Insurers say they are paying out more than they are taking in. A survey carried out by the independent actuarial and consultancy showed that for every £1 the retail motor industry received in premiums, it had to pay out £1.20 in costs and claims.
Blamed on higher bodily injury claims, this means insurance companies have to raise their premiums.
How does this affect me?
The knock-on effect of this is that drivers could face paying up to 20% or even more for their car insurance. The average premium of a careful driver with a full no-claims bonus could rise from the average price of £400 to £480 or higher.
What can I do to avoid unnecessary cost?
Shop around and find the best policy for your needs however beware of price comparison websites as it’s not always clear what the cover is that you’re buying and any specific terms or exclusions.
It may not be what you had in mind but you could always downgrade the car you own. The higher the worth of the car the more the insurance cost and its premium are going to burn a hole in your pocket.
For independent free advice talk to your local insurance broker and compare their quotes from a panel of underwriters. They are now able to provide more competitive premiums than the direct insurers and will ensure that you have the correct cover.