Cheap car insurance
02/11/2011
Annual premiums steadily reducing in cost
There is finally some good news for motorists who thought that cheap car insurance was a thing of the past.
It has been revealed in the latest price surveys from the AA that after three years of prices steadily going up they are now starting to decline. Also, Tiger.co.uk, a popular car insurance comparison website has reported that prices are decreasing as the year-on-year average has fallen by 2%.
Several factors have contributed to car insurance quotes increasing over the last few years such as the severe weather conditions in the UK from last winter and a rise in fraudulent claims also causing prices to increase.
Costs are now going down due, in part, to an increase of competition in the car insurance market after a period of inactivity. The government has also initiated a crackdown on lawyers who charge referral fees for details of victims of car accidents.
However, having cheap car insurance may not last for long as there is still pressure on insurance companies.
Premiums could continue to rise in the future, though it could reportedly be at a much slower pace due to the economic climate and inflationary pressures. A spokesman for the price comparison site encouraged motorists to always ensure that they are scanning the market for the best deals.