Monday, April 16, 2007

Car Insurance - Premium Drop?

It was announced recently that the average cost of car insurance has dropped slightly heralding possible, further decreases this year. It was thought that we would continue to see a rise in the price of car insurance premiums this financial year, following the record highs at the end of last year.

The typical quoted premium given as reference last year by the AA's British insurance premium index, was stated as £806, whereas this had dropped by £4 to £802 during the first quarter of 2007. This is still only marginally below the all time high.

During February, it was also announced that premiums were rising with young drivers and woman being targeted in particular. Drivers under the age of 25 will find it particularly hard to find cheap car insurance due to a rise of around 5.8% over the preceding 12 months.

Unfortunately opting for third party, fire and theft, a popular choice for those under 25, will prove to be equally as expensive, as this is earmarked for an upward progression throughout the proceeding year. This is thought to be due to the commonly quoted fact that these drivers are 5 times more likely to be involved in a car accident than a person of age 35 and over.

Don't worry those of you unfortunate enough to be included in this category, many online insurance companies are currently offering special introductory rates for those of you willing to do a bit of searching. Another way of saving money on a car insurance policy is to check out the hidden extras you may be paying for. For example, most policies include optional extra legal protection and hire car option, which if not essential will produce a saving when taken off the policy. Also, don't forget to check out the excess stated on the policy as a larger voluntary excess will reduce the premium price noticeably.

But still it must be taken as good news for the rest of us that at least there has been a drop on the price of the average car insurance policy. This is especially important after the recent budget announcement that many larger cars would see a noticeable increase in car tax prices.

About the Author

Chris Rowlands is a UK based writer with experience within the insurance industry.

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