Motorists across the UK have been (or will soon be) hit with massive increases in the costs of their car insurance. Research unveiled last week by Tiger.co.uk, one of the UK’s most highly regarded car insurance comparison sites, estimated that prices in March 2011 were a staggering 36.3% higher than prices a year ago. It went on to estimate that increases across the whole of 2011 will continue to hit Britain’s increasingly hard-pressed drivers, with annual inflation for the year expected to run at about 20%.
Whilst we all look hard at the increasing cost of our own car insurance policies, a recent survey by US car insurance company insure.com provides some interesting insights into comparative costs for American drivers. These reveal that, at least when it comes to car insurance, we may be better off than our US cousins.
Their survey estimated that the average American motorist is now paying $1,561 (£970) for their car insurance policy. With the AA estimating that the average cost of a comprehensive policy in the UK was £843 in 2010, this means that drivers in the USA are paying on average 15% more for their policies.
Interestingly the report also highlights massive regional variations in the cost of insurance cover – from an eye watering $2,541 (£1,579) in Michigan to a comparatively bargain-basement $995 (£618) in Vermont. This comes as no surprise to British motorists who are well accustomed to the postcode lottery that dictates many insurance policy prices – a lottery that could leave a motorist in Bolton paying three times more than a similar motorist in Bournemouth.
But the reasons for the variance in US pricing are perhaps more surprising, being driven mainly by factors like weather extremes and individual state insurance laws. Michigan, for example, tops the price table because it is the only US state that guarantees unlimited personal injury payments by law, increasing costs for car insurance companies.
A spokesperson for Tiger.co.uk commented: “It’s interesting to see that US drivers appear to be paying even more for their car insurance policies than British drivers. And to discover that local state weather conditions and laws have such a massive impact on the regional pricing of those policies. But this type of comparison is of only limited interest to hard-pressed UK drivers who have been hit with massive increases in the cost of both fuel and insurance in the last 12 months. With this in mind it’s increasingly important for drivers to shop around when their policies are up for renewal in order to make sure they get cheap car insurance”.
And whilst insurance costs may be 15% higher in the US compared to prices over here, let’s not shed too many tears for our American friends – Stateside motorists are currently buying their petrol for less than 50p a litre, resulting in an annual saving of about £1,200 for a 10,000 mile-a-year driver.
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).
For More Info Visit : www.tiger.co.uk/insurance
tiger.co.uk
Saxon House
Ipswich,Suffolk
ip11ts,United Kingdom
Phone : 01473542479,
Email: tiger@tiger.co.uk
