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Motor insurance premiums rising

24/01/2005

Motor Insurance premiums are continuing to rise with the average premium soaring by 25 per cent over the last six months.

Motor Insurance premiums have increased on average from £473.05 to £589.54, according to new research.

One insurance price comparison website is now recommending ways to cut the cost of motoring.

Director of insuresupermarket.com, Richard Mason, says: "This new research shows that premiums are not only continuing to rise but rising at a faster rate."

He mentioned that competition forced prices down 18 months ago, when a number of new companies entered the market.

Mr Mason said this trend was now reversing.

He blamed rises on the increasing cost to the industry of uninsured drivers and increased consolidation in the market.

He also cited insurance regulation as having a knock-on effect on the cost of premiums.

"Consumers should still continue to seek out the best deals as insurers with the most competitive quotes will strive to absorb these costs as they will be anxious to retain or even increase their market share," Mr Mason concluded.

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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.