Category: News

Insurance firms have been warned not to undervalue cars and other items when settling insurance claims.

The Financial Conduct Authority (FCA) said it has seen evidence some people left with written off cars after an accident are being offered a price lower than the vehicle’s fair market value by their insurance providers.

In some cases, insurers are only increasing offers to the fair market price when the customer complains, the regulator said.

Offering a price lower than fair market value is not allowed under FCA rules.

Sheldon Mills, executive director for consumers and competition at the FCA, said: “When making an insurance claim, people shouldn’t need to question whether they are being offered the right amount for their written off car or other goods that they need to replace.

“Insurance firms should offer settlements at the fair market value. This is especially important now as people struggling with the cost of living will be hit in the pocket at precisely the time they can ill afford it.

“We are watching the behaviour of firms closely and will act quickly to stop firms and prevent harm to consumers where we see it.”

The regulator said the rising cost of living may be putting increasing pressure on insurers to control claims costs.

But it said attempts to control claims costs by making offers lower than the customer is entitled to under the policy would be unfair and likely to disproportionately affect customers in vulnerable circumstances.

Those who think their claim may have been undervalued can complain to their insurer and then to the Financial Ombudsman Service (FOS) if their complaint is not resolved.

Firms can offer cash instead of repair or replacement to settle claims. However, settling claims in this way may sometimes not be in the consumer’s best interest if they are not able to easily arrange repairs or replace an item themselves, or if inflation means they lose out in real terms, the FCA said.

The regulator expects firms to make sure people have enough information to understand the implications of the different settlement options, particularly those in vulnerable circumstances.

They should also have adequate systems and controls around claims handling processes and not incentivise their staff to engage in potentially harmful claims settlement practices, the regulator said.

The average premium paid by customers for private motor insurance in the third quarter of this year was 2% higher than a year earlier, as vehicle repair costs increased, according to an insurance industry body.

Motorists typically paid £436 in the third quarter of 2022, which was a 3% increase compared with the second quarter of this year, the Association of British Insurers (ABI) said.

It said insurers have been finding it increasingly challenging to absorb rising costs, such as more expensive repairs and rises in used car prices.

The average cost of repairing vehicle damage under a policyholder’s own motor policy jumped by 16% to just over £3,000 in the year to the second quarter of 2022, the ABI said.

The continued shortage of semiconductor microchips and global supply chain issues have led to longer waiting times for many new vehicles and vehicle parts. This has contributed to a rise in the demand for second-hand cars, the association said.

This reflects increasing vehicle sophistication, leading to more expensive repairs, as well as rises in the costs of raw materials such as paint, it added.

The ABI’s tracker looks at the prices people pay for their cover, rather than quoted prices.

The Financial Conduct Authority (FCA) introduced new rules on the pricing of motor and home insurance on January 1 this year.

The rules ensure that the price paid by renewing customers is no greater than the price charged to an equivalent new customer for the equivalent policy bought through the same distribution channel, such as insurer, broker, or price comparison website.

Jonathan Fong, the ABI’s senior policy adviser, general insurance, said: “Insurers recognise that these continue to be difficult times for many households dealing with the rising cost of living.

“Like many other sectors, motor insurers are facing sustained higher costs, which are becoming increasingly challenging to absorb. Despite this, they continue to do all they can to keep motor insurance as competitively priced as possible.

“Anyone concerned about being able to continue paying their motor insurance premium should speak to their insurer about any alternative payment options that may be available.”

Values of used electric cars are plummeting as buyers are increasingly turning away from these models because of rising energy prices.

According to data from automotive valuation experts Cap HPI given to Car Dealer Magazine, the average price of an electric car dropped 3.7 per cent in November, compared to the 1.2 per cent drop recorded across the market. Experts say that the additional cost of an electric over a petrol and diesel model, as well as rising charging costs, are making many shy away from choosing an EV.

The three biggest used car price falls recorded in November were all electric cars, with the Tesla Model S down £2,767 in price, accounting to a 5.9 per cent drop. Tesla’s Model 3 had fallen in value by the highest percentage (6.8 per cent), with an average price down £2,275, according to Cap HPI data. Audi’s electric e-tron SUV had also dropped in price by £2,154 (5.9 per cent).

Two further EVs also made up the top 10 biggest used car price falls in November, with the Renault Zoe down £808 (5.9 per cent) and Smart ForFour Electric dropping in value by £600 (5.9 per cent).

Speaking to Car Dealer, Derren Martin, Cap HPI’s head of valuations, said: “Consumer demand for electric vehicles has dropped away.

