Latest News and Articles
See below the list of our latest news and articles from our BLOG on the Einsure website:
New Vehicle Risk Rating (VRR) System Introduced
The car insurance landscape is undergoing a significant change, as the long-standing group rating system for new vehicles is being replaced by the new ‘Vehicle Risk Rating’ (VRR) framework.
From 1st August 2024, any vehicle registered will be assessed using this new VRR system. Unlike the previous method, which used fixed group ratings, the VRR evaluates vehicles based on five crucial risk categories: performance, damageability, repairability, safety, and security. Each vehicle will receive an individual score for each of these areas.
Thatcham Research, a leading authority in automotive risk analysis, has hailed the introduction of the VRR system as “a more detailed and adaptable approach to evaluating vehicle risk.”
What Sets the Vehicle Risk Rating Apart?
Under the old Group Rating system, cars were assigned a static score from 1 to 50 at the point of launch. This rating would remain unchanged throughout the vehicle’s lifespan. In contrast, the new VRR system allows for fluctuating ratings based on evolving data. This dynamic assessment means that insurance premiums may increase or decrease as a vehicle ages, depending on changes in risk factors.
The VRR system replaces the somewhat outdated group rating method but will only apply to cars registered after 1st August 2024. Vehicles registered before this date will continue to follow the existing group rating structure for the foreseeable future.
Jonathan Hewett, Chief Executive of Thatcham Research, stressed the importance of this new model:
“With advances in vehicle technology, the way we assess risk must also evolve. The VRR represents a fundamental shift, as we work closely with insurers to provide a more precise and in-depth analysis of vehicle risks, using cutting-edge data analytics.”
A More Transparent Approach for Consumers
The introduction of the VRR is expected to benefit drivers by offering them greater clarity when calculating insurance costs for different vehicles. The five risk categories, scored on a scale of 1 to 99, are:
- Performance – Evaluates key factors such as speed, acceleration, and the impact of modern engine technologies.
- Damageability – Considers how a vehicle’s design and materials affect the severity of damage and repair costs.
- Repairability – Focuses on the ease and cost-effectiveness of repairs, encouraging vehicle designs that allow for faster and more affordable fixes.
- Safety – Takes into account the presence of active and passive safety features, such as crash prevention technologies.
- Security – Assesses both physical security features and digital defences, based on Thatcham’s expertise in this area.
The ‘repairability’ factor is particularly significant. The Association of British Insurers (ABI) has reported a 28% rise in repair costs since 2023. Thatcham Research also highlighted that electric vehicles (EVs) are roughly 25% more expensive to repair than petrol models, and repairs take around 14% longer to complete.
Transition to the New System
Although the VRR system officially launched in August 2024, it will run alongside the traditional Group Rating method for an 18-month transition period. This will give insurers and manufacturers time to adjust before the VRR becomes the standard rating system for all new cars.
This new system offers a fantastic opportunity for drivers to make informed decisions when comparing car insurance. The Vehicle Risk Rating provides a clearer picture of how various factors impact your premiums. Interested in seeing how your vehicle’s rating could affect your insurance costs? Compare car insurance quotes now to find the best deals available for you!
The VRR system marks a shift towards a more flexible and accurate approach to evaluating car insurance costs. With insurance premiums potentially changing over time, it’s more important than ever to regularly review and compare quotes. Find out how much you could save by reviewing your insurance options today! Compare Car Insurance Quotes.
Courier Van Driver… What insurance do you need?
If you’re planning to start a business as a courier van driver, it’s crucial to understand the types of insurance you’ll need to operate safely and legally. Here’s a breakdown of the key insurance types essential for courier van drivers:
1. Insurance for Your Van
Courier van insurance is specifically designed for vehicles used to pick up and deliver parcels, packages, and letters. This type of insurance considers the increased risk associated with the higher mileage and longer hours on the road typical for couriers, which means you’re more likely to be involved in an accident and need to make a claim.
Using standard van insurance intended for private use while working as a courier can result in your insurer refusing to cover claims, potentially leading to significant financial losses. It’s important to invest in the right type of cover from the start to avoid these risks.
Levels of Courier Van Insurance
When setting up your courier business, you’ll need to choose the appropriate level of cover for your delivery van. The available levels are:
Third-Party Only:
This basic cover protects against damage or injury to third-party property, including other vehicles and people, but does not cover damage to your own vehicle.
