-
Average car premiums rise 12 per cent in year to Q1 2016
-
Drivers living in Tonbridge (TN) see prices surge by almost a quarter
-
Younger drivers buck trend with surprise fall
-
Drivers urged to shop around to secure savings of up to £232
-
Car insurance premiums rose by an average of 12 per cent from Q1 2015 to Q1 2016, new analysis reveals
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “Until 2014, British motorists benefitted from a very competitive car insurance market, with prices broadly dropping year on year. However, since then it’s been a bleaker picture, especially for drivers in towns such as Tonbridge and Dartford, who have seen premiums rise sharply.
“Drivers will want to know two things - why are premiums going up, and what can I do to make sure I’m not paying more than I have to? One of the main reasons for overall price hikes is the increase in insurance premium tax (IPT) from 6% to 9.5% in November 2015 (it will rise again to 10% of premiums in October 2016). Insurers are also charging more because of high levels of pay-outs for whiplash claims, many of which are thought to be fraudulent.
“Local price increases could be the result of a surge in accidents or car crime – each area will have its own story. But whatever the reason, higher quotes for renewal premiums should stimulate drivers to start hunting for cheaper prices. They should certainly not stump up what their existing insurer is asking for without checking if there’s a cheaper alternative.”
Overall, the analysis painted a better picture for younger drivers. Although premiums remain high for 17-19 year olds, the average policy fell by two per cent year-on-year in Q1 2016, from £1,070 to £1,052.
Regional winners
Drivers in Inverness (IV) saw the smallest rises, with policies increasing by just nine per cent on average (£24). Llandrindod Wells (LD) is also among the postal towns which saw the lowest rise – just 10 per cent (£27).
Those in Inverness (IV) also benefitted from the lowest overall premiums at £276, while drivers in East London (E) paid the most – £922. However, East London is also in the top five postcodes with the lowest year-on-year hikes in Q1, with premiums rising just 11 per cent.
Kevin Pratt continues: “Car insurers are continuing to hike premium costs, so it’s more important than ever that motorists shop around for cover, to make sure they’re getting the most for their money. Insurers like to save their best deals for new customers, so there’s almost always a better deal to be had by switching providers. Using MoneySuperMarket can save motorists up to £232[3] on their policies.”
|
