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Rises in your trade insurance?

Posted on March 9, 2010
Filed Under Auto Insurance, Auto Repair, Car Auctions, Car Buying, Car Donation, Car Insurance, Car Rental, Car Stereo |

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A familiar theme amongst brokers  this year seems to be a rise in motor trade insurance premiums. Why you may well ask? There are a number of reasons for this and below is listed just a few of the more common ones.

The simple truth is a lot of insurance companies have been making losses for the last couple of years. Several insurance companies have pulled out, are selectively pulling out, or are raising their premiums across the spectrum. An example of this is HSBC, with whom a lot of you were/are insured with. They pulled out last year leaving a giant hole, and many brokers the headache of placing this type of trade business this year for prices similar to last year - no easy task when HSBC were one of the cheapest insurers in the land!

Other insurance companies blame the rise in premiums on personal injury claims and fraud.This is true to both the trade insurance market and also the normal drivers market. Figures have shown that during 2009 there was a rise of almost 20% in the average cost of a fully comp premium and this is more than likely going to increase further throughout 2010!

British motorists seem to have got into a culture of making claims whenever the opportunity arises and it doesnt seem like insurance payout levels are going to be falling any time soon. Aggressive claims management companies and personal injury specialists have also come under the spotlight accused of helping to promote this phenomenon.

And lets not forget a rising approximate bill of £2 billion a year for fraudulent motor claims!

These reasons, along with a snowy winter and the conclusion that price comparison sites have artificially kept the market low for insurance companies, means only one thing - price hikes for Jo Public.

Your insurance is a sizeable, yearly expense which most of us begrudgingly pay, but now it seems you may have to try that little bit harder to tread water on price.

Contacting a good broker, who can help to identify where you can/should save money, can definitely help to keep your rate down - but whichever way you look at it prices are likely to rise, at least for some, this year for motor trade insurance.

Our advice for the future is simple - check out a number of quotes before choosing and you will likely save a lot of money!”

Produced by Chris Roche - Think Insurance Customer Service Manager. For more information on motor trade insurance, taxi insurance or other automotive insurances check out our site and give us a call for a cheap traders insurance quote.

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