Car Insurance Information
Premium Costs
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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.
