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Car Insurance Premiums Up 38% Last Year


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HOLA441
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HOLA444

How do they get away with it? Because they all hike together leaving you with no alternative other than to pay.

Well obviously. If they all did it at different times people would flock to the guy offering the cheapest insurance. More often than not insurance companies do not make any profit off a customer until the second or third year. Thus none of them would ever make any profit. The market does what is known as hardening and softening together. The insurance industry is currently in a hardening stage.

Also - insurance is getting costlier because people have more costly vehicles, health related claims (the most expensive ones) are on the increase similar to America's claim culture not to mention the weather is getting worse and worse every year. Also note that the personal lines general insurance industry as a whole has only made a profit in about 3 out of the last 26 years. The big money is in creating a brand that can be used in the more profitable areas - thus why many insurers also provide many financial products. Vehicle insurance really is quite cheap for what you get.

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Guest The Relaxation Suite

http://uk.finance.yahoo.com/news/2010-record-year-car-tele-3604677394.html?x=0

Kara Gammell, 17:08, Wednesday 12 January 2011
The cost of motor insurance premiums rose 38pc last year an increase of nearly £200.
The latest Confused.com/EMB Car Insurance Price Index found that the average premium paid across all age groups to £695. 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 56pc, the equivalent of an extra £322, meaning the last refuge for young drivers looking to cut costs seems to have been compromised.
Those aged between 51 and 55 were hit with the biggest rise
, while the 17 20 year old age group saw premiums rise the least in the second half of the year.

It's frenzy time muchachos as everyone jumps on the price hiking wagon. We should see massive hikes this year in everything from motor insurance to gas & electric bills. Poverty is coming but not by such covert stealth. They are going to price you into poverty.

How do they get away with it? Because they all hike together leaving you with no alternative other than to pay.

Just buy as much as you can from other companies even if they are overseas. Restrict their business as much as you can. In the end, they must have customers or they finished.

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Those aged between 51 and 55 were hit with the biggest rise,

That was not the case with me. As soon as I passed 50 (last year) I switched my car and house policies to Saga.

The car was half price and the house was closer to one third of the quote I had from my previous insurers, Direct Line.

I suppose it is possible that the Saga prices I paid were significantly higher than the rate they were charging last year but bearing in mind how low those premiums were that is unlikely.

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Interesting - my insurance actually came down by a few quid when I renewed in August last year (I'm 37). That was after some shopping around and horse-trading, though. I wonder how much this statistic is thanks to people simply ringing up with their card number once the renewal quote comes through the post and not wanting the hassle of calling their bluff. If I'd done likewise I would have eaten a 15% rise or so.

Those aged between 51 and 55 were hit with the biggest rise
, while the 17 20 year old age group saw premiums rise the least in the second half of the year.

That would suggest that 51-55s were responsible for the biggest increase in claims payments. If so I can't say that I'm that surprised: they are the tail end of the boomers, and probably those most able to afford expensive, powerful and accident-prone cars now.

Not true. Big Yellow told me yesterday that I'd have to buy insurence from them to store my stuff. No insurance = No storage :(

By 'compulsory', I suspect that Winkie meant 'required by law'. A private individual or organisation can require whatever they like as part of a business transaction: for example, I require of anyone employing me to do consultancy work overseas that they foot the bill for my travel insurance. If they don't, I'm not going. But there's no law saying that I can't leave the country without being insured for medical bills if I get ill abroad. There is, however, a law saying that I can't take my car onto the public highway without being insured for any damage I inflict on a third party with it.

Edited by The Ayatollah Buggeri
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