So how much did your annual car premiums go up by this year? Following rises of around 9% overall in 2009 – 2010, increases between 2010 and 2011 have averaged nearly 40%, which is bad enough for mature motorists with plenty of no claims discount, but absolutely disastrous for younger drivers to have traditionally paid enormous premiums anyway. When drivers who have been caught driving without insurance have been questioned about their reasons for doing this, invariably they have blamed the very high premiums that they were quoted; it would be easy to blame the insurance companies for this but the fact is that young drivers represent a very considerable risk to them, and what may at first sight appear to be excessive charges appear much more reasonable when compared to the risk profile of young, and inexperienced drivers.
A high level of fraud attempts (most of which are unsuccessful but they cost
money to investigate, which the insurance companies do very thoroughly) and
the 'compensation culture' don't help much, either!
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Driving without insurance is however becoming a very very difficult thing to do! Not only which do we now have the new laws which require the owners of every vehicle to either have insurance, make a Statutory Off Road Declaration, but we also have whole rash of spy cameras on our roads and motorways which record numberplates and compare the numbers they see against the motor insurance database; waiting police officers can then see instantly when a car in their vicinity is uninsured. The penalties were getting caught for driving without insurance are quite Draconian, which is quite reasonable considering the problems that uninsured drivers cause to the law-abiding majority.
So short of giving up driving completely; what are the options? Will the first one is to shop around to find the lowest possible quotation; but this still may prove to be unaffordable. There may be no other viable option than to pay the insurance monthly.
A number of insurance companies have jumped onto this particular bandwagon and offer a product which they call 'no deposit car insurance'; you can visit this site or go here for more information. This is not really a very accurate description, but the upshot of it is that you can pay your insurance in 12 monthly equal sums, rather than pay the whole lot in advance, which is the traditional way of doing it. This does involve extra expenses for the insurance company, not least of all because in the past a lot of drivers have paid the first premium, taxed their cars and then cancelled the insurance policy! This is no longer possible, because the licensing authorities are automatically informed when a car insurance policy is cancelled, and they will want to know why. Also, insurers are now writing into their contracts very stiff penalties for those who do this, and so it is very important that if you take out a no deposit car insurance policy you intend to make all the payments right through to the end.
It would be nice to say that there is light at the end of the tunnel, but the way that the insurance industry is going at the moment suggest that future car insurance premiums will get even higher. There are experiments going on using satellite navigation systems to monitor drivers behaviour and reward them with lower premiums but so far these have not proved successful and whether or not they will form the basis of future actuarial practices remains debatable.