Back to black?

Back to black?

The past three months have finally seen private motor prices increase en masse. Tom Cooper analyses this and its potential for a return to market profit.

THROUGHOUT 2009, insurers and other pricing indexes claimed private motor rates were on the rise. But, arguably, if 99 brands out of 100 increase their rates on a price comparison site and yet that last one does not, picking up the business, can you honestly say rates are on the up if the consumer continues to pay at a lower level? In our last analysis, the first ‘green shoots’ were noted with more rates rising than falling but there was a pressing need for the big players to blink (www.postonline.co.uk/1559312). Well, it would appear they have now—en masse—and at levels even the most optimistic would have scarcely believed possible. For a whole year, best prices refused to budge but, in the past three months alone, this figure has climbed 8% (see table, below). For more than 100 brands to move like this in unison bodes well for 2010, but will everyone continue this approach?

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*Taken from the Post Magazine January 2010