Cheapest car insurance news
11/01/2010
Motor insurance premiums on rise in 2010
Global financial specialist Deloitte has said that it believes the baseline prices for the cheapest car insurance will rise in 2010.
The prediction follows the revelation that competition among insurers to provide consumers with the cheapest car insurance has taken its toll: during 2009 as a whole the motor insurance recorded losses of around £1 billion.
And it seems that, with most insurers, the expected hike has already begun; premium prices are growing at the fastest rate in over six years and the prices of the cheapest car insurance available is expected to rise by around 5% in 2010.
A specialist with Deloitte commented, "Results at a headline level for UK motor insurers have shown this market cruising along at close to underwriting breakeven point from 2001 to 2007.
Adding, "Indications are that the current year trading is far from being profitable at a market level and this is likely to remain the case in 2010. For the last few years prior year reserve releases have been at exceptionally high levels. I do not expect to see anything other than modest levels of reserve releases in 2009."
One thing is certain; it still pays to shop around for the cheapest car insurance on the market.