Van drivers recommended to use motor loans on insurance June 30, 2007
Posted by admin in : Car Insurance Articles , add a commentAuthor: A Rouse
Article:
Van owners could be well advised to ensure that they are using
money from their motor loan to take out adequate insurance for
their vehicle, it has been suggested.
According to research by AA Insurance, about a quarter (24 per
cent) of commercial van drivers surveyed claim that if their
means of transportation was unavailable then they could lose up
to an average of £362 every day.
As a result, consumers could well struggle to meet bill
requirements, personal loan repayments and overdrafts.
Head of van insurance for AA Insurance Rhiannon Parker said:
“Love them or hate them, vans are a big part of our culture and
contribute enormously to the UK economy.
“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.”
Taking the time to make sure motor loan money is spent on a
sufficient insurance policy was also advised as the average
commercial van was reported to carry worth an average of £1,382
in goods.
Overall, van drivers were reported to contribute over £35
billion to the British economy every year and have an annual
estimated turnover of some £215 billion.
Meanwhile, more than half (59 per cent) of van drivers believe
that the vehicle is essential to the smooth running of their
business, once again indicating the need to ensure motor loan
cash is spent on sufficient insurance.
Earlier this week, Ian Crowder, public relations manager for the
AA, claimed that despite a general increase in insurance costs,
those who shop around for cover will be able to spend their car
loan money effectively.
Pointing to figures from the financial services company
indicating a six per cent rise in insurance premiums over the
course of 2006, he suggested that those using their money wisely
can still access a competitively-priced deal.
He said: “For all the upward pressure on insurance premiums,
there’s always going to be a new provider coming in, trying to
get a market share and offering big discounts.
“So for the savvy insurance buyer, there is always a provider
willing to offer low premiums to get your business.”
Despite insurance premiums falling by a “fraction of a per cent”
during the first quarter of 2007, the public relations manager
suggested that costs are set to rise throughout the remainder of
this year which consequently may catch drivers off guard - if
they do not plan their finances sufficiently - resulting in a
increased pressure to service car costs and pay off debts.
Mr Crowder also reported that the value of car insurance claims
is set to “rise fairly steeply” due to increasing costs in
repairing vehicles and growth in the number of people looking to
make personal injury claims after being involved in an accident.
Meanwhile, those looking to purchase a car are being advised to
opt for a competitively-priced personal loan to finance their
buy instead of choosing a showroom deal.
Research conducted by Alliance & Leicester earlier this year
indicated that drivers deciding to go for forecourt finance
products are wasting an average of £3,000 - a figure which could
well aid consumers in making repayments on other forms of debt
such as credit cards, overdrafts and Secured Loans.
About the author:
Abbi Rouse writes for Loan-Arrangers .co.uk where visitors can
compare loans online. Then apply for the best rate secured
loans available. Visit our site
http://www.loan-arrangers.co.uk