Third-Party, Fire and Theft:
In addition to third-party cover, this option includes protection against fire damage to or theft of your vehicle.
Comprehensive:
The most extensive cover, which includes all the above and also covers damage to your own vehicle, providing greater peace of mind.
2. Insurance for the Goods You Are Transporting
Alongside van insurance, you should also consider goods in transit cover. This insurance protects the items you deliver, covering risks such as accidental breakages or theft from your vehicle.
Goods in transit cover can be tailored to different levels depending on your needs and the value of the items you transport. Without this cover, you would be personally liable for the cost of replacing lost, damaged, or stolen goods, which could have serious financial implications for your business.
3. Insurance for Public Liability
Public liability insurance protects you if someone sues you for injury, property damage, or illness caused by your business activities. For example:
- You accidentally damage property while making a delivery.
- A parcel left temporarily on the pavement causes an injury to a passerby.
- You accidentally bump into someone while carrying a large parcel.
Without public liability insurance, you could face significant claims for damages, which could jeopardize both your business and personal finances.
Additional Considerations: Breakdown and Key Cover
While not mandatory, having breakdown insurance is highly advisable for courier drivers. Your vehicle is the backbone of your business, and a breakdown could halt your operations, affecting your income. Breakdown cover can keep you on the move, ensuring you can continue working even if your van encounters issues anywhere in the UK or Europe.
Another optional cover worth considering is keycare insurance, which provides protection for your keys, safeguarding against the costs and inconvenience of lost or stolen keys.
By understanding and securing the right types of insurance for your courier business, you can protect yourself from potential liabilities and ensure your operations run smoothly.
What is the difference between owner and registered keeper?
In the realm of car ownership, knowing the difference between the “owner” and the “registered keeper” of a vehicle is not just a trivial detail—it’s a crucial aspect with important legal and practical implications. Understanding these roles and their distinctions is key to managing your vehicle correctly. Here’s a closer look at what sets these two roles apart and why this distinction matters.
Who is the car owner?
The “owner” of a car is the person or entity who purchased the vehicle or received it as a gift. Ownership means having the legal title to the car, which grants the authority to sell, modify, or otherwise dispose of it. Essentially, the owner has the legal claim over the vehicle and is recognised as the one with the right to make major decisions about the car.
Who is the registered keeper?
The “registered keeper,” meanwhile, is the person responsible for the car’s daily use and upkeep. While this role often overlaps with ownership, it doesn’t always. The registered keeper handles the vehicle’s regular responsibilities, such as ensuring it is taxed, insured, and has a valid MOT certificate. Legally, the registered keeper is the primary point of contact for any issues related to the vehicle, including traffic violations and fines, which will be addressed to them.
Why is this distinction important?
Understanding the difference between owner and registered keeper is important for legal, insurance, and liability reasons:
Legal Responsibility:
The registered keeper is the primary point of contact for authorities regarding the car. This includes receiving tickets or fines for any legal infractions like speeding or parking violations. As the registered keeper, it’s your responsibility to ensure the vehicle complies with all legal requirements, including tax, insurance, and MOT.
Insurance Considerations:
Insurance is typically associated with the registered keeper, not necessarily the owner. If you are the owner but not the registered keeper, it’s crucial to ensure that the insurance policy accurately reflects the details of the registered keeper to prevent complications with claims.
Liability Issues:
The registered keeper must ensure that anyone driving the car has a valid driving licence and appropriate insurance. If someone drives the car without proper credentials, the registered keeper could be held liable for any resulting accidents or legal issues.
When the owner and registered keeper are different
There are several situations where the owner and the registered keeper might not be the same person.
Company Cars:
In cases where a company provides a vehicle to an employee, the company is the legal owner, while the employee is the registered keeper. The employee is responsible for the car’s day-to-day management and ensuring it complies with legal requirements.
Parental Arrangements:
If parents purchase a car for their child, they may retain ownership while the child is the registered keeper. This means the parents hold the title, but the child is responsible for the vehicle’s daily operations and legal compliance.
If you lease or subscribe to a car, the end user is responsible for the day-to-day car and legalities of the vehicle. But the funding company or vehicle subscription provider is the legal owner of the vehicle.
