CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 15 OCT 2014:
Well, it was nice while it lasted: new data shows car insurance costs are once more on the rise in the UK for a number of reasons.
The first bit of bad news came out this week as research conducted by a major car insurance comparison website discovered that the price of comprehensive cover has gone up by £56 in September. This is the first time in three years that premium pricing hasn’t continued to fall, instead driving the average motor car insurance customer to pay £582 a year for cover – though of course you’re going to pay much more than that if you’re either very young or very old.
It might be a deceptively small rate hike, but insurance analysts have already seen the writing on the wall and have begun to feel that the difference represents the slow but steady turning of the pendulum back the way it came. What’s driving these rates higher suddenly? Well many people think it’s because insurers got themselves into an unsustainable price war, while others say it’s because of car insurance fraud that’s been forcing insurers to raise rates.
In fact, there might be some truth to that last one, considering how law enforcement authorities are working overtime to track down fraudsters and scammers in the UK. If you can believe it, some of these scams are so widespread that they can affect an entire neighbourhood or region – such as the 40 people living in County Tyrone that have been victimised.
Apparently some bastard has been selling falsified insurance certificates to drivers in the Castlederg area, though one arrest has been made on suspicion of being involved in the fraud. I’m sure that instances like this help to drive up premiums just as much if not more than poorly thought out price wars. At least it’s not insurers themselves that are causing the problem; nothing is worse than listening or reading to accounts of your very own insurance provider bollixing up something so severely that the only option left is to punish its customers by raising rates.
Just a friendly little reminder: if you’ve got to renew your cover soon, do it somewhere else than your existing provider. It’s got no vested interest in keeping you as a customer – just jump ship for a better deal and you’ll likely be happier.