Motor insurance premiums are affected by a number of reasons relating to the individual including age, gender and even where they live. As well as the individual there have been a number of other factors influencing the acceleration of motor insurance premiums. One major reason has been the steep rise in insurance premium tax rates which have increased from 2.5 to 12 percent between 1993 and 2017.
Another factor that may affect motor insurance costs could be uninsured drivers as well as motor insurance fraud. The detected fraudulent claims in 2018 alone were worth almost 630 million British pounds. In the same year, the Motor Insurance Bureau had to issue almost 750 thousand official reminders continuous insurance enforcement letters to the owenrs of uninsured vehicles.
What makes car insurance really exciting is its openness to change and innovation. Policies are widely available online with many price comparison websites aggregating information and helping customers choose the best value for money. Additionally, some insurers provide telematics insurance, which not only not only offers young and unexperienced drivers the chance to lower their premiums and save money, but also encourages safer driving behaviour.