New research predicts massive car insurance rate hikes

Cheap car insurance will soon become even harder to find for UK motorists, according to one recently published survey that indicated massive car insurance rate hikes are on the way for the rest of 2011.

Car insurance comparison site revealed the results of research that stated insurance premiums last month were more than36 per cent higher than they were in comparison with March of last year. The research findings also stated that by the end of 2011 motor car insurance price increases will continue to batter the UK’s already put-upon motorists by a factor of an additional 20 per cent.

As bad as things may be here, foreign drivers may have it much worse.  One US-based car insurance specialist recently conducted their own research into car insurance prices across the pond, revealing that comparative costs may leave Brits feeling a bit relieved that we’re not quite so rapidly sinking as our American cousins may be.

The research indicated that the average American driver pays approximately $1,561 (£970) in premiums on their annual policy.   As the AA estimated the average comprehensive policy costs UK drivers was £843 last year, this mean that Americans have ended up paying approximately 15 per cent more for their cover than Brits do.

The report also highlighted how much variation there is in US insurance premiums according to region.  In the state of Michigan, an average price for a year of cover was $2,541 (£1,579), while the New England state of Vermont came in considerably cheaper at $995 (£618).  This is old hat to Brits, who have long been accustomed to how many insurers base their rates on something as arbitrary as a postcode.  In a system that seems to be bereft of rhyme or reason to many UK drivers, motorists in Bournemouth pay premiums three times less expensive than drivers who live in Bolton.

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