Car insurance becomes more expensive
Thursday, 28 Jun 2007 15:51
Car insurance has become more expensive
Car insurance is more expensive now than it has been for two years.
That is according to market analyst Experian's latest survey - showing the average quote for comprehensive motor insurance sold directly to drivers stands at £560, up from £519 for the same period the year before.
The average premium sold through intermediaries was £529, its highest level for 11 months.
"The whole motor insurance industry is going through a period of transition and it is not as clear-cut as it was 15 years ago," said David Murby, managing director of Experian's insurance services division.
"After Direct Line launched in 1985, the number of direct providers entering the motor insurance market grew significantly and this has affected the market share traditionally held by the intermediaries."
He added: "Competition is aggressive and with technological advances and changing consumer needs, the industry is unlikely to settle back into a straightforward situation. Information has become key. Motor insurers in both markets need to be able to monitor what is going on in the industry."
And with car insurance costs rising, Gocompare.com has provided its top tips for cheaper car insurance:
Keep it clean - The more convictions on your licence, the higher the premium. Speeding is one of the more common convictions which will leave you paying a fine and more than likely higher insurance costs.
Pass Plus to drive down cost – If you are a learner driver, you can help reduce your premiums by taking a course that shows you are a proficient driver. This is a Pass Plus scheme for which some insurance companies may cut premiums by as much as 30 per cent. There is also an Advanced Driver course which can reduce your premiums.
Do not pimp your premiums – Modifying your car so that it looks like it should be in a James Bond film is all well and good but any differences from the factory standard will increase your premium.
Park safely - The safer the place you leave your car the lower the risk. If you leave your car on the street overnight then an insurance company will say that this is a greater risk than a car kept securely overnight in a locked garage.
Watch out for additional monthly fees - Something some insurers do not make so clear is although they offer a good service by allowing you to pay monthly instead of one lump sum, they may well introduce a fee for doing this. This would make the total amount you pay higher than the original quoted premium. If at all possible it may well be advisable to pay the insurance in one go.
Secure your car for a better deal - A vehicle with a car alarm, immobiliser or tracker will potentially lower the quote that an insurer will offer you.