The same four questions crop up in the minds of many car owners when they are looking for car insurance quotes:

Why is motor insurance so complicated?

Every individual's circumstances are different, type of vehicle, postcode, driving record, claims experience, occupation, type of use etc. Frequently there is more than one driver per policy. This makes it complicated. Insurance companies require as much information as possible to enable them to determine what the premium should be for the risk for each individual. Each insurer will assess the data differently so it is necessary to gather all of the information in order to get the most competitive quotes from as many insurers as possible.

Why is motor insurance so expensive?

Motor insurance seems expensive but in comparison to some countries it is quite cheap. For about seven out of the last ten years the insurers have been losing money by writing motor business. The insurance companies have also been made to pay a contribution to a fund, which pays for all those people who drive without insurance. In addition to that, the insurance companies now have to pay for any treatment that you might have if you are admitted to hospital following a motor accident.

Why is my insurance more expensive this year than it was last year?

For about seven out of the last ten years the insurers have been losing money by writing motor business. There has been pressure in the market to keep rates down due to the fact that so many companies are writing motor insurance but as they have lost so much money they are now putting the rates up so that they can make money again.

Why do premiums vary so much between different companies?

A Insurance companies work with different statistics and use different methods to calculate premium. Some companies specialise in certain areas or types of car so are prepared to discount more in some areas than others.