Car insurance Basis

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Introduction

Car insurance is a necessary evil, one of the few types of cover that you are legally obliged to buy. So the less you pay for it, the better.The bad news is that car insurance has been getting more expensive and is likely to continue doing so.

Norwich Union caused a big stir in August 2006 when it announced that it was increasing the cost of its car insurance cover by 16%, with some drivers likely to see increases of up to 40%. Other insurers have already followed as the cost of accident damage and personal injury claims is rising rapidly.

So, when you next get a renewal notice for your car insurance, you could be in for a nasty shock. It’s not all bad news however, as many companies have decided not to raise their prices. This means shopping around for a better deal makes more sense than ever.


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