Confused.com: Car insurance premiums

Debra Williams, Managing Director of Confused.com, the UK's leading car insurance price comparison service, comments on Deloitte's findings that third party car insurance has risen by 10% and comprehensive cover by 4% over the last twelve months: "These finding endorse our predictions of earlier this year that premiums would rise by 10% to reflect increasingly unsustainable claims ratios - the money paid out by insurers on claims, versus the money brought in from premiums. Many insurers have seen ratios of 110%, meaning that for every £100 brought in from premiums, £110 is being paid out.

"Reserves from more profitable years have been used by many in the industry to soak up the difference and maintain their competitiveness, but this can only last so long, and if the cupboard is becoming bare we can expect to see further premium rises over the coming months.

"In practical terms, what this means for the driver is that even if you managed to find the best car insurance deal last year, your insurer may have been forced to up its premiums this year, so complacency could really count against you when it comes to annual renewal.

"However, it's not all doom and gloom. Not all insurers have been hit with crippling claims ratios, so there are still some very competitive deals to be found. It is for this reason that by doing your homework, looking beyond the marketing hype and shopping around, drivers can avoid large insurance hikes and keep premiums down to manageable levels."