Automobile Insurance Costs Drop £ 100 To A Six Yr Low – How To Get The Greatest Deal … – The Solar
The British have been hit by a number of price hikes in the past few weeks, but there is good news for motorists at least: car insurance costs are 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.
Car insurance prices have fallen – but they could rise again soonImage Credit: Getty – Contributor
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.
Why is car insurance cheaper?
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.
Martin warned this week, “My guess is that companies aren't just cutting renewals to match newbie's prices. They'll drop them a bit and increase new customer rates – they meet in the middle.
"With the new regime officially kicking off in January, insurers will likely start changing their pricing algorithms sooner, so the clock is ticking and the cheapest prices may disappear within weeks or months."
He advises that home and auto insurance customers shop now to get the best deals before they disappear.
You should be able to cancel your insurance even if you have medium coverage and are getting a pro-rated refund.
How to find the best deal
As motorists are back on the road and drive more, as well as the new regulation, insurance prices could soon rise again.
That said, when your current deal is coming to an end, it's time to look around.
And even if this is not the case, it can make sense to get out of the current insurance contract early in order to benefit from lower prices, as long as there are no high exit penalties.
Louise O & # 39; Shea, Chief Executive at Confused.com, said, “Prices are likely to go up as people get back to work and spend more time on the streets, which means the risk of accidents is high higher.
“We are already seeing this in some areas of the UK. And that means that the total price of the insurance goes up and your renewal could too.
"Unfortunately, many other household bills are also rising, especially energy, so it is more important than ever for consumers to save while they can."
Comparison sites like Go Compare, Compare the Market, Uswitch, and MoneySupermarket are good places to start.
It's usually worth using more than one as different comparison sites have different offers.
Some insurers, most popularly Direct Line, don't use these comparison sites, so it's worth looking for deals directly on their websites.
Don't just choose the cheapest policy – consider factors such as the deductible you will have to pay in the event of a claim and any insurance limits.
It's also worth checking out sites like Quidco and TopCashback to see if you can earn cashback too.
Other tricks that can help you reduce car insurance costs even further. For example, research by Compare The Market found that policies are £ 319 cheaper if drivers switch three weeks before their renewal date, compared to the day a policy ends.
Paying annually, getting a black box, and adding a named driver are other tactics that can help. We have summarized the best nine strategies in our guide.
Optimizing your job title is another way to get hundreds off your bill. That doesn't mean lying – which is a bad idea – but rather deciding whether to choose “cook” or “cook”, for example.
Martin Lewis & # 39; MoneySavingExpert has developed a nifty tool to help you do this in a legitimate way, not in a way that will void your insurance.
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