Important facts to know why is my car insurance so high

Important facts to know why is my car insurance so high

01-01-1970 in Insurance

I often ponder over the thoughts of why is my car insurance so high? I needed to visit the market, or I am not good with quotes? What can it be?

Why is my car insurance so high?

Imagine you and your friend are meeting after years, he is always an introvert, but you used to be downtown's hunk. You were dropping him at the end of the meeting, but he tells you he owns the same car during the ride, but the problem starts when you hear that he is paying substantially less insurance than you are. After you get back, you start checking the paperwork and call your insurer and ask him: why is my car insurance so high?

It is making your anxiety build-up, and you have no idea how to tackle this situation. To know the answer, you visit the review sites in the UK, thinking the reviews of insurance owners might help you. You can see the best review sites in town and select the reviews about iCarHireInsurance and other insurance companies giving the best deals in car insurance. There you can find many other insurance companies who can strike a good value for covering your car at the lowest quote. It is not easy to find a company that can give you a cheap insurance quote, but it will be worth the struggle if you can find one. You can spend the extra money saved from the insurance on some other attention-needing necessities.
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According to the reviews, Inure4aday tops the charts. According to satisfied car insurance owners, they are pleased with their insurance covers as well as payment. The company is good at striking amazing deals with its customers that fall on both of the party's sides.

Here are some reasons your car insurance is so high

You must be thinking it is your fault that you settled for a high quote compared to others, but the scenario is not the same, some other factors have been the reason behind the high premiums. Here we have collected some reasons why you are paying high insurance when you can get for much less than that.

Insurance premium tax

The insurance premium Tax rose to a good 12% in 2017, making premiums more expensive. The rise in the insurance premium tax has made the insurer make a costly premium. If a car is newly bought, its tax increases up to 20%. This tax is also applied to a wide range of insured things, making it costly.

The Ogden discount rate

The Ogden discount rate calculates what an insurance company pays to their customer as compensation for a life-changing injury. The discount is designed to cover the customer's future expenses, including the care and loss of income cost. During the last few years, the rate has fallen from 2.5% to 0.25%.

The increasing claims

The new technology has also increased expenses and stress. The cars are mostly electric, and keyless car crimes have risen. The rise in more advanced vehicle theft leads to a more expensive premium since the repair cost is exponentially high than a usual car.

Frauds in the market

The fraud market is ever-growing, and no field has not encountered them. According to ABI, there is one scam every minute in the country. The frauds in the insurance market have cost the insurance industry a hefty $1.5 billion.

Whiplash claims

Whiplash is the neck injury caused by a sudden jerk in the neck by moving the head forward, backwards, sideways, or a car accident. The whiplash claim is the most common claim people have been making for compensation. The whiplash claims have risen to 50% in recent years, which has caused the insurer a substantial loss.

Women are no more privileged

According to the European court of justice, women used to have less premium than men. The women are no more privileged to have less compensation than men, making the insurance cost more than it used to be.

Claim culture

There has been a rise in the claim culture since the last few years. The main reason is that the personal injury lawyers are pushing their customers for the claim, giving them an easy way to get money. The injury firms have advanced in the game, and now they get the drivers' referral details and call them to ask them if they were charged for an accident they were not responsible for. They make them realize that they can claim compensation from the insurance company.

Conclusion

Next time you are tensed over why my car insurance is so high, you better look at the points mentioned above.

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