Sunday, 28 May, 2017

Car Accident

The AA has warned customers that car insurance prices are likely to rise over the course of the next year, in spite of a fall in prices experienced during the first quarter of 2015.

According to the AA, insurance prices fell slightly over the past few months by around 1% on average.

This meant that the cheapest car insurance deals fell by £5.58 to £530.47 per year.

The AA reports that during this time, however, drivers aged over 60 saw an increase in their car insurance premiums.

The AA predicts that other age groups will soon see a similar increase in premium prices.

Janet Connor, managing director of AA Insurance, said, ‘We are starting to see insurers quoting higher prices. I think that is the beginning of a trend, but the market remains very competitive.

‘The rate of increase is not going to be turbo-charged.’

The AA said that compared with prices the same time last year, car insurance premiums are currently down 6% on average.

Many types of insurance are currently slightly cheaper than a year ago, with customers currently enjoying large savings on their home insurance.

According to the AA, the average home insurance and content insurance quote is currently down 9.6%, or £17 in real terms, compared with prices last year.

The AA suggests that this is likely due to a period of particularly mild weather over winter, leading to less home damage brought on by adverse weather conditions.

Ms Connor said, ‘Home premiums are most likely to be affected by extremes of weather and the recent winter has on the whole been notable for its lack of heavy rain, snow, winds and extreme temperatures’.

Recently, Aviva car insurance released a report warning that motorists face paying an additional £93 per year for their insurance due to a recent rise in reported cases of whiplash.

It predicted that whiplash claims will raise 9% over the course of this year, which will have a significant effect on car insurance prices in order to balance out increased costs for insurers.

96% of these claims were brought up by claims management and personal injury third parties, rather than by injured parties acting on their own behalf, leading many to question the extenuating costs of allowing intermediaries to influence the claims made by injured parties.

Getting a good deal on car insurance in increasingly difficult. According to reports from the Financial Conduct Authority (FCA) last year, price comparison websites are failing to provide customers with the best deals, with some deliberately breaking the rules in order to highlight deals that make the sites the most money.

Many price comparison sites, such as Go Compare and Tesco Compare, are either partially owned by insurance companies, or provide insurance products themselves, making it difficult for customers to know if they’re getting the best deal or is they’re being pushed advertising for products sold by the site itself.

In order to provide car insurance customers with the best deals, the AA has recommended to the Competitions and Markets Authority that a cap on replacement car and repair charges be introduced.

The AA claims that this could save motorists around £20 a year on their insurance premiums.

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