Take cover: no need to panic--we've got tips to help you cut your car insurance costs.(Wheels): An article from: Entrepreneur
Car insurance premiums are now rising at the fastest rate in 15 years, according to The AA, so what's behind the rising cost?
If you're looking for cheap car insurance just now, you may want to move fast.
According to The AA's British Insurance Premium Index, we're in the middle of one of the steepest rises in car insurance since records began.
In fact, car insurance premiums are rising faster than at any other time in the last 15 years, increasing by 5.6% over the last three months and 14% over the year.
The AA suggests is down to fraud, personal injury claims, uninsured drivers and rising car thefts. Providers are actually paying out more in claims than they are earning in premiums.
Simon Douglas, director of AA Insurance, explains: "Most drivers will be seeing sharp increases when they renew their annual insurance premiums. The index suggests that 89% of insurers have increased their premiums by more than £5 over the past quarter. Only 2.5% cent reduced them."
Cutting car insurance costs
This means there's never been a better time to compare car insurance providers and make sure you're finding the best quotes.
People who use the moneysupemarket.com car insurance comparison page save an average of £157 a year. So, if your premiums are rising, comparing the market is a great way to find the right cover at the lowest price possible.
There are other ways to reduce your premiums. Read our article 'Beat rising fuel prices' for our top tips on driving down the cost of cover.
Cover for younger drivers
The AA's findings are pretty bleak for younger drivers. Third party, fire and theft (TPFT) cover - the kind typically bought by new motorists - rocketed by 9.3% over the last quarter.
Newbies looking for cheap car insurance quotes may be less than impressed to discover the average quoted premium even for such basic protection is now £1,059.
Douglas is concerned premiums may be unaffordable or even encourage younger motorists to risk driving without insurance.
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