Premium Costs
The same four questions crop up in the minds of many
car owners when they are looking for car insurance quotes:
Why is motor insurance so complicated?
Every individual's circumstances are different, type of vehicle,
postcode, driving record, claims experience, occupation, type
of use etc. Frequently there is more than one driver per policy.
This makes it complicated. Insurance companies require as much
information as possible to enable them to determine what the premium
should be for the risk for each individual. Each insurer will
assess the data differently so it is necessary to gather all of
the information in order to get the most competitive quotes from
as many insurers as possible.
Why is motor insurance so expensive?
Motor insurance seems expensive but in comparison to some countries
it is quite cheap. For about seven out of the last ten years the
insurers have been losing money by writing motor business. The
insurance companies have also been made to pay a contribution
to a fund, which pays for all those people who drive without insurance.
In addition to that, the insurance companies now have to pay for
any treatment that you might have if you are admitted to hospital
following a motor accident.
Why is my insurance more expensive this year than it
was last year?
For about seven out of the last ten years the insurers have been
losing money by writing motor business. There has been pressure
in the market to keep rates down due to the fact that so many
companies are writing motor insurance but as they have lost so
much money they are now putting the rates up so that they can
make money again.
Why do premiums vary so much between different companies?
A Insurance companies work with different statistics and use
different methods to calculate premium. Some companies specialise
in certain areas or types of car so are prepared to discount more
in some areas than others.
