Wednesday, October 27, 2021

WHEEL DEAL Car insurance prices drop £ 100 to a six-year low – so you can get the best deal

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The British have been hit by a number of price hikes over the past few weeks, but for motorists at least, there is good news: the cost of car insurance is falling.

 

Research by bewrtten.com found that the average car insurance premium has fallen by £ 100 over the past 12 months, to a six-year low.

 

Prices are down 16% year over year – the biggest quarterly decline since 2014, according to the comparison site.

 

The average premium is now £ 514 for UK drivers.

 

That will be a welcome saving for households whose gasoline prices have climbed to an eight-year high and energy bills have skyrocketed.

 

The latest auto insurance price index found that motorists in Inner London, Manchester and Merseyside saw the largest reductions in insurance costs.

 

Motorists in the capital could see their premiums drop as much as £ 164 year-on-year – but it’s still the most expensive place in the UK to insure a car with an average cost of £ 804.

 

Those in Wales have seen the smallest drop in prices at £ 53, but their premiums are much cheaper, averaging £ 346.

 

Younger drivers, who pay the most for insurance, also saw premiums fall by 11% in the past year. The average premium has dropped by £ 176 to a still expensive £ 1,379 a year.

 

Male drivers have seen a larger drop in insurance costs, by £ 103 to an average of £ 549. In the meantime, the average premium for women drivers will drop by £ 88 to £ 456 per year.

 

The Covid pandemic is a major reason auto insurance costs have come down.

 

With last year’s bans, many people drove far less than usual, which means fewer claims have been made.

 

According to Confused.com, the police even reported a 26% decrease in the number of traffic accidents they handled.

 

As a result, the effort for insurers has decreased in the past year and they can reflect this in their prices.

 

But people are being urged to get a decent deal now as prices could go up in January when new rules go into effect.

 

Martin Lewis is one of those experts who warn drivers not to look around now, even if their policy does not need to be renewed yet.

 

From the new year onwards, insurers will have to charge new and existing customers the same price.

 

Historically, people who stayed with their insurers year after year without haggling paid compared to those who looked around.

 

New customers were offered significantly cheaper offers in order to induce them to switch providers.

 

But new rules put in place by financial regulators will remove loyalty penalties.

 

While this may seem positive, it could pocket a few people.

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