Recession drives rapid increase in demand for independent protection insurance
Published on : Wednesday 11th March 2009
helpucover launches car value protection cover
Helpucover.co.uk, a leading specialist provider of protection insurance, today increases its portfolio of products with the launch of its Car Value Protection cover.
The product will assist motorists who have had their cars written off, through theft or accident, by helping to ensure that they are able to buy a replacement vehicle of similar value, through covering the difference between the motor insurance settlement and the recorded market value of the vehicle at the time when they took out Car Value Protector cover.
Barbara Russell, Head of Marketing for helpucover.co.uk said:
Most people don't realise that nearly all motor insurance claims they make in the event of an insurance write off are discounted to reflect depreciation in the value of their car. Essentially, they lose out by getting back only a proportion of what they originally paid for their car.
This leaves many with the tough decision of having to downgrade their vehicle or take out a loan which in current times simply isn't an option for many.
According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations were 30.9% lower in January, compared to the same month last year, with car production down 58.7%. On top of this, the National Franchised Dealer Association, said its members were reporting a 20% sales increase in second hand cars for January compared to a year ago.
This collapse in the demand for new cars, as cash-strapped motorists shift to second hand models, has resulted in a wave of promotional offers from new car manufacturers and dealers as they attempt to shift their stock. Consequently the value of new and second hand cars has greatly suffered with vehicles depreciating rapidly in value post purchase. This increases the shortfall from insurance payouts for many unlucky enough to have written off their cars.
Helpucover's product allows customers to protect themselves from the effect of falling car values and ensure that they receive the sufficient amount to purchase an equivalent replacement vehicle.
The protection is secured through monthly payments, priced according to the individual vehicle, and offers maximum benefits of £25,000. Cover is available for new and used cars and is available from helpucover.co.uk.
Protection for the value of your car is particularly pertinent given the severe slump that we are currently witnessing in the motor industry, causing worryingly rapid falls in new and second hand vehicle values.
Our new product gives customers the reassurance that they will not severely lose out, following an insurance write off of their vehicles. We therefore believe that it is a key addition to our expanding protection insurance range, concluded Barbara.
Recession drives rapid increase in demand for independent protection insurance
Helpucover today announces an unprecedented 69% increase in the rate of sales for its Income Protection and Mortgage Payment Protection Insurance products in the first two months of 2009 compared to the second half of 2008. Demand has been increasing dramatically for these products with Helpucover experiencing a sales increase of 75% in the second half of 2008 compared to the first half of the year.
Helpucover.co.uk is the consumer offering from leading independent protection insurer, Pinnacle Insurance plc. The insurer also expects similar figures for the rest of 2009, illustrating the growing demand for protection insurance among UK workers. This rapidly growing demand for protection products is being driven in part by the onset of recession and the continued uncertainty in the job markets.
The insurer has also seen a growing trend for higher salary protection as the UK's middle income families seek the assurance of monetary back-up should the worst happen, with the majority of policies being taken out by those between 25 and 40 years of age.
Helpucover provides independent, tailored income and mortgage protection insurance directly to the consumer, providing choice in the type of protection insurance sought. The products also provide additional support to customers such as helpucover's Back to Work scheme which assists claimants seeking work with interview technique workshops and a CV review service.
With UK employment projected to reach 3 million by 2010 (CBI November 2008), more and more consumers are concerned about job security and are looking to protect their home and family's living standard through good value, stand alone protection products, price comparisons for which are readily available on aggregator web sites.
Barbara Russell, Head of Marketing for Helpucover.co.uk, said:
The increase in demand for protection insurance demonstrates the growing insecurity amongst the UK population about their jobs. Consumers are responding to the current economic conditions by choosing to protect their income or mortgage payments with our independent products.
Helpucover.co.uk provides good value protection products. The cover provided by the protection insurance is clearly detailed in the policy document, in addition to wider benefits such as our Back to work scheme.
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