UK drivers aren’t benefitting from slashed car insurance prices over past few months
Car insurance prices have been fluctuating recently after hitting record highs towards the end of last year, before dipping again in 2018.
Prices for average premiums are now sitting at ¬£752 which is a massive ¬£95 cheaper (11 per cent) compared to this time last year.
This is based on more than six million quotes a quarter¬†from Confused.com and powered by Willis Towers Watson.
New research has found, however, that almost two thirds (62 per cent) of customers are not benefitting from savings.
The research found that drivers that remain loyal to the same insurer are not benefitting from savings.
According to the research, average premiums renewed with the same insurer between April and June 2018 went up by ¬£49 on average.
Drivers staying loyal could, therefore,¬†be missing out on saving and the study found that 58 per cent are sticking with the same insurer.
However, there is a top tip that could see drivers save drivers up to ¬£613 on average.
The research shows that there is a ‚Äėsweet spot‚Äô 21 days prior to the renewal date which could see them make massive savings.
Drivers snapping up insurance on the day of renewal could end up paying twice as much (¬£1,264) on average.
A change to the Ogden Rate is believed to be one of the factors turbocharging a drop in insurance costs.
The UK Government dropped the rate to -0.75% in March 2017, meaning insurers had to pay more for personal injury claims, which drove drivers‚Äô premiums upwards significantly.
In some degree, insurers seem to have recovered from the shock of this dramatic¬†change¬†and have been able to soften their prices.
However, the research suggests that insurance companies are anticipating the introduction of the Ogden rate and are therefore reducing their rates, which could cause price drops to plateau.
Louise O‚ÄôShea, CEO at Confused.com comments:¬†‚ÄúIt is great to see the Government has¬†recognised¬†the steep drop in the Ogden Rate has over-inflated car insurance¬†prices,¬†and is now taking corrective action.
Auto-renewed premiums could costs up to ¬£50 more, finds the research
‚ÄúAnd the clampdown on fraudulent whiplash claims announced earlier is also proving to be a positive for motorists. Insurers are reacting to these changes which means premiums have started to drop once again, making it more affordable for drivers.¬† This is brilliant news!
‚ÄúMy experience tells me two things I am certain of. Firstly, car insurance prices are dropping, and that is excellent news for motorists. But they will start to increase once again, although exactly when this will be is hard to predict.
‚ÄúSecondly, while prices are decreasing, drivers can still save money. Even if their renewal price is cheaper than the amount they paid the previous year, it is highly likely that there will be another insurer out there who will offer a better rate.
‚ÄúAnd we are so certain of this at Confused.com that we are offering to beat drivers‚Äô renewals, or give them the difference, plus ¬£20.
‚ÄúFor both these¬†reasons¬†it is very important for drivers to shop around for car insurance as money can always be saved.
‚ÄúWe understand the market and the best day for drivers to get the best price available to them as an individual, and so we send out an email the day before the optimum day to remind them to renew and get the best rate.¬†
‚ÄúPlease don‚Äôt pay more than you have to – take a few minutes to check your renewal letter and get a new price from Confused.com. We could easily save you up to ¬£289.‚ÄĚ
Justice Secretary David Gauke¬†says:¬†¬†‚ÄúCar insurance premiums have been too high for too long. We know fraudulent whiplash claims are pushing up prices which is why we launched a major crackdown to put this right.
‚ÄúOur reforms, as well as anticipated changes to the Odgen rate, will ensure fairness for both motorists and¬†claimants¬†and will see insurers pass down savings to their customers.
‚ÄúHard-pressed motorists will welcome this fall, for the second quarter running, leaving them with more cash in their pockets.‚ÄĚ