female persuasion.

The term "white van man" was coined by DJ Sarah Kennedy in 1997.

Insurance penalty for driving while using a mobile

Motorists who are caught using a mobile telephone while driving could be penalised through higher insurance premiums in addition to fixed penalty charges, an insurer has warned.

From February 27th the fixed penalty for using a handheld telephone while driving will double from £30 to £60 and be subject to three penalty points, and the police are likely to crack down heavily on offenders.

Now that the crime has become an endorsable offence with the offence code CU80, insurers will probably take account of it when calculating premiums, AA Insurance warned.

An endorsement is likely to attract a premium increase of around £60 which will remain for three years, the insurer calculated, and while some insurers may ignore a first offence, as they may for a speeding endorsement, they are likely to significantly increase premiums for a second offence.

Head of motor insurance at AA Insurance Janet Pell said: "There is a direct relationship between speed and accident claims; there is also an irrefutable link between the use of mobile telephones and claims so insurers will take this issue seriously."

She added: "And don't even think about not telling your insurer. If your previous offence is discovered - as it will be in the event of even a no-fault accident - you could find your insurance invalidated and the company would be within its rights to withhold payment for your comprehensive cover if you are involved in an accident."

Female drivers 'turn on the charm behind the wheel'

Women drivers are not afraid to use their charms to get their own way behind the wheel, it seems.

This is according to new research from Budget Van Insurance, which found that 75 per cent of female motorists admitted that they would "smile sweetly" in order to be let out at busy junctions.

Almost a quarter of women drivers said they have, or would consider, playing on their gender to get away with bad behaviour on the road, while 18 to 29-year-olds were the most likely to try to charm other motorists on a regular basis.

A third of female drivers take things even further, saying that they have either flirted, or would consider flirting, in order to avoid being penalised by driving authorities.

Meanwhile, 38 per cent of women confessed to either asking or considering asking male drivers for help to park their cars and 51 per cent admitted to or considered parking badly, leaving their cars jutting out.

This is despite the fact that women are seen as safer drivers with the average car insurance premium for women £646 in 2006, compared to £944 for a male driver, according to Moneysupermarket.com.

Emma Maziak of Budget Van Insurance said: "It's good to see that women of all ages are not afraid to shout for help if they're in a tight spot and I'd imagine the majority of our van driver customers would always be very helpful and obliging to their fellow motorists."

Insurance fraud committed by nearly one in ten

Almost one in ten adults admit to making fraudulent insurance claims, according to a new poll from financial information firm Experian.

This is despite 91 per cent of the population believing insurance fraud to be a serious offence, the survey found.

A relatively small proportion (14 per cent), said that they would definitely report someone who had committed insurance fraud, while 21 per cent of respondents said that they believe that everyone exaggerates when making an insurance claim.

The likelihood of insurance fraud being committed was also found across all social groups, from high income to lower income people.

With fraud costing the UK insurance industry around £1.5 billion a year, managing director of Experian's insurance services division David Murby urged employers to take steps to protect themselves.

He said: "The survey revealed that people are well aware of what constitutes insurance fraud and consider it a fairly serious crime, which is not victimless, but they see it as a crime against an organisation rather than an individual and, as a result, appear less likely to report it."

The Association of British Insurers estimates that insurance fraud adds an extra five per cent on to the typical policyholder's premiums.

Insurances Limited comments “I have certainly heard of individuals bragging about their false claims. In particular it seems that lost travel items and ruined carpets are likely to be subject to fraudulent claims.”

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