Say yes to cheaper van, home and car insurance

There is no need for consumers to be paying over the odds for car insurance according to financial research company Defaqto. Defaqto's research has led them to declare that car insurance premiums will remain low because to raise premiums would be "almost impossible" in today's competitive market.

Its latest report, Motor Insurance in the UK – Adapting to Survive, says average premiums, particularly for comprehensive cover, are hardly moving. The report's author was Brian Brown, who is also Defaqto's head of general insurance research.

He declared: "The intense amount of competition in the market at present is keeping comprehensive premiums from rising despite well reported industry views that they must increase."

He also comments that the internet has made it easy for consumers to compare prices and buy insurance from a new broker. Added incentives like cash back, discounts and guarantees also benefited the consumer.

It wasn't all good news however, as the report also highlighted the fact that 62 per cent of insurers sought to claim money back by charging consumers extra money for adjusting or cancelling their policy.

But Defaqto warned that the industry could face a clampdown on these fees if they cannot sufficiently justify the charge, much like the clampdowns which were forced on the credit card industry earlier this year over so-called delinquent charges with firms forced to cut them to £12.

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