2011 saw record rises in car insurance, what will happen in 2012?

In addition to the economic downturn, car-insurance prices continue to rise and reached the highest ever levels in 2011. Unfortunately this is set to continue in 2012. There is no let off for motorists as petrol prices have also continued to skyrocket, making the cost of running a car even more difficult to manage. Rising prices were further compounded by the EU, when they made it illegal to take the driver’s gender into account in March last year. All in all the future looks bleak for the British motorist, so it is a good time to look for savings elsewhere, and turn to companies like Swinton car insurance for the best deals.

Inevitably it is the drivers aged between 17 and 22 who have been hit the hardest as this is the group that is considered the highest risk. The average cost of an insurance policy for this age group is a whopping £2,497, whereas those in 60-69 age bracket should expect to pay around £475. Young drivers are still a concern to insurers, and this is shown in the prices they have to pay. Many insurers are even refusing to insure drivers under 21 years old.

This rise is set to continue in 2012 and it will be female drivers who are the hardest hit. After the EU made it illegal to use gender to decide insurance premiums, females will now have to subsidise their male counterparts, whereas before they paid significantly less. This will result in premiums for women under 25 to rise by an average of 25% by the final quarter of 2012, however for some it could rise by as much as 60%.

The government has found the main reason for the rise in prices was an increase in the number of whiplash claims. They called on insurers to stop using sharp practices when dealing with claims to ensure everyone is dealt with fairly. If everyone claimed only when strictly necessary then this would keep costs down, but many are tempted by the large payouts from minor injuries, so claim for everything they can get away with.

The best advice is to shop around for the best policy, especially using online comparison sites which trawl the biggest insurers in seconds to find you the best deal. You can also find deals on other things, such as Swinton breakdown cover, to ensure that your money goes as far as possible. Other ways to keep your costs as low as possible include adding a car alarm, and taking the Driving Standards Agency’s Pass Plus test, which has a useful influence of the cost of policies for newly qualified drivers. Car-insurance is a fact of life, and as long as you are careful and build up your no claims bonus then you will have access to the cheapest policies.

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