Combating Higher Premiums

By Author: Deshawn Chillo
Total Articles: 8
Comment this article

A recent survey by a leader insurer found that the price of the average comprehensive car insurance policy rose by nearly one fifth throughout 2009. That means that the average cost of car insurance is, for the first time, in excess of ?1,000.

What, then, are the reasons for this massive increase in price and what can the average customer do to get a good deal? Insurers argue that compensation is the major driver behind higher prices. Largely due to advertising campaigns promoting lawyers who can get accident compensation many people feel that they should get compensation for accidents which they haven''t received in the past. Compensation money often comes out of insurance policies and therefore the policies have to cost more.

Another key reason for the higher premiums was an increase in events of car insurance fraud. Fraud alone is said to have added ?2bn to the overall costs of policies in the country, whilst uninsured drivers are said to cost the average customer an extra ?40 on their insurance.

The figures also showed that the price of a third party, fire and theft policy has risen to over ?1,200, far ...
... in excess of its comprehensive counterpart. This is because newly qualified drivers often have third party, fire and theft, and the higher prices reflect the higher premiums that they are charged.

So what can you do to beat rising insurance costs? Unfortunately there is no single way, and even if you''ve never had an accident your premiums will still be rising. The challenge is to find a good deal for the current market, not to try and compete with the deals you found in previous years.

Price comparison websites are a good place to start, but they shouldn''t be considered the whole insurance buying process. Comparison websites no longer search the whole market, so you can''t be sure of getting the best deal, but they can give you a good idea of how much you should be expecting to pay.

Following that consider other insurers, often your own insurer will offer you a better deal if you threaten to leave, so it''s worth talking to them first. Then you should consider all the factors that affect car insurance price: age of the named driver, gender of the named driver, value of the car, whether you have off-road parking, the number of miles that you drive in a year. These are just a few, but if you can find off-road parking for your car, or even do something as basic as buying an immobiliser, it can save you money in the long run.

Getting a good deal on car insurance is all about doing thorough research and looking at a wide range of policies. Never be afraid to negotiate, many insurance companies have more flexibility on price than they like you to think. It''s your money, so make sure they have to work for it. Deshawn Chillo is a keen writer about car insurance and home insurance products.