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Lack of competition in the car insurance market will see insurance premiums continue to rise this year

Lack of competition in the car insurance market will see insurance premiums continue to rise this year, according to the latest Premium Drivers index. As of February 2015, the average premium across all age groups was £561.10, a significant increase from £539.20 at the same time last year. That’s an increase of £21.90 and unsurprisingly it’s the youngest drivers are who facing the biggest rises.

The average policy for a driver under 21 is £1,422 a year, which has risen by more than £20 in the last month alone. The average difference between the cheapest price and average price of car insurance premiums across all age groups is around £91, which is £11 more than at this stage last year.

The rising prices are being blamed on a lack of competition in the insurance market, which means there’s little pressure for insurers to cut their premiums. Falling fuel costs are also being named as a factor, as motorists have access to cheaper fuel so they are assumed to be driving further and faster, which could lead to more accidents.

Click4Gap, a leading provider of insurance products across the UK, takes a keen interest in industry related news such as this. A spokesperson provided this statement: “It is unfortunate that the rising cost of insurance premiums is hitting motorists hard. With a lack of competition the insurance firms are less likely to put prices down, so finding a bargain can be tough.

“When it comes to gap insurance, there are many companies who don’t try to give you the best deal possible. That isn’t the case with Click4Gap, and there’s a reason we’ve been named the top gap insurance company for the sixth year. You’re guaranteed to find the best gap insurance deal with us, and we won’t rest until you’re happy with our service.”

Click4Gap is a UK based firm and online provider focused providing flexible insurance products to their consumers. As well as being FCA registered the company is also a member of the Financial Ombudsman service (FOS) and the Financial Services Compensation Scheme (FSCS).

This press release was distributed by ResponseSource Press Release Wire on behalf of Click4Gap in the following categories: Motoring, Personal Finance, Travel, for more information visit http://pressreleasewire.responsesource.com/about.