Road Warriors

Following the recent findings by the AA which showed that car insurance had risen by almost 40% in the last year, Aviva (formerly known as Norwich Union) have announced that they are intending to put their prices up further to make the business profitable.

In the last quarter alone the cost of car insurance to the general public has risen by 11.5% and the planned increase by Aviva could force yet more to abandon the use of their cars as running costs become prohibitive.

A recent survey by price comparison site moneysupermarket.com seemed to support this as it found that 8% percent of those surveyed had stopped using their cars as a result of increasing fuel costs; no doubt worsened by the steep climb in car insurance premiums over the last year.

Aviva’s Chief Executive Mark Hodges said: “I think the rates need to go up further, and I think they will”. He also stated that the company was currently running at a combined operating ratio of 104%, meaning that claims were outweighing income from premiums; no doubt worsened by the rapidly increasing cost of insurance fraud and “crash for cash” scams to the industry.

If you are worried by Aviva’s announcement or the continuing increase in the cost of car ownership then don’t panic; the following tips can help you to keep the cost of your insurance policy as low as possible:

Tips to Save You Money Car Insurance

• Shop Around – Getting several quotes, using comparison websites and playing insurers off against each other will ensure you get the cheapest policy for your particular needs your needs.

• Improve your Security – Storing your vehicle in a garage overnight instead of on the drive or road outside your home and adding an alarm or immobiliser will help to reduce the price of your premium.

• Increase Your Excess – doing so can help to bring the price of the premium down. Have a play around with the figures until you find a good balance between the annual premium and the amount you will pay out in the event of an accident. Make sure you can afford to pay this lump sum by putting a small amount of money in to a savings account each month; if you don’t need to use it during the year you’ll have nice pot of rainy day money to use as you please.

For more advice on how to save money on your car insurance and further information in relation to the car insurance industry why not visit the Association of British Insurers:
http://www.abi.org.uk/Information/Consumers/General/How_to_cut_the_cost_of_Motor_Insurance.aspx.