Insurance prices at last set to fall?

How much is your used car worth and why does it matter?

According to the experts at the AA the cost of car insurance is at last starting to fall.

With average  quotes  for comprehensive car insurance falling  by 1.1 per cent to £1,132 by the end of March.

(This is based on the average top five quotes)

Admittedly with Eu legislation and rising costs last year was a bad ear for anyone who was insuring their car with a massive average increase of 40.1 per cent.

So is this slight price drop set to continue and is that really the best route to take? After all in 2009 the average car insurance policy price fell it fell so low that when the insurance industries where faced with ever increasing costs they simply had no option but to suddenly increase prices. Drastically.

Insurance is all about risk and how a specific event will effect you financailly. With the current compensation clture mentality car insurance has long been a loss leader for most insurance companies.

So are car insurance prices set to change even further?

With current EU legislation which comes into effect in December will mean that it will no longer acceptable to use the gender of a driver to base a policy price it is good new for young male drivers.

The statistics we think will still show that younger drivers will still have more accidents.

Make more claims however perhaps it will mean that we will all end up paying more for our insurance to compensate.

 

 

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