- Instant car cover quotes
- Scrappage scheme guide
It may come a surprise for many but for the past few years car insurance premuims have remained fairly stable.
There’s no single identifiable reason for this but there’s no doubt one of the major causes has been motorists’ increasing willingness to shop around for the best premium.
Before the explosion of price comparison sites, the process of shopping around was just too much hassle for the majority of us and we trusted our existing broker would come up with the best deal – or at least close enough to the best deal not to make it worthwhile changing.
But now there’s a pressing need to make sure that shopping around every year isn’t an option but a requirement, unless you have money to burn. And let’s face it: that’s not too many of us in today’s economic climate.
According to the latest figures from the AA, car insurance premiums are rising at their fastest rate in at least the last 15 years.
It says that the typical cost has jumped by 5.6 per cent in the past three months alone, the fastest increase since its index measuring such trends was launched 15 years ago, while the rise so far this year has been a whopping 14%.
This trend has led to the average annual premium soaring from an already punishing £778.13 in July to an eye-watering £821.41 in October.
Director of AA Insurance Simon Douglas said: "Most drivers will be seeing sharp increases when they renew their annual insurance premiums. And that could mean that those looking for a new policy may benefit from searching extensively for the best deal available.”
Highlighting a massive jump in premiums doesn’t seem to please insurance companies so it’s no surprise that both Admiral and Zurich have announced findings of their own surveys.
Are You a Stressed Driver?
If you are stressed, Admiral reckons you’re at greater risk of having an accident.
The specialist women’s car insurance company says 56% of drivers are stressed and that a third of these admit it makes them drive more erratically. On top of this, it claims almost half confessed to losing concentration while stressed and that driving in this state made them more likely to be involved in a road rage incident.
In addition to this, 45% of the survey’s respondents confessed to being more likely to lose concentration when under stress, while 56% said being in a car in such a state made them more likely to have a road rage incident.
In a separate poll, Admiral said 18% of women drivers it questioned admitted putting on make up while they drove and three per cent said they’d had a crash as a result.
The company warned this could have implications for premiums, as no-claims bonuses may be lost if somebody has an accident while driving in a compromised state of concentration.
Winter’s Approaching so Expect More Accidents!
Not to be outdone, Zurich says road accidents jump 11% the week after the clocks go back – another reason that “could affect” insurance premiums.
Spokesman Mike Quinton said: "It's possible that drivers get used to driving their regular routes in broad daylight, then find it hard to adjust to suddenly doing the same journey at the same time, but in the dark.
“The inclement weather common in autumn may add to this and such a situation can mean those with car insurance face higher premiums as a result of accidents occurring at this time of year.”
And Finally…
Car insurance provider RIAS has also joined the band of insurance companies searching for a reason to explain higher premiums. It said eight million drivers add to their risks by not taking extra precautionary measures during winter months.
It claimed that 21 per cent of motorists fail to have their water, oil or windscreen wipers checked at any time bar their annual MOT.
We Get The Message!
Whilst it might come as a surprise to motor insurance providers that driving stressed, while putting on make-up, on a dark, wet night in an un-serviced old jalopy, is dangerous, we don’t think this all adds up to explain a massive rise in premiums.
For starters, the clocks go back (and forwards) every year. And winters have long had the nasty habit of being dark and wet.
Without a much better explanation why premiums are soaring, the only logical explanation for the AA’s findings is that insurance companies are trying it on.
There’s only one solution: make sure to thoroughly search for the best deal each and every year; keep those insurers fighting for, rather than expecting your business – and you’ll be much better off!
