Rising Car Insurance Premiums

Rising Premiums

At least one major car insurer has intimated to the market that its motor premiums are set to rise over the next 12 months by up to 16%. Claiming an increase in the number and value of claims made as the sole reason from the hike in premiums seems to be (on the surface) slightly dubious.

It is also the case that some motor insurance brands such as Admiral and Confused.com are reporting stronger growth, both in the number of policy holders and company profits. So how come such diametrically opposed circumstances? You would think that if claims are rising it would affect all the insurers?

This is the case but only to a certain extent. The best performing companies have divided the market into niche segments, offering a brand purely focused on one particular driver/vehicle group. An example of this would be Diamond car insurance for women. Allied to innovative marketing tactics and promotions such as Admiral MultiCar insurance, which could save drivers up to 23% on the premiums.

Yes there is definitely a rise in the number of motor insurance claims, both genuine and false. However the question needs to be raised of whether the Major insurers - by trying to cover all bases at once under one brand, are finding it increasingly hard to compete with the smaller more nimbler players?

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