Car Insurance Rates Are Down, While Level Of Cover IncreasesJanuary 10th, 2008
For the first time in two years Car Insurance rates for policies bought on the internet have dropped. This is according to the latest Motor Insurance Benchmark report from Experian’s. While the rates may have dipped, the level of protection is on the increase, with Direct Line adding a new level of cover for victims of car crime.
In the last quarter of 2007 car insurance premiums dropped 0.3%. The Managing Director of Experian’s Insurance Services division, Avis Easteal, explains why this has happened,
“With the increased chance of road accidents at this time of the year coupled with the problem of uninsured drivers, the average premium will be affected as we move further into the New Year.
“Furthermore, the true impact of the floods earlier in 2007 is yet to manifest itself fully in insurance premiums. As claims are being settled, we are seeing premiums begin to increase. However, the increase is slow and it is worth bearing in mind that consumers will also be aware of the imminent price increases and will start shopping around for a cheaper quote. With the motor insurance industry being as fiercely competitive as it is, the focus on price will increase and it could affect the speed at which premiums increase.”
Direct Line are leading the ‘more cover for less money’ movement by adding cover for vandalism or car crime victims at no extra cost.
This new cover will extend to cars being keyed, tyres slashed and car graffiti. Tony Chilcott, a spokesperson for Direct Line has said,
“Unprovoked damage to your car is frustrating and distressing enough, without having the added worry of paying for the damage. The likelihood of your car being vandalised rises significantly if it is left unattended for five hours or more. However, for the majority of people this is unavoidable due to long days in the office or being away from home.”
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