The simple truth is a lot of insurance companies have been making losses for the last couple of years. Several insurance companies have pulled out, are selectively pulling out, or are raising their premiums across the spectrum. An example of this is HSBC, with whom a lot of you were/are insured with. They pulled out last year leaving a giant hole, and many brokers the headache of placing this type of trade business this year for prices similar to last year – no easy task when HSBC were one of the cheapest insurers in the land!

Other insurance companies blame the rise in premiums on personal injury claims and fraud.This is not only true for your policies, but for the general public aswell. The AA states that the average comprehensive car cover rose a whopping 18 per cent in 2009 alone – with more rises in 2010 expected!

It seems a claims culture is becoming “embedded” in the British motorists psyche and that insurance company payouts will not fall in the not too distant future. Aggressive claims management companies and personal injury specialists have also come under the spotlight accused of helping to promote this phenomenon.

And lets not forget a rising approximate bill of £2 billion a year for fraudulent motor claims!

These reasons, along with a snowy winter and the conclusion that price comparison sites have artificially kept the market low for insurance companies, means only one thing – price hikes for Jo Public.

Your insurance is a sizeable, yearly expense which most of us begrudgingly pay, but now it seems you may have to try that little bit harder to tread water on price.

Contacting a good broker, who can help to identify where you can/should save money, can definitely help to keep your rate down - but whichever way you look at it prices are likely to rise, at least for some, this year for Motor Trade Insurance.

This year the motto is – “Shop round and save money!”

Written by Customer Service Manager of Think Insurance,Chris Roche. For more information on motor trade insurance, taxi insurance or other automotive insurances check out our site and give us a call for a cheap traders insurance quote.

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