Car insurance news

Car insurance premiums up by a third

Average car insurance premiums increased by almost a third in the last year according to a new report.

The research from a price comparison service suggests that over the last 12 months average premiums have risen from £489.80 to £639.23, an increase of 31 per cent. This substantial rise is in spite of growing competition in the market from providers such as Barclays, Budget and the easy group.

The biggest increase in the yearlong period came in the last six months of 2004 during which time average premiums rose by 25 per cent. Analysts have speculated that this is due to the increasing cost of uninsured drivers and the cost of new regulations, which have had to be absorbed by the industry.

An increase in the number of more expensive cars and young drivers on the roads has also been cited.

A spokesman from within the industry had this advice for people looking for low cost car insurance: "Whatever car you own, the key to getting a good deal is to make sure you shop around each and every time your insurance is up for renewal, not just for the first year. Insurers are notorious for luring people in with low first year premiums only to hike them in the second year and rely on inertia to keep the custom."

Source - http://www.prudentminds.com

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