Fact: 2010 was the worst year for car insurance price rises

Fact: 2010 was the worst year for car insurance price rises Confused.com/EMB Car Insurance Price Index – latest results • The cost of premiums has risen a staggering 38.2% in 2010; • The current average premium stands at £695 meaning drivers are now paying nearly £200 more than they were this time last year; • Third party, fire & theft insurance has gone up by 56.3% in 2010 (an extra £322) compared to a rise of 21.6% in 2009. Prices rose by 38.2% during 2010, taking the average premium paid across all age groups to £695. The percentage increase was more than triple that of 2009. Third party, fire and theft (TPFT) customers fared even worse, facing an annual increase of 56.3%, the equivalent of an extra £322, meaning the last refuge for young drivers looking to cut costs seems to have been compromised. Despite it being the subject of a Parliamentary Transport Select Committee, the last two quarters have not been the hardest on the 17 – 20 year old age group. In fact it’s 51- 55 year olds who have been hit with the biggest rise in quarter four and during the year. The rises in the older age bracket will hit this group hard who have already been affected by wider budgetary changes. Parents adding children to their policies as named drivers account for the bulk of the increase that this group has seen. The immediate issue seems to be insurance providers getting increasingly wise to the issue of fronting1. Men adding a child to their policy saw rises 11% above the average.2 Regionally Manchester/Merseyside saw the fastest rising prices over the past year. An 11% increase during quarter four brought the annual increase to 49%, 10% above the UK average. Will Thomas, head of motoring at Confused.com says “Whilst costs are undeniably still rising, there is evidence that the rises are starting to lose momentum. Despite the hefty annual increases, price rises declined for the second quarter running. Comprehensive policies rose by an average of 6.9% between October and December with TPFT ones increasing by 9.2%. “The investigation into insurance costs for young drivers is a clear sign that escalating costs and their implications are being taken seriously, but it seems there is no light at the end of the tunnel just yet. The rise in Insurance Premium Tax and rising fuel costs will continue to challenge people financially. The only way for households to tackle spiralling costs is to make sure they are getting the best value, best fit policy. The easiest way to do this is to shop around.” “Insurers have been carefully managing a juggling act between the need to address underlying profitability and maintaining competitive prices which explains the trends we have seen particularly in the second half of the year,” noted EMB partner, Peter Lee. -ENDS- For further information please contact: Press Office, Confused.com 02920 434 398 pressoffice@confused.com Graham Whitehead, EMB 01372 751060 / 07827 953969 Graham.whitehead@emb.com Notes to editors 1 Fronting is the practice of making an experienced driver the policyholder even though they are not the main user of the car in order to obtain a cheaper premium. 2 The impact of adding a named driver to a policy who is not a spouse. About Confused.com: Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over two million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance. Confused.com has a panel of 90 motor insurance providers. 50% of consumers could save up to £195.64 on their annual car insurance policy. Based on online independent research by consumer intelligence (November 10) 50% of consumers could achieve this saving with Confused motor insurance. Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators. Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA. About EMB: EMB is an award-winning international actuarial and business consultancy and software provider. Best known as an advisor to non-life insurers, an area in which it works with 28 of the top 30 companies in the world, it also has developed its core analytical and predictive modelling capabilities to move into other business sectors and functions, such as banking and asset management, fraud prevention and marketing. EMB employs more than 300 people around the globe and staff numbers have more than doubled in the past five years.