Motor insurance comparison site Tiger.co.uk has published its Tiger Watch results for April 2011. Tiger Watch is a monthly car insurance price monitor derived from the analysis of hundreds of car insurance policy quotes each month on Tiger.co.uk.
The monitor revealed that prices for car insurance in April 2011 were 30.8% higher than for the same month one year ago and 4% higher than March 2011, this is the highest monthly increase recorded in 2011. These figures substantiate that increases in car insurance prices continue to hit British motorists, who are also suffering from well documented price increases at the nation’s petrol stations.
A spokesperson for Tiger.co.uk said: “Our analysis shows that car insurance inflation continues to be a major financial issue for the majority of UK drivers. Within our analysis inflation in the last month has been particularly prevalent for younger female drivers and we may well be seeing here the early impact of the recent EU gender ruling that, from December 2012, will outlaw the use as gender as an insurance risk factor in its own right”.
Having seen the rate of inflation slowing over the past 6 months, the 4% rise in insurance rates between March and April is not good news for the UK’s motorists.
Tiger.co.uk’s spokesperson continued: “Looking towards the remainder of 2011 we would expect to see continued inflation in the car insurance market over the next three months followed by more stability returning from August onwards. Overall, we are predicting that rates could rise by a minimum of 20% across the whole of 2011.
There is a danger here that the increase in the price of insurance will lead to an increase in the number of uninsured drivers on the roads in the UK and this, in turn, could place further pressure on insurers to raise prices even further. We need the government’s intended crackdown on uninsured drivers and other areas of motor insurance fraud to take effect as soon as possible so as not to further penalise the country’s law-abiding motorists.
Our advice for motorists is to shop around for insurance using an independent comparison site like Tiger.co.uk and to take care when comparing policies to make sure that you are comparing on a like-for-like basis – cheap car insurance quotes may not be all they seem! Make sure you understand the policy details and exactly what “extras” are included in your policy along with how much you are paying for them. Finally, it might be worth trying to avoid paying by monthly instalments as most insurers will charge relatively high levels of interest on this method of payment – you might find that a loan or a credit card could be a cheaper option”.