Car insurance premiums - the warning light is on

Hayley Parsons, Chief Executive of leading insurance comparison website Gocompare.com, comments on increases in car insurance premiums highlighted by the AA's premium index: "The insurance premium warning light is well and truly on. Motorists who don't switch their insurance this year will potentially pay a very high price for their misplaced loyalty. The best way to avoid the double-digit increases predicted by the AA is to stick your own double-digits up to your renewal quote and shop around for a better deal!

"Costs are rising and the insurance industry needs to sort this out, but at the moment the only solution seems to be to increase premiums. However, that doesn't mean drivers have to accept these kinds of increases.

"The average price of the rates on offer and the best price for you are two completely different things. Not all insurers are increasing premiums and individual providers will judge each particular risk differently.

"In the main, insurers don't reward you for your loyalty - and this year it looks like those people who don't switch will be subsidising those that do. The vast majority of people using gocompare.com in the same three month period to the end of December 2008, managed to reduce their premium - on average by £207.

In the last 12 months we have also seen the arrival of a number of very competitive ‘comparison site only' insurers and brokers, so one of the best ways to ensure you get the right policy at the right price is to use a comparison site'