Car insurance prices increase
The cost of car insurance appears to be creeping up once again, after a period of decreasing costs changes direction.
Car insurance prices in the UK have increased by eight pounds (one per cent) over the past quarter, on average – the first increase in over 12 months (Q2 2017), with the average cost at £760. That’s according to car insurance price index in the UK based on more than six million quotes a quarter from Confused.com and powered by Willis Towers Watson.
While this might seem like a small increase, it may be indicative of a change in direction for declining premiums. In fact, the last time prices took a similar turn, the cost of car insurance soon started to accelerate again. The price of premiums crept up from £591 in Q1 2015 to £600 the following quarter, with prices going on to increase 19% (£115) over the following 12 months (Q2 2016 – £715).
It seems drivers are already starting to see the cost of their insurance creeping up. A nationally representative survey of UK drivers found that more than half (54%) of motorists who renewed their car insurance between July and September 2018 saw their premium go up by £50 when they opened their renewal notice, on average, with insurers failing to reward loyal customers. Although, worryingly, three in five (60%) of motorists who renewed their insurance during these months stayed with the same insurer, suggesting they did not seek a better deal elsewhere.
And with the cost of fuel creeping up to record prices, motorists are no doubt feeling the pinch. To help motorists save on the cost of their car insurance, Louise O’Shea, CEO at Confused.com is urging drivers to check their renewal price and shop around to find a better deal before committing to renewing, as it is highly likely that there will be another insurer out there who will offer a better price.