Compare Insurance Rates & Save

Your MONEY: Drivers Warned of 10 Per Cent Insurance Rise ; CASHPOINT

Mar 12, 2007

By John Husband

CAR insurance premiums are set to soar by 10 per cent, it was claimed yesterday.

The warning, from insurance comparison website, comes on top of the near six per cent rise logged by the AA's experts over the past nine months. Confused claims insurers are under pressure to raise premiums because of the rising cost of accident claims.

It says they are costing insurers pounds 109 for every pounds 100 they collect in premiums.

Several major insurers, notably Norwich Union, have already started pushing up premiums - even though it means losing some customers.

It's bad news for drivers with poor claims records. They're set to feel the brunt of the increases with nowhere to run for cheaper cover.

But there are plenty of newer providers eager to win business by offering cheaper deals.

Sainsbury's Bank, for example, is offering 10 per cent cashback (up to pounds 100) to anyone buying one of their policies by phone before St George's Day (April 23). If you have a good no claims record there's still plenty of scope to cut premiums by hunting around.

While the average quote has nearly doubled to pounds 805 since 1994, the AA says the average paid by drivers who "shop around" is only pounds 468.

(c) 2007 Daily Mirror. Provided by ProQuest Information and Learning. All rights Reserved.

Insurance News: Your MONEY: Drivers Warned of 10 Per Cent Insurance Rise ; CASHPOINT ; Get an insurance quote! « Back