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Car insurance price hike prompts reaction from competitors
Added: (Wed Sep 06 2006)
Following the price hike on car insurance premiums from Norwich Union, Lloyds TSB has commented on the move.
Lloyds TSB has indicated that there may be an increase in uninsured drivers, if car insurance providers price themselves out of the market.
Norwich Union has stated that there will be a rise of an average 26 per cent for its customers, rising to almost 40 per cent for higher risk drivers such as young, male drivers.
Women drivers may find they face less of an increase as they are proven to be safer drivers than men, often resulting in motor insurance providers offering cheaper car insurance for women.
Managing director for Lloyds TSB Insurance, Phil Loney, remarks "There are over one million uninsured motorists in the UK and this problem is likely to worsen should insurance be priced out of reach of certain drivers."
Other companies, such as Admiral, have also revealed concerns about the price hike, deciding for the moment not to follow suit.
Director of insurance for price comparison website moneysuperket.com, Richard Mason, commented on Admiral's decision.
"It is still imperative motorists shop around when they first need insurance as well as when it comes to renewing their policy, and in the latter case the situation is simple: if you have not made a claim, you should not expect your premium to increase upon renewal."
Women typically make fewer claims on car insurance than men and often for less serious accidents. This could help when searching for cheaper car insurance.
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Submitted by:
Jane Cragg