Car insurance renewal is something that a lot of people tend to put off until they absolutely must settle for a quote. While there can be benefits to leaving things till the last minute, the majority of advice out there will tell you to take time finding a policy that’s absolutely right for you before you decide to commit.
Average premiums have fallen by 2%
The Association of British Insurers (ABI) Premium Tracker was introduced in 2012 as a means to calculate how much motorists pay for their insurance.
Recent reports from insurers have claimed that the average car insurance price is set to decrease roughly 2% for the first time in two years. This means that the average price for a year’s cover is now at £768 – a £781 decrease from the same time last year. It’s thought that this is down to the government’s review of the way whiplash claims are calculated alongside a change in the Ogden Rate, something that determines how much insurance companies need to pay out in the case of an accident.
However, the ABI has claimed that the price of insurance is largely down to seasonal trends and the reason that premiums tend to fall at the first quarter of the year is the introduction of new car registrations in March, boosting demand for motor insurance and thus leading to more competition within the industry.
Many drivers failing to see the benefits
Despite this apparent drop, there are many motorists that have failed to see the benefits so far. In a study of 2,000 UK motorists, it was found that 59% had failed to switch insurer even though premiums for loyal customers had risen by an average of £45. With that in mind, other factors including gender, age, and location meant that some motorists were missing out on the savings.
In general, those that are older and more experienced behind the wheel will pay less for their car insurance, but these results showed that 68-year-olds had noticed an 8% increase over the past four years. The same goes for young drivers, with the average 21-year-old forking out an extra £38 bringing their yearly total to somewhere around £1, 621, and 17-year-olds having to come to terms with a staggering £2,003.
Location-wise, if you’re a motorist in central London, you’re also likely to see costs fall, whereas those in Scotland have seen a 6% rise.
Regardless of changes in EU law back in 2012, stating that insurance companies must no longer discriminate based on gender; male drivers are still more likely to pay around £95 more than women. Insurers claim that rather than any discrimination; this price gap is because men have more driving convictions than women, increasing the cost of their claims.
To make the most of this price drop, experts continue to advise that motorists shop around for the best deal by using established price comparison websites such as Call Wiser.
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