Car insurance hikes are not inevitable

When renewing car insurance, premium hikes need not be taken quietly, it has been advised.

Instead, individuals are told to compare the market in order to determine whether a cheaper policy might be available.

The guidance comes from Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers Association.

"Some insurers might be putting up their rates by six per cent," he concedes.

"But others wont be and theres always a chance that someone else around the corner will have a better deal."

The six per cent figure was determined by the AA, which reported recently that average premiums have risen by such a figure in the past year to a typical cost of £682.

Mr Trudgill observes that car insurers have been operating at a loss for a decade, making such a rise in prices "inevitable".

He points out that six per cent is still below the rise in other forms of insurance, such as personal injury protection.