The car insurance Industry is undergoing such fierce competition with banks, traditional Insurance Companies and new entrants into the Car Insurance space from Abroad that it is always a good idea to check that you are getting the cheapest car insurance by comparing motor insurance quotes every year or two.
As insurance companies are put under increasing pressure to lower premiums in order to gain market share they are focussed on internal cost cutting in order to reduce premiums and still remain profitable to keep their shareholders happy. The more car insurance customers they have and the bigger the share of the car insurance market they are able to gain, the more they are able spread the risk. This results in lower premiums.
It is not to say that it is best to choose your car insurance provider from the biggest insurance companies but that they are willing to negotiate the terms of your car insurance policy in order to give you the cheapest possible premium to get you as a customer. The smaller or newer entrants into the market are very aggressive in acquiring new customers with lower premiums and better cover. These newer Insurance companies will have their customers policies re-insured with the worlds largest re-insurers and need to meet the financial services boards requirements in order to offer Insurance products which gives you peace of mind when conducting business with these companies.
There is a big drive by the insurance Industry to get a much higher percentage of cars on the road covered as it currently stands at around 70% of cars on the road are not insured. What this means is that the companies risk is even greater as they are unlikely to be able to recover the costs of an accident if you are not at fault and the car that causes the crash is not insured, resulting in higher premiums.
As they progress and get more and more cars insured, the risk becomes less and if you have a good risk profile, are in a very good position to negotiate cheap insurance. The very best way to ensure that the car insurance you are paying for is the cheapest car insurance is firstly to use the multiple quote request form and to get new insurance quotes every year.