Car Insurance Premiums Fall By Highest Rate In Six Years

When it comes to car insurance, good news is rare. Nevertheless, new data has revealed that the cost of premiums has fallen at the highest rate recorded in six years…

Car Insurance Premiums Drop

On average, the cost of car insurance has dropped by a healthy 14% over the last twelve months; the largest drop recorded in six years. That’s according to comparison website Confused. The figures concern quotes, however, rather than policies drivers actually purchased. Nevertheless, they’re based on the experiences of some six million motorists. On average, drivers are currently being charged £87 less per policy. On average, a motorist is forking out £538, whereas men are paying £574 and women are paying £477 respectively.

Confused also ran a survey of some 2,000 drivers and discovered that average mileage is down by 43% over the same period; indicating, for all means and purposes, why costs are down. To reflect the fall in mileage, some insurance providers have offered ‘payment holidays’, others have made the gesture of offering customers a rebate of £25.

“It Only Seems Right” 

The insurance industry in the UK, despite the country’s size, is actually the fourth largest in the world; being worth around £1.8 trillion, according to the Association of British Insurers. Nevertheless, it’s certainly no stranger to controversy. Its practice of ‘loyalty pricing’, for instance, is currently under investigation by the Financial Conduct Authority. The organisation believes people without regular access to computers and the Internet, such as the elderly, are paying more than they should because their policies are on auto-renewal.

Louise O’Shea, Confused’s chief executive, commented on the decline in prices. She said, “it only seems right that our car insurance costs are cheaper”. She did stress, however, that “these lower prices are only benefiting those who shop around”. So, if your car insurance is coming up for renewal, now’s the time to consider your options and, potentially, find another provider if you want to save a significant amount of money.

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