The cost of living seems to rise by the day recently, first it was food prices then petrol skyrocketed above and beyond £1.00 per liter and now Car Insurance, an already high cost expense, is set to rise yet again according to some analysts.
Car insurer Admiral who owns a number of other insurance firms like Diamond and Elephant has said they have already had to raise car insurance premiums 2.5% over the first six months of this year and believe that they will need to do the same for the trailing half of the year too.
It also said that other car insurance providers have already raised prices by a large 5% so far compared to this time last year. These rises are likely to spark off an instance where premiums are rising quicker than claims are for the first time in seven years.
The Car Insurance companies are reluctant to drop prices for a multitude of reasons ranging from the inherent cost of uninsured drivers to the confidence that too many people rely on their cars are a necessity for commuting and getting around. The insurers are unfazed by the rising costs in other aspects of their customers’ lives as they believe everyone needs their car and also will be breaking the law if they drive without insurance.
Some drivers, mostly the younger drivers with hyper-inflated premiums in the high thousands of pounds range, have actually opted not to drive with insurance risking a £250 fine that seems more appealing than paying for insurance policies. Cheap Car Insurance seems like a long lost dream these days as prices are set to rise, however it is believed that if uninsured drivers would at the very least get third party cover insurance then the insurers would have more leniency on their premium quotations.
It has even been said that the rise in petrol costs has helped increase earnings for insurers as there are less cars on the road due to them watching the pennies and using their cars less. Sooner or later the insurers will have to turn the tide and bring down prices to combat uninsured drivers but also to not give off the impression that they are making massive profits with less claims actually being made.
If you are looking for car insurance or need to find a better deal then check online with many insurers to find the best car insurance quotes for your particular needs. Check with your motor insurance to see if you can make a saving on your car insurance.