Insurance news
Save money on your car insurance
4 September, 2006
Drivers’ opportunities to save significant amounts of money by shopping around, particularly on the internet, will increase, according to yesinsurance.co.uk.
Norwich Union is the latest insurance company to increase their motor insurance premiums by up to 40 per cent on high-risk business, and a general average of a 16 per cent rise cross its consumer base.
It has said that the move, which comes as a reaction to the rising cost of claims, will be followed by similar decisions by other motor insurers.
However, Paul Purdy of yesinsurance.co.uk believes that while prices generally are likely to increase over the next few years many drivers will be able to save money by moving to one of the specialist online insurers, which benefit from the lower costs of web-based business.
He said: “Whilst it is likely that a number of insurers may raise their rates, the new breed of specialist online insurers will use this as an opportunity to widen the price gap between themselves and the rest of the market.
“Norwich union has also taken a bold stance in raising its prices and, in the longer term, it is a move that other insurers will also be making. However, in the shorter term, those insurers that manage to hold price increases to a minimum will pick up significant amounts of business as Norwich Union policyholders shop around when their policy comes up for renewal.”
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