“Electric cars are often an aspirational purchase and in a cost of living crisis people are not necessarily going out and buying them at the moment. They’re expensive vehicles and there’s more of them coming back into the market. So it’s kind of the wrong time with demand dropping away and supply increasing – that really only leads to one thing.”

Martin added that car dealers are “concerned” about electric vehicle prices, though he says that used car prices in general aren’t going to crash in the way many predicted.

He said: “Last year, used car values went up by 30 odd per cent, which is absolutely unprecedented. A crash is just not going to happen.

“The reason that cars aren’t going to just drop in value in the used car market is because there’s just simply not enough supply. There’s two million less new car registrations in the market. Those cars are never going to appear as used cars. So there’s just not the supply there to cause a huge crash.”

Nearly half (49%) of drivers say they frequently or occasionally avoid using lane one on smart motorways without a hard shoulder, a new survey suggests.

The RAC, which commissioned the poll of 1,904 motorists, claimed the research “completely undermines” the main reason for turning hard shoulders into running lanes, which was to boost road capacity.

A fifth (21%) of respondents who have driven on these all-lane running smart motorways said they frequently stay out of the left-hand inside lane, while 28% said they do so occasionally.

Asked why they deliberately avoid driving in lane one, 77% said they are worried they may encounter a stationary vehicle, while 40% are fearful of being hit if they had to stop.

Almost three in four (74%) people questioned said they would feel safer if there were more emergency refuge areas.

The Highway Code says drivers should “keep in the left lane unless overtaking”, but there have been long-standing fears about smart motorways following crashes in which vehicles stopped in live lanes were hit from behind.

Around 10% of England’s motorway network is made up of smart motorways.

They involve various methods to manage the flow of traffic, such as converting the hard shoulder into a live running lane and variable speed limits.

These all-lane running smart motorways boost capacity at a lower cost than widening roads.

RAC road safety spokesman Simon Williams said: “Ever since the first all lane running smart motorway opened on the M25 in April 2014, there has been a considerable amount of controversy about safety which worsened significantly following several high-profile fatal collisions.

“Consequently, these roads continue to be deeply unpopular with drivers who, before their introduction, had been used to having the relative refuge of a hard shoulder available in an emergency.

“Our latest research worryingly shows that half of drivers actively avoid using the inside-most lane for a variety of reasons, not least the fear of being crashed into, meaning much of the extra carriageway capacity they were meant to bring is wasted.

“Motorists know they should always drive in left-most lane they can, but with so many feeling theirs and their passengers’ lives are in jeopardy, it’s going to be very hard to convince them otherwise no matter how much extra safety technology is introduced.”

National Highways has insisted smart motorways are safer than conventional motorways and completed a series of improvements by the end of September.

Stopped vehicle detection technology was retrofitted to all smart motorways without a hard shoulder.

Installation of additional signs showing the distance to the next emergency stopping area was completed, and all enforcement cameras were upgraded to enable detection of closed lane violations.

A target of traffic officers reaching stopped vehicles on all-lane running smart motorways within 10 minutes was also achieved for the first time.

A National Highways spokesperson said: “We are committed to taking action to help drivers and their passengers feel safe and be even safer on all our roads.

“We are taking steps to further increase confidence in smart motorways. We have already added technology to detect stopped vehicles and are preparing a £390 million programme to retrofit an additional 150 emergency areas by 2025. This will represent around a 50% increase in emergency areas, giving drivers added reassurance.”

Mercedes and Bosch have created the world’s first automated driverless parking function for commercial use.

The so-called ‘automated valet’ allows a driver to move into a parking garage, get out of the vehicle and send it to a pre-booked parking space all via a smartphone app. The service has no need for a driver, with the vehicle driving itself to its assigned space and parking on its own.

Later, the vehicle will automatically travel to a pre-determined pick-up point using exactly the same technology.

The system combines Bosch’s infrastructure technology and Mercedes-Benz’s car know-how. For example, Bosch’s sensors in the parking area monitor the ‘driving corridor’ and its surroundings to give the vehicle the information it needs to travel along its route safely.

This information can then be translated into actual changes of direction. Using it, Mercedes says that cars can drive up and down ramps in order to move between storeys. If an obstacle is detected, the vehicle will automatically come to a stop.

Mercedes and Bosch gained a permit in 2019 allowing the two to operate automated valet parking at the parking garage of the Mercedes-Benz museum in Stuttgart. This was undertaken using development vehicles without human drivers.

Now, however, a new approval means that the system can now be deployed in Stuttgart Airport and used by privately-owned vehicles.

