One car insurance comparison site has discovered that some drivers in the UK have experienced their car insurance rates increasing by more than four times the rate of inflation over the past 12 months,industry experts recently reported.
The online car insurance comparison website said that while the average comprehensive policy rose in price by 4.9 per cent, there were some regions that saw much higher increases. The area worst hit was Bradford, with average prices increasing by 17.1 per cent, closely followed by 14.8 per cent in Oldham and 14.4 per cent in Manchester, the provider of discount car insurance quotes reported.
However, there were many regions that saw their insurance premiums decline, such as in Falkirk, where the average price dropped by 4.6 per cent. Edinburgh and Exeter also saw relatively large drops of 3.7 per cent and 2.3 per cent respectively.
Comprehensive cover has now become substantially less expensive that third party, fire, and theft policies, the findings also showed. While both types of cover have experienced price increases, TPFT is now £1,162 on average, while comprehensive cover is a much lower £844.
The website’s head of car insurance, Gareth Kloet, remarked that in January of 2011, motorists were paying an average of £804 a year for their comprehensive policies. Now, this figure is a full £40 higher, but the industry will face even more price fluctuations in the coming year as well, he added.
Mr Kloet pointed out that December 2012 will see an end to the practice of insurers pricing their products along gender lines, thanks to an ECJ ruling banning the practice. However, telematics-based insurance cover will grow in popularity over this period of time, according to the car insurance head, as drivers are likely to be drawn to the new technology due to the ability to reap the benefits of careful driving through reduced premiums.