Car insurance industry faces shakeup over price comparison websites #car #check


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Car insurance industry faces shakeup over price comparison websites

Exclusive deals between price comparison websites and insurers are to end. Photograph: Jochen Tack/Alamy

Exclusive car insurance deals made between price comparison websites and insurers will become a thing of the past after the UK competition regulator ruled that these were not doing drivers any favours and should be banned.

The ruling was one of a number of measures recommended by the Competition and Markets Authority in its final report into the 11bn private motor insurance market.

It said some price parity clauses in contracts between price comparison websites and motor insurers were preventing insurers from making their products available more cheaply on other online platforms. This, it said, had the effect of restricting competition and leading to higher car insurance premiums overall.

“There need to be improvements to the way price comparison websites operate,” said Alasdair Smith, chairman of the private motor insurance investigation group. “They certainly help motorists look for the best deal, and this in turn has led insurers to compete more intensely, but we want to see an end to clauses which restrict an insurer’s ability to price its products differently on different online channels. We expect this to lead to greater competition between price comparison websites.”

However, the report, which ends a two-year investigation by the Competition and Markets Authority (CMA) and its predecessor the Competition Commission fell short of the recommendations many had hoped for that might have had the biggest effect on driver’s premiums.

In an announcement of its interim findings earlier this year the CMA had said it wanted to cap the cost of a courtesy car following an accident. after finding there was often little incentive for insurers to keep this cost down due to a divide between who organises the courtesy car and who pays for it. The practice can add as much as 1,000 to the cost of a replacement car compared with the price an insurer would have paid if it had taken liability for the cost of the car hire itself.

However the CMA’s final report concluded that this was too complex to tackle. “Reluctantly we have had to conclude that we cannot see an effective way of addressing this problem fully, short of a fundamental change in the law,” Smith said.

The Association of British Insurers condemned the lack of action. “The fact that the CMA report fails to do anything to address the excessive costs of replacement vehicles – a problem that the CMA itself identified – will be a bitter pill to swallow for honest motorists,” said James Dalton, ABI’s head of motor insurance. “Far from reducing the cost of car insurance, the CMA’s inaction simply entrenches the business models of some replacement vehicle providers who profit from inflating car hire charges at the consumer’s expense.”

The CMA said it will ensure drivers get better information about the costs and benefits of the add-ons they buy with their car insurance policy – in particular no claims bonus (NCB) protection.

An NCB typically entitles a driver to a 60% discount on their car insurance premium after five years, according to the Association of British Insurers – and so are greatly prized by motorists. However the policies that protect these bonuses, and are usually sold alongside a policy, are often misunderstood, the CMA said.

Its report found that 77% of the respondents to its customer survey thought they had a good understanding of NCB protection, yet 59% of those who claimed to understand it well wrongly thought it would prevent their premium going up as a result of a claim. The CMA concluded that drivers are paying a collective 120m a year for a product that may not offer them the protection they expect.

“The way motor insurance related add-on products are sold makes it hard for customers to obtain the best value,” Smith said. “There are particular problems in relation to no claims bonus protection, where both the price of this product and its benefits are often unclear to consumers, and we are requiring insurers to provide much better information.”

The CMA measures are subject to a two-month appeal period but are expected to be implemented in early 2015.


How to Take Over Car Payments When Buying a Used Car #repo #cars


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How to Take Over Car Payments When Buying a Used Car

One can take over car payments or assume a car loan. It is a good idea for an individual who doesn’t have the upfront cash or money for a car. This article will show you how you can take over the loan.

Tools and Supplies Needed

  • Car Title
  • Proof of Income
  • Proof of Residence
  • ID/Drivers License

Step 1: Contact Loan Company

Contact your loan company and find out what will be required for the process before you go and begin it. In many instances, you will be required a down payment. So be prepared for that as a requirement and find out how much it should be before you pay it. This way you can be sure you have the money ahead a time.

Check your credit and FICO score before you go in. They will likely run a credit check on you, and you want to make sure it is in good standing. Otherwise, your interest rate may change than want the previous owner held. So be sure to find out what it is and know what to expect when you sign over the car payments.

Much like a regular loan, you will need to be “approved” before you can sign the paperwork and make a payment schedule. So that can take up to a week or two, though some do have instant results. That will depend on the credit company and how they work.


Swap a Lease: How to Take Over Car Lease Payments


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Swap a Lease: How to Take Over Car Lease Payments

October 14, 2013

If you are looking to swap a lease. then you may be wondering how to go about it. It can be a very daunting process for those who have never done it before, so take the time to be prepared and learn the steps you will have to complete in order to take over car lease agreements from someone else. This option is a pain-free process where you can assume the payments of an existing lease for the period of time left on the lease. This is commonly referred to as a short term lease. The length of time can be for 6 to 18 months.

Whatever your reasons for wanting to take over the lease, the process will be very similar, so don’t think that just because you want to take over someone’s car lease for a different reasons than those of others that you will not have to go through the same steps.

Take Over a Car Lease: A Step by Step Walkthrough

A take-over of a car lease could be beneficial to both you and the dealer who is looking to move inventory off their lots. Their desire to deal may prove to be a tremendous opportunity for you to reach terms that are mutually beneficial. Here are some steps to follow:

Review the Lease Terms

Before entering into the lease arrangement, you should review the terms of the lease with the dealer. Understanding any mileage caps and other usage limitations up front are important in determining whether the car will meet your driving needs.

Any details in the lease or terms that are unclear to you should be reviewed and clarified with the dealer. If necessary, consult a trusted advisor or other third party to clear up any lease terms.

Have the Seller Contact the Company

It is always better to have the seller of the lease contact the lease company themselves and notify them of your intent to take over the lease.

Inspect the Car

You should conduct a thorough inspection of the vehicle after you have read the lease terms. Look for any hidden damage or cover-up that may have been done to any part of the car. Ask for a vehicle inspection report. If the dealer is unable to provide this, take the vehicle identification number or VIN and request a free car history report online.

The VIN appears either on the back taillight or in the front dash and is 17 characters. The VIN does not include the letter I, O or Q; if you encounter these characters or less than 17 characters, the VIN has been altered and you should not take possession of the vehicle.

Negotiate the Remaining Lease Terms

A take-over of a lease for a car can be a good opportunity to get the vehicle you want. Be cautious in your selection process to ensure that you are getting what you want and that there are no hidden problems that could create an adverse situation for you.


Take over car payments


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take over car payments

Satisfied Customers: 20012

Experience: Attorney & Certified Mediator

replied 6 years ago.

To take over car payments you would need to have the lender accept you as the new borrower. There is no proper form for this. If the question is how to write an agreement so that the family member complies with the terms, there are no forms for this. It is essentially a written agreement where you both set forth the terms of your agreement.

Such as the following sample:

AGREEMENT

THIS AGREEMENT, made this_____day of__________, 20____. by and between_______________ and ___________________.

It is agreed that _______________ will take over car payments from ________________, regarding vehicle _____________.

[Family member]_________________, agrees to transfer ownership rights to ____________________ upon completion of full payment.

In the event that [family member] does not perform their part of the agreement, then ________________________.

Etc.

Dated: _________________, Signed ___________________

This is only a sample and you can edit to fit your own needs.

_______________________________________________

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