Are we seeing the end of falling car insurance premiums? According to the car insurance premium-pricing index produced jointly between Confused.com and Towers Watson this could be the case.
Are average car insurance premiums likely to continue to rise?
This index has revealed that fully comprehensive car insurance premiums rose on average by 2% in the last quarter of 2014. In the third quarter of last year there was also a small increase.
However, over the full year, premiums dropped by around 8% with the average cost of comprehensive car insurance falling to about £594 – a reduction of £51. We are sure you will agree that this annual reduction is no small sum with many people in the UK still struggling from a financial perspective due to the recession.
The general feeling in the industry is that prices may well continue upwards so it is important that you try to get the most competitive package. In doing so, it is vital that you still select the cover that meets your requirements. After all, there is no point in trying to save yourself money each month with an inferior level of cover.
For instance, if you own a car costing £30,000 and have very few savings would you settle for anything less than comprehensive car insurance? If you had chosen third party or third party fire and theft cover and were involved in an accident that was deemed to be your fault and your car was written off how would you go about replacing it with a comparable vehicle? If you had fully comprehensive cover you should be able to find a suitable replacement.
Some ways of getting a lower premium could be to shop around for the best deal, park your car overnight in your garage rather than on the street, fit security devices such as an alarm and tracking device and agree to pay a higher voluntary excess.
We trust that the above has been of interest and is an aid in helping you source cheaper car insurance.
