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.”

A recent study will be released within this week. According to the car insurance company that conducted the poll, around £ 1000 are being paid annually in accordance with motor insurance premiums.

A lot of motorists prefer getting a comprehensive insurance coverage because of its broader scope. However, as revealed in the survey, comprehensive insurance packages have increased by almost 16 % during the previous year alone. Because of this 15.3 % increase, comprehensive insurance coverage polices cost almost £ 1000 annually. This increase is the highest ever recorded increase since 1994. All figures and statements have been taken from AA Car Insurance’s British Insurance Premium Index.

The £ 971 figure has been based on the average of the three cheapest rates available on the market for a comprehensive coverage policy. Last week, the Transport Select Committee has stated that the most plausible cause for these increases is the rise in whiplash insurance claims in the country.

In addition to this, certain members of parliament have stated that it is hard to diagnose what exactly are the causes of continuous increases in car insurance premiums. However, the report also revealed that ‘askew practices’ like passing on customer details to other parties is another reason for insurance increases.

Late last year, the MP of Blackburn released scathing facts regarding the payment of personal injury lawyers for customer details. However, with the release of this information, a ban was also released to stop this perverse practice.

As stated in the recent survey, “Car insurance providers, solicitors and insurance claim management companies have all taken part in increasing the cost of car insurance premiums. This is because they have encouraged people caught up in car accidents to immediately make a claim despite the fact that they were just in small-scale accidents.”

“Motorists should not be forced into making legal actions by personal injury lawyers.”

According to the survey, whiplash claims must be given tougher criteria by the Government for approval. If this is done, reducing car insurance costs just might be taken into effect.

Nick Starling of the Association of British Insurers (ABI) said that, “The main reason for these increases in ca insurance costs are the rising personal injury claims. This is why referral fees of personal injury lawyers must be placed under a total ban. If referral payments are finally made illegal, motorists just might see a reduction in their car insurance costs.”

“Motorists are tired of getting numerous text messages, voice mails and calls from personal injury lawyers forcing them to take legal action. Also, they are fed up with enduring exorbitant car insurance premiums just because of these ambulance-chasers and claim management firms.”

The Office of Fair Trading (OFT) is going to start looking into the excessive increases in car insurance premiums. This is due to the 9 % increase in insurance coverage costs within the first 9 months of this year (2011).

Back in 2010, there was a noticed increase of 12 % throughout the whole year which has already rendered car insurance policy holders strapped for cash. Car insurance providers have stated that the main reason why premiums have risen in the said year is due to the increase in personal injury claims. It is these personal injury costs that have been driving motorists to darker roads.

The investigation of the Office of Fair Trading will focus on third party claims which include car repairs, parts replacement, provisions for alternative transportation yet do not include injuries.

Liberal democrat MP, David Ward, has initiated a campaign that will focus on high car insurance costs and their disadvantages to policy holders. With the investigation of the OFT finally commenced, he promised that a House of Commons Transportation committee will soon follow.

There were more than one thousand respondents who took part in the recent survey initiated by MP David Ward. It was through this survey that annual car insurance premiums were compared. Through this survey, it was disclosed that an average of 63 % was increased on their car insurance premium.

Having seen this staggering percentage in increases MP David Ward decided to commence an online petition which will hopefully urge the Parliament to make an action in creating more affordable car insurance rates. Also, a call for stricter penalties involving uninsured drivers is also prioritized.

InBradford, the premiums are excessively high because this is one of the hotspots for bogus accidents. Due to this, insurance experts fear thatYorkshiremight become a place full of uninsured drivers. In between the months of April and June alone of this year, there has been an increase of 3 % in premiums.

The MP forBradfordhas expressed his delight in the OFT and their commitment to help solve this social issue. As he has mentioned, “This here is a difficult situation and every factor needs to be taken into consideration. If not, it might be possible thatYorkshirewill never see cheaper car insurance rates. In relation to this, the Office of Fair Trading needs to make sure that this kind of behavior is permanently removed. This is to ensure that motorists will be able to get a fair price for their car insurance coverage.”

With the prices of oil constantly going up, a lot of people are trying to adapt to these dramatic changes. Therefore, a lot of British motorists have been forced to change their habits in accordance to how they spend their money, drive their cars and as to how far they allow themselves to go. This is according to new information that has been gathered by the BCA.

The BCA or British Car Auctions have deemed it proper to create a new survey on the changing habits of motorists. Hence, a new study was initiated. According to the new data that was released by the BCA, the gradual rise of the prices of fuel is the main reason why British motorists are changing their driving habits. This also constitutes to their study which showed that there is a dropping number of motorists using UK’s roads.

The survey was conducted with a whopping 4,000 British motorists. These motorists relied that their top priorities in regards with the roads are their fuel consumption and road tax payable. In addition to this, the third priority was deemed to be a motorist’s car insurance costs. These three major concerns of British drivers came from almost 30 % from those whom were questioned.

The communications director at British Car Auctions, Tony Gannon, mentioned that: “British households have been enduring a lot of problems regarding the rising prices of petrol and car insurance premiums. In addition to this, they have also been deciding on some complicated decisions on which car they need to use. Two-car families have been selling off their cars; hence there has been a drop to these kinds of families lately. Ultimately, the car that they decide to keep will just have to work twice as harder to supplicate the loss of the second car.”

With the fuel prices continuously surmounting, it is no wonder why families have decided to sell off their secondary cars. About 25 % of British motorists said that a fuel price of £1.40 per liter would certainly make them change their driving habits.

Member of Parliament, Robert Halfon, has created an online petition to bring down the prices of fuel. This online petition encourages the British public to cast their votes in accordance with a bid to push British leaders and the oil industry for a more affordable price of fuel. As of this today, the number of signatures that are in favor of the e-petition has reached 102,378.