Why can car insurance be so expensive?

Premiums are based on many factors, and can be based on how much was paid out across the board in a previous period. One major change of recent times is the amount that is claimed for personal injuries. Payouts for injuries such as whiplash injuries have increased due to compensation claims, and also the NHS is able to claim back for the cost of treatments.

One other factor is uninsured drivers. Statistics suggest that 1 in 20 drivers are uninsured, and it is feared that this will soon become 1 in 10. On average, insurers pay around £400 Million for these drivers, which must be recuperated by increasing premiums.

We must point out that driving without insurance is an illegal offence, as dictated by the Road Traffic Act 1995. 

One thing that can help in this situation is shopping around. We go to our panel of around 40 insurers with each quote, so we do a great deal of shopping to arrive at our premiums.