By Elliot Wright, 29th January 2010
Motorists are being urged to take drastic cost-cutting measures
as car insurance premiums saw their biggest ever increase last
year.
According to the AA's British Insurance Premium Index, the
average renewal quote for those comparing deals rose by a massive
11% during the last quarter of 2009, while the average quoted
comprehensive exceeded £1000 with a rise of 7.2%.
The index shows that the "shoparound" premium - based on the
three lowest quotes - increased dramatically by 22% throughout the
year, ending on £613 for a typical comprehensive quote.
Young and new drivers were also stung as third party, fire and
theft policies rose by a third over the year, making even the
cheapest insurance inaccessible to many.
The AA blamed the increases on a rise in personal injury claims
and a spate of collisions during the recent wintry weather which
resulted in about 30% more claims than usual.
Price comparison site moneysupermarket.com is urging drivers to
take action and to scour the market for the best deal at renewal
time.
Motorists waste £141 each, or £942 million
collectively, by sticking with their existing insurer and not
shopping around
The site also advises motorists to cut insurance costs by other
means such as by reducing mileage, driving a car with a smaller
engine and ensuring the car is parked safely at night and is fitted
with an alarm and immobiliser.
Adding an older, more experience driver to policies can also
sometimes reduce premiums, as can agreeing to paying a higher
excess.
Head of car insurance at moneysupermarket.com Steve Sweeney
said: ""Motorists waste £141 each, or £942 million collectively, by
sticking with their existing insurer and not shopping around for
car insurance when it comes to renewing their policy, and one in
five drivers automatically renew their car insurance with their
provider rather than shopping around to find a better deal.
"In this current climate, it is shocking to see the sheer scale
of drivers who won't spend a few minutes to see if they can save
money when renewing their car insurance."
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