Women had consistently higher increases than men in 2009; women in their 40’s can also expect their insurance to rise by 400% when they add their teenager/s to their insurance.
21-30 year old females seeing annual increases approaching 17% compared to around 13% for men of the same age. In monetary terms, premiums still lag behind young men, but they are catching up.
A new, quarterly car insurance price index from a popular price comparison website shows that the cheapest car premiums rose by 12.7% in 2009 with most of the increases coming in the second half of the year.
Prices rose by 6.3% in the fourth quarter alone. As a result, the cost of the average policy has risen from £450 at the end of 2008 to £507 at the end of 2009.
Premiums rose for 17 to 24-year-olds by almost a quarter, to £1,489.
For drivers aged 65 and over the rise was just 15% to an average of £423.
55- to 64-year-olds pay the least at just under £376.
Premiums for men increased (20.1%) more than for women (19.1%).
About 1.6 million drive without insurance, which leads to an increase of £30 per policy for drivers who do pay.
Prolonged bad weather resulting in above average frequency of claims
Soaring personal injury claims being exasperated by no win no fee claim chasing firms and unreasonable replacement car hire charges
Increase in frudulent claims generally associated with a poor economic climate
Stagnating premiums over the last 5 years being brought about by price comparison sites and the like forcing Insurers to offer uneconomical rates to secure the risk.
Prevailing low interest rates not allowing Insurers to supplement their premium income with investment income
GSI comment. “People must be realistic in seeking cheap insurance quotes. Firstly some of the rates that have been banded around of late would barely cover a windscreen claim let alone damage to the vehicle itself, damage to other vehicles or indeed a personal injury claim. Clearly this is not a situation that can be sustained. These figures show the upward pressure on pricing has well and truly broken through and cheap insurance is now a thing of the past.”
Geoffrey Simmons Insurance Consultants supports National No Smoking Day
If you’re a smoker, the resale value of your car is reduced significantly as is that of your home. While smokers get used to the smell of smoke, potential buyers of your home or car will notice it immediately.
We can’t help you give up smoking, but we can still insure you of course. Call us now on 01474 359117 and talk to one of our helpful, friendly advisers. If you pledge to give up smoking, we’ll give you free legal cover on your policy.
Latest research from the ABI (Association of British Insurers) highlights how vulnerable young drivers are to having a serious motor accident. Every day four people are killed or seriously injured in accidents involving young drivers. The findings reinforce the ABI’s call for a minimum one-year learning period for all learner drivers, and restrictions on the number of teenage passengers young novice drivers can carry.
The ABI’s analysis of insurance claims involving young drivers reveals that:
Nick Starling, the ABI’s Director of General Insurance and Health said:
“Every year 50,000 17 year-olds pass their driving test with less than six months driving experience. One in three of these drivers are likely to be involved in an accident within the first two years after passing their test. Too often these accidents end in tragedy. Introducing a structured minimum one-year learning period, and passenger restrictions will help today’s young drivers become tomorrow’s safer motorists. We urge the Government to act now to protect young motorists and their families.”