Shopping around for car insurance a 'savvy' decision

21 December 2006
Shopping around to find the cheapest car insurance premiums is a measure being strongly recommended by the Association of British Insurers (ABI).

Malcolm Tarling, spokesperson for the ABI, said that savvy consumers should "consider shopping around because there are savings to be had".

The group's comments follow the decision made by a number of insurers, including Direct Line, Churchill and Privilege, to raise their premiums in recent weeks.

Commenting on whether insurers would be tempted to further raise insurance premiums in the near future, Mr Tarling said: "I'm not an analyst so I wouldn't want to speculate on that. Individual companies will make decisions based upon their own claims experience."

Despite it being speculated that many insurance companies will cite rising personal cost injury claims as contributing to the premium rate rises, a recent study showed that average profits from car and home insurance rose on average by over 50 per cent over the last year.

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