While drivers in the UK are already feeling the pain whenever they pull up to the petrol pump, new research has revealed that car insurance rates are on their way up yet again.
The latest price index from the AA’s motor car insurance division indicates that the average price of insurance went up by 15.3 per cent in 2011 to £971.40. This, plus several other factors, has led to the Office of Fair Trading investigating the insurance sector, an industry that generates £10 billion in revenue annually – yet car insurance companies still find time to complain that excessive legal fees force them to raise their rates year-on-year.
2012 looks even more bleak, experts say, especially if you’re trying to find a provider of discount car insurance for young drivers. Admiral, which has an 11 per cent market share when it comes to insuring the cars currently on UK roads, said that a recent EU ruling is set to make things even worse, as it bans charging drivers different rates based on gender differences and effectively raising rates for young women who were charged less than their male counterparts because statistics say younger female motorists are not as dangerous as young men.
Experts say that, even in the face of these price increases, there are ways to limit your costs. One of the best ways to do so is by not automatically accepting your renewal quote; shopping around for the best deals instead can almost certainly slash your insurance bill, and taking a competitor’s quote to your current provider can sometimes prompt them to match the price.