15th January 2010
Motorists are being warned that their car insurance premiums may
soar in 2010.
The warning comes as insurance giant Zurich increased its car
insurance premiums by 20%, and price comparison site Confused.com
anticipates that other insurers will follow suit.
The predicted increases are being blamed on litigation-savvy
motorists making personal injury claims after being involved in
accidents.
And with more than 50% of motor insurance customers now buying
via price comparison sites, competition between insurers is
intense.
Providers had been lowering their margins and passing on savings
to customers, but with rising costs such business practices have
become unsustainable and the companies are pushing up premiums to
make a profit.
Confused.com is advising motorists who have got into the habit
of renewing their policies automatically each year that they might
be in for a shock when their quote comes through. The only defence
against this, they say, is to get online and shop around for the
best quote.
Will Thomas of Confused.com said: "Zurich's announcement that
they are to increase motor insurance premiums by up to 20% has not
come as a surprise. It is anticipated others will follow suit, the
only question is who will be next?'
Pricing has had to change due to a number of factors, such as a
year on year increase in personal injury claims brought on by a new
breed of litigation-savvy motorists assailed by ambulance-chasing
injury lawyer adverts on the television. "
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