Car Insurance Prices Starting to Rise

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The fall in car insurance premiums that motorists have enjoyed over the last three years are set to end, according to a number of car insurance experts.  The average cost of cover was pushed down by a third – or £275 – during this time.

Numerous predictions that ongoing price decreases were unsustainable seem to be correct, with motorists in some regions and certain age groups hit harder than others as over the last quarter, premiums have increased for the first time since June 2011. So says Steve Sanders, Finance Director at Confused.com, commenting on statistics from the company’s quarterly insurance price index based on four million quotations. The biggest increases have been experienced by those in the South of England. 

It’s therefore more important than ever for consumers to shop around for the best prices, and use price comparison websites to save time and money.  

Cost of car insurance

Insurers have to weigh up the risk you present when setting the cost of your cover.  Many factors will influence the premium, including these that you may not be able to influence:

  • your age, occupation, driving experience and driving history;
  • the area in which you live and where your car is parked – eg garage / driveway or public road;
  • if you have a ‘no claim bonus’ or not, and for how many years this applies;
  • the number of drivers insured on your car.

Even though you may not be able to change any of those variables, there are some listed below that you could tweak which would make a difference to the premium.

Top tips for cheaper car insurance

1.       Your choice of car

The type of car you drive – the make, model, value, engine size, security features etc. will all affect the premium price.  The general rule is the larger the car the bigger the premium.  Do you really need a big car or could you downsize?

2.       Increase your voluntary excess

The ‘excess’ is the amount you are prepared to pay in the event of a claim.  Raising the excess figure can decrease the insurance premium. 

3.       Know how many miles you drive per year

The total mileage per annum can make greatly impact the premium.  For example, drivers who do less than 5,000 miles per year can get a worthwhile discount.  It’s surprising how many people aren’t certain of their annual mileage.  A good estimate can be obtained by comparing the mileage figures on your last two years’ MOT certificates.

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