Tiger.co.uk today revealed results from its June 2011 Tiger Watch price monitor. The monitor looks at hundreds of car insurance quotes every month for a range of motorists to produce a snapshot of market pricing.
June’s report reveals that car insurance
costs are still continuing to rise – on average the Tiger Watch figures showed a 0.6% increase in comparison to May 2011 and a 24.9% increase versus last year’s prices in June 2010.
The June figures do, however, offer a little hope to the UK’s hard-pressed motorists in that they indicate a slowing down in the rate of inflation compared with the previous three months. Inflation since January 2011 is running at just under 8%.
Unfortunately though, the figures make miserable reading for young female drivers in the UK, with year on year inflation for a 20-year old woman increasing by over 56% in the last 12 months and by a huge 8% in the last month alone.
A spokesperson for Tiger.co.uk commented: "We are continuing to see a rise in car insurance prices and this is particularly noticeable for younger female drivers. At the other end of the inflationary spectrum however, 35 year old women saw their policies increase by just 3% over the last 12 months, which is below the current rate of RPI. In terms of looking forward across the rest of 2011 we are predicting that for the whole of the year car insurance prices will probably be about 20% higher than for 2010, with the rate of inflation continuing to slow over the next few months.
The reasons behind this rise in costs is well documented; motor insurers as a group are estimated to have made a loss of about £2 billion last year with fraud and increased claims costs being key contributing factors. In 2010 and 2011 insurers have been raising prices in an attempt to make a return back to profitability.
For all drivers about to renew their policies we would recommend using Tiger.co.uk to compare car insurance quotes
from over 80 brands to make sure that they are getting a good deal. Remember, however, that price is just one aspect to consider and it’s always worth comparing policy features to ensure you are comparing like-for-like when evaluating different policies and that you are getting the level of cover that you need".