VAN INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 3 APRIL 2015:
Car insurance and van insurance premiums are poised to increase yet again thanks to a lack of competition between insurers, analysts say. Are we having fun yet?
According to some research from an insurance comparison site, the average premium price across every age group stood at £561.10 in February 2015. This is up by £21.90 from last year’s average – and once again the country’s youngest motorists are being hammered the hardest.
Whether it’s for a personal insurance policy or one for commercial van insurance, drivers under the age of 21 pay an average of more than £1,420. This is an increase of nearly £20 in and of itself from January to February – and it’s something close to 376 per cent higher than the under £300 someone between the ages of 50 and 64 would end up paying.
So what in the world is causing these insane increases? Well on a yearly basis December is usually the point in the year when competition drops to its lowest point. This recovers in both January and February, but bounce back in 2015 has been abysmal compared to years past – with lowered competition, insurance companies don’t really have any reason to provide good rates because well to hell with you if you’re a customer.
Believe it or not, many analysts say that dropping petrol prices naturally lead to premium increases as well. This seems patently unfair, as pain at the pump has been widespread for far too long and it’s nice to finally see a litre of petrol not costing you an arm and a leg when you pull in to your local garage, but insurers feel that cheaper petrol means drivers feel comfortable driving more since it’s no longer as expensive to fill the tank. More drivers on the road for longer leads to more potential accidents, so insurers hedge their bets against that. So much for that nice country drive this spring, eh?