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Car Insurance Premiums at 4 year high, say the AA (*)

Crashed CarAccording to the British Insurance Premium Index, run by The AA, average car insurance rates have risen by nearly 6% in the last quarter. They now stand at a 4 year high.

But why?

 

Uninsured driver numbers rising

The latest rises in Insurance Premium Tax in 2016 have forced up the cost of car insurance. With another 2% rise in this tax planned for June this year the situation can only get worse we believe. Some drivers still believe they can drive uninsured and legal drivers are left to pick up the tab by higher insurance costs.

Fraud

Motor Insurance fraud continues to increase, whiplash claims being a prime example. The proposed alteration to the way in which Whiplash claims could be handled (to provide medical benefits as opposed to just compensation) were not put through and so Britain continues to be the “whiplash capital of Europe”. What needs to be done to reduce the number of fraudulent claims?

Money

Poor Investments

Investment returns continue to underperform due to consistently low interest rates and political uncertainty, only added to by Brexit and the American election result. Most insurers need to raise costs in order to stay profitable and meet required security margins required by the regulators.

With all these factors the end result is increasing insurance premiums. Some drivers see taking the risk of driving uninsured a cheaper alternative than actually paying the cost of valid insurance.

So how do you keep your motor insurance costs in check?

Engage a broker to search the market for you. We offer cost comparisons with about 100 different schemes. But “can’t I get that via a web based comparison site” you ask. Potentially yes but we offer:-

  • Analysis of the scope of cover in a policy, sorting good from bad. (The devil is in the detail and we can look at this and see what is not covered so you get no nasty surprises.)
  • We know the insurers track record on claims and only use reputable providers.
  • If there is a problem with a claim we help with getting it resolved.
  • Free advice at any point to protect you, even from yourself.
  • Explanations as to how to get the best from your policy.

So don’t suffer in silence and potentially pay too much, give us a call or email. We are friendly and approachable and promise to work our hardest to get you the best deal we can.

Tel 020 8773 2222

Email: advice@1stopinsurance.com

(*) Source Insurance Age