Is It Time to Cut Insurance Premiums?

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Is It Time to Cut Insurance Premiums?

This year, a recent study has revealed that insurance costs are currently falling at a record rate. Over the past 18 months, the cost of the average car insurance cost has fallen by 9.8% to £594.84- the biggest average decrease since 2004.

Is It Time to Cut Insurance Premiums?

Costs Remain Higher Than 2007 Rate

The dip has been credited to clampdowns on the ability to commit insurance fraud. The fall (for the second consecutive year) is undoubtedly great news for motorists, but, on average, insurance costs are still twice as high as they were in 2007.

The Competition Commission has recently been looking at ways that insurance premiums can be reduced as they believe that they are still way too high and, at times, are artificially inflated. At present, it is looking at ways to reduce these costs and it has even begun floating around an idea that would see a cap implemented on the cost of repairs and courtesy cars.

‘Shoddy Repair Work’

The Commission’s report also outlined the view that many insurers had carried out ‘shoddy repair work’ on vehicles, making repairs that were not up to the standard required. Their deputy chairman told Sky News that “We were surprised when we did a survey of cars that had been repaired after an accident to find that of the 100 cars inspectors looked at, 45 hadn’t been repaired properly.” As a result, it appears as though despite paying incredibly high costs for car insurance, companies are cutting corners to maximise profits, endangering lives in the process.

A Market That Doesn’t Work Well For Drivers

The conclusions of the report remain relatively damning for the £11bn insurance industry, with it forwarding the view that it is incredibly difficult for any customer to find the best value product.
The main concern here was the friendly relationship between price comparison websites and the insurers themselves. What power the watchdog could have over this is currently unclear, but it is apparent that a range of possible measures will be discussed.

For now, until the findings are commissioned, it appears as though it will be well worth doing your research before getting your car insurance. It is always wise to check with companies such as One Sure who aren’t on comparison sites and, if you are going to use a comparison site, make sure that you read the fine print and check for any additional charges
so that you’re certain you’re getting the best deal.

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