Rising Home and Car Insurance Premiums Should Not Be Accepted, GoCompare Advises

Car and home insurance premiums are rising, according to the AA British Insurance Premium Index, but consumers should not just accept these price increases advises GoCompare.com.

Car insurance cover costs rose by more than 7% over last quarter of 2009. During last year, the average quoted premium for comprehensive car insurance has accelerated steadily, adding over 18 per cent to the average premium quoted last year.

Homeowners did fare any better with home insurance premiums also rising. The cost of home buildings cover is continuing to rise sharply while a falling trend in the cost of contents premiums has been reversed.

Consumers should not be taking these rising insurance costs lightly, advises GoCompare.com, the price comparison web site. They recommend that consumers should be shopping around to find the best insurance deals, as Lee Griffin, Business Development Director at Gocompare.com points out:

“Consumers who automatically accept their renewal premiums for home and car insurance this year could end up paying a high price for their loyalty. Every motorist and homeowner should be challenging their insurer by comparing their renewal quote against those offered by the competition. And if their quote doesn’t measure up they should vote with their feet and switch.

“Whilst indices such as the AA’s premium index can give an overall picture of how premiums are moving they can sometimes give a false impression to consumers. The average price of the rates on offer and the best price for you are two completely different things and we would urge consumers not to accept that an increase in their insurance costs this year is inevitable.

“What’s clear from the AA’s research and their new shoparound index for aggregator pricing is that using a comparison site is the best way to find great insurance deals and avoid a hefty increase in your car and home insurance costs.”