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Sharp Rise in Insurance Premiums February 4, 2010

According to data from the AA, insurance premiums in Q4 2009 rose at their fastest rate since records began.

There are a few cited reasons for the price rises such as increased cost of claims and injury settlements.  Drivers and passengers are now claiming for minor injuries such as mild whiplash and winning their cases, meaning insurers need to pay out a lot more than in the past.  This is being heavily encouraged by TV advertisements by lawyers and solicitors and people are using it as a way to generate extra cash during the current credit crisis.

The winter has been particularly bad and crashes and accidents are up by around 30%, another factor thats causing higher prices.   Years of high commission payments to the big price comparison sites (aggregators) have also taken their toll and caused a double whammy, high cost of aquisition of customers and a dwindling renewals book as drivers are encouraged to switch every year to gain the latest new customer discount.

Despite this, it still makes sense to compare your insurance prices online and use a service like Quotezone to get the best deal for you.  Remember, prices are up across the whole market and so you’ll probably need to pay more for the same cover or switch to a cheaper cover such as moving from Comprehensive to Third Party Fire & Theft (TPFT).

Good luck in finding your bargain out there!

Cheap car insurance prices brought to you by multi-quote.com and QuoteZone
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