24 January 2011

Compare Car Insurance as Premiums Continue to Rise

Compare the market for the best car insurance policy, to see if you could save money.

Car insurance premiums have jumped by 6.4 percent in the last three months of 2010, new research reveals.

If you are a motorist looking to reduce your premium, compare car insurance providers to find a better deal online.

The study by GoCompare showed the average car insurance premium has increased by £210 in a year, and the last three months alone saw the typical annual policy rise by £51.

"There has been no let-up in premium increases as insurers struggle against losses from 2009,” said Simon Douglas, AA Insurance director.

"It is nevertheless important that the industry finds ways to help young people start their driving career safely, responsibly and affordably.”

Home insurance premiums were also shown to have hit record highs, with the typical premium rising by £10 over the last quarter to £143 on average a year. Home contents insurance fell slightly to £72.

The car insurance market is also showing signs of change with fewer and fewer providers offering Third party, fire and theft (TPFT), the cheapest policy, as an option.

Those who do offer it make it more costly than comprehensive cover, the average price rose by 26.6 percent over the quarter, and 71.9 percent over the year to an average of £1,390.

Tips for Comparing Car Insurance

The rise in car insurance premiums makes it even more important for motorists to compare the market for the best insurance policy, to make owning a car affordable.

Younger drivers are suffering the most with those aged 17-22 years old experiencing premium rises of 15.1 percent in the last three months of the year, and 58.3 percent over the year, to £2,251.

If you are a young driver you can reduce your premium by driving a car that is not seen as too speedy, with a small engine and no added features such as spoilers.

Compare Car Insurance with MoneyMaxim