A familiar theme amongst brokers this year seems to be a rise in motor trade insurance premiums. Why you may well ask? There are a number of reasons for this and below is listed just a few of the more common ones.
The simple truth is a lot of insurance companies have been making losses for the last couple of years. A number of insurance providers have stopped trading or have chose to increase the levels of their premiums as a result of this. An example of this is HSBC, with whom a lot of you were/are insured with. After pulling out of the market last year, they left a large gap which resulted in a lot of insurance brokers trying to provide prices that were similar to last years, even though HSBC had been one of the cheapest insurers!
A rise in the number of personal injury claims and also an increase in levels of fraud are what a lot of insurance providers are giving as the reason for higher premiums.This is true to both the trade insurance market and also the normal drivers market. The AA states that the average comprehensive car cover rose a whopping 18 per cent in 2009 alone – with more rises in 2010 expected!
It seems a claims culture is becoming “embedded” in the British motorists psyche and that insurance company payouts will not fall in the not too distant future. Aggressive claims management companies and personal injury specialists have also come under the spotlight accused of helping to promote this phenomenon.
The cost of fraudulent insurance claims is approximated at £2 billion per year and this has obviously got to be taken into consideration as well!
These reasons, along with a snowy winter and the conclusion that price comparison sites have artificially kept the market low for insurance companies, means only one thing – price hikes for Jo Public.
Insurance is one annual expense that the large majority of people pay, albeit with some resentment and it would appear that it is only going to become more difficult to find yourself the best deal.
Contacting a good broker, who can help to identify where you can/should save money, can definitely help to keep your rate down - but whichever way you look at it prices are likely to rise, at least for some, this year for motor trade insurance.
Our advice for the future is simple – check out a number of quotes before choosing and you will likely save a lot of money!”
Written by Customer Service Manager of Think Insurance,Chris Roche. For more information on motor trade insurance, taxi insurance or other automotive insurances check out our site and give us a call for a cheap traders insurance quote.
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