Confused.com Reveals 2010 was the Worst Year for Car Insurance Price RisesBy Confused.com, PRNE
Sunday, January 16, 2011
CARDIFF, Wales, January 17, 2011 - Confused.com research has revealed that car insurance prices rose by
38.2% during 2010, taking the average premium paid across all age groups to
GBP695. The percentage increase was more than triple that of 2009. Third
party, fire and theft (TPFT) customers fared even worse, facing an annual
increase of 56.3%, the equivalent of an extra GBP322, meaning the last refuge
for young drivers looking for cheap car insurance and to cut costs seems to
have been compromised.
Despite it being the subject of a Parliamentary Transport Select
Committee, the last two quarters have not been the hardest on the 17 to 20
year old age group. In fact it's 51 to 55 year olds who have been hit with the
biggest rise during the year.
The rises in the older age bracket, who have already been affected by
wider budgetary changes, will hit this group hard. Parents adding children to
their car insurance (www.confused.com/car-insurance) policies as named
drivers account for the bulk of the increase that this group has seen. The
immediate issue seems to be insurance providers getting increasingly wise to
the issue of fronting*. Men adding a child to their policy saw rises 11%
above the average.
Regionally Manchester/Merseyside saw the fastest rising prices over the
past year. An 11% increase during quarter four brought the annual increase to
49%, 10% above the UK average.
Will Thomas, head of motoring at Confused.com, said, "Whilst costs are
undeniably still rising, there is evidence that the rises are starting to
lose momentum. Despite the hefty annual increases, price rises declined for
the second quarter running. Comprehensive policies rose by an average of 6.9%
between October and December with TPFT ones increasing by 9.2%.
"The investigation into insurance costs for young drivers is a clear sign
that escalating costs and their implications are being taken seriously, but
it seems there is no light at the end of the tunnel just yet. The rise in
Insurance Premium Tax and rising fuel costs will continue to challenge people
The only way for households to tackle spiralling costs is to make sure
they getting the best value and best fit policy by shopping around.
"Insurers have been carefully managing a juggling act between the need to
address underlying profitability and maintaining competitive prices which
explains the trends we have seen particularly in the second half of the
year," noted EMB partner, Peter Lee.
Notes to editors
* Fronting is the practice of making an experienced driver the
policyholder even though they are not the main user of the car in order to
obtain cheap car insurance (www.confused.com/).
Confused.com is one of the UK's biggest and most popular price comparison
services. Launched in 2002, it generates over two million quotes per month.
It has expanded its range of comparison products over the last couple of
years to include home insurance, travel insurance (
www.confused.com/travel-insurance), pet insurance (
www.confused.com/pet-insurance), van insurance, motorbike insurance,
breakdown cover and energy, as well as financial services products including
credit cards, loans, mortgage deals (www.confused.com/mortgages) and
Confused.com is not a supplier, insurance company or broker. It provides
a free, objective and unbiased comparison service.
Confused.com is owned by the Admiral Group plc. Admiral listed on the
London Stock Exchange in September 2004. Confused.com is regulated by the
For further information please contact: Kelly Davies Friary House Greyfriars Road Cardiff CF10 3AE +44(0)2920-434398
Kelly Davies, Friary House, Greyfriars Road, Cardiff, CF10 3AE, +44(0)2920-434398
Tags: Cardiff, Confused.com, January 17, United Kingdom, wales