Due to the sky-high hikes in the car insurance industry, young motorists are gradually being forced off the road as they are the one’s who are greatly affected by these hikes. In lieu with this, car insurance companies have been looking at the promise of the black box revolution to bring these young drivers back on the roads.

Often referred to as the black or smart box, this advantageous innovation has the capability to reduce car insurance costs for young drivers. How is this so? Well, the smart box contains telematics technology which has the power to record, store and communicate data from the vehicle to the car insurance providers. Once the car insurance companies have analyzed the data sent by the smart box, they will then charge the driver accordingly to the way he or she drives.

There are quite a few car insurance companies who have been looking at the smart box as a way to provide cheaper rates to young motorists. In fact, some insurers even state that the safest of motorists can take off 1/5 on their car insurance premiums within the span of one year. Some of the car insurance companies about to embrace the telematics technology are AA Insurance and Direct Line Insurance. Hopefully, more car insurance companies will view this technology as a way to keep motorists on the road.

For drivers between the ages 17-23, car insurance costs have been seen to increase by almost 40 %. And male driver’s ages 17-20 pay almost twice as female drivers of the same age do. These figures are in accordance with the statistics revealed by the British Insurance Premium Index last week.

A lot of motorists are seeing their future transport as buses and trains. With the never ending increases in car insurance costs and in petrol prices, a lot of motorists are thinking of giving up their vehicles. Insurers, on another note, are hoping that the new trend of the smart box will remove this dire situation from motorist’s minds. With the help of the smart box technology, policy holders only need to pay for the way they are driving.

According to a certain car insurance expert, “The smart box technology can allow a car insurance company to charge you more accurately because of the data being sent by the smart box. So, if you are a good driver, the insurer will be able to reward you accordingly.”

In lieu with a recent ‘Freedom of Information’ survey, car insurance companies have revealed that motorists could incur a £1,000 fine due to expired photo cards on their driving licenses. The foreseen number of motorists in need of a photo card renewal on December 2012 is at 3 million, more or less. However, it seems like not all motorists are aware of this requirement.

According to the Driver and Vehicle Licensing Agency, British motorists are required to renew their photo cards on their driving licenses every decade. Also, British law requires motorists to do this certain driving license update whether or not they still drive. This is hugely because of the hefty fine of £1,000 being imposed upon drivers that will be caught using their expired photo card license. In fact, under the Road Traffic Act 1988 Section 99, even the police can enforce this fine. In regards with car insurance premiums, motorists will not experience any increases unless he or she has been disqualified from driving. Despite this fact, car insurance companies are trying to urge motorists to comply with the regulations set by the DVLA and the Government.

In relation to an expanded survey regarding this issue, it has been found out that 30 % (487,000) of drivers do not even know that their license has expired. 10 million motorists, on the other hand, have no idea as to when their driving license or photo card will expire. And around 235,000 drivers have been maintaining expired driving licenses since three years ago (2009).

It has also been revealed that the majority of motorists do not have any idea as to what penalties they could incur with an expired license.  Around 29 % of drivers claim to be aware of the £1,000 fine that comes with an expired license. 30 % of the latter percentage is men while the percentage for informed women was only at 28 %. In addition to this, there were a relevant 31 % of motorists who believed that being caught with an expired driving license could affect their car insurance payments while 27 % of motorists thought that they could accrue points on their license if they were caught.

According to a car insurance expert, “The driving license containing a photo card was introduced back in 1988. So, it does not come as a surprise to learn that motorists are not quite keen on its ruling and expiration dates. Now that this is out in the open though, car insurance companies would like to encourage motorists to keep their driving licenses up to date so that they would be able to avoid the hefty fine of £1,000.”

The British Office of Fair Trading has recently accepted six formal commitments from six established car insurance companies within theUnited Kingdom. Apart from these car insurance providers, there are also two technological companies that have committed themselves to the OFT in regards with lessening the pricing data that is exchanged between the two. With these commitments, the investigation being led by the OFT and other auto insurance associations has been put to an end. This investigation was focused on the possibility of insurance companies fixing the price of car insurance premiums.

The commitment of both industries has been a result of an earlier investigation that was launched by the Office of Fair Trading. The OFT wanted to look into the possibility of exchanges of price data that infringes certain laws in terms of competition.

Clive Maxwell, OFT Executive Director, was caught saying, “An exchange of future pricing information between particular car insurance companies could ruin the competition between the other providers. Thus, customers will not be receiving the best possible value.”

“We have been able to accept commitments from different insurers to make sure that our concerns will be addresses. This commitment will ensure that car insurance companies will not share pertinent data among other companies. Hopefully, this will enable a healthier competition within the car insurance industry.”

These 6 insurance companies are as follows; AvivaUK, AXA Insurance, Ageas,LiverpoolVictoria,ZurichInsurance-UKand RBS Insurance. SSP Limited and Experian, on the other hand, are the two IT software companies that have joined this campaign.

During the previous, year the OFT saw that there would possibly be a price coordination within the car insurance industry. This is because of the market analysis tool which allowed insurers to view the different pricing details of other car insurance companies. This special marketing tool was launched by Experian.

According to the Office of Fair Trading, “The fact that insurance companies were able to see the future pricing details of other insurance providers would clearly raise the laws of competition and it could also be used to coordinate their respective prices. This way, policy holders are not able to seek for the best deal.”

The OFT has not concluded if they will infringe the ‘Competition Act’ for good. Yet with six of the most revered insurance companies in theUKwho are willing to stand by their commitments, the OFT is willing to stop their investigation after almost 12 months.

Hybrid cars have been tested and proven to protect its driver and passengers more thoroughly than non-hybrid cars. This is in accordance with the final report released by an Insurance Institute for Highway Safety affiliate.

Highway Loss Data Institute researches has proven that passengers within a hybrid vehicle are 25 % more protected and are also less likely to be injured during a car crash. Fatalities like death are also significantly lower when a driver is encompassed in a hybrid car. These results are in direct contrast with crashes involving an average non-hybrid vehicle.

It was noted in these researches that the main edge of hybrid cars is its weight. With hybrid vehicles being 10 % heavier than average vehicles, it provides a stronger barrier that buffers the impact of the crash. According to Matt Moore of the Highway Loss Data Institute, “It is the extra mass within hybrid cars that gives them an edge during accidents”. So, when two vehicles collide, the heavier car pushes the lighter one away. It exerts a stronger force unto the lighter vehicle and also unto its passengers.

For an example, a Hybrid Toyota Highlander SUV has an approximated weight of 4,500 Lbs. This is more than 330 Lbs heavier than the average Toyota Highlander. According to the manufacturers, it is the battery and other mechanical components of the hybrid vehicle that adds to its weight.

In relation to the research, the Highway Loss Data Institute has taken a look into car insurance claims from various car insurance companies ranging from the years 2002 until the end of 2010. The HDLI compared 28 situations wherein hybrid cars have an average twin. An example of such a car is the Ford Fusion sedan.

The findings of this crash-testing and highway safety institute contradict the traditional belief of acquiring a higher gas-mileage car means that the car is less crash-worthy.

On the other hand, while the hybrid car is capable of protecting its passengers, it has been found that hybrid cars are more likely to be involved in pedestrian accidents. This is because hybrid cars do not make any sound, especially when they are on their electric-only mode.

Following decreeing action, a sound generator will be developed so that it can be able to be installed within hybrid vehicles. With a sound generator incorporated into hybrid cars, the possibility of these vehicles becoming involved in a pedestrian will be greatly lowered. And with less possibilities of being involved in car accidents, there are is also a lessened possibility of making a car insurance claim.