A study carried out by Sainsburys Bank looking at data for the last 12 months has shown an increase in car insurance cover of 5.8 percent.
Sainsburys Bank has been studying the data since 2005 and this is the first time that the average annual premium has gone over the GBP500 mark, standing currently at GBP514. Commenting on this increased cost a spokesperson explained that premiums take into account both the cost of vehicle repair and personal injury and as these increase so premiums have to go up to cover those costs.
Car insurance premiums are also affected by the number of claims, something Sainsburys Bank would like to see reduce. They are therefore asking drivers to take more care behind the wheel, avoiding dangerous activities in order to have less accidents which will then lead to a reduction in insurance costs.
A spokes person from Gocompare.com has talked about the importance of not auto renewing their car insurance policy. Motorists should not allow motor insurers to auto renew their car insurance when their annual term finishes, as most renewal prices are much higher than last year’s price and often less competitive than other insurers. Motorists should not let insurance companies renew their premium automatically without checking prices from other insurers first, as there are potentially cheaper deals out there. Motorists need to be proactive when it comes to their car insurance renewal period. You can often find a cheaper car insurance deal if you are prepared to search around and get other quotes from other insurers. Try using a comparison table like ours to compare policy features and benefits from each car insurer provider. See our car insurance comparison table for the latest offers. Plus, reading our guides and tips pages can offer consumers more detailed information and money saving hints.
Direct Line, a leading provider of car insurance, has asked that the new careless driving law should also encompass those drivers who are uninsured.
The new law, which came into force today, means drivers can be charged with death by careless driving, with a maximum penalty of 5 years in jail. Drivers who cause death through driving without car insurance, having no licence or having been disqualified face up to two years in jail according to Direct Line.
A spokeswoman from Direct Line felt that this situation should be reviewed as a matter of urgency since it appears somewhat unfair that the person who is breaking more laws gets a lesser sentence than the more law abiding one.