Responsibilities of the registered keeper
As the registered keeper, you have key responsibilities, including ensuring the vehicle is taxed, insured, and has a valid MOT certificate at all times. You are also accountable for addressing any legal notices related to the vehicle, such as fines or penalties. Moreover, it’s important to verify that anyone driving the vehicle has the appropriate licence and insurance.
Responsibilities of the car owner
Even if you are not the registered keeper, as the owner, you still have responsibilities. It’s vital to keep the registered keeper’s details up-to-date to avoid any legal liabilities. Regular communication with the registered keeper is also important to ensure the vehicle remains compliant with all legal obligations and that any issues are promptly resolved.
In summary
Understanding the roles of car owner and registered keeper is essential for managing your vehicle effectively. Each role comes with distinct responsibilities, and knowing these can help you avoid potential legal and insurance issues. Whether you are the owner, the registered keeper, or both, staying informed and proactive will ensure that you meet all necessary legal and practical requirements for your vehicle.
For more tips on car management and insurance, check out our latest blog posts. Drive safely!
Steps to take if your vehicle has been seized or impounded by the Police
Discovering that your vehicle has been seized or impounded can be a stressful ordeal, but knowing the steps involved in the release process can make it easier to navigate. This guide outlines the necessary actions to reclaim your vehicle, whether it was seized by the police or impounded for other reasons.
Types of Vehicle Impoundment
The process for retrieving your vehicle depends on whether it was seized by the police or simply impounded. Police typically seize vehicles for serious offences, such as driving without insurance, driving without a valid licence, or failing to pay vehicle tax. In these cases, you will receive a seizure notice either on the spot or via post if you were not present.
Vehicles can also be impounded without being seized for various reasons, including being stolen, involved in an accident, parked illegally, linked to a crime, driven in an anti-social manner, causing an obstruction, abandoned, trespassing, or surrendered under a dispersal order.
Insurance Requirements for Vehicle Release
To release your vehicle from an impound or police pound, you need the correct insurance coverage. Standard motor insurance policies do not usually cover impounded vehicles, so you will need specific impound insurance. It’s important to check your insurance policy or contact your insurer to confirm that it covers vehicle release from a police compound.
If your current insurance does not include this coverage, you have two options: secure an annual policy that includes impound release, or purchase a 30-day impound insurance policy, which is specifically designed for releasing vehicles from police compounds.
Steps to Release a Seized Vehicle
If your vehicle has been seized by the police, the first step is to carefully review your seizure notice. This notice will be given to you at the time of seizure or sent to you if you were not present. You must visit the designated police station within 7 working days (or up to 14 days in some regions) with your seizure notice. This process must be carried out by the registered keeper of the vehicle unless there are exceptional circumstances.
When visiting the police station, you will need to provide several documents, including:
- Your seizure notice
- Your driving licence (and passport if you have a paper licence)
- Proof of address (such as a recent utility bill or bank statement)
- Proof of vehicle ownership, which could include the car registration logbook (V5C) with a matching address, an unaltered and valid new keeper supplement (V5C/2) with a bill of sale and two proofs of address, or a confirmation email from the DVLA about a change of registered keeper
- A valid MOT certificate (or proof of a pre-booked MOT if exempt)
- Valid insurance that covers impound release
- Proof of road tax
After having your seizure notice stamped at the police station, proceed to the police pound, which may be operated by a third party. Bring all your documents, including the stamped seizure notice, and be prepared to pay the release fees and any daily storage charges.
Steps to Release an Impounded (Not Seized) Vehicle
For vehicles that have been impounded but not seized, the process is slightly different. You will receive a collection notice by mail once your vehicle is ready for collection. You can then go directly to the pound with the required documents, similar to those needed for a seized vehicle, but without the seizure notice.
If you cannot collect the vehicle yourself, you can authorise someone else to do so on your behalf. They will need a signed letter of authority from you and must be insured on the vehicle.
Understanding Release Charges
The cost of releasing your vehicle varies based on its condition and weight. For an undamaged vehicle under 3.5 tonnes, the standard release fee is £192, plus a daily storage fee of £26. Heavier vehicles or those in a damaged condition may incur higher fees. For a full breakdown of charges, refer to The Removal, Storage and Disposal of Motor Vehicles (Amendment) Regulations 2023.
