Premium Costs
Many people complain that obtaining car insurance is complicated and costly. Here are a few reasons why this is the case:

• Car insurance is complicated: Insurance complanies need to weigh up the risk for each individual in order to determine the premium for a policy. However, these risks are dependant on many factors including the type of vehicle, the area the where vehicle is located, the type of use. They must also consider the individual's driving record, claims history, occupation etc.
  Each insurer assess this data differently, therefore to retrieve quotes from as many insurers as possible it is necessary to gather as much information as we can.
  
• Expensive: Actually, compared to some countries, car insurance in the UK is quite cheap and insurers have actually been losing money. Two factors that do boost the cost of insurance are the fact that insurers have to contribute to a fund, which pays for those who drive without insurance, and they now have to pay for any treatment you may have if admitted to hospital following a motor accident.
  
• And more expensive: As mentioned, car insurers have been losing money. They have lost money for seven out of the last ten years. Hence, despite pressure to keep rates down through competition, rates are now rising so that insurers can make money again.
  
• Varied: Premiums vary greatly between companies because they use different methods to calculate premiums. Companies which specialise in certain areas may be prepared to discount more in those areas than in others.