subject: Car Insurance Policies Drop [print this page] Car Insurance Policies Drop
Car Insurance is the bane of our lives; we have to shop around and compare prices as the quotes are high and we would all love to save a few pennies in the long run. The prices have been steadily rising and rising, and costing us a fortune out of money that is being ever thinly spread elsewhere. What with the rising costs of petrol, MOTs and car tax, its money that we simply cannot afford.
Yet if recent news is anything to go by, we could be looking forward to Cheaper Car Insurance, as the market is full of companies trying to get us the best deal. Because of this, they are having to price competitively, and therefore we could be looking at greatly reduced costs for our premiums. This is great news for the consumer, as it means that some of the extra money that we are saving can be used elsewhere. it may also help the UK's declining car market, as people are currently retaining cars for a lot longer than they used to, simply on the fact that a new car is an addition expense in this time of austerity.
The Insurance Society of Edinburgh said "policies are often price sensitive, but companies are competing in the market now as it is a bit over crowded." He went on to say that they are all undercutting each other to retain the most custom, and writing for market share as opposed to profit, so that they can slowly increase their margins when customers are comfortable and gain some money back.
Small car insurance providers will find themselves unable to provide us with quotes as they cannot keep up with the big brands in terms of savings, and the larger companies will, instead of making a large profit on the back of our policies, be trying to retain some of their custom. As the economy gets more stable, we should see these prices start to rise again.
The British Chamber of Commerce has urged banks not to raise their interest rates this week as it could weaken the economy further and cause more small businesses to have to fold.
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