Tiger.co.uk, the insurance comparison site, today unveiled the latest results from Tiger Watch, its monthly car insurance price monitor.
The figures indicate that although year-on-year inflation across the first three months of this year was still an eye-watering 31.3% (and the March figure was a massive 36.3% versus a year ago), there was slightly better news for those yet to renew their policies in 2011. The study revealed that prices across January to March this year have held at December 2010 rates, indicating that policy inflation over the last 6 months has been a more palatable 3.1%. This followed 6 months of massive inflation in car insurance premiums between April and September 2010 that fuelled a 35% increase in prices across last year.
A spokesperson for Tiger.co.uk cautioned: “Although there appears to be more stability returning to the car insurance market in recent months, most drivers who are looking to renew their insurance over the next few months will still be looking at significant double-digit inflation in their policy prices, as increases implemented across the April to September 2010 period continue to be felt”.
The massive increases seen in 2010 prices were the result of insurers trying to get their businesses back into profitability following years of loss-making across the sector. This poor historical performance was caused by reductions in investment income earned by insurance companies, increases in fraudulent claims, increases in personal injury claims and the increased costs of accidents caused by uninsured or untraceable drivers.
Although 2011 is unlikely to see the overall level of inflation that was witnessed in 2010, Tiger.co.uk is still forecasting that premiums across the year will still show a 20% year-on-year increase, with the rate of inflation slowing as the year progresses to around 13% in the third quarter and 6% across the last three months of the year.
Within this there will of course be some sectors of the driving population who are harder hit than others. 2010 saw younger drivers in the 17 ” 22 year old age bracket particularly hard hit, with inflation estimated to be running at over 50%.
The Tiger.co.uk spokesperson continued: “We expect young drivers in particular to continue to see higher than average levels of inflation in 2011. As a result we are seeing a massive growth of interest in the telematics-based insurance products that are specifically designed for this group and for lower mileage drivers” more major insurers are signalling a move into this area. We will also be looking closely at the price changes of policies for younger women drivers in the light of the recent EU gender ruling that will almost certainly lead to sharper inflationary increases for this group in the future ” although this might not become apparent until next year.
With car insurance inflation still very much on the agenda in 2011 we would recommend that all motorists do not automatically renew their policies but take a little time to shop around for a better deal. Using car insurance comparison sites such as Tiger.co.uk takes only a few minutes and allows drivers to get scores of car insurance quotes and compare them on a like-for like basis”.
About Tiger.co.uk:
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent price comparison site, offering insurance quotes from over 130 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Services Authority (number 308374).
About Tiger Watch:
Tiger Watch looks at hundreds of car insurance policy prices each month across a range of consistent driver profiles and vehicles and calculates the average inflation across these prices on a month-by-month and year-by-year basis.
Media Contact Information
Name: Andrew Goulborn
Website: http://www.tiger.co.uk
Email: tiger@tiger.co.uk
Phone: 01473 542478
Address: Saxon House
Cromwell Square
City: Ipswich
County/State: Suffolk
Postcode/ZIP: IP1 1TS
Country: United Kingdom
