Survey finds car insurance prices levelling while petrol prices rise

A new survey has shown the cost of car insurance has risen relatively little over the last financial quarter, in what should be a relief to UK car owners who have seen other car-based costs, such as the price of petrol, increase sharply over recent months.

Partnering with price comparison website Confused.com, consultancy EMB found car insurance prices seemed to have risen very little over the past quarter, with the average policy having increased by just 8.6 per cent during this period, compared to a much steeper incline of 14.2 per cent in the months previous.

An EMB spokesman explained that the cost of car insurance is now set to level, if not fall, as many car insurance companies had originally increased the price of car insurance premiums to cushion against soaring 'no win, no fee' claim levels which have fallen over the last year.

Though as EMB's survey puts the cost of car insurance at 37.5 per cent higher than last year, motorists are being advised to ensure the best deal on comprehensive cover by properly comparing car insurance prices.

However, the British Insurance Broker's Association has urged drivers to be cautious when using price comparison websites to search for cheaper premiums, noting that many fail to fully inform car owners of the additional costs associated with their policy and tend to refer customers to car insurance providers directly.

This not only leaves motorists to work out the full cost of their car insurance policy, BIBA spokesman Graeme Trudgill explained, but may also result in some car owners choosing to purchase seemingly 'low cost' premium which may cost them dearly in the future.

Fri, 15 Oct 2010 06:00:00 GMT