Good news for motorists, as car insurance premiums drop by 11%
Premiums drop by 11%
Car owners have had some rare good news. New research has revealed a 10.6 per cent decrease in the average cost of car insurance premiums. The annual cost has fallen to £478 per year, according to a report by price comparison website MoneySupermarket.
After a prolonged period of premiums rising, things are now looking up as car insurance deflation affects the UK as a whole. The degree of reduction varies according to postcode, however.
The most significant changes took place in Cleveland and Harrogate, which observed a 14 and 13.6 per cent decrease respectively. But West London benefited from a mere 3 per cent decrease.
The cost of car insurance also differs widely between UK regions. The cheapest average premium in the nation is attributed to Perth at £285.95; the most money is exacted from East Londoners at a demanding £938.10.
Competition between car insurers, intensified by comparison sites such as MoneySupermarket.com, has been a major cause of the deflation.
Nevertheless, officials believe shrinking premium costs won’t last for much longer.
Kevin Pratt, insurance spokesperson for MoneySupermarket.com, said: ‘Although our analysis shows that prices appear to still be falling for motorists, there are no guarantees.
‘I urge those who receive their car insurance renewal soon to act quickly to benefit from the lower car insurance prices being offered. Shopping around for cover around 30-40 days before your premium expires may make a real difference to the price you’re quoted.’
Comparison sites have made it possible to hunt down the cheapest prices with a few mouse-clicks, piling pressure on car insurance providers to keep insurance premiums from rising too high for new customers.
However, this is often at the expense of pricier renewal quotes being offered, making shopping around vital.
Drivers saw sharp inflation in 2010 and 2011, with average insurance costs peaking at £554 a year, which means that this year’s deflation is a refreshing dose of good luck.
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