Automobile insurance prices drop to six-year low – Manchester Night Information
Now could be the best time to upgrade your auto insurance as the prices are cheaper than in years past.
Car insurance costs are down nearly £ 100, their lowest level in six years.
According to Confused.com's auto insurance price index, prices have fallen 16 percent in the past 12 months.
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This means the sharpest drop in prices since the beginning of 2014.
The index is based on more than six million quotes per quarter.
For motorists, this means they can now pay an average of £ 514 on their car insurance.
The drop in prices was influenced by driving habits during the Covid-19 pandemic.
During this time, a study by Confused.com found that British motorists were not driving around as often as normal.
Police also reported a 26 percent decrease in the number of accidents over the period.
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For this reason, the insurers offer cheaper prices due to the lower risk when driving a car – since fewer claims have occurred, car drivers have saved significantly when buying car insurance.
While male drivers, on average, spend more money on auto insurance, they have reported that they are now saving more money than women on purchasing auto insurance.
On average, male drivers saw an average decrease of £ 103 from the previous year.
Meanwhile, female drivers saw an average drop of £ 88 year over year.
In some regions, prices have also fallen particularly sharply.
In Manchester, the price of auto insurance has fallen by £ 159 (20 percent) over the past 12 months, now paying an average of £ 646 for insurance.
Despite the drop in prices, drivers should be careful and get a good price when they see it – data suggests that prices are rising again in some areas.
Louise O'Shea, CEO of Confused.com, comments, “Starting in January, there will be some major changes to insurers' pricing and there is concern that customers will accept a flat rate or a slightly lower rate and simply go for one Decide to extend. However, the savings we are seeing today prove how competitive insurers are.
“And this is reflected in the fact that customers have saved an average of almost £ 100 by choosing not to settle for their renewal price and browsing around instead.
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“It's also likely that prices will go up as people return to work and spend more time on the streets, which means the risk of accidents is much higher.
“We are already seeing this in some areas of the UK. And that means the total price of insurance will go up, and so could your renewal.
“It's important to remember that the FCA ruling does not prevent insurers from increasing your overall price.
“Unfortunately, many other household bills are also increasing, especially energy costs. Therefore, it is more important than ever for consumers to save while they can.
"Right now this can be done by shopping and saving on auto insurance. Personally, I was able to save money on my most recent auto insurance renewal, with the added bonus of getting a free £ 20 Halfords voucher just through a simple change!
"Please do not be satisfied with an offer from your insurer. We know there will always be savings. We are so confident of this that we can offer you to beat your renewal offer or pay you the difference plus £ 20. "