(PRWEB UK) 6 June 2012
Following the Office of Fair Tradings report into the rising increase of insurance costs, it has been found that drivers have been paying an additional �225million a year for car insurance, mainly due to the rising costs for repair and hire vehicles. The first three quarters of 2011 saw an increase in prices of 9%, and it would appear that this is largely due to insurers inflating the costs of providing replacement vehicles.
These costs are most often acquired from referral fees demanded by credit hire organisations and repairers and parts suppliers. The money from these extortionate expenses is then regained through higher repair charges. Through their price comparison site the team at Gap Car Insurance help their online users source the best deals for their gap cover needs, and following this news, have looked into the significance this issue is having on the price of policies. One member of the team offered their thoughts on the matter.
Unfortunately it would appear that insurers are focusing on keeping ahead of their competitors through attempting to add on extra money to their rivals costs, but this has led to an overall increase in insurance premiums. With �560 being added to the average cost of a replacement car, it can be seen that this is most certainly a major influence behind the rising cost of car insurance
However, Gap Car Insurance are also keen to outline a number of other factors behind the spiralling costs.
However, it could also be argued that these increasing repair costs are occurring in response to already climbing prices. When looking into the fundamental reasons behind the higher prices, whiplash claims are a major reason behind this, as are rising fuel expenses.
Gap Car Insurance was established with an aim to allow customers to browse gap car insurance prices quickly and efficiently. The trusted and approved agency offers instant quotes, directly to the customer, from hundreds of companies across the country.