Dr. Markus Heyn, member of the Bosch board of management and chairman of the Mobility Solutions business sector, said: “Driverless parking is a key aspect of automated mobility. The highly automated parking system we developed together with our partner Mercedes-Benz shows just how far we’ve already progressed along this development path.

“It will be with driverless parking that everyday automated driving will start.”

The companies now plan to gradually roll out the driverless parking service at Stuttgart Airport, with the Mercedes S-Class and electric EQS the only cars able to access the service initially.

Dogs have been found to be more relaxed when travelling in an electric car than in a diesel-powered vehicle.

Online vehicle marketplace CarGurus partnered with the University of Lincoln on a new study, which looked at the effects on dogs of travelling in a diesel car versus an electric vehicle.

The two-day investigation used 20 dogs, each taken on two 10-minute car journeys – one in an EV and one in a diesel. During the trip, their behaviour was analysed.

Led by Daniel Mills, Professor of Veterinary Behavioural Medicine at the University of Lincoln, the study found that dogs were less settled in diesel cars compared with EVs. It also found that signs of car sickness were reduced in electric cars.

The investigation also found that there was no evidence to suggest that EVs have a detrimental effect on dog welfare, with the transition for dogs between travelling in a diesel car and an electric version being ‘smooth’.

While the dogs in the study lay down for around a third of the journey in both cars, in the diesel vehicles the dogs broke their laying position on average 50 per cent more than in an EV. This difference is likely down to the change in vibration levels, says the study.

Daniel Mills, Professor of Veterinary Behavioural Medicine, University of Lincoln, said: “We know most dogs will travel in a car at some point in their life, if not on a daily basis. Yet as EVs become more prevalent with motorists, until now there were no studies of their effect on dogs.

“Our results clearly show that dogs seem to be more relaxed in EVs, particularly when looking at behavioural traits such as restlessness.

“Additionally, an interesting and somewhat unintended revelation from the study came from the dogs that we identified as having potential symptoms associated with travel sickness.”

A Yamaha quad bike once famously toppled by singer Ozzy Osbourne is set to head under the hammer at auction.

The 350cc Yamaha Banshee nearly killed its then-owner in 2003, leaving the Black Sabbath singer with a cracked vertebra, broken collarbone and eight broken ribs when it rolled. Osbourne was also left unconscious and temporarily unable to breathe.

‘Largely untouched’ in the 20 years since the accident according to auction platform Car and Classic, the Banshee still bears some marks of the incident. It’s got damage to the front crash bar and a crack in one of the rear wings, for instance.

The rest of the styling remains as it was originally, with eye-catching red and yellow bodywork and gold wheels. The Banshee is powered by a 350cc engine, while chunky tyres are ideal for charging off-road. Car and Classic say it’s easy to start, too.

The Banshee’s handbook also explains that the vehicle isn’t for beginners, while a handwritten note inside – which Car and Classic believe to be from Sharon Osbourne to her husband – reads ‘be safe’.

“This is a once-in-a-lifetime opportunity to own a rare and well-documented quadbike,” says Car & Classic Head of Editorial Chris Pollitt. “Regardless of its provenance, the Banshee is already a desirable vehicle, but its nearly-nefarious part in Osbourne’s life makes it all the more special.”

The auction for the Yamaha Banshee is currently live and is set to end on December 1.

Czech firm Praga has released its latest hypercar – the Bohema.

The Bohema is an exceptionally lightweight car, with Praga stating that it is aiming to make the two-seater model ‘sub-1,000kg’ by the time it hits the road. It’s underpinned by a full carbon monocoque chassis and body, yet is powered by a Nissan GT-R-derived six-cylinder twin-turbocharged petrol engine with 700bhp.

The engine is mounted directly behind the cockpit too, with the transmission positioned behind the engine. They’re independently mounted from the carbon chassis as well so that vibrations and resonance aren’t transferred through to the cabin. This helps to make longer journeys more comfortable.

However, despite its lightweight nature, the Bohema still incorporates a fully adjustable driver’s seat, luggage space and air conditioning. The steering wheel can be removed entirely, but it incorporates a large digital display with speed, gear selection and other information. It’s trimmed in Alcantara, while the central leather pad features Praga’s logo.

All cars get independent suspension and pushrod-operated adjustable dampers, while the lightweight centre-locked wheels are 18 inches in diameter up front and 19 inches at the rear. However, the Bohema can accept 18-inch wheels all around so that it can comply with FIA GT3 racing specification tyre dimensions.

