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The rising price of peace of mind

By: Almeda Glew

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A recent survey by a leader insurer found that the price of the average comprehensive car insurance policy rose by nearly one fifth throughout 2009. That means that the average cost of car insurance is, for the first time, in excess of ?1,000.rnrnWhat, then, are the reasons for this massive increase in price and what can the average customer do to get a good deal? Insurers argue that compensation is the major driver behind higher prices. rnrnLargely due to advertising campaigns promoting lawyers who can get accident compensation many people feel that they should get compensation for accidents which they haven\'t received in the past. Compensation money often comes out of insurance policies and therefore the policies have to cost more.rnrnAnother attributing factor is fraud. During the recession incidents of car insurance fraud were reported as being significantly greater and it is said that fraud alone adds ?2bn to premiums across the country with uninsured drivers adding an extra ?40 per person.rnrnThe survey also revealed that the price of a third party, fire and theft policy has risen to a massive ?1,247, far in excess of the average price of its comprehensive counterpart. This is because, even though third party, fire and theft offers less coverage and therefore should cost less, the average newly qualified driver gets third party insurance, and the higher premiums reflect the higher premiums charged to newly qualified drivers.rnrnSo what can you do to beat rising insurance costs?rnrn Unfortunately there is no single way, and even if you\'ve never had an accident your premiums will still be rising. The challenge is to find a good deal for the current market, not to try and compete with the deals you found in previous years.rnrnA good place to start is with price comparison websites, though these don\'t offer the full range of policies out there and should never be considered the be all and end all of buying an insurance policy, it will give you a good idea of a competitive price which you can then use as benchmark to try and get under.rnrnrnrnFollowing that you simply have to consider deals from a wide range of insurers and brokers and look for the one that fits you. Bear in mind the major factors that affect the price of a policy: age of the named driver, gender of the named driver, value of the car, whether you have off-road parking, the number of miles that you drive in a year. Anything you can do to affect these factors will save you money, therefore if you can reduce the number of miles you drive each year, your policy will be less to, but you absolutely must tell the truth, otherwise you could well find yourself a part of next year\'s fraud statistics.rnrnFinding the best insurance deal is simply about doing the legwork and making sure you know what\'s available, after that, most companies are still willing to do deals, so be prepared to do a little bargaining and you might get a fantastic deal.

Article Source: http://depositarticles.com/

is a keen writer about car insurance and home insurance products.This article was inspired by The Co-Operative Insurance.

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