Talk Money

New wireless technology could see people ditching cash and cards in favour of using mobile phones to pay for goods.

UK payments association Apacs said Near Field Communication (NFC) could ‘revolutionise’ the way consumers buy things.

NFC is a short-range wireless connectivity technology that allows secure transactions, undergoing development as people abandon cash in favour of cards, according to Apacs.

Apacs spokesman Jemma Smith said: “At some point the scales are going to tip to the point where people really do start using [mobile technology] and then it will potentially revolutionise the way that we pay for things.”

Apacs has reported people are now more likely to use cards to fund purchases, particularly for more expensive items.

However, this is contradicted by research from the British Retail Foundation, showing cash is used for 60 per cent of all transactions, up on a total of 54 per cent last year.

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As reported by nearly 2/3 of brokers, the ongoing regulatory investigations into Payment Protection Insurance (PPI), by the Financial Services Authority (FSA) and Competition Commission, have had little impact on selling Mortgage Payment Protection Insurance (MPPI).

The Mortgage Alliance (TMA), in conjunction with Cardiff Pinnacle ran an online, General Insurance (GI) survey which showed that nearly 2/3 of respondents (64%), felt recent media attention and regulatory investigations have had little negative impact on the selling of MPPI. The GI survey was launched in order to gain feedback and specific views on the current market in terms of both household and MPPI.

The survey reflected the following results pertaining to media attention and investigations, from respondents:

Implications have had a mild effect on sales — 21%.
Implications have had no effect on sales —  15%.

The survey also highlighted the importance (from “extremely important” to “not important”), for brokers and their clients to have the option to advise on household, buildings insurance and mortgage insurance.

The results of the respondents’ poll revealed the following results:

Claiming the option to be “extremely important” — 49% .
Claiming the option to be “very important” — 26% .
Claiming the option to be “important” — 16%
Claiming the option to be “fairly important” — 5%.
Claiming the option to be “not important” — 4% .

Other essentials of the survey showed an immense 97% of the respondents considered it to be ‘important’ to have a facility which allows customers to spread household repayments over 12 months, while only a meagre 3% reported that they did not feel it was important.

The comprehensive poll also surveyed brokers to determine how they preferred their commissions to be paid. The majority of respondents (44%), reported that they were ‘unconcerned’ whether they were paid monthly or annually. Those who claimed they preferred to be paid annually, in advance, were only 33%, while 23% of the respondents said they preferred to be paid their commissions on a monthly basis.

The results of the survey will be used to identify any potential fears or developments in the market, which TMA will use to address in future trends.

National Sales Manager at Cardif Pinnacle, John Harrop stated, “At Cardif Pinnacle, we are constantly reviewing and updating our products, and the survey has proved invaluable in obtaining feedback from the people who actually sell the products at point of sale. The information gained from the survey will provide a framework for future product development.”

Phil Whitehouse, head of TMA, added, “This survey conjured up some very interesting points, and certainly helped us garner a better understanding of what brokers are looking for to get the most out of this important sector of the market.

“A good mortgage club should offer brokers added value in order to help them increase sales/income and, at TMA, we will certainly be looking at elements from this survey to bring a strong proposition to the market that will be of true benefit to our members.”

A recent report by the independent financial comparison site, MoneyExpert.com, has revealed that a combination of rising insurance premiums, higher petrol prices and general car and van maintenance costs are forcing more and more motorists off UK roads.

The report reveals that around a quarter of vehicle owners now claim that they use their car or van less because of the overall increase in the cost of simply running a vehicle, with 29% of drivers aged 55 or over claiming to have used their car or van far less in the past year because of soaring costs.

The report cites petrol price rises as the chief cause of cutting back on vehicle usage (76%), with rising van and car insurance premiums and higher maintenance costs combining to poll 16% as the secondary cause of reduced road use.

With the current price of unleaded fuel now standing at an average of 107.5p a litre in the UK, and reaching highs of £118.9p in certain parts of the country, increasing numbers of motorists are now finding themselves unable to use their vehicles as freely as they had in the past, as they struggle to contend with the rising prices.

Neither is the situation likely to improve in the foreseeable future as the Chancellor, Alistair Darling has already announced in this year’s budget that fuel duty on larger engined ‘gas guzzlers’ will effectively increase by half a pence a litre from 2010, and fuel duty is due to rise by a further 2p per litre from next October.

As the current credit crunch begins to affect more and more consumers, motorists have also seen some car insurance premiums rise steeply, with the average comprehensive car insurance policy now reaching £629.04.

MoneyExpert.com spokesman Sean Gardner commented on the situation: “Many people are finding their finances being squeezed to the limit, and for some motorists that now means having to leave the car at home and take public transport or cycle to work, simply because motoring has become too expensive.”

“The cost of petrol is high, but the single largest outlay for the motorist is the insurance premium.”
Mr Gardner further suggested: “The only way to minimise the damage is to shop ‘til you drop in order to find the best possible insurance deal.”

In fact the most recent figures from MoneyExpert.com’s independent Switching Monitoring Index indicates that 4.9million vehicle owners have already done just that, having switched car insurance policy providers within the last six months.

But motoring is not, of course, the only area to be hit hard by the latest effects of the continuing credit crunch, with the impact on property investment and the housing market also spreading down to cash-strapped consumers.

According to a very recent report released by Savills, the estate agent, house prices could continue fall by as much as 25% if the crunch persists. This follows on from a 10% decline in the housing market already this year, and a predictive fall of 15% in 2009.

Savill’s forecast coincides with the latest figures released from the property data business, Hometrack, indicating that house and property prices have already dropped another 0.6% in the past month alone, making this the seventh consecutive fall and causing the inevitable impact on property investment in general.

However, there was a cautionary note of optimism from Yolande Barnes, Savill’s director of residential research, who indicated that if home loans were to become more freely available soon, prices could begin to stabilise to a mere 4% lower by the end of the year and could ease by another 2% by 2009. However, she warned, there could be even greater difficulties if the banks did not end the drought on mortgages very soon.

With so many of the usual options for refinancing currently imposing barriers and tighter restrictions, so far this year the numbers of consumers forced into taking out Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs) rose to 800,000 in 2008, double that of the previous year.

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.