Insurance premiums have fallen by 11%
It has recently been announced by MoneySupermarket that car insurance premiums have fallen by around 10.6%, on average, since last year.
MotorQuoteDirect, a leading car insurance website, has also taken a look at the average price of motor insurance quotes and has found that there has been around an 11% decline, on average, in the cost to insure a car in 2012.
Joe de Vries, of MotorQuoteDirect, has been explaining the possible reasons why we have seen this decline in the cost of a quote:
“One reason could be the fact that, due to the inflation of car insurance in 2010 and 2011, a government inquest was carried out in order to address the situation and to halt it from escalating further. Since this, there has certainly been a reduction in premiums.
“Additionally, there has been a lot of negative press surrounding the cost of running a car on a day to day basis, particularly with regard to fuel prices hitting record highs this year.
This too may have caused insurers to adjust their premiums so as not to end up pricing people out of car ownership.
However, the primary cause can be attributed to good old fashioned competition between insurers.”
MotorQuoteDirect understands that this competition between insurers has driven insurance prem
iums down in 2012 due to key providers of insurance looking to attract new customers and looking to tempt customers away from the competition.
This then, naturally, has a knock-on effect resulting in the majority of insurers lowering premiums.