Average car insurance premium hits £700

According to comparethemarket.com, insurers have blamed rising levels of fraud, higher repair bills and a lack of competition for increased premiums, with their rising costs continuing to be passed onto consumers. Another contributing factor to the price rise is the increased rate of insurance premium tax (IPT), which now stands at an all-time high of 10%.

 

Dan Bass, head of motor insurance at comparethemarket.com had claimed that it is clear that insurers were “Not feeling any pressure to reduce their prices”. He suggested that the increased premiums are down to insurers trying to increase the profitability of their business”.

Although the average cost of insurance continues to rise, the savings variable is also larger than ever. The savings variable is the difference between the average insurance premium and the cheapest. Many experts believe that the widening savings variable suggests consumers are able to find cheap car insurance but have stressed the necessity to shop around.

Simon McCulloch, Director of Insurance at comparethemarket.com said “By not shopping around, consumers are inadvertently sending a message to insurers that they are happy to pay more for their cover. Increasing competition in the market place is the only way to truly reduce prices and, for motor insurance, that means getting more people switching.”

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If you are interested in receiving a competitive rate for car insurance then contact us at High Gear today. Going to great lengths to outperform competitors we have saved customers thousands in recent months