The Fixer: Car insurance hike

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The Fixer logoHave you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
My car insurance runs out next week, but the renewal quote I have received from my insurer has risen by more than £100 - despite the fact that I have the same car as I had last year and have a year's more driving experience under my belt.

I am only 19, so I am prepared for my premiums to be high. However, I thought that they would decrease as I got older and gained more experience.

I have not made a claim on my policy, nor have I had any speeding fines, but I still feel like I am being punished for something.

Why has my premium gone up by such a large amount and is there anything I can do about it?

A Jackson, Brighton

Dear Miss Jackson,

Insurers base their premiums on a number of factors, including the area you live.

As you have changed your address - from your parents' home in Guildford to your university address in Brighton - this may be one reason you are not being asked to pay more.

The fact that, since December 2012, insurers are no longer prepared to take gender into account when pricing policies also works against you and other female drivers of your age.

This is because you now have to subsidise young male drivers, who are statistically much more likely to have a serious accident. Figures from comparison website MoneySupermarket indicate that this has pushed prices for women in your age group up by around 20%.

You are right to be upset about the increase to your premium, though. And you do not need to take it lying down.

The best way to fight back is to use a site such as MoneySupermarket.com or Confused.com to search the market for the best deals and then take the cheapest offer - while checking that it provides the cover you need.

This way, you may well find you can cut your premium to less than you paid last year.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.
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