Common Reasons for Vehicle Seizure
A vehicle is typically seized by police if the driver is uninsured, not complying with their driving licence, or if the vehicle is untaxed. Vehicles may also be impounded without seizure for other reasons, such as being stolen, involved in an accident, parked illegally, linked to criminal activity, driven anti-socially, causing obstruction, abandoned, trespassing, or under a dispersal order.
Final Thoughts
While retrieving your vehicle after it has been seized or impounded can be challenging, understanding the requirements and having the correct documentation and insurance in place can make the process smoother. Always ensure your insurance policy covers impound release and respond promptly to any seizure notices to avoid additional complications and costs.
For detailed instructions tailored to your local police force or council, it’s best to consult their official guidelines and follow the specific steps they provide.
Top 5 Car Insurance Claims for Summer and tips on how to avoid them
Summer brings warm weather, road trips, and outdoor adventures, but it’s also a time when certain car insurance claims tend to increase. Knowing the most common claims during the summer months and how to prevent them can help you stay safe and potentially save on your car insurance premiums. Let’s explore the top car insurance claims in the summer and some practical tips to help you steer clear of trouble.
1. Accidents Caused by Distracted Driving
Summer is synonymous with long drives to holiday destinations, busier roads, and a higher chance of distractions. Drivers might be tempted to take in the scenery, glance at their phones for directions, or chat with passengers. Unfamiliar routes and heavy traffic during peak holiday times can further increase the risk of distraction-related accidents.
How to Avoid It:
- Stay Focused: Keep your eyes on the road and resist the urge to use your phone or other gadgets while driving.
- Plan Ahead: Set your navigation system before starting your journey, and take regular breaks to avoid fatigue.
- Manage Passengers: Ensure children and pets are safely secured and entertained to minimise distractions.
2. Tyre Blowouts
The heat from sun-soaked roads in summer can increase the risk of tyre blowouts, particularly if your tyres are worn out or not properly inflated. As temperatures rise, the air inside the tyres expands, which can worsen any pre-existing problems. Long journeys with heavy loads and high speeds can also put added stress on your tyres.
How to Avoid It:
- Regular Inspections: Check your tyres frequently for signs of wear and damage.
- Proper Inflation: Ensure your tyres are inflated to the recommended pressure levels specified by the manufacturer.
- Avoid Overloading: Do not overload your vehicle, as this puts extra pressure on your tyres and increases the risk of a blowout.
3. Windscreen Damage
Summer road trips often involve driving on motorways, where debris can easily be kicked up and damage your windscreen. Construction zones, loose gravel, and other vehicles can throw up rocks and other objects. Additionally, rapid temperature changes between the hot sun and cold air conditioning can weaken the glass, making it more susceptible to cracks.
How to Avoid It:
- Maintain a Safe Distance: Keep a safe distance from lorries and construction vehicles that may kick up debris.
- Use Protective Film: Consider applying a protective film to your windscreen to reduce the risk of cracks.
4. Overheating Engines
The hot summer weather can put additional strain on your car’s engine, particularly if the cooling system isn’t in good condition. Low coolant levels, leaks, or issues with the radiator can lead to overheating. Using air conditioning more frequently also increases the engine’s workload.
How to Avoid It:
- Check Coolant Levels: Regularly check your coolant levels and top up as needed.
- Professional Inspections: Have your cooling system inspected by a professional before the summer season begins.
- Park Smart: Whenever possible, park in the shade to help keep your car cooler.
5. Theft and Break-Ins
With more people on the move and cars left unattended in unfamiliar locations, the risk of car theft and break-ins rises during the summer. Thieves often target tourist hotspots, car parks, and service stations where vehicles are left unattended for extended periods. High-value items left visible inside the car can attract opportunistic criminals.
How to Avoid It:
- Secure Your Vehicle: Always lock your doors and close your windows when leaving your car.
- Conceal Valuables: Keep valuables out of sight, preferably in the boot or take them with you.
- Use Anti-Theft Devices: Consider installing an alarm system or using a steering wheel lock for added security.
By being aware of the common car insurance claims during the summer and taking preventative measures, you can enjoy a safer and more stress-free season. These precautions not only help protect you and your passengers but also reduce the likelihood of making costly insurance claims. Stay alert, keep your vehicle well-maintained, and drive responsibly to make the most of your summer travels.
Protect your Car and Loved Ones This Summer
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