Motorists whose car insurance policies are due for renewal should prepare themselves with the biggest blow thus to their wallets ever.
According for the AA British Insurance Premium Index published this morning, the regular quoted premium for comprehensive motor cover saw a 18.7% hike about this time a year ago. This can be certainly the steepest annual rise since the index began in 1994.
Separate data from consumer research company Consumer Intelligence established that the price tag on motor cover was up a much better 19.6% on January last year. With premiums now waiting on usually 564.69, this too represents the greatest increase on record.
Things need no better for motorists this season. A few weeks ago, the insurer Zurich announced it is to elevate motor premiums by 20% in the coming year. Steve Lewis, ceo of Zurich general insurance, blames high inflation and also a 30% development of bodily injury claims.
Will Thomas, head of motor with the comparison website Confused.com, warns: “This rise in injury claims can be due to a completely new and growing type of litigation-savvy motorists C as well as it widespread enough to see other insurers following suit with the exact same price hikes.”
An rise in fraudulent claims is additionally driving up premiums. During the past year esure saw a 20% increase in the number of drivers making false or exaggerated claims on motor cover inside a bid in order to increase their funds.
Comparison websites, hailed since the consumer’s friend, failed to stop motor premiums rising across the board. In line with Confused.com, over 50% of car insurance policy applications now come through online comparison channels. Ian Hughes, managing director at Consumer -Intelligence, says: “The coming of price comparison websites had kept a lid on motor insurance premiums for quite a while but our figures show the upward pressure on pricing has well and truly broken through.”
Younger motorists were most suffering from price hikes. Those aged between 17 and 24 have observed their annual insurance cover soar by nearly 25% from 1,276 in January 2009 to 1,489 by December, Consumer Intelligence finds. Males have also seen larger rises than women against like-for-like deals.
But consumers have got legitimate measures at their disposal to drive across the value of their motor cover, says Thomas. “Don’t just renew your current cover without research first. Our figures demonstrate that 12% individuals customers still save more than 200 on his or her annual premium.”
Overestimating your mileage may also load premiums unnecessarily. “The more you drive, the higher out of your accident from the insurer’s eyes along with the higher your premium will likely be,” Thomas adds.
But paying your premium upfront for that year should save some costs, says Steve Sweeny, head of motor insurance at moneysupermarket.com. “Motorists who choose work out payments can anticipate to repay one more average 10.13% about the worth of the main -premium.”
With a predicted 38 million drivers in the UK, some insurers are utilizing price hikes as being a market opportunity. Tomorrow, AXA insurance will start to offer cheaper premiums for safer drivers, stopping to 90% no-claims -discount if drivers have remained claim-free for eight years. This compares through an average industry more 65%.