Cheap car insurance student news
09/04/2009
Index forecasts rise in motor cover rates
Student car insurance and cover for other motorists is predicted to increase this spring as the industry experiences an increase in claims costs, lower profits and fallout from the economic downturn.
A new quarterly index that tracks premium forecasts for motor fleet, liability and property insurance revealed that 92 per cent of UK underwriters believe vehicle insurance rates will rise.
Aon established the new index called Market Pulse. A spokesman said, "We are hearing very strong messages from insurers about rates rising but these have not yet manifested themselves into actual increases."
The industry considers it has offered cheaper, competitive deals for the past three to four years. Now, the tide is said to be turning with high expectations that significant rate rises are likely to be inevitable.
However, experts at the Market Pulse index said underwriters needed new business so highly that competitive rates might still be available provided clients could demonstrate they were managing risks effectively.
To ensure good, cheaper deals in the student car insurance quote and premiums market, young drivers will need to show they have clean driving records and have built up healthy no-claims discounts.
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