Recognition has gone to Saga Motor Insurance from the readers of This is Money, The Daily Mail’s personal finance website.

They voted Saga Over 50’s Motor Insurance as the motor insurance provider with the best customers service. The number of participants was 5,000 people and they were responding to a survey to find the best customer service offered by the UK’s financial companies.

And as well as scoring top marks in the motor insurance category, Saga also picked up second place for best home insurance provider in both the most trusted and best customer service categories.

Andrew Goodsell, Executive Chairman of Saga Insurance, trumpeted: “Doing things properly is at the heart of everything we do. It is wonderful that our customers have recognised this by voting for us. To be awarded the UK’s best motor insurer for customer service is something that we take great pride in.”

Andrew Oxlade, editor, This is Money, reinforced the decision with:
“Saga should be delighted to have won the best customer service award for motor insurance. Our readers make it their mission to meticulously sift through all the players in the personal finance industry to find the best – they’re a very choosy lot. For Saga to have won them over is quite an achievement.”

Saga is of course in the happy position of being able to target a well-defined market, only dealing with people who are over 50. As such, they are able to target their products to a savvy and experienced group of consumers who usually have high disposable incomes and are regarded, in many areas of insurance, as being low risk.

The number of Saga Home Insurance and Saga Motor Insurance customers out there in the UK, over 50, is over two million. And the over-50 sector represents a growing area of the market.

Guest Article by Neil Camp

The insurance industry took a £650 million hit in December last year as the coldest winter in 30 years took its toll on the British people.

The Association of British Insurers (ABI) said that the industry had had to deal with around 335,000 claims in December 2009 alone, amounting to some £650 million being paid out.

Damages were spread across homes, businesses and vehicles as the prolonged bursts of snow and ice wreaked havoc on a country no longer used to such bouts of dismal conditions.

Most of the money went to insured motorists. They were awarded some £395 million as many claimed for accidents involving slippery conditions as the snow and ice made driving treacherous. The amount of claims numbered 268,400.

There were a lesser number of property damage claims – around 66,000 – but there was still a substantial £255 million paid out to homeowners and business customers. This was in fact double the number of claims that the insurers would usually see in December. Of the 66,000, most (a touch over 62,000) were claims that involved damage to houses and the cost of these repairs (many involving snow on roofs) were put at £194 million.

The ABI also highlighted the cost of the flooding in Cumbria which amounted to some £200 million.

Nick Starling, the Director of General Insurance and Health of the ABI, said:
“Insurers will always respond quickly to the large number of claims that often result from bad weather. From dealing with snow damaged roofs, burst pipes, to repairing or replacing vehicles damaged by treacherous driving conditions, insurers helped their customers get through the snow and the freezing temperatures. Insurers have paid out nearly £1 billion to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out £200 million in flood claims.”

Guest Article by Neil Camp

Those people unemployed looking for good deals on their home insurance policy might be in for a disappointment.

One of the country’s largest comparison websites has issued a warning that unemployed people in the UK could end up paying more for their home insurance. The team at confused.com argue that with unemployment in the UK at its highest for over a decade, many will be unaware of the knock-on effects the situation can have on other household finances that reach beyond the loss of earnings.

The problem is that when carrying out risk assessments for home insurance premiums, insurance providers take many factors into consideration and the key one is the employment status of the homeowner.

And here the main question for the insurance company is the likelihood of defaulting on payments. It’s logical that as household budgets become stretched, payment of monthly premiums could be overlooked as other responsibilities such as mortgages are prioritised.

As this is not only a perceived, but also very real risk to a house insurance provider, it is therefore likely to be reflected in the price of the premium.

And some people are mistaken in thinking that insurance prices may be lowered as the home is occupied during the day, reducing the risk of burglary. In reality, an insurance provider perceives the likelihood of accidental damage occurring is far greater as the home is occupied at all times, thus affecting a premium.

Darren Black, head of home contents insurance at Confused.com said: “With so many people out of work, Britain’s homes are under serious financial pressure. It may come as a surprise to many people that unemployment means pricier premiums. However, with the house occupied for longer periods of time, by more people, it is realistic for providers to perceive higher risks associated with this. It is paramount that the importance of paying premiums is not overlooked. As soon as you miss a payment, the policy is in jeopardy which could mean disaster should a major event such as flood or fire affect a home. Taking a chance, and leaving your home uninsured is very dangerous for those already strapped for cash as a result of being out of work.”

The comparison site strongly recommended that those who are unemployed, or become unemployed during the lifetime of their policy, need to call their providers and notify them of the change of circumstances. Although many insurance providers will change premiums, such a change will only usually be applied at the renewal stage.

Guest Article by Neil Camp