Car Insurance Premiums On The Rise
According to a recent survey, car insurance premiums are rising at their fastest rate for nearly a decade. The average fully comprehensive motor insurance policy has risen in cost by 3.5% in the past 3 months alone with the average fully comprehensive insurance policy now costing a whopping £778.13. This is an increase year-on-year of 11.3% and with no signs of these price increases slowing down it appears as though car insurance prices will continue to rise.
These price increases aren’t just affecting fully comprehensive motor insurance policies. Third party fire and theft policies have also been hit by this rise in price. Typically purchased by young and inexperienced drivers, a 4.6% increase has taken the average price of these policies to £968.22.
There are a number of factors that have lead to these increases in price. Major contributors to these price increases include theft, fraud, personal injury claims and legal expenses which are all on the up. It is thought that personal injury claims and their associated costs will hit £10.9bn by 2012 and whiplash injuries alone add £66 to every car insurance policy purchased. £30 is also added to policies due to the increasing number of uninsured drivers.
There are a number of things you can do to combat these increasing insurance costs. The easiest way to reduce your car insurance premium is to shop around for your car insurance policy. By comparing car insurance policies from a number of different car insurance providers it is possible to save money as insurance costs can vary significantly depending on the provider. Sites such as Moneysupermarket.com allow you to compare car insurance policies from over 100 leading car insurance providers making it easy to save money on your motor insurance policy. Other ways to reduce your insurance costs include increasing your voluntary excess, avoiding paying for your policy monthly and adding security devices.
Readers who read this page, also read
Tags: Car Insurance Premiums