Having just seen the terms of the latest budget, it seems the Coalition is determined to continue the period of austerity with many pensioners facing increased taxes. Doesn’t it seemto you that this is loading up those who can least afford it with additional costs. Another regulation proposal is to impose a minimum price per unit for alcohol, so we are denied the chance to drown our sorrows at a fair price. Let us see how do the trends in the insurance market influence the financial progress.

Car insurance and the trends proposed

The first answer comes with the latest premium rate survey from the AA. Last yaer, there was a fiften percent increase over the last twelve months. As from December of this year, this is going to get far worse as the equality ruling from the European Court forces a rise in premiums for women drivers. The hope comes from the growth in the telematics market. There’s increasing evidence the black boxes are being adopted by older drivers. In the first quarter of 2012, almost fiften percent of all policies sold were based on the new technology, and a recent survey shows almost 60% of drivers over the age of 55 are planning to switch. Given the hit many of the pensioners will be taking on the tax payable on their pensions, this could produce very attractive savings. As and when the rate rises for women are imminent, we can expect to see large numbers moving over. Why should this happen?

Well, it gives the driver more direct control over the rates. The more safely we drive, the less we will pay. It’s ironic that this will almost certainly become the dominant form of policy because of equal opportunities. The technology ignores the sex of the driver. The sole measures are when, where and how the vehicle is driven. Some insurers literally charge drivers by the mile. Others operate a points system with more points consumed if you drive at peak times or late at night.

The Co-operative then offered top judge one’s driving over a 90 day period and refunds a portion of the premium paid if you have driven well. Needless to say, if you drive badly, you have to pay more. What you could do is always compare prices for insurance from multiple companies. Some older drivers and women may find no savings or higher premiums because of the terms of the telematics policies. It is also important to look at what no-claims bonus you have and how big a excess you’re prepared to accept. That said, low mileage drivers will usually find there are features to the back box policies not available on the conventional policies.

We’re entering a time when there will be some confusion in the market. Even now, there are many products and choosing between them is not easy. Remember everyone is searching for cheap car insurance so keep talking with friends and monitoring sites like this with up-to-date news. Making the best decisions on car insurance rates without advice can be a challenge.