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Will car insurance rates continue to rise in 2011?

Will car insurance rates continue to rise in 2011?

Following the sharp increase in the cost of car insurance premiums over the last 12 months, many motorists are concerned about any future price rises, and whether they’ll be able to afford to keep a car on the road after 2011. Comprehensive car insurance policies rose by a massive 38% over the course of 2010, but Third Party Fire and Theft car insurance policies fared even worse and suffered a 56% increase on average which translates into an extra £322 on each of these policies. The huge price hikes have left most motorists worried about how they’ll afford insurance in the future if prices continue to rise at their present rate. The experts believe the dramatic increases we witnessed in car insurance premiums last year were fuelled by a rise in personal injury claims, and also the practice of “fronting” where parents put themselves as the first name driver on a policy in order to get cheaper insurance for a child. However the verdict from several industry experts is that the price hikes are starting to lose momentum and rates are beginning to level off. According to one insurance specialist from moneysupermarket.com, premiums will rise throughout the coming year, but not at the same rate which we’ve previously witnessed, which spells good news for UK motorists. Many are predicting a rise in premiums throughout year of 20%, which is significantly lower than the 38% rise we experienced in 2010.

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