Confusing insurance market findings

I came across an interesting article on the MSN Car News website regarding car insurance. The piece claims that the industry is "in turmoil" as stated by an insurance industry expert. According to the article: "Director of AA insurance, Simon Douglas, highlighted the state of today’s market after it was uncovered that some providers have been HIKING their prices, while others are SLASHING premiums to build up their customer base." In a time when some insurance companies have flat out refused to start cover or extend cover for those who are or have recently become jobless and steady hikes in premiums over the past few years, I was interested to read that the average price for a fully comprehensive policy sold direct has risen by 8.5%, now at £1,034 for 12 months cover. The turmoil reference may be to do with findings that those same policies were found to be cheaper on price comparison websites for the same cover which dropped by 3.3% – just £631 in correlation. As mentioned in a previous blog entry, this highlights the need to shop around and to do a bit of homework before committing to an insurance company. The good news is that if you live and drive in Scotland, the article found that it was the cheapest region for insurance rates, while Greater Manchester and Liverpool were the most expensive. If you would like to read the informative article, please click here.