Why Average Car Insurance Rates Increased in 2010
Last year saw many drivers forced to fork out enormous amounts of cash for their average car insurance rates, a fact which has outraged many drivers who already feel that they pay more than enough for their insurance. With a rise of as much as thirty three per cent in car insurance costs during 2010, it's no wonder that so many people have felt cheated.
Insurance provider AA reported that the rise is the largest they've ever recorded since they started keeping records in 1994 -- so what is it that happened last year that caused this unfortunate rise to occur?
One cause is the bump in claims that have taken place over the last couple of years. As more and more personal accident and injury companies started to encourage policy holders to make claims in their insurance, even if they hadn't sustained an injury, so the costs of insurance have had to rise in order to keep up with the deficit.
We've all seen the adverts on television, online and elsewhere where personal accident and injury companies offer "no win no fee" lawsuits and champion the benefits of making claims and trying to get money whenever we can, so it's no wonder that more people have tried their luck at making car insurance claims -- the only problem is that everybody else has to pay for it.
Motor insurance companies have steadily been raising their average car insurance rates since the latter half of 2009 -- and thanks to the fact that all of the companies are raising prices at the same time, the competition stays just as fierce and there is no reason to continue to offer the same low rates.
And it isn't just car insurance companies that have suffered in this craze of insurance claims -- various other insurance companies have seen rises in their customer claims and had to adjust prices and endure losses accordingly.
So what does this mean for policy holders that simply want to get the cheapest car insurance they can? Unfortunately, finding a low cost policy is going to be harder than ever, but hopefully by shopping around you'll be able to find a good deal.
On the bright side, the average car insurance rates hike is showing signs of slowing down -- and now that the recession is coming to an end, hopefully the trend of trying to squeeze money out of wherever we can will also cease and insurance prices can drop to a more normal rate.
Jennifer is a part of the digital blogging team at cashzilla.co.uk. For more information about her, or to keep up to date with the latest in finance news, check out her posts at cashzilla.co.uk or visit her Twitter account, @cashzilla.
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