UK Car Insurance - Premiums Continue to Soar by 14 Percent

PRLog (Press Release) - Jul 13, 2010 -
At present the average cost of a comprehensive car insurance quote stands at £599 – an £74, 14.2 percent increase according to insurance comparison site, Confused.com.

The website suggested that insurers have imposed these recent price hikes in an effort to ensure their business begins churning out a profit, following increased claims costs, rising personal injury payouts and increasing fraud.

The UK car insurance (http://www.compareinsurers.com/) industry as a whole remains in recovery after it was forced to shell out £400 million to the Motor Insurance Bureau last year in order to cover the cost of accidents and damage caused by uninsured drivers.

Simon Lamble, product director at Confused.com said: "This is a massive blow for motorists who have already suffered at the hands of petrol price hikes and insurance premium tax increase, and unfortunately we do not think we’ve seen the worst of it.

"In the last two years visibility of the market through price comparison sites has kept prices down and drive up competition. In order to secure customers, insurers have been forced to repeatedly slash their margins, but inevitably this could not continue."