Car Insurance: Premium increases predicted
Car insurance costs add to financial woes
Wednesday, 30 Apr 2008 14:53
Drivers have seen car insurance premiums increase six per cent in the last year.
A quarter of drivers have now had their car insurance prices rise – to an average of £682, according to MoneyExpert.com research.
Car insurance hikes are set to continue in 2008 – with premiums forecast to rise up to ten per cent.
However, many drivers are taking price hikes on the chin and failing to shop around and find cheaper deals on the market.
Some 28 per cent of drivers just accept renewal quotes from car insurance firms without seeing what else is on offer.
Sean Gardner, of MoneyExpert, said: “It is worrying that when faced with an increase in car insurance premiums of more than double the rate of inflation so many drivers just shrug their shoulders and accept it.
“Motorists are already having to cope with soaring petrol prices – assuming they can actually get petrol. Insurance costs simply add to the burden."
He added families should grab the chance for saving money on car insurance.
"Drivers can shop around easily by comparing insurance quotes from different companies," he said.
"Rising insurance costs are one problem you can at least try to steer clear off.”
However, not all drivers are seeing premium rises – with 14 per cent reporting the cost of car insurance remained steady and 17 per cent said they cut the cost of protection.
Daniel Barnes