IndyCar driver and former F1 racer Romain Grosjean helped with the development of the Bohema, too, and stated: “I was astonished by the Bohema’s amazing performance on track, its accessibility on road, and the ease of transition between the two.”

The exhaust system is made entirely from titanium, while much of the silencing is taken care of by the catalytic converter. All power is sent through a sequential gearbox with a robotic clutch for ultra-fast gearshifts.

Just 89 examples of the Bohema will be available, with each one costing £1.1 million.

Hundreds of thousands more drivers face a daily fee of £12.50 for using London’s roads after mayor Sadiq Khan announced he will expand a pollution charge zone to boost air quality.

Mr Khan said extending the ultra-low emission zone to cover the whole of the capital from August 29 next year is “one of the toughest decisions I’ve taken”.

The scheme, which operates at all times except Christmas Day, is currently limited to the area within the North and South Circular roads.

Transport for London (TfL) estimates that on an average day about 160,000 cars and 42,000 vans that use London’s roads would be liable for the £12.50 Ulez fee.

But transport officials believe that by the end of next year the expansion of the scheme will have encouraged tens of thousands of those drivers to switch to vehicles that comply with the minimum emissions standards or use other modes of getting around such as walking, cycling or public transport.

Whether or not a vehicle is liable for the charge depends on how much nitrogen dioxide it emits.

For diesel cars and vans to avoid the charge they must generally have been registered from 2016, while most petrol models registered from 2006 are exempt.

Drivers can check the status of their vehicle by entering its registration number on TfL’s website.

Mr Khan said air pollution is making Londoners “sick from cradle to the grave”, with illnesses such as cancer, lung disease, dementia and asthma.

He described the Ulez as “transformational” and claimed extending it will mean “five million more people will be able to breathe cleaner air and live healthier lives”.

The mayor insisted that the rising cost of living was a “key consideration” in his decision on whether to implement the proposal, which was featured in a public consultation between May and July.

This led to him introducing measures such as a £110 million scrappage scheme to support Londoners on lower incomes, disabled people, small businesses and charities to scrap or retrofit their non-compliant vehicles.

There will also be a major expansion of bus services in outer London.

Mr Khan added: “Expanding the Ulez London-wide has not been an easy decision.

“The easy thing for me would have been to kick the can down the road.

“But in the end, public health comes before political expediency.”

Billionaire businessman Michael Bloomberg, who is the UN Secretary-General’s special envoy on climate ambition and solutions, claimed Mr Khan’s leadership is “helping to clean London’s air and set an example for cities around the world”.

But RAC head of roads policy Nicholas Lyes said the announcement will be “a hammer-blow for desperate drivers and businesses already struggling with crippling fuel costs”.

Michael Lloyd of the Federation of Small Businesses said a “heavy-handed” Ulez expansion will “leave many small firms in a precarious position”.

He added that a recent survey of affected small businesses suggested 18% planned to shut down if the extension went ahead, and 25% intended to pass the extra cost on to customers.

A new study has looked at the best and worst places to charge up an electric vehicle in the UK.

To find out which of the UK’s 12 largest electric car charging providers was best, WhatCar? spoke to 2,800 electric and plug-in hybrid car drivers and asked them to rate networks according to accessibility, charging speed, ease of payment, reliability and value for money.

After this, WhatCar? staff visited at least one charging point for each of the 12 companies to gain a ‘snapshot’ of what they were like and rated them on the same criteria as the EV owners had used.

Gridserve came out on top with an overall rating of 85.2 per cent, with its Electric Forecourt stations proving a real hit with drivers. Owners rated it a full 100 per cent fo ease of payment, as well as 90 per cent for value-fo-money. It fell behind slightly in terms of reliability, scoring 67.6 per cent .

Instavolt came in second place, scoring highly for its reliability and value for money, while returning an overall rating of 85.1 per cent. Fastned took the bronze medal with its 84 per cent overall rating and 90 per cent score for charging speed.

Steve Huntingford, What Car? editor, said: “Our investigation highlights how vastly different the quality of service can be at different public charging networks. Enabling electric car owners to connect and pay quickly and easily are vital ingredients for a satisfactory experience. Sites that also provide somewhere warm and dry, with shops and other facilities where you can wait in comfort for your car to charge are best of all.

“As more people switch to electric cars, demand for convenient, pleasant public charging locations will only increase, and our research shows that you need to plan ahead and pick the best providers to find the best charging solutions.”

At the other end of the scale came Charge Your Car in twelfth place with an overall rating of 55.5 per cent, while Geniepoint and Charge Place Scotland didn’t fare much better with ratings of 65.2 and 69.4 per cent respectively.