One online car insurance quote comparison site recently submitted its list of recommended reforms to the Transport Select Committee ,in an on-going attempt to reduce the rising costs of motor car insurance in the UK.
Over the past 12 months, an unprecedented drop in the availability of discount car insurance has occurred; the average cost of Fully Comprehensive insurance cover now tallies up at £650, which is a 37.5 per cent increase over last year’s average.
Some classes of drivers, such as the 17 to 20 year old age demographic group, are in even more dire straits. In the last quarter alone, younger motorists have seen their car insurance rates rise by over 10 per cent on average.
Due to the unrest of car insurance customers, the Transport Select Committee, which is taxed with examining the policy, administration, and expenditure of the Department for Transport and any public bodies associated with it, has decided to conduct a brief inquiry into the runaway nature of car insurance costs.
Comparison site Moneysupermarket.com claims that websites such as their own have played a role in improving transparency in the insurance market and have also helped customers to switch their providers easily. These two factors, the website stated, have slowed the rate of increase, while keeping prices as competitive as possible.
However, industry experts fear that a transparent insurance market is not enough to prevent companies passing on rising costs to the consumer.
Insurance head for the comparison site, Steve Sweeney, stated that they welcome the timely inquiry of the Transport Select Committee in regard to the rising costs of UK car insurance. Mr Sweeney added that his organisation’s objective is to help every household make the most of their money,;one example of which being the average £237 site customers save on their car insurance quote when it comes up for renewal.