The government have just announced there is going to be a change to the way compensation is calculated, putting an end to very cheap car insurance.
I’ve talked before about the UK compensation culture and why it is making car insurance more expensive…well, it appears those in power want to keep the madness going just a bit longer, while millions of hard working Brits end up paying for it.
36 Million will Pay
How many exactly? According to some car insurance firms there will be approximately 36 million drivers who will be affected by these new compensation rules, because at the end of the day the money has got to come from somewhere.
If people are going to find it easier to make a compensation claim, then insurers are going to be paying out more. The person who is going to pick up the bill is the average man and woman driver.
Not only that, but if some of the reports out there are true, then it is older drivers who will be mainly picking up the bill.
Very Cheap Car Insurance…NO!
Put simply, if you have very cheap car insurance right now, then don’t expect it to last long, because if the government get their way then you could be paying up to £300 more this time next year.
Yes you read that right. Thanks to the compensation culture we have right now in the UK, you are going to pay for it with your hard earned cash.
It was only a few weeks ago when I reported on the story about EU Chiefs in Brussels and their plans for awarding compensation to uninsured drivers. These kind of stories just keep on getting more bizarre, and it doesn’t look like there is much you can do about it.
The only thing I can suggest is to be smart when it comes time to renew your car insurance. Firstly, never let it auto renew because most of the time you can easily get a cheaper deal elsewhere.
Secondly, I would advise you to use a comparison website to find very cheap car insurance, where all you have to do is enter your details in order to get access to over 100 quotes.
It is Smart to Shop Around
If insurance companies have no choice but to make it more expensive, then you have no choice but to shop around and get yourself the best deal.
The ideal scenario of course would be stop this compensation madness completely, but something tells me this isn’t going to happen anytime soon. All you can do is make the best of it, and it starts with a comparison website.
I think the message here is…if you want very cheap car insurance then you can get it, despite what the government and insurance companies are doing.